VanEd Newslog

Our favorite stories this week include angry chefs, green property valuation and low appraisals, sooo.... hold the blowfish?

Here are our favorite stories from this week, as reported by the VanEd staff, students and industry sources. It's probably no surprise that food, green building and a story about a low appraisal all made the list. We're diverse like that. :)

Did you know that Old Buildings can learn New Tricks? An article on the Sustainable Business Oregon website says yes. In her article, Caitlin Powell notes a study showing that by renovating an older warehouse (or potentially a mall?) and using 6 to 8 percent fewer resources than on demolition and new construction, contributions to climate change can be reduced by as much as 9 percent. Other stats are even more impressive.

Read more --> http://www.sustainablebusinessoregon.com/columns/2012/04/old-buildings-can-learn-new-tricks.html?ed=2012-04-03&s=article_du&ana=e_sbo

 

You know it is still an interesting market when the Past President of the Appraisal Institute, a Tennessee Real Estate Broker, loses a deal over a low appraisal and then gets an article on CNN Money. Read the article and then decide: Are banks sending messages to appraisers to keep valuations low?  http://cnnmon.ie/HcdwZ7

Don't think the appraisers are just one sided, though. They're still working on Green features as they ask If Energy upgrades add value to existing homes? The appraisers discuss this in an Appriasal Scoop post.    http://bit.ly/GTtZOf

Appraisers also have to deal with the Uniform Collateral Data Portal® (UCDP®), a single portal for the electronic submission of appraisal data files to Freddie Mac and Fannie Mae that facilitates the electronic collection of appraisal report data. Appraisal report forms for all conventional mortgages delivered to Freddie Mac on or after March 19, 2012, must be submitted to the UCDP. For more info visit http://www.freddiemac.com/sell/secmktg/uniform_collateral_data_portal.html. 

 

Ever ask what happens to all the hats that land on the ice after a hat-trick in hockey? We didn't until the Colorado Avalanche put the question to those who pick them up in this online video: http://video.avalanche.nhl.com/videocenter/console?catid=1027&id=103305 (and hey, now we know!) 

 

And what is with the regulators in Tokyo? The deadly poisonous Blowfish can kill you with a look (ok, an eye....seriously, the eyes, heart, liver... all more deadly than cyanide!). And now food regulators are easing restrictions for those who want to cook these deadly delicacies. Seems to us tha loosening standards for chefs who specialize in blowfish seems like adding risk to an already "fishy" proposition. 

See what we mean in this Rueters article: http://www.reuters.com/article/2012/04/03/us-japan-blowfish-idUSBRE83202P20120403

These stories and many more were or are available on one of our social network sites listed below. Please join us there!

Colorado Division of Real Estate announces MLO CE Compliance Rates at less than 10%

Mortgage Loan Originators take note: Those who regulate you are watching. The Colorado Division of Real Estate who oversees the Mortgage Loan Originator Program in Colorado published in their Spring/Fall 2011 edition of Real Estate News that MLOs in the state were less than 10% compliant in completing mandatory continuing education. Nationwide less than 20% of all MLOs had completed the mandatory education.

Click here to read the Summer/Fall edition of the DRE's Real Estate News Newsletter

The required Colorado Mortgage Loan Originator continuing education is available online! VanEd is proud to be able to offer our students the 8 hours of NMLS required education and to be the home of the two hour Colorado Mandatory course online.  The 2 hour course was developed by the Division of Real Estate and covers a number of topics.

VanEd also offers access to the 8 hours of required NMLS education in many states. Find your state information online by clicking here.

(Follow VanEd on Twitter to stay on top of current information and receive special discounts and promotions on all of our new courses - perhaps even on the recently launched MLO courses or discount offers on Real Estate Licensing education!)

Finance Friday: Opportunity knocks in Mortgage Fraud arena

Mortgage fraud opportunism has been on the rise because the conditions have been riper than ever. The FBI has identified a many factors, which include "a decrease in loan originations, increased unemployment, increased housing inventory, lower housing prices, and an increase in defaults and foreclosures," which have generally made borrowers/homeowners more desperate, and hence more vulnerable to being defrauded.

But during the boom, how many bad loans were there? Using numbers from multiple agencies, the total comes to more than 7,500 new fraudulent loans every business day.

Consider how much money is involved:

Who benefits from such fraud? Based on industry standards, loan officers and others involved in the mortgage transaction will generate roughly just more than $8 billion in fees from fraudulent transactions, while real estate companies and agents themselves will earn more than $13 billion in commissions from these fraudulent transactions. These calculations are based on average fees collected on a purchase transaction.

NOTE: There is no desire to insinuate that real estate agents are all involved in fraudulent transactions. But in considering the total cost of these fraudulent transactions, agent commissions should be calculated.

Hot Spots

A recent analysis of mortgage industry fraud surveys identified 26 different states as having significant mortgage fraud problems.The survey also identified nine other states in the South and Southwest, seven states in the West and five states in the Midwest as having mortgage fraud problems.

The latest report of the Mortgage Asset Research Institute provides important statistics on the increase of suspicious activities. The same report provides more detailed statistics on the top eleven hot spots.

10 Top Scam states in 2009.

1. Florida
2. New York
3. California
4. Arizona
5. Michigan
6. Maryland
7. New Jersey
8. Georgia
9. Illinois
10. Virginia

Interthinx reported that most metropolitan statistical areas (MSAs) in California, Florida, Colorado, Michigan, Ohio and Nevada are of "very high risk." The Washington D.C., Minneapolis-St. Paul, Atlanta and Memphis MSAs remained in the "very high risk" category quarter-over-quarter, while Bend, OR, which moved to a lower risk category in Q1/10, rejoined the category. The Trenton (NJ), Worcester (MA), Providence (RI), Medford (OR) and Nashville (TN) MSAs are recorded as "very high risk" for the first time. For the first quarter of 2011 they reported that risks had "evened out" in since 2010 due to market conditions around the country, but show Nevada and Arizona as having the highest "risk indicators".

Financial Crime Enforcement Network (FinCEN) Suspicious Activity reports show amazing changes to trends as well. Consider the following;

• 6 Year Filing Trends 04-09:
• Up from 6400 to 70,000 per year

Of all of these reports, only about 2% were ever investigated. It is of little wonder that mortgage fraud still exists and is increasing.

According to FinCEN, at least part of the increase can be attributed to increased attention to older loans. From January to March 2010, 78 percent of SARs involved loans more than two years old. Banks and thrifts filed 35,135 mortgage-related SARs from January to June 2010, up from 32,926 in 2009 during the same period. Unfortunately, it seems that all of these conditions will persist in the immediate future, which means consumers (and regulators) need to maintain a high level of vigilance.

The West and Southeast are the two most problematic regions. The regions which were affected the most by the housing bubble/collapse and/or by deteriorating economic circumstances also experience high incidences of fraud. In 2009, "The top mortgage fraud states for 2009 were California, Florida, Illinois, Michigan, Arizona, Georgia, New York, Ohio, Texas, the District of Columbia, Maryland, Colorado, New Jersey, and Nevada."

Under current regulations only banks and insured depository institutions are required to file suspicious activity reports (SARs). FinCEN says SARS are a critical source of information for law enforcement in investigating and prosecuting mortgage fraud related crimes, and that it believes new regulations requiring non-bank mortgage lenders and originators to adopt AML programs and file SARs would be consistent with those businesses' due diligence.

FinCEN has proposed regulatory changes that would require non-bank residential mortgage lenders and originators to also report suspicious activity to the agency and establish their own anti-money-laundering programs to curtail losses.

Mortgage Asset Research Institute (MARI) released a report which shows incidents of fraud committed by mortgage industry professionals had increased by 7% in 2009.

The jump in mortgage fraud is a troubling trend, given that it played a big role in setting the housing crisis in motion, with mortgage professionals doing things like listing false income claims for borrowers, and overstating a home's appraised value.

Click Here for more information on our recently updated Mortgage Fraud class online, available for 6 hours of MRE, Master of Real Estate Credit and Continuing Education credit in some states. We also offer many discounts on Twitter or Facebook.

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NAR Home Ownership Matters Bus Tour takes to the road in March - #HOM

Chicago, Denver & Portland will be the 3 cities visited next month as part of an NAR bus tour organized to promote the benefits of home ownership.   Each stop will include two separate events:

1. a town-hall forum with REALTOR® Leadership, hosted by 2011 NAR President Ron Phipps, and
2. a consumer-oriented event designed to educate the public on current housing issues, such as preserving the mortgage interest deduction and continuing federal support for home ownership. 

Members are encouraged to take part in these events by attending the REALTOR town halls and informing your clients and the public about the Home Ownership Matters campaign from NAR.

For more information and to register for the Members only Town Halls, visit Realtor.org by clicking here. More information

For more information that you can pass on to your clients and customers, visit the Home Ownership Matters page online at Realtor.org. --> http://www.realtor.org/topics_secured/homeownership 

 

 

Learn more about the Role of a Property Manager

The role of the property manager has, of course, changed a great deal since the concept first originated. There is evidence that the Egyptians, Greeks and Romans hired "managers" to supervise their property, and the practice continued through the Middle Ages and up through our era. The earliest property managers may also have been slaves who were accorded slightly better living conditions and privileges because of their additional responsibilities. However, the goal of the property manager has not really changed much: today, as then, the property manager is charged with protecting and maintaining a rental or second home property, and obtaining the highest possible income for the ownership. The extent of the responsibilities and the range of tools available have expanded, but the goals remain much the same.

By having an understanding of the duties and obligations of the property manager to the owner, as well as the duties and responsibilities of the owner to the property manager, you can begin to determine what areas of property management you may be interested in. The type of employment you will seek should determine what associations you join or designations and training programs you decide to attend and acquire. Remember that the more training and education you complete the better you will be able to service your clients and customers needs.

You can learn more about the various responsibilities of a property manger by completing VanEd's Property Management course online. Click Here for more information. 

Designation Spotlight: MRE - Master of Real Estate

What three things do consumers desire in a real estate professional? Trustworthiness, Representation and Communication, which are the hallmarks of the MRE, Master of Real Estate professionals.

The MRE designation is an education based program that requires a candidate continue their personal education beyond any mandatory requirements or statutes. The program is flexible, allowing for different students to complete a varying group of courses to earn the designation. Courses in the program are broad based and cover numerous real estate areas, such as Planning, Commercial and Negotiation. Students are also able to complete top National coursework and earn credits towards the MRE designation.

As new market economies push real estate professionals into new and unfamiliar areas, it becomes more evident that those who have continued to educate themselves beyond any minimum standards will have an edge on the competition. Learn more about the MRE, Master of Real Estate designation, requirements and courses by visiting the MRE website at www.RealEstateMRE.com today!

VanEd is proud to be the online provider to the MRE program and host to numerous continuing education courses within the program.

Oregon Real Estate Agency issues Fraud alert

The Oregon Real Estate Agency has issued the following fraud alert;

The Agency is receiving calls from licensees asking if their fingerprint cards have expired. The licensees explain that someone stating to be from the Agency has called them and informed them that their fingerprints are going to expire. The caller is asking for credit card and social security numbers.

Fingerprint cards and criminal background checks do not expire with the Agency. Also the Agency does not accept any personal or confidential information over the phone. If you receive one of these calls, do not give your information out.

VanEd reminds you not to give out any personal information to anyone calling and claiming to be from any regulatory agency. Regulatory officials do NOT accept personal information over the phone in any state that VanEd operates in. All students and members should take care to guard personal information and if someone claiming to be from a regulatory agency does contact you, report that to your local regulatory licensing agency.

VanEd Presents: Real Estate & Related Investments in IRA & 401K ~ our newest Nebraska Continuing Education credit course

This course will open the door to a new way of serving your clients, both buyers and sellers, and provide you a valuable new tool to build ongoing relationships and partnerships. In your quest to connect buyers with sellers, this course will open the door to many more potential buyers than currently exist for a given property.

Investing IRA assets in Real estate has been a well-kept "secret" opportunity. It is true; you and your clients may invest their IRA in real estate. You may help your clients buy real estate with their IRAs, opening an entirely new avenue for commissions. You may also buy and sell real estate in your own IRA/SEP or 401k plan, taking advantage of the "wholesale" market as a real estate broker and taking advantage of tax deferred retirement investment.

VanEd is proud to now offer the ARELLO certified Real Estate and Related Investments in IRA & 401K course in the following states - click on your state for more information;

Colorado - Nebraska - Oregon - Texas

VanEd Presents: Commercial Leasing ~ available for CE credit in Nebraska, Colorado, Oregon and Texas

Commercial Leasing is now approved for 3 hours of Continuing Education credit in Nebraska. This course, a part of the MRE program, will expose residential real estate professionals to the nuts and bolts of commercial leasing. The course covers site assessment and comparison, as well as representation and analysis of customer needs.

The course also introduces standard leasing types and clauses that a practitioner may come across in a given transaction. This course is now approved in the following states. For more information or to get started, click on your state below;

Colorado - Nebraska - Texas - Oregon

VanEd announces Free "Getting Started" course for all pre-license students

VanEd recently began offering new Professional Development courses online, including Getting Started and Staying on Track. This course, from author Jennifer Allan (Sell With Soul), will teach you how to start up a (successful) real estate business and how to manage the dozens of details that are involved. This Professional Development class will take you day-by-day, step-by-step through that process. Jennifer Allan has authored five books and multiple online education courses that deal with customer relations, pricing strategies and balancing your life.

For those veteran agents who may need to refocus or re-energize their careers, the course assignments are designed to help you hit the ground running while keeping your enthusiasm and motivation high.

And to kick start a new career year offright, VanEd and Jennifer Allan are now offering the course FREE to all of our Pre-License students!  Students registering for any of our complete licensing packages will be automatically enrolled in the Getting Started and Staying on Track course upon completion of theirpre-license education classes. And for no charge, it's an unbeatable offer!

VanEd is the leading provider of online real estate pre-license education classes and courses in many states, including Colorado licensing, Nebraska licensing and Texas licensing education.

Guest Author Jennifer Allan has authored books and courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm. Her latest release of Sell with Soul is also available in the VanEd bookstore.