Announcements

CBR Seeking nominations for Broker, Salesperson, Affiliate and Citizen of the Year

The Awards Night Committee is seeking nominations for CBR Broker, Salesperson, Affiliate and Citizen of the Year. If you know someone who might deserve recognition for their service, you do not need to complete a nomination form, just call Kathy Elliott, 614- 475-4000 x 233 by February 29, 2008. The Awards Night celebration is set for Wednesday, April 23, location not yet determined.

Refinanced fixed-rate mortgages available for struggling homeowners

Refinanced mortgages with fixed rates are available from the HopeNow program for qualified homeowners struggling with subprime mortgages.

Since it was created last year, HopeNow has taken applications from 45,000 subprime borrowers looking for some quick relief from mortgages they can't handle.

Along with easier-to-manage mortgages, homeowners who refinance under the HopeNow program also get counseling to make sure they hold onto their new refinanced mortgage ? and their home.

The program has the blessings of both the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Affairs. The outreach program contacts subprime borrowers before they get into trouble and offers the help they need to remain homeowners.

HopeNow is the work of mortgage servicers who represent 90 percent of the subprime market. The subprime mortgage market includes 2 million subprime mortgage holders who have mortgages that could reset to higher rates in the next two years, according to the U.S. Department of the Treasury.

The HopeNow program's fast track effort is speeding early applicants through the refinance process to free up time for mortgage servicers to focus on the more difficult cases, according to the Treasury Department.

The ultimate goal is to prevent as many foreclosures as possible. For more information, visit the HopeNow.com website or call 1-888 995-HOPE (4673). (FYI -- this is the service that the Columbus Housing Partnership works with.)

Proposed Economic Stimulus Package will be good for housing

An overhaul of the Federal Housing Administration's mortgage insurance program and an increase in the size of mortgage loans that Fannie Mae and Freddie Mac can purchase are key housing components included in the economic stimulus package announced on January 24, 2008.

Here is what currently is being reported as included in the package: The FHA limit will increase permanently to as much as $729,750 in high cost areas (125% of local median home prices). The language is similar to the bill passed by the House before to the 2007 holiday break, including reducing downpayment requirements.

The GSE limit is expected to be increased to up to $729,750 for one year. Currently Fannie Mae and Freddie Mac are capped at $417,000. It appears that there will be a formula similar to that of FHA, with GSE loan limits increasing to 125% of the local median home price, but not to exceed $729,750.

FHA Reform will --

Stimulate new-home sales and refinancing
Reduce the number of families facing foreclosure
Give families who want to purchase a home a safer alternative to many of the riskier mortgage products of the past
Help more people refinance into less-expensive FHA-backed loans
Allow more families to buy a home because of lower downpayment requirements

Lifting GSE loan limits to $625,000 will --

Reduce foreclosures by as much as 210,000
Save consumers who get new "GSE Jumbo" loans $3000 to $5000 a year in interest payments
Allow as many as 500,000 people with jumbo loans to refinance to lower interest rates
Reduce housing inventories by one to 1 1/2 months
Result in 348,000 additional home sales
Strengthen home prices by 2 to 3 percentage points
Generate $44 billion increase in economic activity
Increase liquidity (money flow) in the mortgage marketplace

This is an important first step. There is still much work to be done before this goes to the president for enactment, including that the Senate must present its version.

NOTE: It is important that NAR members keep the heat on Congress to get this economic stimulus quickly passed. If you receive a Call for Action answer the call by contacting your Member of Congress and Senator encouraging quick action on the stimulus package.

Military Status now a Protected Class

The Ohio legislature recently enacted HB372, which provides various protections and benefits to members of the Armed Forces. Governor Strickland has signed it into law and it will become effective March 24, 2008.

OAR was not tracking this bill because it did not initially have an impact on real estate interests. Prior to enactment, however, it was amended to include a change in Ohio's Fair Housing laws by adding military status as a protected class.

This provision makes it necessary to amend all real estate-related forms, contracts, posters and pamphlets which are required to include fair housing information.

The Ohio Division of Real Estate and Professional Licensing Fair Housing

Poster (required to be hung in all broker's offices in the same place where the brokerage's license is displayed.) --ODRE is reprinting and will mail the new poster to all brokerages in February. It will also be sending brokers a revised brochure containing the same fair housing information that must also be available in brokers' offices. Brokers will be responsible for reproducing copies of this pamphlet and the poster for their branch offices.

Consumer Guide to Agency Relationships -- must be revised to contain the NEW Fair Housing Statement. OAR has updated sample Consumer Guides to Agency Relationships available on its Web site at www.ohiorealtors.org.

Any written agency agreement the brokerage uses (listings, buyer agency contracts, tenant representation agreements, auction agreements, and property management contracts involving residential property and vacant land) -- must be revised to contain the NEW Fair Housing Statement.

CBR Standard Forms

The following CBR standard forms which contain the Fair Housing Statement will be updated and made available by March 24.

CI Real Estate Purchase Contract
CI Purchase Contract for Land
CI Exchange Contract
RS Exclusive Right to Represent Buyer/Tenant
RS Real Estate Purchase Contract
RS Purchase Contract for Land
RS Listing Contract
CI Listing Contract

Note: Brokers wishing to deplete any existing supply of these forms can comply with the new law after March 24 by:

Preparing an addendum with the new fair housing language that can be attached to your Consumer Guide, listings and other agency agreements; OR
printing the new language on a label that can be placed over the old fair housing statement on these forms; OR
hand writing the language that is underlined below on your old forms.

The new language is only necessary in forms signed after March 24; it is not necessary to have clients or customers who signed these documents prior to that date re-execute them. Although the new language is not required until March 24, brokers can begin using the revised Consumer Guides sooner if they wish.

NEW Fair Housing Statement:

The new language is underlined merely to highlight it, but such underlining is not required when you print these forms.

It is illegal, pursuant to the Ohio fair housing law, division (H) of section 4112.02 of the Revised Code, and the federal fair housing law, 42 U.S.C.A. 3601, to refuse to sell, transfer, assign, rent, lease, sublease, or finance housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status as defined in section 4112.01 of the Revised Code, ancestry, military status as defined in that section, disability as defined in that section, or national origin or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the provision of real estate brokerage services. It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons belonging to one of the protected classes.

New form required for sales award applications

With the conversion to Tempo 5 MLS this month, the burden of paperwork previously needed for the CBR million dollar club awards will be greatly reduced. However, until the conversion, a new form has been developed -- Agent Status Declaration Form - which must be used for transactions between November 1, 2007 and the time the system goes live. This form is printed opposite for your convenience. Please remove and use. The form is also available electronically on the CBR web site. You'll find the link to the form on our home page -- ColumbusRealtors.com.