The Federal Housing Administration-insured (FHA) two weeks ago stated that they were in the process of cutting mortgage insurance premiums on FHA loans. This insurance is added onto loans to help offset the cost of loan defaults.
The projected cut was scheduled to go into effect on April 27th but is has been put on hold for the foreseeable future. Not too long after President Trump’s inauguration, HUD distributed Mortgagee Letter 2017-1 suspending the new rule.
When FHA had first released the cut, many in the real estate business championed the sentiment. They felt that the cost measure would help more potential buyers meet the debt to income ratio needed to purchase a property.
An ATTOM Data Solutions analysis discovered that the average borrower would have saved around $446 every year if the rate cut would have gone through as planned.
There is, however, a chance that Trump’s administration will revisit this matter soon or they may just allow it to sunset. The head of the Department of Housing and Urban Development (HUD), Dr. Ben Carson, has agreed to put effort into reviewing the matter but has not come to any conclusions as of yet.
This is not the first time the FHA has raised or lowered costs. After the Great Recession, they increased the monthly premiums all the way up to 90 basis points. Then again in 2013 the FHA increased them again over credit risk concerns and to strengthen their Mutual Mortgage Insurance Fund (MMIF).
Decisions made in Tallahassee can affect South Florida Market
All eyes are fixated to the northern realms of the state. What seems to be a million miles away can dramatically affect life here in southern Florida.
The 2017 legislature is currently meeting, and local economists are keeping close tabs on the topics to be discussed.
Some of the issues include workers’ compensation in which lawmakers will discuss recent court rulings that make some aspects unconstitutional, the death penalty that has been on hold since 2016, and the potential to expand legalize gambling into eight additional counties.
Key issues such as how to go about implementing the voter-approved marijuana initiative, scaling back regulations in the healthcare industry, and discussions over the burden of proof in the “stand your ground” gun control laws will also be hashed out.
A great deal of the focus is on the state budget which includes over $600 million in tax cuts and increased spending for schools and hospitals, as well.
Lastly, the governor is looking to spend $160 million to increase tourism and small business initiatives to further grow the economy in Florida.
South Florida would be a huge benefactor to increased spending. The local economy depends on money brought in from tourism and the image of having a strong marketplace.
As businesses see success with more visitors and more money pours into the pockets of local employees, it should help sustain the steady housing market.
A thriving economy also helps attract investors, both domestic and foreign. Both would help prop up and grow real estate prices and sales.
All attention seems fixed on Tallahassee to see if positive moves can be made to better the State of Florida and build and sustain its local markets.
https://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.png00Title Partnershttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngTitle Partners2017-03-31 17:44:422017-03-31 17:44:42Florida Legislative Climate Set To Change?
U.S. home sales are hitting new highs by breaking through to a 10-year record. It appears buyers are not concerned with higher prices or the slight uptick in mortgage rates. This would seem to be a healthy sign that home buyers have confidence in the direction of the economy.
The National Association of Realtors released a report in January showing that sales of existing homes have bumped up over 3 percent to a seasonally adjusted annual rate of almost 5.7 million units. The country has not seen numbers this high since back in Februarys of 2007.
At the end of 2016 researchers had updated the numbers to over 5.5 million units from what was reported prior as 5.49 million units. National economists had previously forecasted sales to increase slightly at a 1.1 percent pace rising to 5.54 million. The National Association of Realtors also went and updated all of their numbers going back to 2014. These changes were only minor in nature and had no impact on housing market characterization.
The trends seem to be continued as sales at the beginning of 2016 were up 3.8 percent. Demand in the housing market appears to be related to the strength on the labor front, which is increasing job opportunities for the younger generation and growing their desire for home ownership.
On the other side of the data is the shortage of available properties for sale, which is naturally leading to an increase in listing prices. This point is an apparent roadblock to a robust housing marketplace. At the same time, the 30-year fixed mortgage rate has seemed to level out after rising quickly over the past months; it still is over 4 percent, however. In a clear contrast to this, annual wages have grown below 3 percent.
All of Florida’s Realtor contracts have space for the escrow agent’s information for a reason. This information allows the buyer to know where to send the deposit that is due upon entering into the contract.
Then, getting past the contract section there is a place that lists who the closing agent will be.
Now, the roles of the escrow agent and the closing agent can sometimes be fulfilled by the same person or company. Although, that does not always need to be and it is not wise to assume they are on in the same. Once you understand the differences between the two roles the less likely, you will encounter future issues.
For example, a buyer has his attorney hold the initial deposit, and the attorney’s information is placed in the appropriate escrow-agent position on the contract page. However, in this case, the seller has placed in the contract that they want and will choose the closing agent, and then they pick a well-known title company.
In the contract, it says the deposit is due three days after the effective date, and of course, the buyer goes ahead and sends the money to his attorney to meet the deadline. The seller in their mind contacts their title company to make sure the deposit is in place, but they are told the buyer’s money never was deposited. Obviously, the seller would be quite disappointed. They will then contact the buyer and inquire about the funds, and the now confused buyer tells the seller that per the contract they sent the funds to their attorney.
The seller is not happy. They rightly assumed the money would be placed with the title company they chose to act as the closing agent.
Did the buyer default? Can the seller start demanding that the buyer deposit the funds immediately with their selected title company? Well, both answers are NO.
The seller should have changed the information in the contract since the escrow, and closing agent is not one and the same.
One cannot repeat this warning enough. Carefully read the contract and avoid confusion later.
https://titlepartnersfl.com/wp-content/uploads/2013/04/photodune-5077930-two-businessman-shaking-hand-s2-2.jpg400800Title Partnershttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngTitle Partners2017-03-01 17:33:392017-03-01 17:33:39They Are Not The Same Thing. Know The Difference
Looking around at all the cracks in the garage of San Francisco’s Millennium Tower one would be flabbergasted at the extent of the rifts and the array of stress gauges attached.
Back in May of 2016, these problems started to arise in the iconic, high-end condo. The news made it official; the Millennium Tower was starting to fall. The structure had begun to tilt and slowly sink, and blame began to fly. As the accusations were thrown, all involved wondered who would pay the bill.
If this news was not bad enough, Bloomberg has recently reported that the tower is most likely underinsured and if that is the case, the homeowners would be the ones ultimately responsible.
The building initially opened its doors back in 2008, and the tower is now 16 inches further below the ground and 15 inches tilted from the top, as reads the current lawsuits that the homeowners have filed.
The property was developed by the Millennium Partners but is now owned by the residents.
According to accounts, Millennium Partners’ liability policy does state coverage for construction defects, but the same sources feel that the coverage, as well as Millennium Partners assets, are far below what is needed to foot this bill.
Adding insult to injury is that the liability coverage might be void due to the nature of the flaws in the building.
If that was not enough, Millennium Partners has a lawsuit against the city’s Transbay Joint Powers Authority, which has been building a transit site across from to the tower. It might be the TJPA who is responsible for causing the foundation of the tower to be disturbed. If that is the case, the taxpayers of San Francisco will be on the hook for fixing this mess.
https://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.png00Title Partnershttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngTitle Partners2017-02-17 12:50:572017-02-17 12:50:57Residents Of The Tilting Tower To Fit Big Bill
What was once the desire of the high-end luxury home might be becoming a thing of the past.
There are those eternal staples of true luxury homes that will never fade away. A breathtaking ocean view, lush greens of a PGA Tour golf course, and even the allure of Park Avenue. Then there are those fads that start as a “must have” to show off rich tastes that just fade into memory.
The home theater market has grown 50% since 2010 to almost $1.5 billion. Creating a personal IMAX experience showing first run movies is available for the top 1%, but that might not be enough.
Modern architects are saying that more and more clients are looking for fully immersive virtual reality experiences. Rooms turned into private holo suites where the person can stroll the beaches by day and Paris by night.
On the other end of the house is the shifting ideas of a master suite. It appears that Millennials are more into smaller places but increased privacy. It is not uncommon to see new developers include changing rooms outside the bathroom.
There is a new trend of “accessory apartments.” This is where parents buy a separate studio next to theirs to house this boomerang generation when they return home.
Lastly, the same trend seems to be leading to the possible disappearance of the gourmet, showplace kitchen. With more and more luxury take out services and the uptick of Amazon Prime. Homes will only need to keep the bare necessities.
Many architects are seeing these changes taking place more often than ever before. We will wait and see what the luxury home will look like in the next 5 to 10 years. It might be unrecognizable.
FHA Mortgage Insurance Premium Reduction= Gone
UncategorizedHUD suspends it indefinitely
The Federal Housing Administration-insured (FHA) two weeks ago stated that they were in the process of cutting mortgage insurance premiums on FHA loans. This insurance is added onto loans to help offset the cost of loan defaults.
The projected cut was scheduled to go into effect on April 27th but is has been put on hold for the foreseeable future. Not too long after President Trump’s inauguration, HUD distributed Mortgagee Letter 2017-1 suspending the new rule.
When FHA had first released the cut, many in the real estate business championed the sentiment. They felt that the cost measure would help more potential buyers meet the debt to income ratio needed to purchase a property.
An ATTOM Data Solutions analysis discovered that the average borrower would have saved around $446 every year if the rate cut would have gone through as planned.
There is, however, a chance that Trump’s administration will revisit this matter soon or they may just allow it to sunset. The head of the Department of Housing and Urban Development (HUD), Dr. Ben Carson, has agreed to put effort into reviewing the matter but has not come to any conclusions as of yet.
This is not the first time the FHA has raised or lowered costs. After the Great Recession, they increased the monthly premiums all the way up to 90 basis points. Then again in 2013 the FHA increased them again over credit risk concerns and to strengthen their Mutual Mortgage Insurance Fund (MMIF).
Florida Legislative Climate Set To Change?
UncategorizedDecisions made in Tallahassee can affect South Florida Market
All eyes are fixated to the northern realms of the state. What seems to be a million miles away can dramatically affect life here in southern Florida.
The 2017 legislature is currently meeting, and local economists are keeping close tabs on the topics to be discussed.
Some of the issues include workers’ compensation in which lawmakers will discuss recent court rulings that make some aspects unconstitutional, the death penalty that has been on hold since 2016, and the potential to expand legalize gambling into eight additional counties.
Key issues such as how to go about implementing the voter-approved marijuana initiative, scaling back regulations in the healthcare industry, and discussions over the burden of proof in the “stand your ground” gun control laws will also be hashed out.
A great deal of the focus is on the state budget which includes over $600 million in tax cuts and increased spending for schools and hospitals, as well.
Lastly, the governor is looking to spend $160 million to increase tourism and small business initiatives to further grow the economy in Florida.
South Florida would be a huge benefactor to increased spending. The local economy depends on money brought in from tourism and the image of having a strong marketplace.
As businesses see success with more visitors and more money pours into the pockets of local employees, it should help sustain the steady housing market.
A thriving economy also helps attract investors, both domestic and foreign. Both would help prop up and grow real estate prices and sales.
All attention seems fixed on Tallahassee to see if positive moves can be made to better the State of Florida and build and sustain its local markets.
No Signs Of Stopping
UncategorizedU.S. home sales are hitting new highs by breaking through to a 10-year record. It appears buyers are not concerned with higher prices or the slight uptick in mortgage rates. This would seem to be a healthy sign that home buyers have confidence in the direction of the economy.
The National Association of Realtors released a report in January showing that sales of existing homes have bumped up over 3 percent to a seasonally adjusted annual rate of almost 5.7 million units. The country has not seen numbers this high since back in Februarys of 2007.
At the end of 2016 researchers had updated the numbers to over 5.5 million units from what was reported prior as 5.49 million units. National economists had previously forecasted sales to increase slightly at a 1.1 percent pace rising to 5.54 million. The National Association of Realtors also went and updated all of their numbers going back to 2014. These changes were only minor in nature and had no impact on housing market characterization.
The trends seem to be continued as sales at the beginning of 2016 were up 3.8 percent. Demand in the housing market appears to be related to the strength on the labor front, which is increasing job opportunities for the younger generation and growing their desire for home ownership.
On the other side of the data is the shortage of available properties for sale, which is naturally leading to an increase in listing prices. This point is an apparent roadblock to a robust housing marketplace. At the same time, the 30-year fixed mortgage rate has seemed to level out after rising quickly over the past months; it still is over 4 percent, however. In a clear contrast to this, annual wages have grown below 3 percent.
They Are Not The Same Thing. Know The Difference
UncategorizedAll of Florida’s Realtor contracts have space for the escrow agent’s information for a reason. This information allows the buyer to know where to send the deposit that is due upon entering into the contract.
Then, getting past the contract section there is a place that lists who the closing agent will be.
Now, the roles of the escrow agent and the closing agent can sometimes be fulfilled by the same person or company. Although, that does not always need to be and it is not wise to assume they are on in the same. Once you understand the differences between the two roles the less likely, you will encounter future issues.
For example, a buyer has his attorney hold the initial deposit, and the attorney’s information is placed in the appropriate escrow-agent position on the contract page. However, in this case, the seller has placed in the contract that they want and will choose the closing agent, and then they pick a well-known title company.
In the contract, it says the deposit is due three days after the effective date, and of course, the buyer goes ahead and sends the money to his attorney to meet the deadline. The seller in their mind contacts their title company to make sure the deposit is in place, but they are told the buyer’s money never was deposited. Obviously, the seller would be quite disappointed. They will then contact the buyer and inquire about the funds, and the now confused buyer tells the seller that per the contract they sent the funds to their attorney.
The seller is not happy. They rightly assumed the money would be placed with the title company they chose to act as the closing agent.
Did the buyer default? Can the seller start demanding that the buyer deposit the funds immediately with their selected title company? Well, both answers are NO.
The seller should have changed the information in the contract since the escrow, and closing agent is not one and the same.
One cannot repeat this warning enough. Carefully read the contract and avoid confusion later.
Residents Of The Tilting Tower To Fit Big Bill
UncategorizedLooking around at all the cracks in the garage of San Francisco’s Millennium Tower one would be flabbergasted at the extent of the rifts and the array of stress gauges attached.
Back in May of 2016, these problems started to arise in the iconic, high-end condo. The news made it official; the Millennium Tower was starting to fall. The structure had begun to tilt and slowly sink, and blame began to fly. As the accusations were thrown, all involved wondered who would pay the bill.
If this news was not bad enough, Bloomberg has recently reported that the tower is most likely underinsured and if that is the case, the homeowners would be the ones ultimately responsible.
The building initially opened its doors back in 2008, and the tower is now 16 inches further below the ground and 15 inches tilted from the top, as reads the current lawsuits that the homeowners have filed.
The property was developed by the Millennium Partners but is now owned by the residents.
According to accounts, Millennium Partners’ liability policy does state coverage for construction defects, but the same sources feel that the coverage, as well as Millennium Partners assets, are far below what is needed to foot this bill.
Adding insult to injury is that the liability coverage might be void due to the nature of the flaws in the building.
If that was not enough, Millennium Partners has a lawsuit against the city’s Transbay Joint Powers Authority, which has been building a transit site across from to the tower. It might be the TJPA who is responsible for causing the foundation of the tower to be disturbed. If that is the case, the taxpayers of San Francisco will be on the hook for fixing this mess.
Going, Going, Gone
UncategorizedWhat was once the desire of the high-end luxury home might be becoming a thing of the past.
There are those eternal staples of true luxury homes that will never fade away. A breathtaking ocean view, lush greens of a PGA Tour golf course, and even the allure of Park Avenue. Then there are those fads that start as a “must have” to show off rich tastes that just fade into memory.
The home theater market has grown 50% since 2010 to almost $1.5 billion. Creating a personal IMAX experience showing first run movies is available for the top 1%, but that might not be enough.
Modern architects are saying that more and more clients are looking for fully immersive virtual reality experiences. Rooms turned into private holo suites where the person can stroll the beaches by day and Paris by night.
On the other end of the house is the shifting ideas of a master suite. It appears that Millennials are more into smaller places but increased privacy. It is not uncommon to see new developers include changing rooms outside the bathroom.
There is a new trend of “accessory apartments.” This is where parents buy a separate studio next to theirs to house this boomerang generation when they return home.
Lastly, the same trend seems to be leading to the possible disappearance of the gourmet, showplace kitchen. With more and more luxury take out services and the uptick of Amazon Prime. Homes will only need to keep the bare necessities.
Many architects are seeing these changes taking place more often than ever before. We will wait and see what the luxury home will look like in the next 5 to 10 years. It might be unrecognizable.