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NEW Mandatory HUD Information

Some issues to be concerned with as you review the documents below:
1. Broker commissions to buyers.
2. Builder charges, allowances and change orders.
3. Well and septic inspection fees.
4. Home inspection fees.
5. Home warranties.

Settlement Booklet

Settlement Statement

Sample Settlement Statement

ST. CLOUD AREA ECONOMIC DEVELOPMENT PARTNERSHIP

IN PARTNERSHIP NEWSLETTER October 2009

NEWS RELEASE
October 9, 2009

The St. Cloud Area Association of REALTORS® (SCAAR) is proud to announce the appointment of one of its members, Russ Portele, Broker at Coldwell Banker Burnet (CBB) , St. Cloud as the Minnesota Association of REALTORS’® (MNAR) 2010 Vice President. Russ will become MNAR’s President in 2011. MNAR serves some 16,000 REALTORS® in the state of Minnesota. Russ has been in the real estate industry for 33 years and a Broker with CBB since 1990. Russ has served the SCAAR in several capacities over the years including terms as president of the local REALTOR® Association as well as Multiple Listing Service. The SCAAR is equally proud to announce Bob Faundeen, RE/MAX Realty Source, Inc. of St. Cloud as one of seven finalists for MNAR’s REALTOR® OF THE YEAR award. Bob has been a REALTOR® and Broker for some 35 years! Bob is also a past president of the SCAAR as well as SCAMLS and recently served as MNAR Director on the SCAAR Board of Directors. Bob and his wife Angie live in St. Cloud and have four children. Congratulations to both of them!!

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HOUSE DFL TAX BILL BLASTS HOMEOWNERS

Homeowners in Minnesota have been battling a through a tough real estate market for the last few years. Foreclosures, short sales and falling prices have made the American Dream sometimes appear to be a nightmare. Luckily, as with all markets, Minnesota’s residential market will recover. How fast and stable the recovery will be is something that government can either hinder or help, depending on the tax policies it adopts.

That is why the Minnesota Association of REALTORS® was shocked by provisions in the House DFL Tax Bill that hammers homeowners. Two of the most significant changes are the elimination of major income tax deductions - property taxes paid and mortgage interest. These two provisions have been part of Minnesota tax law since 1933 and are readily utilized by homeowners to help offset the annual expense of owning and maintaining a home.

Studies show that ninety-seven percent (97%) of the tax benefits from these deductions go to Minnesotans with household incomes starting at $30,952. In many cases, these are young families who have recently purchased and are struggling during this recession. Not every taxpayer utilizes these deductions; however, 75% of homeowners use these deductions when filling out their taxes. Other homeowners have paid down their mortgage over the years and now claim the standard deduction. More significant is that homeowners understand the overwhelming public policy benefits these deductions provide and realize their children and grandchildren will need these deductions so they can own a piece of the American Dream.

Homeownership has been widely recognized as good public policy for stabilizing families, neighborhoods and communities. Altering these widely accepted tax deductions at a time when the residential real estate marketplace has been struggling seems to be the wrong solution at the wrong time. You can access the House Tax Bill at: https://www.revisor.leg.state.mn.us/bin/getbill.php?session=ls86&number=HF2323&session_number=0&session_year=2009&version=list

Christopher Galler, COO
Minnesota Association of REALTORS®

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OPERATION TIP-OFF
REALTORS^® ACHIEVE VICTORY WITH SHORT SALE COMMISSIONS

Washington, D.C. (March 3, 2009) – NAR preserves Realtor^® commissions. After extensive lobbying and educational efforts by NAR, Fannie Mae made the attached announcement last week.

Fannie Instructs Its Servicers Not to Cut Commissions on Short Sales

On February 24, 2009, Fannie Mae sent Announcement 09-03 to its servicers instructing them NOT to negotiate commissions on short sales below the amount negotiated by the listing agent (unless the commission exceeds 6 percent). The requirement took effect March 1, 2009. Fannie Mae recognizes that (a) negotiating commissions for short sales is unfair because getting a short sale to closing requires intensive work over many months, often requiring working with numerous buyers, and (b) compensating real estate agents fairly benefits Fannie Mae because agents play a crucial role in short sales. The Announcement reminds servicers that third party approvals (i.e., private mortgage insurers) may be required and can affect commissions.
NAR has asked both Fannie Mae and Freddie Mac to strengthen their policies against reducing short sales commissions. NAR welcomes Fannie’s announcement, and has urged Freddie to follow Fannie’s lead.

NEXT STEPS:
NAR will continue to work with Freddie Mac and other mortgage providers to enact similar regulations that will ensure that Realtors^® are compensated fairly.
NAR will continue all actions to preserve the commissions of Realtors^® in all real estate transactions.

FAQs
Q. My lender won't pay more than 5 percent. Why not?
A. Fannie’s policy only applies to loans it owns or guarantees. If the loan is owned or guaranteed by Freddie, the same policy should apply. Other lenders have other policies.

Q. Why can’t Fannie require all servicers to follow its commission policy?
A. Fannie has no jurisdiction over loans that it does not own or guarantee. Servicers handling loans for other lenders and investors are subject to their policies, not Fannie’s policies.

Q. What should I do if the servicer for a Fannie loan tries to reduce my commission?
A. Tell them about Announcement 09-03. They can find it at www.efanniemae.com. Just search for “Announcement 09-03.”

For Further Information: Contact Joe Ventrone (jventrone@realtors.org) or Jeff Lischer (jlischer@realtors.org).

Operation TIP-OFF is a service to Realtor^® boards and associations from NAR Public Affairs. It is a cooperative exchange of intelligence and information on news media coverage of issues critical to Realtors^®. Operation TIP-OFF will provide Realtor^® leaders advance information on potential news. Board and associations are urged to share suggestions, tips and information about issues with their members in their markets or states. This is for member use only and should not be distributed externally.

House of Representatives Passes Affordable Housing Trust Fund Act

Washington, DC -- The U.S. House of Representatives today passed H.R. 2895, the National Affordable Housing Trust Fund Act of 2007 by a vote of 264 to 148. The National Affordable Housing Trust Fund will be the largest expansion in federal housing programs in decades, with a goal of producing, rehabilitating and preserving 1.5 million housing units over the next 10 years. The bill as will initially allocate between $800 million and $1 billion annually directly to states and local communities, without increasing government spending or the federal deficit.

“The National Affordable Housing Trust Fund addresses the affordable housing crisis as it affects every level of society. Right now, housing costs are outstripping wages for more households than ever before, and working is simply no longer a guarantee of being able to afford housing” said Rep. Maxine Waters, Chairwoman of the Financial Services Subcommittee on Housing and Community Opportunity. “It has been seventeen years since the federal government last enacted a major affordable housing production program, and I am pleased that this legislation will tackle the full range of housing crises, providing relief to overburdened renters and homeowners while targeting funds where the need is greatest.”

“The growing shortage of affordable housing is one of the most serious social and economic problems facing our country. Given our severely constrained fiscal realities, we are today doing the best we can to address this – creating a low income housing trust fund that will be paid for in ways that do not draw from federal tax revenues,” said Rep. Barney Frank, Chairman of the House Committee on Financial Services.

The National Affordable Housing Trust Fund is an important step in addressing the affordable housing crisis in our country. Over the last several years, many people purchased homes with mortgages they could not afford because they believed it was one of the few avenues to achieving a decent place to live. In addition to the trust fund, the House of Representatives passed last month, H.R. 1852, the Expanding American Homeownership Act of 2007, to reform the Federal Housing Administration (FHA), which will enable the program to serve more subprime borrowers at affordable rates and terms, recapture borrowers that may have received risky loan products in recent years, and offer refinancing opportunities to borrowers currently struggling.

Additionally, on May 23, 2007, the House passed H.R. 1427, reforms of the Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac, and the Federal Home Loan Bank system, allowing these entities to purchase more loans in higher cost areas (lowering interest rates for new homes and refinances in those areas). The bill also seeks to increase liquidity now by asking federal regulators to reconsider artificial restrictions on the number of loans that the GSEs can own.

Local Historic Districts in St. Cloud

Did you know there are four historical districts in St. Cloud? Click here for a map that gives you an overview of where these districts are. If you have any questions or comments about the historical districts, please contact Betty Lou Berg at Edina Realty (255-9000). She is a member of the Historic Preservation Commission and is serving on their Board of Directors this year.

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