VanEd Newslog

Online Registration is now open for the REALTOR® Rally March 19th in Denver

The REALTOR® Rally is scheduled for March 19th in Denver at the Colorado Convention Center.  The Keynote speaker, Terry Watson, will be joined by other industry leaders, including Larry Kendall, Doug Barber and the Director of the Division of Real Estate Erin Toll. To view a list of speakers, click here.

This years event will be attended by more than 3,500 agents looking for new ideas and information to help them in their business. The full schedule of events is available online, and registration for the Rally is also available using the link below.

>>> Click Here to register online today!

Another rate cut from the Federal Reserve

The Federal Open Market Committee today lowered the target federal funds rate to 3 percent. This marks a 50 basis point reduction from the previous target rate.

In its press release the committee stated that it expects inflation to moderate in the coming quarters, and that recent information indicated a "deepening of the housing contraction" as one factor in its decision. The Committee expects that this step, along with the earlier rate cuts, will help to promote moderate growth and help to mitigate risk to the economy.

The Board of Governors also unanimously approved a 50 basis point decrease in the discount rate (down to 3.5%).

VanEd Presents: CRS, Certified Residential Specialist Designation courses

Van Education Center is proud to continue to offer CRS, Certified Residential Specialist eLearning courses online to our students. CRS training will give you in-depth knowledge about business planning, negotiating and closing smoother transactions.  The rigorous educational and production requirements ensure that those who achieve the CRS designation are some of the most dedicated and respected agents in the industry.

VanEd offers two online CRS eLearning courses, Creating Value for Your Clients and Putting Technology to Work for Your Clients. Both courses can be used to help fulfill Core education requirements required to earn the CRS designation. Click Here to review the education and production requirements. Courses may also qualify for CE Credit in some states.

To learn more about the CRS designation and the two available eLearning courses, visit VanEd's CRS Designation Page online by Clicking Here!

Finance Friday: Short but sweet

Well, that was fun.  We just went through possibly the shortest refinance boom in history. 

Last Friday, January 19th the interest rate for no point thirty year fixed loans was 5.625%.  The markets were closed on Monday for the Martin Luther King holiday, but the worldwide financial markets were in a bearish mode, reflecting huge drops in both the stock markets and interest rates.  On Tuesday, January 22nd, rates dropped to 5.5% as the Fed had a .75% emergency rate cut and the Dow opened down over 400 points.  On Wednesday morning, as the stock market slide continued, mortgage rates actually dipped to 5.25% for a no point thirty year fixed loan. By lunchtime on Wednesday, it became apparent both the Fed and the Congress were on board for simultaneous fiscal and monetary stimulus, stopping the slide in both the stock market and interest rates.  Most investors had multiple rate increases on Wednesday afternoon causing panic by mortgage brokers trying to lock in loans.  It was difficult, if not impossible to lock loans in on Wednesday afternoon as the entire online lock-in process was frozen.  On Thursday morning, interest rates were up to 5.75%, even higher than the preceding week. 

Today, interest rates are back to 5.875%.  As long as the markets believe the Fed's interest is in promoting economic growth instead of limiting inflation, we have probably seen the lows in rates for the year.  Hopefully you got your refinance locked in on Wednesday.

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/.

Registration Open for the 2008 REALTOR® RALLY!

It's time to register for this year's REALTOR® RALLY, held in Denver at the Colorado Convention Center on Wednesday, March 19, 2008.

Over 275 Exhibitors bring the latest real estate industry tools, services and programs to the Rally.  Several Education Sessions will be held throughout the day, as well as a Keynote Session with featured speaker, Terry Watson.

VanEd will be in attendance, so come stop by and see us in Booth 181!

CLICK HERE to register for the Rally online,

or for more detailed information, including schedule and directions, go to www.RealtorRally.org

Fed Emergency Cuts

This morning the Fed announced emergency rate cuts in both the Fed Funds Rate and the Discount Rate of .75%, bringing the Fed Funds Rate to 3.50% and the Discount Rate to 4.00%, in response to a worldwide stock market sell off.  The sell off started in Asia, then moved to Europe yesterday, and continued today with total losses as much as 7.00% to 10.00% of the index value.  Because our markets were closed for the Martin Luther King holiday, we did not  see the turmoil until this morning.  The Dow initially opened down 460 points, but has rebounded to being down less than 200 points.  It will be interesting to see where the market closes this afternoon.

The Prime Rate should move down to 6.5% in response to this rate cut, which will help out home equity lines.  If the financial panic continues, we could see thirty year fixed loans dip below 5.50%.

It is questionable whether this will actually help our economy. Unfortunately, we are in a liquidity crisis, and lowering rates does not help that situation.

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/.

Notes from the Field: Look to first time home buyers to expand business

An article in the January 18th, 2008 edition of the New York times states that "the ideal home buyer now - in a reverse of what was true for years - is a renter who is not burdened with a house". The article, titled Sorting Out the New Housing Market, goes on to explain that owning a home which may be hard to sell has now become a liability.

First-time homebuyers typically need as much information and assistance as possible to be comfortable with the buying process. Savvy real estate professionals add knowledge about affordable housing hoemwonerhsip programs and types of first-time home buyer financing to their repertoire to inform buyers about available options.

Affordable housing is locally developed which means you need to understand what is offered in your community and who may be eligible. These programs are usually developed to provided the extra boost needed for a renter to become a home owner. It's worth check out and can help you build your business!

Guest Author Judy Richtel is a real estate broker and author of affordable housing courses for real estate professionals. She can be reached at www.wkre.com. 

Finance Friday: Another lender bites the dust

Aurora Loan Services, a Lehman Brothers Company, announced yesterday they are suspending all wholesale and correspondent lending effective January 18, 2008.

Aurora Loan Services has been a leader in the low-doc, no-doc, and Alt-A lending for the past decade.  They have also been aggressive in their Jumbo (over $417,000) loan pricing.  Coupled with last Friday's announcement of the Bank of America purchase of Countrywide, the already stressed Alt-A and low-doc market is all but gone.

On the bright side, mortgage rates have declined substantially, with no point low fee thirty year fixed loans approaching 5.5%.  This gives many homeowners in adjustable loans the opportunity to lock in a great rate without any future payment shocks. The only caveat is new loans have to maintain loan to value requirements, and borrowers must meet minimum income and credit standards.

Even for people that can't meet current guidelines, the indices's used by most conventional adjustable loans have declined, keeping future adjustments in check.  The one year LIBOR has come down to 3.4%, the Constant Maturies Treasury (CMT) index is down to 3.26%, and the MTA is down to about 4.2% (The MTA is the slowest moving average because it uses a 12 month average of one-year treasury securities).  Most margins in adjustable loans are in the 2.00% to 3.00% range over the specified index, so rates will be in the 5.5% to 7.00% range upon adjustment.  This won't help borrowers in sub-prime loans because these loans generally have a margin of 5.00% and 6.00% over the LIBOR, which means their rates will be in the 8.00% to 9.00% range after adjustment.

It is interesting how three of the biggest players in the low-doc, low-doc, and Alt-A market, Greenpoint, Countrywide, and ALS are now gone.

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 Presents: e-PRO, the only internet certification for REALTORS® endorsed by NAR

In today's ever changing real estate markets, REALTORS® need to ensure that they are ahead of the competition, differentiating themselves through education and training. To help our students VanEd offers access to the e-PRO certification program online. e-PRO is the only Internet certification program endorsed by NAR, and is designed to enhance the students knowledge of online marketing and resources. Students are able to register for the program directly from either the VanEd Designations page or the e-PRO information page.

Enter Trainer Coupon Code 59003 in the space provided on the registration page to receive a $25 discount on the price of the e-PRO certification course. Click Here for more information on e-PRO!

Van Education Center to offer Military discounts on real estate and appraisal licensing courses

Van Education Center announced today that it will begin offering discounts on real estate licensing courses and appraisal licensing courses to active and retired military personnel and their spouses. Discounts of 10% off the full program price will be available online beginning today, and students will be able to register with the discount directly on the VanEd web site.

For those interested in learning more about the required coursework for real estate or appraisal courses, visit the VanEd web links below. Veteran discounts are available directly on the enrollment page. VanEd also continues to offer a 5 day Free Trial to all enrolling students. Have questions? Send us an eMail! We're here to help!

>>> Real Estate Licensing

>>> Appraisal Licensing

Texas enacts fingerprinting law for licensees

Under a new law that went into effect January 1st, real estate licensees in Texas will now be required to submit their fingerprints for an FBI criminal background check upon making application for license or renewal. As has been the case in other states, such as Colorado, this is a one time process. Once the fingerprints are on file with the Texas Department of Public Safety (DPS) licensees will not need to submit them upon future application.

All fingerprints must be submitted using the FAST Print Pass form in order to be fingerprinted at a PSI location. This form may be obtained from the Texas Real Estate Commission by clicking here or following the link provided below. Applicants will need to first obtain the form and then schedule a fingerprint appointment online or by telephone. There are 70 locations statewide and fingerprinting services should be available at the PSI locations in February of 2008.

Click Here to view the TREC Fingerprinting information page online.

Click Here to go directly to the FAST Print Pass order form page.

Finance Friday: More trouble ahead

The news coming about home builders and mortgage lenders keeps getting worse and worse.  This week KB Homes posted a net loss of $773 million for the 4th quarter. Countrywide shares have dropped more than 80% from their high to under $5.00 per share after rumors of an impending bankruptcy.  They said foreclosures and late payments in their portfolio are the highest on record.  Countrywide currently owns 10,000 properties through foreclosure.  At an expected loss of $50,000 for each property (which may be optimistic), the total damage may be over one-half of a Billion. 

Goldman Sachs is forecasting a recession in 2008 citing reduced consumer spending because of the slowing housing market.  They are also calling for an increase in the unemployment rate to 6.5% from the current 5.0% rate.

On the interest rate front, thirty year fixed rate loans are well under 6.00%.  No point low fee loans reached 5.75% this week.

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/.

Happy New Year! Here’s a Thousand Dollars!

OK, so the IRS isn’t really giving you $1,000, but if you are an IRA owner, you can contribute an additional $1,000 this year, tax-free or tax-deferred, depending on your retirement plan. Your salary may not rise with the cost of living, but thankfully the IRS does change with the times, at least for Traditional and Roth IRA owners. The annual contribution will jump $1,000 to $5,000 allowed contribution for 2008 (plus an extra $1,000 if you're over 50). Please note that after April 15th, 2007, you cannot deposit the 2007 contribution to your IRA if you haven't already.

And remember, if you haven't opened a Roth or Traditional IRA, you can still open a 2007 IRA until April 15th, 2008. You could contribute $4,000 for 2007 and $5,000 for 2008. If you use this extra $1,000 to invest wisely in a self-directed retirement plan, you may look back at that extra $1,000 from 2008 when you're ready to retire and think it really was a gift from the IRS.

Guest Authors Bill Humphrey and Catherine Wynne are Principals with Entrust New Direction IRA. Reach them online at www.newdirectionira.com.

Colorado Division of Real Estate sunset hearing scheduled

The House Business Affairs and Labor Committee has been requested to conduct the sunset review of the Colorado Division of Real Estate. This review will also include the a review of the function of making available Errors and Omissions Insurance to Licensees and the Service of Process requirements.

The committee, chaired by Representative Marshall, is scheduled to meet on Monday, January 14th from 1:30pm to 5:00pm in House Committee Room 0107.

Colorado REALTORS® for Education Charity Grant program opens Spring cycle today!

The Colorado REALTORS^® for Education Charity Grant program opens the Spring grant cycle today, and applications are now being accepted online. Teachers interesting in applying for a grant can find more information and may apply online at www.vaned.com/charity.

The grant cycle will run through February, but teachers are reminded that each application must be verified by an administrator prior to being eligible for review by the board. Applicants should allow enough time to meet all application deadlines, and get the administrator approval.

For questions on the process or the deadlines, visit www.vaned.com/charity or email Mark Gavin and CAR.

Notes from the Field: What is Radiant Floor Heating?

My seller’s home has radiant floor heating. Great, but what exactly is that?

Radiant floor heating systems supply heat directly to the floors of a home, and can be a great alternative to the more traditional methods of heating a home, such as forced air and baseboard heating. The most popular and most efficient type of radiant floor system is hydronic (liquid) floor heating. Hydronic systems heat water in a boiler and then pump it through a series of tubes laid in an organized pattern beneath the floor. Radiant systems are gaining popularity because they are typically more efficient than traditional heating applications, and are known for providing superior comfort to occupants.

The EcoBroker Certified professional designation has prepared an informational article on radiant floor heating that can be shared with customers and clients. This information can be found by Clicking Here or by clicking the link below. VanEd proudly offers the EcoBroker Certified professional designation courses online. Find out more by Clicking Here, or using the link below.

   >>> Click Here for more information on Radiant Floor Heating

   >>> Click Here for more information on the EcoBroker Certified professional designation program

Finance Friday: Fannie Mae tightens approval standards for condos.

Fannie Mae has always had minimum standards that condominiums must meet before they are eligible for purchase.  These include (but are not limited to) at least 60% of the units must be occupied by their owners, no more than 10% can be owned by one person or entity, the common areas and amenities have to be complete, and control of the HOA must have been turned over to the unit owners.  Fannie Mae has a limited review process that eliminated most of these requirements, needing only master insurance on the project. 

In recent years, the limited review was allowed for most mortgage transactions.  Effective Dec. 24th, 2007, limited review process has been restricted, and is no longer allowed for new projects (less than one year old), for owner occupied loans with a loan to value over 90%, second homes with a loan to value less than 75%, and for investment properties. This will not impact owner occupied purchases with at least 10% down, but will adversely affect low down payment loans, loans for the purchase of second homes or rental property, and newly constructed projects.

On the interest rate front, the jobs report released this morning showing the unemployment rate increasing to 5.00% has furthered the drop in mortgage rates.  Today, no point low fee 30 year fixed loans are available at 5.875%.

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 special announcement on fee changes

In a Special Notice today, the Colorado Division of Real Estate announced that the fee schedule has changed with the start of the New Year for the processing of all application types. A copy of the special notice is below;

Special Notice From: The Colorado Division of Real Estate

To: All licensees

Fee Change:
       
The fee schedule has changed with the New Year for the processing of all application types (Change in status, License, etc). Applications post marked by 12/31/2007 will still be assessed the original fee for 2007. Applications post marked after 12/31/2007 will be charged according to the new fee schedule, which can be found by visiting the division website. http://www.dora.state.co.us/real-estate/

Renewal notice:

Please keep in mind that licensees have a 31 day grace period from the expiration date of their license to pay the renewal fee. An example of this would be a license which expires on 12/31/2007 will have a grace period extending until 01/31/2008 to complete the renewal process and pay the required fee. The division does recommend completing the renewal process as soon as possible to avoid last minute issues which may prevent your renewal.

Thank you,

The Colorado Division of Real Estate

Nebraska joins Nationwide Mortgage Licensing System beginning today

Beginning today, Nebraska mortgage lenders and mortgage brokers will be licensed using the NMLS, or Nationwide Mortgage Licensing System, database. The system was developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. One of the original goals is to improve the process of licensure for mortgage brokers licensed in multiple states.

Nebraska today joins with the NMLS, allowing those seeking licensure to us a single set of standard application forms to apply for or renew a mortgage banker license online. The NMLS also allows consumer access to the site, and will allow consumers to check records and identify the license information for an individual licensee.

Information on the NMLS can be found online at http://www.ndbf.org/mb/mbforms.shtml