Announcements

Predatory lending rule requires new paperwork at closing...

If you've had a transaction close after Jan. 1, you have probably noticed some new paperwork being presented to your clients. Those documents are part of the provisions of SB 185, a bill that was designed to address predatory ending practices. This legislation became effective Jan. 1.

This bill now mandates that title insurance companies offer "closing or settlement protection" to the lender, borrower, seller of the property and to any other applicant for title insurance. The purpose of this protection is to indemnify the lender, borrower, seller and applicant that has requested the protection, against the loss of settlement funds as a result of the actions of the title insurance agent. Those acts include: theft, misappropriation, fraud, any other failure to properly disburse settlement, closing or escrow funds, or any failure to comply with applicable written closing instructions.

SB 185 provides that it is the title insurance company's obligation to offer this closing protection at the time of closing. This is not the responsibility of the real estate licensee.

In order to comply with this requirement, title companies are presenting buyers and sellers with a document acknowledging that the coverage has been offered to them and it also has a section for the parties to indicate whether the coverage is being purchased or not. As with title insurance premiums, the cost of this closing protection coverage is set by the Insurance Ratings Bureau.

A second form title insurance companies must provide to borrowers on residential loans is also required by SB 185. The law now requires that if the borrower is not obtaining title insurance, they must be given written notice explaining that the lender's title insurance policy protects the lender, not them.

April is Fair Housing Month

As we celebrate the anniversary of the 1968 Fair Housing Act, consider what you can do to continue to protect the right of everyone to own property. If you suspect that any of your clients were a victim of housing discrimination before they came to you, encourage them to take action. Don't allow them to just walk away resigned to the mistaken belief that they can't do anything about it. Taking action can make the world a better place for everyone.

Here are some suggestions for becoming a fair housing advocate: Realize that housing discrimination is illegal.Write down everything you can remember about the incident, including the date, the names of the company and individuals you suspect of discrimination, and what was said.
Keep detailed records, including application forms and receipts.
Act quickly while the incident is still fresh in your mind.
Report the incident and your suspicions to authorities. The HUD (Housing and Urban Development) website has a Fair Housing and Equal
Opportunity page at www.hud.gov/offices/fheo with an index of state and local organizations you can contact.
Keep in mind that laws have little effect on people's behavior unless those laws are enforced, and enforcement begins with concerned citizens who take action. If you suspect discrimination, report it.

Dues Invoices

The first notice of the second installment billing will be sent to members via email on April 6, 2007. When you receive the email, do not delete it as it includes access to pay your bill online. Click here to pay your dues online. Your license number is your login ID and `cbr' is the password.

Seeking members skilled in African language/culture

The Equal Opportunity Committee recently received a $5,000 grant to implement a program to provide homebuyer training to prospective African buyers living in the central Ohio area. We are seeking assistance to help implement this project from anyone who is knowledgeable of the African language and culture of any of the following countries: Somalia, Ethiopia, Ghana, Nigeria, Kenya, Gamia and Sierra Leone. If you have skills in this area, please contact Lynn Hackworth at (614) 475-4000 x248 or LHackworth@columbusrealtors.com.

Are the new Ohio septic system rules causing problems for property sales?

In mid March, the Ohio Association of REALTORS® asked members to contact Ohio Sen. Timothy Grendell (and OAR) if property sales have been negatively impacted by Ohio's new septic system regulations, which became effective January 1, 2007.

As a result of overwhelming response, Sen. Grendell, is seeking passage of legislation that will provide for a delay in implementing the new rules until January 2008 in an effort to "find a better, more functional, and economically appropriate way to deal with this issue."

FYI -- A system in the ground and functioning is grandfathered under the new rules, however, the cost for property owners installing new home systems will increase upwards of $25,000.

There's still time to notify Sen. Grendell of instances where the rules have prevented real estate transactions from being consummated because of the costs involved with compliance. Please send detail of your experience to Sen. Grendell at SD18@mailr.sen.state.oh.us and OAR's Chief Lobbyist, Bob Fletcher at fletcher@ohiorealtors.org.