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REO Buyer Can Select Escrow and Title + other legal updates

10-16-09
Jason Samia

REO Buyer Can Select Escrow and Title + other legal updates

Posted by jasonsamia on October 16, 2009

Below is an email I got from CAR Legal. It has tons of valuable information, and I want to share it with everybody.

Source: Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS
NEW CALIFORNIA LAWS FOR 2009-10 AFFECTING REALTORS®

The conclusion of the first half of the 2009-10 legislative session has brought many new laws that may affect California REALTORS® and their clients. Not surprisingly in the subprime aftermath, prominently featured among the new laws is stricter regulation of the mortgage lending industry. To view the full text and legislative summary of any of the following new bills, go to www.leginfo.ca.gov.

  • REO Buyer Can Select Escrow and Title: Effective October 11, 2009, the Buyer's Choice Act prohibits an REO lender selling residential property up to four units from directly or indirectly requiring the buyer to purchase escrow services or title insurance from any particular company. A buyer, however, who has received written notice of the right to make an independent selection, may agree to the REO lender's escrow or title recommendations. An REO lender that violates this law can be held liable for three times the charges the buyer incurred, whereas a violation by the seller's agent may be subject to license disciplinary action. This law expires on January 1, 2015. Assembly Bill 957.
  • No Advance Fee Loan Modifications: Starting October 11, 2009, a new law prohibits anyone from claiming any compensation for negotiating or arranging a loan modification until after that person fully performs each and every service as promised. Aimed at combating loan modification scams, this ban applies to upfront fees collected by real estate agents and attorneys. The ban expires on January 1, 2013. Also effective immediately, anyone who negotiates or arranges a loan modification must give the borrower a specified notice that paying a third-party for loan modification services is unnecessary. These new requirements apply to mortgage loans secured by residential property up to four units, with certain exceptions for lenders and loan servicers acting on their own behalf. Violations can be penalized by, among other things, a $10,000 fine plus one-year imprisonment for individuals, or a $50,000 fine for businesses. Real estate brokers with existing Advance Fee Loan Modification Agreements reviewed by the Department of Real Estate (DRE) can no longer, as of October 11, 2009, enter into these agreements or collect advance fees. Agreements entered into and advance fees collected before October 11, 2009 are not affected. For the DRE announcement, go to http://www.dre.ca.gov/pdf_docs/SB94WebAnnouncement(brokers).pdf. Senate Bill 94.
  • Advance Fee Redefined: Aside from loan modifications discussed above, Senate Bill 94 also broadens the definition of an advance fee which must be specially handled by real estate agents, such as by submitting an advance fee agreement for DRE review and placing funds received into a broker's trust account. Under the new definition that took effect on October 11, 2009, agents cannot separate advance fees or services into components to avoid the advance fee requirements. More specifically, an advance fee is now defined as "a fee, regardless of the form, claimed, demanded, charged, received, or collected by a licensee from a principal before fully completing each and every service the licensee contracted to perform, or represented would be performed." Exceptions include advertisements in newspapers of general circulation, tenant prescreening fees, and tenant security deposits. Senate Bill 94.
  • Mortgage Loan Originators Regulated: Beginning in December 2010, a real estate licensee acting as mortgage loan originator must obtain a license endorsement, which entails education, written testing, and reporting requirements. A mortgage loan originator is anyone who, for compensation or gain, takes a mortgage loan application or offers or negotiates terms of a mortgage loan for residential property containing one-to-four units. Exemptions include real estate agents who only engage in selling, buying, or leasing activities, unless compensated by a lender or mortgage loan originator. This license endorsement requirement comports with the creation of a Nationwide Mortgage Licensing System and Registry under recent federal law. Finance lenders and residential mortgage lenders under the Department of Corporation must also register in the nationwide system. Additionally, if a real estate broker or the broker's salesperson makes, arranges, or services loans secured by residential property containing one-to-four units, the broker must notify the DRE by January 31, 2010 or within 30 days of commencing such loan activity, whichever is later. Senate Bill 36.
  • Mortgage Broker Activities Restricted: Commencing January 1, 2010, a mortgage broker will be deemed a fiduciary with a duty to place the borrower's economic interest above his or her own. This fiduciary duty pertains to a mortgage broker who makes loans secured by residential property of one-to-four units. Also starting January 1, 2010, the law will strictly regulate higher-priced mortgage loans as defined, including requiring upfront disclosure if a mortgage broker only arranges higher-priced mortgage loans, restricting prepayment penalties and yield spread premiums, prohibiting negative amortization, and prohibiting mortgage brokers from steering borrowers to higher-cost loans. Assembly Bill 260.
  • Appraisal Industry Oversight: The Office of Real Estate Appraisers (OREA) will have regulatory oversight of appraisal management companies, which gained prominence after Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct (HVCC). Starting January 1, 2010, the OREA must implement a registration system for appraisal management companies, including fingerprinting and background checks for persons with operational authority as defined. On a separate note, this law clarifies what conduct constitutes improperly influencing the appraisal process by anyone with an interest in a real estate transaction. Such prohibited conduct includes withholding or threatening to withhold an appraisal fee, withholding or threatening to withhold future appraisal business, and promising future business, promotions, or compensation. Senate Bill 237.
  • Mortgage Fraud Becomes a State Crime: As of January 1, 2010, anyone who deliberately makes any misrepresentation or omission during the mortgage lending process with the intent of influencing that process will be guilty of mortgage fraud under California law. A violation of this law is a crime punishable by one-year imprisonment. Under existing federal law, loan fraud against a federally-insured lender is a crime punishable by a $1 million fine, plus one-year imprisonment (18 U.S.C. section 1014). Senate Bill 239.
  • Increase in Homestead Exemptions: Coming into effect on January 1, 2010, the homestead exemption protecting a homeowner's equity from judgment creditors has been increased by $25,000 across the board to $75,000 for individuals, $100,000 for married couples or family units as specified, and $175,000 for persons over 65 years, disabled, or over 55 years with limited income as specified. Assembly Bill 1046.
  • 60-Day Notice to Terminate Tenants Extended: Existing law generally requiring a 60-day notice to terminate a month-to-month residential tenant, which was originally slated to sunset on January 1, 2010, has been extended indefinitely. A 30-day notice to terminate is sufficient if the tenant has lived in the property for less than one year, or if the landlord has sold the property and certain requirements are met as specified in our standard-form Notice of Termination of Tenancy (C.A.R. Form NTT). The 60-day notice requirement does not apply to fixed-term leases, such as a one-year lease. Other laws address tenants in properties foreclosed upon. Senate Bill 290.

Other Significant Laws: Other new laws that may interest REALTORS® include, without limitation, the following:

  • Landlord Utilities: Requires certain utility companies to notify residential tenants of landlord's past due accounts and upcoming shutoffs, and allows tenants to begin service in their own names and deduct payment from rent (Senate Bill 120).
  • Mobilehome Parks: Prohibits management from requiring a homeowner to use a specific broker or dealer when replacing a mobilehome or manufactured home on a space in a mobilehome park (Senate Bill 804).
  • Swimming Pools: Requires anti-entrapment devices for owners of apartment buildings, condominium complexes, and others, including the filing of compliance statements (Assembly Bill 1020).
  • Mechanic's Liens: Provides new procedures, including service of a Notice of Mechanic's Lien to the owner and mandatory recording of a lis pendens when enforcing a mechanic's lien (Assembly Bill 457).
  • Low Water-Using Plants: Renders unenforceable any HOA provision prohibiting landscaping with water-efficient plants in common interest developments (Assembly Bill 1061).
  • Reverse Mortgages: Provides new disclosure and other requirements under the Reverse Mortgage Elder Protection Act (Assembly Bill 329).
  • Disposal of Records: Shields from liability businesses that dispose of abandoned records containing personal information by shredding or erasing, and gives a legal presumption that a tenant owns records remaining on the premises after tenancy termination (Assembly Bill 1094).
  • Plumbing Fixtures: Provides new disclosure and other requirements for water-conserving plumbing fixtures effective on or after January 1, 2014 (Senate Bill 407).

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Review for the Todd Bates Program

10-09-09
Jason Samia

Hi fellow agents,

I just want to share my experience with the Todd Bates program.

He went to our office promoting his program and promising 1 on 1's and coaching, but I came to realize that all he was selling were pre-recorded audio files for a 'discounted price' close to $1000. Even the free 800 # is not free! They waive the registration fee but you still have to pay the regular monthly fee. And the program is only good for 1 year, so you don't have access to these files anymore after 1 year.

Within less than a month of trying his program and completely unsatisfied, I contacted him and told him that I am not satisfied with the program and it wasn't what I thought I was purchasing and want a refund. Nothing in the contract says "NO REFUND". But he refused to give me a refund.

Ok, so I asked him to refund me half of what I paid for just so it's a win win situation. And I made this request only on the 3rd week after purchase. I thought it was more than fair. Besides, I never got any physical material and everything was online audio files. So he would still have made money.

Anyway, if you are thinking about getting the Todd Bates program, be sure to ask...

1) REFUND POLICY

2) IN WRITING: WHAT IS INCLUDED ON THE PROGRAM (I doubt there's any 1 on 1 coach you'll see in writing), the support is more like a quick (1line) email response, which I highly doubt he even writes himself.

I'm sure there are others who are happy with the program. But personally, I think it's a big scam!

SO DON'T GET BURN! THERE'S OTHER BETTER PROGRAMS OUT THERE.

I HOPE THIS HAS BEEN HELPFUL INFORMATION FOR THOSE CONSIDERING THE PROGRAM...

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The FSBO Assistant - Prospecting & Working with For Sale By Owner

11-21-08
Jason Samia

The FSBO Assistant - Prospecting & Working with For Sale By Owner

Giving to Receive

One nice thing about For Sale By Owner (FSBO) homes is that the owners advertise to the general populace, which makes them easy to find! You have their address in any ad they put out, which means you can do some extremely targeted marketing.

Another important thing to know about these "do-it-yourself" types is that most of them fail in trying to sell their own homes, and end up needing the services of a Real Estate Agent. You just need to make sure you're the first agent on their mind!

To that end, I recommend giving the FSBOs in your area a small kit you can label the "FSBO Assistant." There is actually a two-fold reason to give out these kits. The first one is obvious: You have to give in order to receive. By presenting value up front, you are earning the trust of the homeowner, and making it much more likely that they will choose you should they decide to use an Agent.

The second reason is a bit more subtle: By introducing them to the piles of paperwork and material that FSBOs need to understand, you show them what you get paid for, and why it's worth it to use you rather than try to do it themselves!

Here is an abbreviated list of some of the documents I would include:

  • A Generic Purchase Agreement
  • Escrow, Settlement, or Closing Instructions
  • Title Insurance Policy
  • Settlement or Closing Statement
  • General Warranty Deed
  • Special Warranty Deed
  • Bargain and Sale Deed
  • Lead-based paint Seller Disclosure
  • A list of other documents they'll need
  • Your Personal Brochure

Most importantly, include an offer to help them should they feel overwhelmed! This will give you more opportunities to sell them on your service later on. Be sincere in your desire to help them, and they'll be more receptive to you becoming their agent.

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Happy holidays: Freddie, Fannie halt foreclosures till 2009

11-21-08
Jason Samia

This was emailed to me by one of our Title Rep and thought I'd share it to the public.

-------------------------------------------------------------------------------------------------

Orange County Register

November 21, 2008


Happy holidays: Freddie, Fannie halt foreclosures till 2009


By John Gittelsohn

Freddie Mac and Fannie Mae say they're taking a holiday from foreclosing
homes between Thanksgiving and Jan. 9.

The suspension will give breathing room to about 10,000 Fannie Mae and
6,000 Freddie Mac customers facing property losses over the holidays.

Also participating in the program are 27 mortgage loan servicers, which
are working with federal officials to devise a comprehensive loan
modification program to allow more property owners to stay in their
homes.

"The streamlined modification program by Fannie Mae, Freddie Mac, Hope
Now and 27 mortgage servicers is an important step forward in addressing
the systemic issues driving the increase in foreclosures," said Fannie
Mae President and Chief Executive Officer Herb Allison. "Until the
streamlined modification program is fully implemented, we felt it was in
the best interest of both borrowers and Fannie Mae to take this extra
step to ensure that homeowners with the desire and ability to prevent a
foreclosure have an opportunity to stay in their homes."

To see the Fannie announcement, CLICK HERE
<http://www.fanniemae.com/newsreleases/2008/4531.jhtml;jsessionid=ILQIEK
HVIJZY1J2FECISFGI?p=Media&s=News+Releases> .

To see the Freddie announcement, CLICK HERE
<http://www.freddiemac.com/news/archives/servicing/2008/20081120_foreclo
sure-suspend.html> .

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Long Beach Turkey Trot info & other fun area runs and activities

11-14-08
Jason Samia
Long Beach Turkey Trot info & other fun area runs and activities ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Long Beach Turkey Trot 5K/10K click for entry form/info: LONG BEACH TURKEY TROT 5K/10K RUN/WALK
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
proceeds benefit Haute Dogs/C.A.T./more; 6th annual
Thanksgiving Day, Thurs., Nov. 27, 2008
on the scenic beach bike path, three start times: 7:30, 8:30 & 9:30 a.m. Co-sponsored by Justin Rudd, his nonprofit 501c3 Community Action Team (C.A.T.) & Councilman Gary DeLong. Register now at www.TurkeyTrot.us

Volunteers also needed.
active registration
Long Beach Turkey Trot
Turkey Trot entry form
HURRY: Your name will be printed on your bib, if you are registered by this Sun., Nov. 16.
Long Beach Turkey Trot 5K/10K
Download entry forms or get registered online at www.TurkeyTrot.us or visit Runners High or the Belmont Athletic Club on 2nd St. in Belmont Shore for an entry form.

ENTRY FEES
5K/10K - $30 if payment is rec'd after Nov. 1
- $35 if payment is rec'd after Nov. 25
-NEW add just $10 to run both 5K & 10K races!

KIDS 1/2-MILE RUN(12 & younger)
$15 advance
$20 cash-only on race day or day before race Entry forms and details now at www.TurkeyTrot.us

THIS SAT. Justin Rudd's
JETTY-TO-JETTY LOW TIDE RUN - Long Beach
Nov. 15, 2008, 4 p.m.

Start/finish: 1 Granada Ave., Belmont Shore.
On the hard sand (you choose 3-, 5-, or 8-mile run along Long Beach's Pacific Ocean shoreline). 4 p.m. start time (low tide is predicted to be 5:11 p.m. Sunset at 4:50. You can also run the 8-mile race with a partner (one does 3 miles, one does 5 miles). Runners will be at the water's edge, except around the orange cones of the dog beach (soft sand area). $15 day-of or $10 advance. RELEASE FORM To enter, print/fill-out this release form and mail or hand-deliver your check payable to Justin Rudd, 5209 E. The Toledo #1, Long Beach, CAlif. 90803.

www.SandChallenge.com

faster option for groups! GROUP PACKET PICKUP - on the day before the Long Beach Turkey Trot. This option will be available to those who make an emailed request by Tues., Nov. 25. We'll need the first/last names/t-shirt sizes of each person for whom you will be picking up bibs (race numbers)/t-shirts. Make requests to Justin@JustinRudd.com. If you follow the steps above, we'll have your t-shirts and bibs ready for you in the "GROUP PICKUP LINE" on Wed., Nov. 26 from 3-7 p.m., so you won't have to go from line to line. You can then proceed straight to the start line on race day.

The optional packet pickup on Wed., Nov. 26 from 3-7 p.m. is for groups and individuals.

DAY AFTER THANKSGIVING SALE
AT ALL THREE RUNNERS HIGH LOCATIONS!
Friday, Nov. 28
Special store hours for this event only. 9AM - 5PM
No additional coupons or discounts given for this event. Save 10% - 60% on selected items. No other discounts or coupons will be accepted during this once a year sale events.
http://runnershighcalif.com

make room for santa logoCome out for the best Christmas Run in Southern California
on Sunday December 14. The Make Room for Santa 5K, 10K and Kids ½ mile Run in Irvine has a great tree lined course with a downhill finish. Each participant gets a Santa Run ornament and the first 100 5K and 10K participants who register will get a FREE pair of Make Room for Santa running socks (pick up socks at the event). Run in costume and you might be awarded a prize for best running Santa or the best holiday costume (non-Santa). Race features long sleeve t-shirt, goody bag, family expo and a personal visit from Santa and his elf.

A portion of the proceeds will go to the Providence Speech and Hearing Center and the Fun and Fit Program. You can find out more about the event at www.RenegadeRaceSeries.com or by calling (949) 975-1812.

Belmont Shore/Heights-area yards needed CAN WE PUT A TURKEY TROT YARD SIGN IN YOUR YARD OR AT YOUR BUSINESS? We're looking for yards with lots of walk-by traffic. If so, please email Justin@JustinRudd.com with your name and address. We'll pick them up the day after the Trot, or please return your sign to the registration area on race day.

YARD SIGNS If you can, let us know, and we'll leave a yard sign at our front door in Belmont Shore for you to place in your yard, or we'll deliver one to you. Remember, we need them back. If you can return your sign to the registration area on race day, we'd thank you even more.

The 2nd Annual USC Quench the Fire 5K Run/Walk/Roll is coming up on December 7th, 2008 at El Dorado Park. It is hosted by the University of Southern California School of Medicine and will benefit the USC Pain Center in its goal to raise awareness of neuropathic and other chronic pain conditions such as Reflex Sympathetic Dystrophy (RSD). Come on out and join us! Go to www.w2promotions.com for more information and to register. See you there!!

Get up to four (4) hours volunteer credit a day. Volunteers needed on 2nd St. to pass out Long Beach Turkey Trot fliers/ entry forms at our canopy in front of WaMu Bank this weekend. We are looking for some volunteers to pass out entry form and info for the Turkey Trot on this & any Sat. and Sun. leading up to the Thanksgiving Day Turkey Trot. Volunteers who are teens or adults can serve 2-4 hour shifts. We can accept up to four volunteers at a time. Contact Justin@JustinRudd.com if you are available on one of those days. Hours can be any time from 9 a.m. to 6 p.m. on any Sat. and Sun. STUDENT SERVICE LEARNING HOURS GIVEN. Contact Justin@JustinRudd.com

LONG BEACH TURKEY TROT VOLUNTEERS NEEDED
2:30-7:15 p.m. on the day before Thanksgiving (early packet pickup)
and
5:45-11 A.M. ON THANKSGIVING DAY

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