VanEd Newslog

Finance Friday: A good week for rates

The wild ride in interest rates continued this week, but for a change it is positive.  No point thirty year fixed loans are back to 6.00% after hitting 6.5% last week.  The amount and speed of rate changes has been overwhelming in the past four weeks.  This is due in part to the uncertainty of all the financial markets along with the decline in the housing market.  Sales of new and existing homes continue to slide, with a decline in the median home price of 4.00% for all of 2007. 

People are paying for necessities with credit cards and dipping into retirement accounts to remain solvent.  Delinquencies are increasing for both automobile loans and credit cards.  The economic news of the week including a hefty jump in new claims for unemployment and huge drop in durable goods amplified the problems. Oh, by the way, oil hitting $103 per barrel and the Euro hitting $1.52, both all time records, didn't help.

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/.

IRS releases instructions for mortgage cacellation relief

The IRS has released IR-2008-17 to educate taxpayers concerning the new mortgage cancellation tax relief provisions enacted at the end of 2007. Borrowers who had some portion of their mortgage debt forgiven in 2007 should receive a Form 1099C from the lender identifying the amount of forgiven debt.

The borrower/taxpayer will then need to file a newly-created form (form 982) to report to the IRS that the debt relief was for a qualified mortgage.

The forms and all instructions are available at the IRS website, http://www.irs.gov/pub/irs-pdf/f982.pdf. The mortgage relief provision applies to debt forgiven in 2007, no matter when the mortgage was assumed. The most frequent circumstances in which there is debt forgiveness is on foreclosure, short sale or mortgage workout or reformation agreed to with the lender.

REALTOR® RALLY at the Colorado Convention Center on Wednesday, March 19, 2008.

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

Almost 300 Exhibitors will show the latest in real estate industry tools, services and programs to those attending 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 there showing off our newest courses and offerings, so come stop by and see us. We'll be 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.

Finance Friday: Rates jump up

This was a bad week from an interest rate standpoint.  Rates for no point thirty year fixed loans hit a high of 6.5%, before settling back down to about 6.25% today.  The reason behind the increase is the fear of stagflation, where we have inflation and recession at the same time.  Inflation is hitting the consumer in the pocket book every time they buy food, fill up their car, pay their utility bill, or pay their health insurance bill.  However, the Philadelphia Federal Reserve's index of manufacturing activity  in the northeast United States dropped to -24 in February, which, if the index stays at this level, indicates a deep recession.   

The drop in value of the dollar as well as a continuing rise in commodity prices, led by oil at over $100.00 per barrel has bond investors running scared.  They are putting their money into short term securities such as one and two year notes instead of 10 and 30 year bonds and mortgages. Today's spread between two year notes and 30 year bonds is over 2.5%.  Last year at this time we were talking about 6.00% rates for all types of mortgages, including one, three, five, and ten year adjustable loans as well as the fixed rate products.  Today, the rate for a five/one hybrid loan is 5.25%, or one percent below the 30 year fixed rate.

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 REALTORS® for Education Charity Grant program application deadlines approaching

The Colorado REALTORS^® for Education Charity Grant program Spring grant cycle applications continue to be accepted online. Teachers interesting in applying for a grant can find more information and may apply online at www.vaned.com/charity. The program is built with cooperation between CAR and VanEd and is funded from the online GRI program. Private donations and matching funds are also accepted.

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.

Application Deadline -            Administrator Approval Deadline -

For questions about the program, visit www.vaned.com/charity or email Mark Gavin at CAR

VanEd Presents: Accredited Land Consultant Designation course

Van Education Center is proud to offer the RLI: Land 101 course online through our Designation Information page.  This course is the first course in the ALC, Accredited Land Consultant designation program, and is available now!

The REALTORS Land Institute (RLI) is an affiliate of NAR, and is the only branch focused on land brokerage. This includes farm and ranch, subdivision and undeveloped tracts of land.  Organized in 1944 as the Farm & Land Institute, RLI is now a nationwide organization. The ALC designation is run through the education arm of the RLI.

Visit our ALC information page online to learn more about this designation and course offering! Ready to get started today? Click Here to enroll for Land 101!

NOTE: The Land 101 course is also approved for MRE, Master of Real Estate designation credit!

CREC approves Short Sale Addendum and Seller Authorization forms

At the February meeting of the Colorado Real Estate Commission, two new forms were approved dealing with short sales. The Short Sale Addendum, designed to be added to a transaction file whenever a short sale is involved, and the Seller Authorization form. The authorization form should be used at the time of listing to allow the lien holder to supply loan information to specific people involved in the transaction. The Short Sale Addendum is to be used with the Contract to Buy and Sell, and will allow various parties access to information and place certain filing deadline obligations on the seller.

>>>Click Here to view the Seller Authorization form

>>>Click Here to view the Short Sale Addendum

Both of these new forms are Mandatory for use in Colorado beginning March 31, 2008. VanEd has added both of these new forms to our Colorado Residential Contracts continuing education course. That course is available online at www.vaned.com.

VanEd wishes you the best this Presidents' Day weekend

Van Education Center offices will be closed on Presidents' Day, February 18th. We wish you and yours a happy and safe holiday. Students may still register for and complete real estate and appraisal courses online.

Our offices will re-open on Tuesday, February 19th to serve our students and members. We wish you the best this holiday weekend!

Finance Friday: Economic stimulus bill signed

President Bush signed the economic stimulus bill on Wednesday which includes a provision to increase the maximum loan limits for Fannie Mae, Freddie Mac, and FHA.   While the details are sketchy, it appears that the loan limits will be increased between 25% and 75% of the current median price or FHA loan limit for each specific county.  The entire country should see limits at least 125% of each counties current median income or the FHA loan limit.  High cost areas may see increases of 175%.  The maximum loan will be limited to $729,750, which is 175% if the current Fannie Mae limit of $417,000.  We are awaiting details on specific loan limits.  Also, these limits are temporary and will expire on December 31, 2008.

This week was not kind to mortgage rates, as no point low fee thirty year fixed rate loans increased from 5.75% at the start of the week to today's rate of 6.25%.  However, the spread between thirty year fixed rates and adjustable rates has increased making adjustable and hybrid loans more attractive. 5/1 hybrid loans can still be obtained with starting rates as low as 5.5%.

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/.

Ethics review course updated, includes 2008 Changes to the NAR Code of Ethics

The 2008 NAR Mandatory Ethics course is now available online at VanEd. This course is used to meet the NAR ethics Quadrennial Requirement for REALTORS®.

Every 4 years beginning in 2000, REALTORS® are required to complete minimum ethics course requirements. REALTORS® must complete the current cycle of required Ethics training by December 31, 2008.This course is designed specifically to comply with the NAR requirements, and includes all changes and updates to the Code of Ethics.

Those changes include an update to Article 12 of the Code, which requires REALTORS® to be honest and truthful in their real estate communications. There are also 2 new Standards of Practice in Article 12 that cover the improper registration and use of URLs or domain names, and the improper use of designations and certifications in communications with the public.

You can learn about these and other changes to the code by completing the course online. Click Here for more information on this course!

VanEd Presents: Appraisal Education Available Online

Van Education Center is proud to announce that our Basic Appraisal package is now available online for the following states:

(click on your state for more information)     Michigan - Texas - Washington - Kansas - Wisconsin - Virginia - Georgia - Delaware - Vermont - South Dakota - Illinois

The package includes the following modules, and will prepare you for your apprenticeship:

• 30 hours - Basic Appraisal Principles
• 30 hours - Basic Appraisal Procedures
• 15 hours - USPAP (Uniform Standards of Professional Appraisal Practice)*

The cost is only $695 and includes two textbooks co-authored by Henry Harrison and Burton Lee. For more information and to enroll for a free 5-day trial of the program, click here!

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*Illinois requires USPAP to be taken in a classroom.

Finance Friday: Congress passes stimulus package

Congress passed the economic stimulus bill yesterday and it should be signed by the President shortly.  Part of this package allows Fannie Mae and Freddie Mac to purchase loans up to $729,750 that are closed between July 31, 2007 and December 31, 2008.  The actual limit will vary based on the local housing cost index.  Most areas of the country will not see an increase in their loan amounts. It also allows FHA to insure loans up to $729,750 in high cost areas.  As with other FHA loan limits, these will be set on a county by county basis.

In other mortgage news, Countrywide notified 122,000 homeowners that they could no longer draw against their HELOC because the automated valuation system they use shows their line limits are in excess of value.  Also, Chase is now limiting second mortgages (including HELOCs) to 70% LTV in many parts of California because of declining values.  CTX mortgage has been sold to some kind of private equity company.  What becomes of them is unclear at this time.

A report released yesterday indicates that over 20% of the option ARM products placed in Mortgage Backed Securities last year had no income verification and less than 10% equity. Two percent of them had no down payment.

Rates were an up and down affair again this week.  We started out the week at 5.75% for thirty year fixed rate loans, dropped to 5.5% on Wednesday, and are back to 5.75% for no point loans today.

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 Governor's Showcase Community designation accepting applications now

Now through February 20th, the Nebraska Department of Economic Development (DED) is accepting nominations for the SHOWCASE COMMUNITY award. The winning community will receive the award from Nebraska Governor Dave Heineman on March 25 in conjunction with activities surrounding National Community Development week, scheduled for March 24-30, 2008.

Communities eligible to be nominated for the award must identify community development goals, and display that they can combine local, state and federal resources to complete high profile projects that have positive impacts on the community.

For more information or a Community Nomination form, click here. For information and ideas on how your community can celebrate Community Development week, click here.

Notes from the Field: Solar Demand to Drop Prices Up to 40%

Solar energy has enormous potential in the real estate industry, but currently is not a very practical option for the average homeowner. Ninety percent of Americans believe that solar should be an option for all new home construction. Recent news brings the affordability issue to the forefront as a report from the WorldWatch Institute revealed that the increased demand for solar panels will cut prices up to 40% in the next three years.

Send this news brief to your sphere of contacts in one of your newsletters or e-mail contacts. Ninety percent will be interested in the latest information on solar energy.

This reliable green information is brought to you courtesy of the EcoBroker Certified® professional designation, currently offered by VanEd. Find out more online at http://www.vaned.com/ecobroker/.

REALTOR® Day at the Capitol just around the corner

REALTOR® Day at the Capitol in Colorado is scheduled for Tuesday February 19th. REALTORS® from all over the state will travel to Denver and hear from Governor Ritter and State House and Senate leaders discuss issues related to REALTOR® interests.

REALTORS® will be updated on local issues and will be able to tour the state Capitol. This is your opportunity to network with your fellow REALTORS® and learn about the issues that directly impact your business.

For more information, visit the Colorado Association of REALTORS® web site by clicking here. The event includes lunch, materials and transportation to the Capitol. You can view a video introduction to the event, as well as register online at the CAR site.

VanEd Presents: Additional Texas MCE / MRE course: Affordable Housing now available

Master of Real Estate DesignationVan Education Center has begun offering an additional MCE course in Texas. Affordable Housing (course #08-00-010-6632) is now available for 8 hours of MCE credit. This course will also count for 12 hours of MRE, Master of Real Estate designation credit.

This course is designed to educate students about who is affected by the lack of affordable housing and to provide details about available resources with examples of how some communities around the country have patched together unique solutions to local housing issues.

To learn more, visit our Texas MCE program online today!

Finance Friday: Another week, another rate cut

On Wednesday, the Fed announced a cut in both the Federal Funds rate and the Discount rate one one-half on one percent.  This is on top of the emergency rate cut of .75% last week.  Mortgage rates have been all over the board in the last two weeks, from a low of 5.25% last Wednesday to a high of 5.875% on Monday.  They have settled down to 5.75% today.  Many analysts think the aggressive Fed action along with the proposed stimulus package may actually cause rates to increase.  The Fed's action certainly makes it appear they are more concerned with a slowing economy than rising inflation.  If the Fed takes their eye off the "inflation" ball, fixed term investments (such as bonds and mortgages) could be hurt by an erosion of their value.  Nothing scares a bond investor more than than inflation.

We are starting to see risk based pricing on FHA loans.  At least one lender is charging an extra .25% for borrowers without a credit score, 1.5% for borrowers with a credit score of 530to 579, and 3.0% for credit scores between 500 and 529. 

Elsewhere, Beazer Homes announced they are shutting down their mortgage lending division, Beazer Mortgage.  Remember, last March the FBI and HUD launched a joint investigation of fraudulent pricing on the purchases of homes with FHA insured financing provided by Beazer Mortgage.  E-loan also finally shut down all operations yesterday, ending a process that started with the layoff of most of their employees last November.

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/.