Why the Olympics is like life/ Updates on the Housing bill that you want to know/ $7500 Tax Credit Article/ Repair $$ available for City of Dallas/ Ta

Why the Olympics is like life/ Updates on the Housing bill that you want to know/ $7500 Tax Credit Article/ Repair $$ available for City of Dallas/ Talking Points Tonight airs the opening ceremonies of the Olympics. I love the Olympics- Heck, I will even admit that I am an Olympic junkie. The main reason that I love the Olympics is because it reminds me that they are about choices -just as life is about choices. These Olympians choose to perfect their game 10-12 hours a day, they choose to not complain about how cold it is (or hot it is) or that they are sore, or tired or just dont feel like working out today. We, in the real estate and mortgage industry, also make choices daily. We can choose to be better every single day in our craft (it is a choice) or we can choose to sit around and complain that we are tired, or the economy is bad, or dont feel like doing our necessary disciplines to get the business in the door daily, etc. Someone is going to win the gold in every event in the Olympics. Someone is going to be the agent or mortgage lender of choice for those buyers that are buying and those sellers that are selling. Why not me- Why not you? So as we celebrate the Olympics for the next two weeks, lets take their example of choices and make great daily choices for our businesses also. Go USA! Linda Just wanted to update you on the HR 3221. Below you will find information on two guideline changes that has not received a lot of attention as well as two that have. We will continue to keep you updated as we know it. Many of you have asked that we update you more, so we are here to make it happen. FROM HR 3221 Cash Investment Assistance and Prohibition of Seller-Funded Down payment Assistance: Requires at least 3.5 percent cash or its equivalent investment by mortgagor. Prohibits seller-funded down payment assistance but allows other down payment sources such as Community Development Block Grants and City and State bonds. Permits amounts borrowed from a family member to be treated as cash or cash equivalent as long as any lien for repayment is subordinate and the total liens do not exceed 100 percent of the value of the property plus appraisal, inspection and other fees. Currently FHA indicates that while the provision appears to be self implementing as of the date enactment, under case law, the effective date is dependent on issuance of FHA guidance. The down payment assistance limitation applies where the mortgagee has issued credit approval for the borrower on or after October 1, 2008. Note, however, the industry may putting a earlier deadline.... Stay tuned. Our sources tell us that the chances of the repeal of DAPS going away have about a 20% chance of passing, so the possibly of DAPS being prohibited after credit approvals of October 1 (or before depending on the industry) are @ 80%. Make certain that you are telling your buyers that need a DAP to purchase now as there is a very, very good possibility that these are gone in less than two months. Nationwide Licensing and Registry System Encourages states, through the Conference of State Bank Supervisors (CSBS) and American Association of Residential Mortgage Regulators (AARMR) to establish a Nationwide Mortgage Licensing System and Registry for residential loan originators. Registry is to accomplish several objectives including establishing means by which residential mortgage loan originators would, "to the greatest extent possible, be required to act in the best interests of the consumer." "States" includes all U.S. states, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands and the Northern Mariana Islands. Coverage: Covers all persons who take residential mortgage loan applications and offer or negotiate mortgage terms except administrative, clerical personnel or those who only perform real estate brokerage activities or who are only involved in extensions of credit relating to time shares. Standards: Establishes minimum standards for licensing and registration as State-licensed loan originators including that they must: never have had an originator license previously revoked; pled guilty or been convicted of a felony during the seven year period prior to licensing or at any time if such felony involved fraud, dishonesty, breach of trust or money laundering; demonstrate financial responsibility, character and general fitness; complete pre-licensing educational requirements; pass a written test; and meet either net worth or a surety bond requirement, or pay into a State fund. Default Licensing and Registration Law: Requires HUD to establish a backup licensing and registry system for the licensing and registration of loan originators for any state that fails to establish a state system within one year from enactment or two years for states where legislatures meet biennially. Federal Regulators: Requires federal banking regulators to jointly establish a registry of loan originators for federally regulated bank and thrift institutions and their subsidiaries. Fingerprints and personal experience information on these originators is to be furnished to the Nationwide Mortgage Licensing System and Registry. Annual Report on Licensing and Registration: Requires HUD to report annually on the effectiveness of licensing and registration provisions. Truth in Lending Act (TILA) amended to expand the mortgage loans subject to early disclosures within three days of application. Also requires disclosure seven days before closing and any correction of an APR three days before closing. Fees: Requires consumers receive early TILA disclosures before paying any fee, except possibly a fee for a credit report. New Statement in Disclosures: Requires a new statement in TILA disclosures involving dwelling-secured transactions: "You are not required to complete this agreement merely because you have received these disclosures or signed a loan application." Additional Disclosure Requirements: Requires disclosures to better explain adjustable rate products, through examples, including how monthly payments adjust based on interest rate changes and the maximum payment. Violations: Increases money penalties for violations. Great article on understanding the.... New Tax Credit Amounts To a Free Loan for $7,500 By Kenneth R. HarneySaturday, August 2, 2008; F01 Anyone who has been hesitant about jumping into real estate until conditions settle down should keep in mind these dates: April 9, 2008, through June 30, 2009. They mark the eligibility time span for the home-purchase tax credit created by the new housing bill. If you have not owned a house during the past three years and can go to closing before the end of next June, you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person). The new credit is expected to benefit hundreds of thousands of buyers. The specifics of the credit changed in the past month as the Senate and House negotiated a final compromise, so here's a quick overview of the credit in its final form: · The basic idea: To jump-start housing sales and clear out unsold real estate inventories, Congress is offering tax credits to pull in new buyers. Within the designated time period, buy any house -- new, old, any location or condition, any price range -- and the IRS will cut up to $7,500 off your tax bill for either this year or next. For example, if you're an eligible buyer this year and you owe the IRS $4,000 on your total 2008 income tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund. The new tax credit is what the government calls "refundable": If your tax bill is less than the credit amount, you get the difference back from the Treasury. · Eligibility rules: Do you own a home? If so, you're not eligible for the credit. Did you sell your home more than three years ago and now rent? You are eligible. You're also eligible if you have never owned a home. Close on a house before June 30, and you can claim a credit of up to 10 percent of the purchase price of the property, up to $7,500. If your adjusted gross income exceeds $150,000 ($75,000 if you're single), the credit maximum begins to phase down. You cannot claim the credit if you are a nonresident alien, financed the property using a state or local housing agency's tax-exempt bond mortgage, or do not plan to use the house as your principal residence. Buyers who use the District's first-time-buyer credit program cannot double-dip and use the new federal credit, too. · Payback: Unlike some other tax credits, this one requires beneficiaries to repay the credit. Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro rata repayments to the government on their federal filings. Over a 15-year payback period for the full $7,500 credit, the cost would be $500 a year. If you sell the house before the end of the repayment period and you have no gain on the sale, you won't be expected to pay the credit back from the proceeds. If you have a net gain, the "recapture" cannot exceed the amount of your gain. In other words, the federal government is taking on all or much of the risk that the value of your new house won't increase over time. At its core, the new tax credit functions very much like an interest-free loan for up to $7,500. You pay only the principal back over time. Rob Dietz, an economist for the National Association of Home Builders, said the new credit not only will pull first-time buyers into the market, but also will have a powerful "multiplier effect" as thousands of sellers of these credit-assisted houses buy replacement homes for themselves, thus extending the impact of the credit into the move-up segment. How do you claim the credit? If you pass the eligibility tests, simply request the credit on your tax return for either 2008 or 2009. Even if you buy in 2009, you can take the credit against your 2008 taxes by filing an amended return. The association has launched an educational Web site, www.federalhousingtaxcredit.com, with additional information for consumers. We will continue to talk about ways to market this to your buyers in the next few weeks. City of Dallas Home Repair Program: $1.2 Million Available for Citywide Home Repairs The City of Dallas Housing Department is accepting loan applications this week for their Home Repair Program. The funds are earmarked for major roofing, electrical, plumbing, gas, heating and air conditioning repairs and lead based paint removal. Available through the U.S .Department of Housing and Urban Development (HUD) Community Development Block Grants, the loans are deferred and require no repayment if the applicant continues to reside in the home for five years. Homeowners whose annual household incomes are at or below 80 percent of the Area Median Family Income, $37,240 to $57,456 depending on household size, may qualify for two major repairs. To be eligible, residents must show proof of ownership for at least two years (six months for special designated areas); citizenship or permanent legal residency; household size; income; paid property taxes; insurance; no more than one property lien and no prior assistance (with some exceptions for emergencies). To request a loan package call (214)670-5397. Talking Points To Your Clients DAY LATE, DOLLAR SHORT - Americans are projected to be assessed $52 million a day in late fees charged by credit card companies during calendar year 2008 (source: R.K. Hammer, USA Today). TIGHT SECURITY - Surveillance cameras (300,000) will outnumber athletes (12,000) by 25-to-1 at the 2008 Summer Olympic Games that begin Friday (8/08/08) in Beijing, China (source: Financial Times, USA Today). Have a blessed weekend. When we can be of assistance to you and your buyers, call us at 972-278-3400. We look forward to hearing from you. Linda Linda Davidson, Senior Loan Officer, DE Underwriter Service First Mortgage 972-278-3400 office 972-497-6452 fax 1-866-963-3777 Toll Free www.davidsongroup.net The Davidson Mortgage Group Ranking 6th Nationally in FHA/VA Purchase Units Closed! Ranking 33rd Team in the Nation in Total Purchase Units Closed! Ranking #69th Team in the Industry for Total Units! Voted #1 Area Mortgage Team For The Past 10 Years We ARE The Home Buying Experts! Your Lender for Purchase, Refinances, Reverse Mortgages and Commercial Lending!! P.S. The finest compliment that we can receive is a referral from you . We appreciate your trust! Linda The Home Buying Experts! The Davidson Group Service First MortgageLinda DavidsonOffice: 972-278-3400 Email us at:ldavidson@servicefirstmtg.comVisit our website at:http://www.davidsongroup.net