If you're in the process of buying or selling a home, you may be familiar with the acronyms HVCC, HOEPA, HERA, TIL and MDIA. If you aren't, you should be, because they all could play a role in whether your transaction closes on time -- or, in some cases, closes at all.
Last year, in an effort to curb predatory mortgage lending practices, Congress passed the Home Ownership and Equity Protection Act (HOEPA) and the Housing and Economic Recovery Act (HERA). Subsequently, Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct (HVCC) to enhance the overall integrity of the home appraisal process. The code applies to all Fannie Mae- and Freddie Mac-backed home loans that originated after May 1, 2009. (It doesn't affect FHA or jumbo loans.)
To insulate the appraisal process from influence by any party with an interest in the outcome, the HVCC requires lenders to establish a firewall between their loan production and appraisal staffs. Consequently, many lenders are now retaining the services of an appraisal management company (AMC), a third-party company that selects, retains and provides payment to the appraiser so the lender has no direct contact with that appraiser.
The Unfortunate Fallout of HVCC
The HVCC was a noble idea that has had some unfortunate adverse consequences for both buyers and sellers. For example, because lenders are now handling appraisals through AMC's, many appraisals are taking longer to complete. And because the AMC's operate nationally but do not have appraisers everywhere, more appraisals are being done by people who are not familiar with the market of the appraisal that has been ordered. Finally, because of the insertion of another entity, the appraisal cost to the consumer has, in many instances, increased (although the appraiser may be earning up to 50 percent less than previously).
In July, after fielding many complaints and concerns about the HVCC, the National Association of Realtors conducted a survey of approximately 40,000 members. Here are a few of its findings:
• 76 percent of Realtors surveyed reported that the length of time to obtain a completed appraisal report increased after May 1.
• More than one-third of Realtors surveyed said they have lost at least one sale because of a delay in the appraisal process.
• 71 percent of Realtors noted an increase in the use of out-of-area appraisers.
• The number of NAR appraiser members who obtain more than 50 percent of their assignments from AMCs increased from 14 percent to 39 percent after May 1.
• 71 percent of NAR appraiser members stated that the time they're allowed to submit an appraisal to the AMC has decreased.
• 86 percent of NAR appraiser members reported a perceived reduction in appraisal quality.
• Approximately half of NAR appraiser members reported a reduction in fees they received.
• 70 percent of NAR appraiser members reported that consumers were paying higher fees.
Because of the many concerns about the HVCC, on June 25th, U.S. Rep. Travis Childers (D-MS) and Rep. Gary Miller (R-CA) introduced HR 3044, legislation that calls for an 18-month moratorium on HVCC so that the negative impact of the new code could be addressed (the bill has been referred to the House Committee on Financial Services).
Then There's the MDIA
Meanwhile, as of July 30, 2009, consumers must now also consider the effects of the federally mandated Mortgage Disclosure Improvement Act (MDIA), which was designed to ensure that consumers receive cost disclosures earlier in the mortgage process,
With the implementation of the MDIA, which amends the Truth in lending Act (TILA), creditors are now required to give good-faith estimates of mortgage loan costs within three business days of receiving an application for a mortgage loan and before any fees are collected from the consumer (other than for a credit history).
The hitch may occur in the subsequent new requirements:
1. Creditors must also wait seven business days after they provide the early disclosures before closing the loan; and
2. Creditors must provide new disclosures when there is a change in the APR of more than .125% on fixed rate loans, and then wait an additional three business days before closing the loan.
What to Do?
So, what's the best way to minimize the impact of all these new rules (at least while the bugs are being worked out)?
1. Choose your lender wisely. Discuss all the above-mentioned changes with them and make sure you both understand them clearly.
2. Make sure your appraisal is ordered as soon as possible, and have a contingency plan in case it comes in lower than expected.
3. Make sure your closing date factors in all the timelines -- and then meet all those deadlines.
4. Allow for a 30- to 45-day closing at minimum.
5. Buyers: lock in your interest rates and fees as soon as possible.
About the Author:
Lisa Broadwater is a Central Oregon-based real estate professional who specializes in listing and selling homes, especially in Sisters, Tumalo, Redmond and Bend. If you'd like to learn more about Central Oregon, please visit www.CentralOregonHome4You.com.
During July, Tumalo's real estate market was most notable for its decreases. First, the number of Active Residential with Acreage listings decreased (from 104 to 97). So did the median price for Active RW listings (down from $759,500 to $725,000). That continues a trend from June, when the median price dropped more than $100,000 (from $898,500 to $759,500), after hovering near $900,000 all year.
Another key decrease was the number of Active million-dollar listings, which fell from 36 to 32. The most expensive listing also adjusted, from $3,900,000 to $3,750,000. And for the first time this year, a price point below $500,000 held the highest number of listings (the $350,000-$399,999 bracket and $550,000-$599,999 category tied with 10 listings). That's good news for buyers, who are beginning to see more value in what has been perhaps the slowest region in Central Oregon to adjust its pricing to reflect the declining market.
More good news (this time for sellers): Once again, there were several sales (pending and closed) above $500,000.
As a horse-property specialist, Tumalo has always been of particular interest to me because that's where you'll find many of the most desirable horse properties in Central Oregon. Because its boundaries are up to interpretation, please consider the following statistics a general barometer of the area's real estate activity that includes most, but not necessarily all, of the listings in Tumalo.
Here are a few July highlights of the Tumalo market:
LISTING ACTIVITY
Active Residential With Acreage Listings in Tumalo: 97
Contingent Residential With Acreage Sales in Tumalo: 1
Pending Residential With Acreage Sales in Tumalo: 4
Residential With Acreage Closed Sales in Tumalo: 4
Average Days on Market: 221 days for Active RW listings
273 days for RW listings sold in July
Median Sales Price: $725,000 for Active RW listings
$346,500 for RW listings sold in July
INVENTORY:
Residential with Acreage: 39-month supply (30 sales in the previous 12 months)
SALES PRICE:
Least-Expensive Residential with Acreage Active Listing: $123,500
Most-Expensive Residential with Acreage Active Listing: $3,750,000
Price Points with the Most Active Listings:
$350,000-$399,999 & $550,000-$599,999 (each with 10 listings)
Listings at $1,000,000 or more: 32
If you're interested in studying the market in more depth, below are a number of charts that capture various aspects of the July Tumalo real estate market in detail.
If you'd like to learn more about the Tumalo real estate market, don't hesitate to email me at lisabroadwater@remax.net or call me toll-free at 866-963-2760.
About the Author:
Lisa Broadwater is a Central Oregon-based real estate professional who specializes in listing and selling homes, especially in Sisters, Tumalo, Redmond and Bend. If you'd like to learn more about Central Oregon, please visit www.CentralOregonHome4You.com.
July 2009 was a month of increases for the Sisters real estate market. Inventory continued to increase (from 212 to 219, with seven new Single Family Residence listings and no new Homes on Acreage). That high volume of inventory continues to be a long-term concern for sellers and helps explain this month's increase in days on market for both active Single Family Residences and Homes on Acreage.
On the plus side, sales increased again this month, if only slightly (15 pending and closed sales), including the first million-dollar transaction since February.
Here are a few July highlights of the Sisters real estate market:
LISTING ACTIVITY
Active Residential Listings in Sisters: 219 (129 Single Family Residences; 90 Residential with Acreage)
Contingent Residential Sales in Sisters: 1 (1 SFR, 0 RW)
Pending Residential Sales in Sisters: 11 (7 SFR; 4 RW)
Residential Sales in Sisters: 4 (2 SFR; 2 RW)
Average Days on Market: 206 days for Active SFR listings
250 days for Active RW listings
412 days for the SFR listings sold in July
69 days for the RW listings sold in July
Median Sales Price: $450,000 for Active SFR listings
$785,000 for Active RW listings
$273,885 for the SFR listings sold in July
$404,500 for the RW listings sold in July
INVENTORY
Single Family Residence: 31-month supply (50 sales in the previous 12 months)
Residential with Acreage: 47-month supply (25 sales in the previous 12 months)
SALES PRICE:
Least-Expensive Single Family Residence Active Listing: $149,990
Least-Expensive Residential with Acreage Active Listing: $199,900
Most-Expensive Single Family Residence Active Listing: $1,950,000
Most-Expensive Residential with Acreage Active Listing: $4,900,000
Price Point with the Most Active Listings: $250,000-$299,999, in SFR (15 listings)
$950,000-$999,999 & $1,000,000-$1,249,999 in RW (each with eight listings)
If you're interested in studying the market in more depth, below are a number of charts that capture various aspects of the July 2009 Sisters real estate market in detail.
If you'd like to learn more about the Sisters real estate market, don't hesitate to email me or call me toll-free at 866-963-2760.
About the Author:
Lisa Broadwater is a Central Oregon-based real estate professional who specializes in listing and selling homes, especially in Sisters, Tumalo, Redmond and Bend. If you'd like to learn more about Central Oregon, please visit www.CentralOregonHome4You.com.
Well, some folks said it would never happen (and some Sisters purists wish it never had), but the town's first discount retailer opened its doors today. And judging by the hefty crowds at the new Bi-Mart, plenty of folks in Central Oregon couldn't wait to see this new addition for themselves.
Even before Ray's Food Place moved into its new location next-door last November, speculation ran rampant about what would happen to the former Ray's mammoth storefront. Soon, Eugene-based Bi-Mart was mentioned as the front-running candidate. Many locals had a hard time believing that was possible.
Certainly, the regional big-box discount retailer -- which boasts everything from a pharmacy, photo/sound department, housewares, sporting goods, automotive parts, hardware, health and beauty products, toys, clothing, furniture and shoes to beer, wine and food -- is a dramatic departure from the norm for our fair town (for one, shoppers are required to "join" via a $5 lifetime membership).
Sisters is most known as a quaint frontier-themed tourist town, dotted with locally stocked art galleries, antiques shops and upscale clothing boutiques. Here, the installation of the town's first fast-food restaurant was a hotly debated controversy for a good long while. Not surprisingly, some residents weren't too keen on the arrival of Bi-Mart.
But those budget-minded folks who live here year-round who've had to drive 30 miles to Bend or 20 miles to Redmond to find competitively priced household goods (many of which weren't available in Sisters at any price) finally have a local alternative, which is a good thing. So is the repurposing of an abandoned 20,000-square-foot storefront that anchors a once-vital shopping center and the creation of some much-needed jobs.
So, welcome Bi-Mart. Let the bargain-hunting begin.
Below are a few photos from today's opening:
About the Author:
Lisa Broadwater is a Central Oregon-based real estate professional who specializes in listing and selling homes, especially in Sisters, Tumalo, Redmond and Bend. If you'd like to learn more about real estate in Sisters or Central Oregon, please visit www.CentralOregonHome4You.com.
At last, the popular Old McKenzie Highway (also known as Highway 242) has opened for the season, a few days before its Aug. 15 deadline. A nearly $4 million dollar highway improvement project, funded by the Federal Highway Administration, caused the delay (read my blog post about the Highway 242 closure here).
That multimillion-dollar price tag is a far cry from the historic wagon route's original toll of $2 for a wagon drawn by two horses (or $2.50 for a wagon with four horses, $1 for a man on a horse and 10 cents each for loose cattle and horses).
The first route over the McKenzie Pass, which was completed in 1872, connected the Willamette Valley with Camp Polk, near what is now Sisters. The McKenzie Pass Highway became a seasonal scenic highway in 1962 with the completion of the Clear Lake-Belknap Springs section of Highway 126.
Because of the delay, heavy traffic on the scenic byway (which is also popular with bicyclists and pedestrians) is expected. The route should remain open until late fall.
Want to know more about this area?
* Here's my guide to the McKenzie Pass-Santiam Pass scenic byway.
*And here's my photo essay showing the gorgeous fall foliage that can found along the McKenzie Pass-Santiam Pass scenic byway.
About the Author:
Lisa Broadwater is a Central Oregon-based real estate professional who specializes in listing and selling homes, especially in Sisters, Tumalo, Redmond and Bend. If you'd like to learn more about Central Oregon, please visit www.CentralOregonHome4You.com.
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Your Resource for Central Oregon Real Estate sales & information, especially Rural, Resort & Horse Properties in Sisters, Tumalo, Bend & Redmond. Learn more at www.CentralOregonHome4You.com
If you've 
ever visited Central Oregon, that's an easy question to answer: because it's one of the most gorgeous settings in the country, with an unparalleled quality of life (can you tell I love it here?).
Comprising three counties-Deschutes, Crook and Jefferson -- and three main cities -- Bend, Redmond and Sisters, plus a handful of smaller communities (Prineville, Powell Butte, Tumalo, Sunriver, La Pine and Caldera Springs) -- Central Oregon is one of the fastest growing regions in the Pacific Northwest. With its combination of ideal climate (300 days of sunshine), extensive recreational opportunities, its entrepreneur-friendly environment and broad slate of cultural outlets, Central Oregon has proven a popular destination among young and old alike.
To find out more about Central Oregon or to search for properties in the area, please visit my website, http://www.centraloregonhome4you.com/.
Good question. And, in truth, there are a number of things that should factor into your decision about whom you select to represent you in your next real estate transaction.
But what expectations do you have for the real estate professional you choose to work with? And remember, you do have a choice -- actually, in Central Oregon you have a lot of choice -- so don't settle for just any real estate broker; we really aren't all the same.
What qualities do you value in the people you do business with? Obviously, you want someone who's experienced, competent, trustworthy and knowledgeable, so consider more than just their skill sets. Think about the type of person you're most comfortable working with. Because the business of real estate is really a business built on relationships. As Realtors®, we live or die based on the success with which we satisfy our clients' expectations. And remember: The decision you make about the real estate professional you choose can affect not just the type of experience you have (i.e., an enjoyable one or a nightmare) but the quality of the process itself.
Those of us who take our job seriously spend our time focused on our clients, ensuring that they are well-informed, well-educated and well-prepared for every aspect of their transaction. Yet we aren't focused solely on the transaction itself, because we know our job doesn't end with that transaction. Our goal is to establish clients for life, so we follow up and nurture the relationships we have so they'll endure over the long haul.
Here's what you can expect from me:
I'm not a native Central Oregonian, but I love this place. Even before I became a Realtor®, I explored the area every chance I could get. And I love the business of real estate. I love making what can be a very stressful, intimidating process for my clients a positive experience for everyone I work with (that means clients, other agents, lenders, title officers, home inspectors -- everyone).
I'm passionate about what I do and give 100 percent of my focus to every task I undertake. I don't do things halfway. I was a journalist for 20-plus years, so I actually enjoy asking questions, solving problems and investigating issues. Research is my middle name.
But if you're looking for a fast-talking, Palm-toting, appointment-driven, call-me-at-midnight-on-a-Sunday-if-it-means-a-sales-tonight style agent, I'm not your gal. I spent 25 years living life on the edge, and too much of the really important stuff (my family, friends, personal life, etc.) passed me by while I was out working myself sick. My approach these days is much more relaxed, and my business is, by design, primarily referral-based. I don't ever want to be too busy juggling transactions to devote the time to my clients that they deserve.
But if you're looking for someone who will work diligently to make your real estate experience a positive one, who will work closely with you to address each issue that comes along in an effort to find the ideal outcome, look no further.
Not surprisingly, the Central Oregon real estate market has shown the effects of its rapid growth. From 1988 (when the city ended its last major real estate slump) until 2007, the average price of a Bend home rose an average of 11.3 percent per year, In 2006, home prices here appreciated faster than any other city in the country, according to the National House Price Index. (To put that in perspective, nationwide, the price index rose 5.9 percent.) From the beginning of 2002 to the end of 2006, home prices in Bend appreciated 104.5 percent.
Actually, for a while there, the real estate speculating and building-for-the sake-of-buildling mentality had gotten out of control. City and county planners could no longer keep up with the workload, appraisers could no longer keep up with the price increases, and buyers and sellers could no longer agree to much of anything.
Meanwhile, too many builders built too many spec homes and too many investors hung their fortunes on the quick flip. So after what seemed like an unstoppable boom, things came to a grinding halt. Inventory began to pile up. The national mortgage industry's free-wheeling lending policies began to catch up with them. Homeowners who thought they were on firm financial ground found out otherwise. More and more people began to learn the meaning of "short sale" and "bank-owned."
And home prices began to decrease. (By the end of 2008, the median price for a home in Bend was $289.450, compared to $351,978 at the end of 2006.) Because the high inventory meant that homes that once would have been on the market for four days were know sitting dormant for up to 14 months (or longer), sellers began to slash their prices accordingly. Even so, buyers, by and large, sat on the sidelines, waiting for the dust to settle. And the frenzy that had been Central Oregon real estate sales was no more. We had rejoined the real world.
But the long-term real estate picture in Central Oregon is enviable. This is an incredible place to live!
"People are going to continue to come here," Roger Lee of Economic Development for Central Oregon predicts. "It's a very attractive Western U.S. community. It's hard to find other places that are comparable. They're out there, but many of them are larger or are smaller and don't have the amenities that the tri-county area offers.
"Plus, if you look at the job creation here over the past seven years, I think there were 16,600 jobs created," he adds. "There's not a metro area in Oregon outside Portland that can match that -- even though there are much larger populations. So our population growth here in the past 15 years has been dramatically larger than the rest of the state -- and the nation. And the forecasts are, in the next 10 to 12 years, that we're supposed to actually pick up that pace. So if the forecasts are correct, we'll see more jobs created in the years going forward than we have in past years. And that's obviously really important to sustaining our economy long-term."
So How Can I Help You?
My areas of expertise include resort, rural and horse properties, investor opportunities and first-time home buyers. I've earned the Graduate of the Realtor Institute (GRI) designation, and as such have completed a course (including 90 hours of specialized education) that most real estate professionals never even pursue and have gained skills many agents will never have.
This spring, I received my Certified Distressed Property Expert designation, which provided me extensive education in dealing with sellers facing foreclosure and buyers interested in purchasing short sales. Like most communities, Central Oregon is seeing a significant increase in the number of short sale and foreclosure properties on the market.
I'm committed to the business of real estate, but I'm also committed to my community. I'm a member of the Communications Committee for the Central Oregon Association of Realtors® and participate in fellowship whenever possible at Crystal Peaks Youth Ranch.
If you'd like to know more about me, please visit my website, www.centraloregonhome4you.com, email me at lisabroadwater@remax.net or give me a call at toll-free (866) 963-2760.
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