VanEd Newslog

Finance Friday: FHA Changes proposed this week

FHA announced their proposed changes this week to help customers of adjustable rate loans refinance into FHA loans.  Effective January 1, 2008, the FHA Up Front Mortgage Insurance Premium (UFMIP) will no longer be a flat 1.5% of the loan amount, but will vary based on risk.  The three risk factors include down payment, source of funds, and credit score.  The lowest  up front premium will be .75% of the loan amount for borrowers with a credit score above 680 and a down payment of at least 10%.  Borrowers with the standard 3% down will have premiums ranging from 1.25% (with a 680 credit score) to 2.25% with a 560 credit score.  Borrowers without a credit score must put at least 5% down and the premium will be 2.25%.  If the down payment comes from other than their own funds (or bona fide gifts from relatives), the up front premium is increased by .50%.   

Borrowers with other forms of down payment, including down payment assistance programs, will pay an up front premium of 1.75% with a 680 credit score, a 2.00% premium with a 640 credit score, and a 2.25% premium with a 600 credit score.  Borrowers with a credit score below 600 or with no credit score are not eligible for down payment assistance programs.  Borrowers with late payments caused by an interest rate increases or payment adjustments will be eligible for refinancing providing they meet all other underwriting standards.

Rates have remained stable this week, no point low fee thirty year mortgages are still available at 6.25%.

Guest Author Randy Kelly is a Mortgage Banker and Finance Author with Boulder West Financial Services. He can be reached on-line at http://www.boulderwest.com/.

Nebraska Property Tax Credit Act amount set for 2007

The Nebraska REALTORS® Association has published a letter that discusses the Nebraska Property Tax Credit Act, which was signed into law in May. The Act provides funding to a two year property tax credit for property owners in Nebraska.

Under the Act, the amount of the credit for each owner was determined after the September 15th valuation appeals deadline and was determined to be $83.22 per each $100,000 in real property value. Agents are reminded to make certain to account for the credit at closing. Language should be included that credits prorated taxes based on the date of closing.

To read the article from the NRA, which includes sample contract language, click here.

VanEd Presents: Colorado Contracts - updated for 2008!

Van Education Center has just completed our update of the Colorado Contracts course online to include all of the new forms required in Colorado. Beyond the CBS1, Contract to Buy and Sell, this course will also cover the new Source of Water disclosures, the revised Sellers Property Disclosure and changes to the Closing Instructions and the new Earnest Money Receipt form.

Students may take this course online today to prepare themselves for using the new forms. The forms are allowed to be used once promulgated on the Commission web site, and are mandatory January 1st, 2008.

For those who don't need CE credit but still want a contract update course, VanEd will now offer a short non-credit Contracts Review class online. This online class will cover only the major changes and revisions to the CBS1 as well as other widely used mandatory forms.

VanEd offers CIPS courses and other designation information online

Earlier this year Van Education Center began offering the online CIPS courses to our students and members. These courses may be accessed through your VanEd student account, and can be completed online. Four courses are available directly through the CIPS program, including CIPS I: International Real Estate for Local Markets.

There are three more courses available online. For more information, visit the VanEd CIPS page online. And a reminder! VanEd offers more designations online than anyone else! You can find information about any of the leading designation programs by visiting our designation page at www.vaned.com/designations.

Notes from the Field - 43% of Americans are not ready to retire

How big is your retirement account? For 43% of Americans, from Generation Xers to Baby Boomers, not big enough.

The Center for Retirement Research (CRR) recently released a brief reporting that nearly 45% of households are at risk of not having enough money to retire. Why? One reason mentioned is that now Americans are using 401(k)s and IRAs to retire, not a regular annuity. With 401(k) plans, the individual is responsible for the funding and distribution of the retirement funds.

One possible solution is a self-directed IRA that allows investment in real estate, gold, private placements and LLCs, to name some options. Using investment vehicles that allow you to invest in real estate requires specialized education. Entrust New Direction IRA with an office in Lafayette, Colorado helps people with non-traditional investing and training, and has authored an online course for the MRE, Master of Real Estate Program taught online through VanEd that teaches these concepts and ideas.

For more information, log on to take the Real Estate Investments in IRAs and 401(k)s course online.

Guest Authors Bill Humphrey and Catherine Wynne are Principals with Entrust New Direction IRA.They believe that education is the most important ingredient when self directing into non-traditional investments. Reach them online at www.newdirectionira.com.

Pre-Registration for CAR Convention ends this week

The Colorado Association of REALTORS® annual convention and business meetings will run October 21st - 24th in Colorado Springs at the Broadmoor Hotel and Convention Center. Registration will be available on-site, but Pre-Registration for the event ends September 28th. Click here to see the planned speakers and events.

On-line registration is available for the convention and can be accessed by clicking here. Also, VanEd will be the provider of the CREC Annual Update course hosted by CAR at the convention. You can register for this class by logging in to your VanEd student account and selecting "Available Classroom Courses". Instructions for registration can be found by clicking here.

VanEd will also be in attendance at the Expo, so stop by and say hello. We will be raffling off free Continuing Education courses at the booth, so make sure to drop in a business card! Don't have a VanEd student account yet? You can create an account for free and then log in and view all of the current course offerings, including designation courses, on-line!

                                                                  >>> Click Here to create a free account!

Finance Friday: Loan Applications up this week, and higher limits are set for Freddie Mac and Fannie Mae

       As mentioned yesterday on the VanEd Newslog by Guest Author Randy Kelly, the OFHEO did increase the caps on both Fannie Mae and Freddie Mac loan portfolio limits. The increase will allow each of the entities to purchase up to an additional $20 billion in loans. In a press release the OFHEO said that the increase will help the Enterprises make multi-billion dollar bulk purchases of sub-prime, multi-family and lower credit score loans.

       In lending news, the Mortgage Bankers Association reported that loan applications were up for the third straight week for the week that ended September 14th. Refinance applications increased their share of the mortgage activity and the average contract rate for a 30-year fixed-rate mortgage increased to 6.29% with 1.02 points (includes origination fee) for 80% LTV loans.

       Also this week the U.S. Census Bureau and HUD released the new Residential Construction report for August. The report indicated a 5.9% drop in new building permits from July and a 24.5% drop in permits from August of 2006. New housing starts were reported 19.1% below August of 2006 for privately-owned housing. You can read the press release by clicking here.

Fed Cuts Rates

As expected, the Federal Reserve cut their target funds rate on Tuesday.  What wasn't expected was they cut both the funds rate and the discount rate by one-half of one-percent.  The analysts were expecting a one-quarter percent cut.  These rate cuts had a positive impact on the stock market, rallying close to record highs by Thursday.  However, the bond market reaction wasn't quite as optimistic. Bond investors view the half point cut as inflationary, which is bad for interest rates.  There is quite a tug-of-war between the "inflation" camp and the "credit crunch" camp.  We won't know for a couple of years who is right.  However, the Fed is usually correct, and this action tells me they still view the credit crunch as more problematic than potential inflation.

Elsewhere, there is talk in Washington to direct OFHEO (Office of Federal Housing and Enterprise Oversite), the agency overseeing Fannie Mae and Freddie Mac, to give Fannie Mae and Freddie Mac temporary authority to purchase jumbo loans.  This should bring jumbo rates in line with conforming loan rates.

Mortgage rates stayed relatively stable this week, no point low fee loans are still in the 6.25% to 6.375% range.

Guest Author Randy Kelly is a Mortgage Banker and Finance Author with Boulder West Financial Services. He can be reached on-line at http://www.boulderwest.com/.

VanEd launches new system for Pre-License students

Van Education Center Director Vann Hilty today announced that VanEd today launched a new Learning Management System, or LMS. The new administrative system includes more sophisticated instructor tools as well as a host of new features for Pre-Licensing students in Colorado. The system debuted for both the Nebraska Pre-License and Texas Pre-License students and instructors about 4 months ago with great success.

The new system is the cumulative result of more than 9 years of site development by VanEd. Students will see enhancements such as easier access to instructional support, greater ability to view resources and a new student account design that will offer students greater flexibility to manage their own accounts. Van Education Center staff and instructors will also be able to more readily update students on changing rules and laws through the new system.

Click Here to enroll in the Colorado Real Estate Pre-License program today on our new LMS!

VanEd now offers partnership opportunities to local associations. For more information on partnering with VanEd to deliver online education to your members, please contact at info@vaned.com.

Did you know? VanEd offers personal financial management program online for bankruptcy filers

Van Education Center is host to the online Personal Financial Management Program, a required debtor education step in the bankruptcy process under recent law changes. The program is completed online post-filing and has been accredited in every jurisdiction in the U.S. The program is part of the VanEd Adult Education network of programs.

The U.S. Trustee Program announced on September 10th, 2007 that the waiver of credit counseling and debtor education requirements for bankruptcy filers will be extended in the Eastern District of Louisiana due to the continued effects of Hurricane Katrina. the waivers in the Middle and Western Districts of Louisiana and the Southern District of Mississippi will be terminated effective March 10th, 2008.

Colorado continuing education and license renewal requirements for 2007

Licensees in Colorado whose licenses expire December 31st, 2007 will be the last class to face the Fingerprint background check requirements. With the end of the year approaching, VanEd is receiving calls and email requests for information on what education and other requirements are also in effect. To help our student members, we have again updated our Colorado License Renewal Requirements Information page online.

Click Here to view the latest Colorado Renewal Requirements. From this page you will be able to view the CE and renewal requirements, as well as find links to E & O carriers and required Ethics information for REALTORS®.

Finance Friday: Sub-prime woes rock Great Britain

The Bank of England provided emergency cash to Northern Rock Plc today, Britain's third largest provider of home mortgages, resulting in Britian's third largest financial institution bailout in the last 30 years.  Northern Rock has 1.4 trillion depositors and 800,000 mortgage customers.  This was just three days after Bank of England governor Mervyn King criticized the European Central Bank for injecting $100 billion in emergency cash to protect many of Europe's financial institutions.
These developments have a silver lining; the London Interbank Offered Rate (LIBOR) is currently 5.125% after reaching a high in mid-June of 5.50%.  This should help many borrowers with adjustable and/or sub-prime loans because the LIBOR is a widely used index for these loans.
Mortgage rates have remained stable this week, no point low fee Fannie Mae loans are 6.25%, with jumbo rates being about one-half percent higher.

Guest Author Randy Kelly is a Mortgage Banker and Finance Author with Boulder West Financial Services. He can be reached on-line at http://www.boulderwest.com/.

CARHOF gets ready to Raffle the Grand Prize ~ A New Home!

The 2007 CARHOF raffle will again benefit the Colorado Association of REALTORS® Housing Opportunity Foundation, which works to promote affordable housing opportunities in Colorado.

This years Grand Prize is a new home built by Sanctuary Homes valued at $300,000. The winner may also choose to take $200,000 in cash. Only 10,000 tickets were scheduled to be sold in the raffle at $100 a piece. However, at this time CARHOF is reporting that only 1700 tickets have been sold so far and only 4400 tickets have been distributed. This means that with ticket sales ending in just over a month (the drawing will be held in Colorado Springs on October 25, 2007) the odds of winning the house are now even better! And CARHOF directs 50% of the profits from ticket sales back to the local associations around the state to support local communities through grant cycles and programs.

For more information you may online to the CARHOF Raffle page. Need tickets? Contact a local REALTOR® or the association office in your area or purchase tickets online using the following link - Purchase Tickets Now!

NRA Fall Meetings underway

The Nebraska REALTORS® Association 2007 Fall Meetings are being held this week in Lincoln. The Meetings opened on Tuesday and Continue today through Thursday with education events and the Board of Directors meeting.

Mildred Wilkins brings her knowledge of foreclosures and a changing market to today's session while tomorrow Steve Stazel and Mark Wehner teach courses on Professional Standards and Courtesy in the Industry. The Fall meetings and continuing education sessions conclude Thursday.

REALTOR Safety Week September 9th - 13th ~ Protect yourself

We are all reminded that our own personal safety is more important than that late night meeting in a vacant house. Remember to be on alert when showing houses and driving in a car with clients and customers. As part of REALTOR® Safety Week, we want to remind you to be aware of potential threats and institute a personal safety plan in your office.

In 2001 a Washington real estate agent was murdered and in response the Real Estate Safety Council was formed. They created a pamphlet highlighting many safety tips and agent resources. A copy of that can be found online by clicking here.

Some tips from us and from the real estate safety council; Use the buddy system and show houses with a co-worker. Have a call-in safe word for your office staff, and always let the office know who you will be meeting and where you will be going. Require your first meeting to be at your office and make copies of the Drivers License of each client to leave them that, along with a filled out New Customer form, with your office staff prior to departing on showings. When you head off for that evening listing appointment at a potential sellers home, take your buddy with you or have them either call you or you call them at specified intervals during the evening.

Every office or Buddy team should also have a distress code. This way when an agent in the field feels something is not right, or that they may be in danger, they can call in and use the distress word to let the office or their buddy know they need help.

These are just a few tips and ideas, but the most important safety tip is up to you; be aware, stay prepared. For more information on REALTOR® Safety week, visit the Realtor.org web site and read a special message from NAR President Pat V. Combs. There are videos on safety and even an online course that you can take to identify more ways to protect yourself.

Colorado REALTORS® for Education program opens Fall application cycle today

The Colorado Association of REALTORS® and Van Education Center (VanEd.com) are proud to announce their combined effort aimed at assisting Colorado's classroom teachers. The REALTORS® for Education Foundation is a non-profit program designed at making direct grant donations to classroom teachers in need of funds to run classroom programs.

Fall Grant cycle applications are now being accepted! The open application period begins today, September 10th, 2007 and will run through October. The application is available for teachers and will be submitted online. $3,000 dollars is the limit for each grant application in this grant cycle. For more information and to make application teachers should visit http://www.vaned.com/charity.

VanEd is proud to be a part of this fantastic partnership with the REALTOR® community.

Donations to the fund may also be made online, and the not-for-profit foundation awards 100% of all donated funds in the form of grants. Know a teacher in need of funds to run a classroom project? Have them apply for a grant! The Foundation board of directors will award grants in November. Click here for more information or to donate to the fund!

You can also view and print an informational flyer regarding the program online. Click here to view the flyer!

Finance Friday: Jobs report the worst in four years

This morning the labor department reported total employment fell by 4,000 in August, the first decline in four years.  Also, the total number of jobs created in June and July was revised downward by 81,000.  The unemployment rate remained steady as over 600,000 workers effectively quit the workforce.  In other words, they have run out of unemployment benefits and have given up on finding a new job.  This negative news almost guarantees the Fed will cut the Federal Funds rate, maybe up to one-half of one-percent.  Treasury securities rallied on this news, and the ten year has dipped below 4.4% for the first time since January of 2006. 

Mortgage rates have also improved on this news; no point low fee mortgages are at 6.25% this morning.  Expect this trend to continue throughout the fall.  I expect mortgage rates might dip below 6.00% by the end of the year.  This is good news for borrowers who can verify income and have some equity because they should be able to refinance out of their adjustable loans with relatively little pain.  Don't expect Alt-A and sub-prime rates to drop as these loans are still out of favor in the investment community.

Guest Author Randy Kelly is a Mortgage Banker and Finance Author with Boulder West Financial Services. He can be reached on-line at http://www.boulderwest.com/.

Colorado Division of Real Estate reminds brokers about fingerprint requirements

The Colorado Division of Real Estate recently sent out a notice reminding licensees of the instructions and the requirements for fingerprint background checks required for license renewal for those real estate licenses expire December 31st, 2007.

2007 marks the final renewal cycle where fingerprints will be required for renewing licensees. Fingerprints that were submitted after July 1, 2004 are valid to meet the requirements. In addition, active licensees whose license expires anytime after December 31, 2007 have already met the fingerprint requirements. Fingerprints submitted as part of the requirements for Mortgage Broker registration will apply towards real estate broker's license renewals.

Any licensee whose license expires December 31, 2007 and who still needs to submit a fingerprint card should do so as soon as possible. Information and instructions can be found by clicking here. Also, if your license expires December 31, 2007 you can verify the status of your fingerprints online. You will need to log on to your online account. You may be required to set up a new account.

Click Here for Fingerprint information  -  Click Here for Fingerprint Status

VanEd makes it easier to complete the CREC Annual Update course

VanEd has been named as the official provider of the CREC Annual Update course for the Colorado Association of REALTORS®. Many local associations are also using VanEd to provide the current update course. You can register for the course, which is required to be completed twice each license cycle (for a minimum of 8 credit hours) on the VanEd web site.

Students choosing to take the course live will also have the ability to view the course online after completion through their VanEd student account. You will be able to print your certificate online as well. Register online for the CREC Annual Update course by visiting http://www.vaned.com/CREC/. Instructions for registration are available online.

Have questions about the current update course? Email them to us by clicking here!

Colorado Association of REALTORS® Housing Opprtunity Foundation to fund programs statewide

The Denver Business Journal reported Friday that the CAR Housing Opportunity Foundation announced that it will be issuing over $480,000 in grants to 80 nonprofit affordable-housing programs throughout Colorado.

CARHOF uses funds collected from donations and interest on real estate trust accounts to support organizations that provide housing and related services to low- or moderate-income residents. Each local association is allowed to determine the recipients of the grants.

Learn more about CARHOF by clicking here.

VanEd offices closed for Labor Day

The Van Education Center offices will be closed today to allow our staff and instructors the opportunity to spend time with family and friends. We wish all those who work to make their lives better the best as we celebrate the American worker. Our offices will re-open on Tuesday September 4th.

If you are a student with questions, please post them on-line within the Q & A system for the fastest response. If you have a question about any course or service, please email us at info@vaned.com. Our team will get back to you as quickly as possible.

Want to learn about the origins of Labor Day? Click here for the history on the Department of Labor web site!