Announcements

Grants & Scholarships Multi-Cultural Post-License Real Estate Grant

CBR's Equal Opportunity Committee host various fundraising activities throughout the year to raise funds to provide grants to members of any multi-cultural group new to the real estate business. These grants are awarded to help with start-up costs: annual CBR membership fees, classes, business cards, etc. Grants are awarded twice a year, following the application deadlines of June 30 and December 31. The grant is not a loan; therefore repayment is not required. Contact CBR's Lynn Hackworth (614) 475-4000 ext. 248 with questions. The grant application is available online at ColumbusRealtors.com/15774.cfm.

"Change of Address Service" offered online by USPS

The United States Postal Service is asking REALTORS® to send their clients to usps.com/realmove to change their address online. USPS has created REALTOR® Message Cards and other free marketing materials to help spread the word about the online change of address service. When your clients change their address at usps.com/realmove, they can get:

special move-related offers worth over $400
an email confirmation that their change of address request has been received
instant address verification to ensure accurate mail forwarding
built-in security to protect private information (a $1 fee is charged for this service);
most importantly, more time to handle other moving related activities

For more information on this service, visit www.realmovevalue.com or call Audrey Conley, 1-800-331-5746.

Exhibit courtesy when placing signs

If you're putting out open house or directional signs, ask the property owner's permission first. If they are not home, leave a note with your contact information explaining what you're doing and when you'll be back to pick up the sign. First of all, this is just common courtesy which real estate professionals exhibit at all times. But who knows, they may be thinking of selling/buying and your professionalism could win you your next transaction!

Tech Hotline available to members

Remember, the Ohio Association of REALTORS® offers members free technology help on both hardware and sofrware related issues. The Tech Hotline is available Mon-Fri 8a-8p; Sat/Sun 10a-4p. Just call this toll free number: (866) 478-8324.

Good Neighbor Award

NAR is seeking nominations for its ninehth annual Good Neighbor Award, which recognizes REALTORS® whose extraordinary commitment to volunteer works has helped make their community a better place to live. Five winners will receive a $10,000 grant for their charity as well as national and local publicity. Additionally, five honorable mentions will each receive a $2,500 grant for their community cause, and national exposure. Entries are due, May 23, 5:00 p.m. For more information and an entry form, go to REALTOR®.org.

Fannie/Freddie News

New Requirements for Jumbo Conforming Mortgages
Fannie Mae and Freddie Mac (the government sponsored enterprises or GSEs) announced in March new special requirements for the origination, underwriting, delivery, and servicing of jumbo conforming mortgages loans (loans above $417,000 up to $729,750).

Fannie's requirements: the maximum loan-to-value ratio (LTV) is 90 percent for fixed rate mortgages (FRMs) and 80 percent for adjustable rate mortgages (ARMs). The minimum FICO score for a primary residence purchase loan is 700 for loans with LTVs of more than 80 percent and 660 for LTVs of 80 percent or less.

Freddie's requirements: the maximum LTV is 90 percent for both FRMs and ARMs. The minimum FICO score for a primary residence purchase loan is 700 for LTVs of more than 75 percent and 660 for LTVs of 75 percent or less.

Both GSEs limit jumbo conforming mortgages to one-unit attached or detached dwellings (including condos but excluding manufactured homes). There are many other requirements that apply to these newly eligible jumbo conforming mortgages.

Jumbo mortgages are likely to carry interest rates that are 0.375 -- 0.5 percentage point higher than rates on normal FHA.

Overhaul appraisal practices
Based on concerns that banks pressure appraisers to raise property valuations to allow loan deals to go through, Fannie Mae and Freddie Mac announced some pretty radical changes in early March.

The new agreement is scheduled to take effect next January 1st. It will immediately affect anywhere from half to 70 percent of all new home mortgages, and is expected eventually to be adopted by much of the mortgage industry.

Here are the key changes:

Mortgage brokers will be prohibited from selecting appraisers for any loan that is to be sold to Fannie or Freddie.

Lenders will no longer be able to use affiliated or in-house appraisal management companies for valuations on mortgages purchased by Fannie or Freddie.

Fannie and Freddie will set aside $24 million to create a new, independent organization to review complaints from appraisers about interference and to monitor nationwide compliance with the new appraisal rules.

General Concerns about GSE policies . . .
NAR has corresponded with the GSE's expressing the following concerns about a range of GSE policies:

Higher fees and tighter underwriting diminish the ability of Fannie and Freddie to meet their affordable housing goals and make mortgages less affordable.

Policies reducing maximum loan-to-value ratios (LTVs) by five percentage points for homes in declining markets hurt communities and erode home values.

Extremely tight underwriting standards and a higher pricing structure for jumbo conforming loans authorized by the Economic Stimulus Act of 2008 run counter to the congressional intent of creating greater credit availability.