The Housing and Economic Recovery Act (HERA) Has Gone Into Effect

Today's big news is the new federal regulations regarding real estate mortgage closings.

The fours key elements you need to know:

1. If the homebuyer is financing the property, these new regulatory and investor guidelines will impact and will dictate the closing date.

2. Upfront fees cannot be collected by the lender (except for credit report fee) until initial disclosures are received.

3. The homebuyer must be provided with a copy of their appraisal a minimum of 3 business days prior to closing.

4. An increase of more than .125% in the Annual Percentage Rate (APR) from the initial Truth in Lending Disclosure (TIL) requires the TIL disclosure to be revised and reissued to the homebuyer. The homebuyer must receive a revised TIL disclosure at least 3 business days before closing, providing the homebuyer with the time required to determine if the homebuyer is comfortable with their loan choice.

Potential impacts to the APR:

· Unlocked Rate

· Change in loan amount

· Product change

· Rate re-lock due to market improvement

· Change in closing date

· Changes to fees, inclusive of settlement agent fees

The combination of these items will make anything less than 30 days closing very difficult and 45 days is a more likely scenario. Now more than ever the buyer, lender, real estate agent and title agent will need to communicate and cooperate to ensure a successful and timely closing.

For a more detailed handout outlining the new mortgage process and timeline email joan@roglianorealestategroup.com.

Positive Growth in the Real Estate Market

There was an important piece of economic news last week that has HUGE significance for real estate and housing, but it got minimal coverage on TV and in print.

The Conference Board's Index of Leading Economic Indicators, widely acknowledged as the most accurate predictor of future activity and output in the U.S. economy, rose by almost a point in June.

That was the third straight month of positive growth. But more importantly, it was the first time since 2004 that the index has increased for three consecutive months.

That's crucial for real estate because housing sales, production and prices are closely tied to movements in the overall economy: jobs, manufacturing, exports, household incomes and the like.

There's no way we're going to see a sizable housing recovery until the economy pulls itself out of recession and starts to grow again.

The index of leading indicators is clearly telling us that that process is well underway -- and that's a very encouraging message.

Federal Reserve Chairman Ben Bernanke, in testimony before Congress last week, pretty much said the same: A modest recovery is not far off, he said, though it will take a long time to get unemployment levels back down to pre-recession levels.

Meanwhile, residential real estate continues to put up impressive numbers on the tote board:

New single family housing starts in June rose by 14.4 percent -- the fourth straight month of increasing activity by home builders, who'd previously shut down construction because they hadn't sold off their inventories. And they were afraid consumers wouldn't pay the prices they need to charge.

Those worries are over. Total starts in New England were up by 29 percent and in the Midwest by 33 percent. Builders report seeing much more traffic at their subdivision showrooms, far lower fallout on contracts, and rising sales.

Sales of existing homes were up in many areas for the month as well - rising by 3.6 percent nationwide in June, according to the National Association of Realtors. Lawrence Yun, chief economist for the association, commented that "we expect (this) gradual uptrend in sales to continue" thanks to the $8,000 home buyer credit, favorable mortgage rates and low prices.

New mortgage applications to buy houses continued to increase last week, according to the Mortgage Bankers Association, even though rates edged slightly higher. Thirty-year fixed rates averaged 5.3 percent and 15-year rates averaged 4.8 percent for the week, both up by two-tenths of a percentage point.

For information about housing in your area contact joan@roglianorealestategroup.com.

Smoke Free Housing

Just five years ago, no one had even heard of smoke-free condo units, now there are more than 100,000 of them – at least in Michigan. The initiative to create more smoke-free units, MISmokeFreeApartment.org, claims that "the right to smoke is not protected under law, according to the opinions of the Michigan Attorney General and HUD (U.S. Department of Housing and Urban Development).

As long as the policy is not used to target a protected class or minority, a building manager is legally free to restrict or prohibit smoking in his or her building, on the group's site.

In just a few years, the group has been instrumental in public awareness across the state enabling landlords to start advertising smoke free (SF) units and newspapers to accept such advertising.

On top of the 100,000-plus units of SF market-rate apartments and condos in Michigan, their outreach has also culminated in:

* well over 20,000 units of SF "affordable" or subsidized multi-unit housing in Michigan

* 28 public housing commissions in Michigan having adopted SF policies

Newspapers now allowing "smoke-free" ads and some online apartment listings include SF icon In today's litigious society, the group explains on its site that many jurisdictions fear creating smoke-free zones, fearing charges of discrimination, however, a U.S. Housing and Urban Development Legal Counsel letter of 2003 states that "the right to smoke is not a right protected under the Civil Rights Act of 1964 because smokers are not a protected class under federal law."

For housing information in your area contact joan@roglianorealestategroup.com.

Ready, Set, Row to the 2009 Festival!

The 9th Annual Colorado Dragon Boat Festival (CDBF) is Saturday and Sunday, July 25-26, in Denver.

This free family-friendly festival attracts over 100,000 people annually to experience Colorado's diverse Asian Pacific American heritage through performing arts, cultural education, cuisine, arts and crafts, and two days of action-packed dragon boat races.

The Colorado Dragon Boat Festival is more than dragon boat racing; it's a celebration of the local Asian community complete with performing arts, Asian marketplace and village, Taste of Asia foodcourt and, of course the spectacular races, in both competitive and community categories.

The Asian marketplace has over 75 arts and crafts vendors and the performing arts stage features both traditional and contemporary Asian and Asian-American performers of martial arts, traditional dances and rock and blues music.

The village showcases the cultures of different Asian Pacific communities each year and includes the intimate demonstration area, Gateway to Asia. Kids can be entertained (and educated, but don't tell them that) in the Dragonland section, where there are lots of cultural projects to take part in!

A special Dragon Spirit-Awakening ceremony and a traditional Eye-Dotting ceremony awaken the dragon boats and kick off the festivities.

For the full schedule of events visit http://www.cdbf.org.

Finding the Right School for your Child

As with most things in life there is no one "right" answer. Finding the right school for your child is no exception. A lot has changed from when we went to school. The variety of options available are vast and it requires a careful analysis of your own personal situation to choose the best fit.

Define your ideal school

What qualities are you looking for in a school? Do you want one that's big or small? Strong in academics or the arts — or both? When you list what's most important at the outset, you're more likely to find the right school for your child.

It's important to consider practical matters to help narrow your school search. These include your family's child care needs during nonschool hours, daily and yearly schedule, transportation, school location, coordination of your other children's school schedules and your financial constraints.

Your Neighborhood School

Generally, your first option is your neighborhood school. Each public school district sets up its own rules and boundaries for each school in the district, so it is best to check with your local district to find out which school your child will be assigned to, and what the rules are for attending charter schools, magnet schools, or other schools within or outside your local district.

Charter Schools

One of the most significant changes in public education in recent years has been the growth of the charter school movement. Charter schools are public schools that are liberated from some of the traditional school regulations required by the state. These schools are bound by charter agreements granted by local school boards. If they don't meet the requirements of their charter, they can be shut down. Charter school enrollment is voluntary and is not governed by neighborhood boundaries, which means your child can choose to attend any charter school within your district, or outside your district, so long as there is space available.

School Transfers

School districts generally set their own policies for intradistrict transfers (from one school in the district to another) and interdistrict transfers (to a school outside the district). Preferences are often given to children whose child care provider is near a particular school, or whose parents work in the city where the school is located.

Magnet Schools

Magnet schools are another option offered by many school districts. Magnet schools generally have a particular focus, such as art or technology, or follow a different structural organization, such as mixing different grade levels within one classroom, or operating on a year-round schedule.

Private Schools

Private schools are schools that do not receive funding from the state. They set up their own criteria for admission. Families of the students pay tuition or, in some cases, students receive scholarships to attend. The teachers, principal, board of directors (and sometimes the parents and students) decide upon curriculum, teaching methodology and enrollment requirements. Private schools are not required to hire credentialed teachers or publish their test score results.

Luckily, you do not have to make this decision on your own. There are many tools out there to assist you. Once such tool is the website www.greatschools.com. Great Schools is an independent, nonprofit organization that empowers parents with information and tools so they can choose the best school for their children and improve schools in their communities.

Feel free to contact Joan Rogliano at joan@roglianorealestate.com for housing and school information in your area.

Heated Debate Continues Over Real Estate Regulation Bill

Hearings and debate continued almost non-stop last week on Capitol Hill as House leaders pushed controversial legislation to create a Consumer Financial Protection Agency with far-reaching powers affecting mortgages and real estate.

Though details of the legislation may change as it transits through the House and Senate, the proposed new agency almost certainly would play a huge role in housing finance, touching all home buyers, sellers, Realtors and lenders.

Here are just a few of the areas it's likely to oversee:

First, it would have primary federal regulatory oversight of all mortgage products offered nationwide -- that includes banks, mortgage brokers, mortgage companies, credit unions and most private lenders.

Very likely the agency would identify a limited number of mortgage types it considers standard and relatively safe for consumers, such as 30-year fixed rate mortgages with mandatory full documentation and strict underwriting, and FHA and VA loans.

All other non-standard loans, especially those with variable payments, less than full documentation or fluctuating interest charges, would be subject to extra regulatory attention.

The agency also is likely to take over a number of consumer regulatory powers that are currently with other federal agencies. They include the Real Estate Settlement Procedures Act, which covers all aspects of home closings, good faith estimates and bans kickbacks, PLUS the Truth in Lending Act, and the Equal Credit Opportunities Act.

Proponents of the bill believe a new agency is needed to prevent a reoccurrence of the severe damage done to home owners, buyers, mortgage borrowers by the sort of lax regulatory oversight of mortgage products that led to the mortgage meltdown and housing bust.

However, banking and mortgage industry trade groups warned that this legislation could do more harm than good and stifle innovation. Those that oppose this bill are concerned about the costs of creating and running a new overseer of mortgage products and credit cards.

For information about real estate in your area and on finding the right financing fell free to contact joan@roglianorealestategroup.com.