Financial Issues

Financial fluctuations, mortgage rates, laws and tax changes can have major implications on home buying and selling. As the changes and shifts take place, we will keep you posted on the issue here and direct you to more information and late breaking updates.

FYI – There is a separate section of our website devoted just to market research. There are a host of reports for your review. The most comprehensive data that we offer is in our Quarterly Market Watch Report. This report has a multi-page summary about the market in general and includes detailed data on each county, city and town and property type. Others are also available on-line for your review as well. Check it out!

 

Financial Summaries by Topic

Free Credit Reports Homestead Act Insurance Crisis Links to Financing Sites
 Mortgage 101  Predatory Lending  Prequalifing Buyers  Property Tax Rates
 Refinancing  Reverse Mortgages  Short Sale and Foreclosure  Specialty Mortgages

 


TRID Riders

“Where’s the TRID Rider?”  We’ve been asked that question many times this week and our answer is… the Berkshire County Board of REALTORS doesn’t have one.  Why?  We were one of the few organizations that elected to UPDATE our P&S agreement to cover the potential for TRID delays. If your client has been presented with a Rider to sign, please make sure you tell them to seek legal counsel to make sure that it is in their best interests.  There is NO obligation for a buyer or seller to execute a rider.  Here is a detailed explanation of why this decision was made locally – you should understand this in order to best serve your clients: (taken directly from our TRID FAQ )

Do we need an addendum like the Mass Form, to handle TRID delay issues?

No, not at this time.  Board Legal Counsel, the CEO and the President met and debated and discussed four different addendums created at the very last minute for TRID changes.  We don’t believe they are needed.  Why?

Our Berkshire P&S was changed to address how to handle adjustments without having to delay the closing, a key component to the proposed addendums we’ve seen floating around out there. In our practice, the closing attorney can calculate the closing figures if not provided for by the seller’s attorney, and they are binding. If you’re using the MAR P&S you might want to consider using the MAR Rider… but Berkshire forms were not designed for use with this rider… and only legal counsel should advise if your client executes one.

There were concerns about creating automatic extensions that don’t require buyer and seller consent.  Currently, there is no extension to the closing date without consent, and there is no compelling reason now to create one… we will continue to monitor this and may make a modification if it is discovered that the lenders or attorneys are unable to perform in the timelines we’ve established.

All addendums that were produced cited the need for an automatic extension due to compliance with TRID.  That isn’t possible.  The regulation creates no delay; an individual or institution’s failure to perform as expected creates delay.  Further, an automatic extension of the closing is not a requirement in any TRID regulation.  They buyer and seller can always agree to an extension if issues arise though, just as they could before TRID.

The addendums we reviewed did not address when notice of delay has to be given.  It is conceivable that the buyer could have the moving truck packed and on their way to closing when they learn of a delay.

There was strong consensus that our standards for performance and mutual consent should be preserved, unless we learn otherwise after roll-out and actual implementation.

Some attorneys are requiring asking us to strike “time is of the essence”.  Is that going to be removed from our Purchase and Sale agreement?

No, not at this time.  There have been a handful of law firms that routinely requested that be stricken long before the TRID disclosure issue.  Our current agreements and way of doing business hold the dates to be hard performance dates unless otherwise mutually agreed.  If the buyer’s attorney recommends that be stricken, that is a negotiable item between the seller and the buyer.

 

New TRID rules now in effect

The new TILA-RESPA Integrated Disclosure (TRID) rules for mortgage closings took effect for new loan applications on Oct. 3. The Consumer Financial Protection Bureau (CFPB) has an online toolkit to help REALTORS work within TRID parameters, and all of our Berkshire best practices and lender FAQs are available online 24/7 as well.   We are

Flood Insurance Update

We received good news about flood insurance changes from Affiliate Sharon MacEachern at Greylock Insurance.  Sharon wrote:

Great news this morning on the flood front!  As you may know (or maybe not!)…the private market flood we have been offering through Lloyd’s of London required that the dwelling coverage be written at 100% of the estimated rebuilding cost.  While their rates are much lower than National Flood Insurance Program (NFIP), if someone had a large home with a small mortgage, the flood insurance with them was often still cost prohibitive.  Lloyd’s just announced that they will now follow the model of NFIP and allow people to insure their homes just to the mortgage balance.  This could really impact Berkshire County…where a home with lots of square footage, but selling low and having a mortgage balance much less than rebuilding cost can now buy the lower amount of insurance at the Lloyd’s flood rate!

Enforcement grace period for good-faith efforts on New Integrated Disclosure Requirements

GREAT NEWS!  Berkshire REALTORS joined colleagues nationwide in Washington in May to ask our legislators for a grace period of enforcement (lender fines) for issues that may arise when implementing the new RESPA TILA regulations that go into effect 8/1/5.  They listened!  The Consumer Financial Protection Bureau will not delay implementing the new TILA-RESPA Integrated

Fannie Mae Launches HomePath for 1st Time Homebuyers

We first reported in December 2014 that first-time homebuyer closing cost assistance was on the horizon, and on April 14, 2015, Fannie Mae announced the HomePath Ready Buyer program.  Qualifying first-time homebuyers can receive up to three percent of the purchase price in closing cost assistance toward the purchase of a HomePath property, upon completion

RESPA TILA Changes Take Shape

As outlined at our Industry Luncheon today, there are changes happening to the real estate closing process on August 1, 2015.  We were fortunate to have our Board Legal Counsel, Michael Shepard, arrange to have CATIC Title Attorney Anthony Lombardi on hand to discuss the changes and the impact on real estate transactions.  [meeting powerpoint].  The

Lee Bank Platinum Sponsor!

We’re happy to thank the mortgage professionals at Lee Bank for returning as a 2015 Affiliate Platinum Sponsor yet again!!   Having been the longest continuous affiliate lender, Lee Bank has been an awesome supporter and educator of Berkshire REALTORS.  If you haven’t met all of their loan officers yet, you should do so!  They will
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