The U.S. consumer watchdog’s structure has been deemed unconstitutional by the U.S. Appeals Court. The court pointed out that too much power was put into the hands of one agency director.
The Consumer Financial Protection Bureau, or CFPB, has been under fire since its creation following the financial crisis of 2008-2009. The Court went on to say that it is unconstitutional to limit the power of The President of the United States by not allowing him to remove an agency director.
The law creating this independent agency stated that the director’s removal could only be for cause and not over political differences. This conflicted the constitution, which says the president can remove a person for any reason.
The federal government disagreed with the court decision saying it was constitutional.
Richard Cordray, a Democrat, has been on top of the agency since it began in 2011. His term does not end until 2018, so his reign likely will not be affected unless Donald Trump were to become president.
The case, which brought about this decision, involved allegations that a mortgage lender in New Jersey was receiving illegal kickbacks from mortgage insurance company referrals. The CFPB ordered the company to pay back the ill-gotten funds, and the company challenged the bureau’s structure and believed their actions to be legal.
“The Bureau respectfully disagrees with the court’s decision,” CFPB spokeswoman Moira Vahey communicated in her statement. “The Bureau believes that Congress’ decision to make the director removable only for cause is consistent with Supreme Court precedent, and the Bureau is considering options for seeking further review of the court’s decision.”
It is no secret that China is the second largest economy in the world, but what many in South Florida are finding out is that they are using their resources to purchase property in the area. For many years realtors have been dreaming of tapping into this almost endless resource. Finally, it seems to be becoming a reality.
Recently, large real estate brokerage firms have put together large groups of high-end Chinese investors to tour the South Florida real estate market. Whether it is the unique architecture or the tropical climate, these investors were showing tremendous interest and sales followed.
The Miami-Dade Chamber of Commerce launched an Asia task force with the sole purpose of shrinking the distance between China and Miami-Dade. The success of this initiative rests heavily on going overseas and putting together these “tours” to stir up demand.
China purchased more real estate in the US than any other country between April 2015 and March 2016. Unfortunately, Miami-Dade only saw 2% of its business coming from China. Although, 2016 has seen Chinese investors spending hold steady.
Many look to the expansion of the Panama Canal and increased shipping to the South Florida ports as a reason the demand has been firm. At the same time, there have been some increase investments in local businesses and commercial real estate being financed from China. Coincidence? Maybe not.
Either way, the South Florida marketplace is hoping the trend continues and the flow of the lucrative Chinese real estate buyers climbs higher each year.
US Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. These investors, usually purchasing property in excess to 2 million, come from countries such as China and those in the Middle East.
The process is simple. These individuals run money through foreign companies who open accounts in the Caymans with the said funds and then purchase property here in the states. The crackdown started in New York and Miami but has quickly expanded to Los Angeles.
This new campaign puts a new responsibility on more than just the title attorney. Those who need to pay attention are the real estate agents, bankers and the attorneys involved in any of the transactions dealings. They are responsible for knowing where the buyer’s funds originated. This is an often overlooked task, but one in which they will be held more accountable. Potential criminal charges are at stake if found to be a part of the money laundering scheme.
No one knows for sure what the long-term impact of this new Department campaign will be, but in the short-term, the high-end market has softened. There has also been a slowdown in the influx of foreign real estate investors. This might just be the results of Brexit or the fact that countries have been trying to curtail the outflow of money on their end.
Although it might be too early to tell, one thing is for sure, the US Treasury Department is coming down harder than ever on money laundering, and all members of the seller’s team must be part of the solution.
This summer not only saw record-breaking heat across the nation, it saw new home sales reach levels not seen over the past nine years. Thanks to a surge in demand, a continuation of the low-interest rate environment, and low existing inventory the housing market climbed.
According to the Commerce Department, sales have been showing an over 30% increase each month this summer when compared to the same months last year.
At the same time, the supply of homes entering the market continues a downward trend. The average has been about 4.5 months at current sales prices. When compared to the average benchmark of 6 months in a balanced market it is evident that demand is high.
Houses priced between $200,000 to $399,999 remain the bulk of total housing sales, while transactions of homes priced below $150,000 or higher than $750,000 increased as well.
Matthew Pointon, a property economist at Capital Economics, said that it would not be surprising to see price hikes if builders do not speed up production if the high demand, low inventory and the persisting high sales of new homes continues.
Most economists agree that with new homes starts slowing the market will remain tight, and sales will naturally slow. With this combination, it will be easy to see the theory of supply and demand in full effect.
https://titlepartnersfl.com/wp-content/uploads/2016/09/US_Navy_040324-N-3228G-001_Navy_family_members_relax_on_their_front_lawn_while_movers_deliver_household_goods_to_their_new_home_on_Ford_Island.jpg15002250RK Adminhttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngRK Admin2016-09-16 16:25:292016-09-16 16:25:29Sales of new homes skyrocket to 2007 levels
Florida’s real estate market has followed a mixed pattern since the financial collapse nearly a decade ago. While there has been a significant recovery since 2008, data from the summer of 2015 shows continued increases, while some industry insiders have concerns. Here are facts about the Florida real estate market as of September 15, 2015.
Media Reports on Florida Real Estate
The Miami Herald reported on June 23 that despite price gains, “South Florida real estate may be in for a slowdown” due to a shrinking buyer pool. Then a headline on August 18 in the Washington Post said the state “could be headed for another housing slide.” The article quoted Florida real estate expert Jack McCabe as saying the state will see another “crash in prices in the next few years.” He indicated that a bubble has formed in the Miami, Fort Lauderdale and West Palm Beach markets.
Statewide Trends
While new data will be issued on September 21 at FloridaRealtors.org, the most recent market data from July showed that single family home prices were up 8.1% year-over-year, with a median price of $199,900 versus $185,000 from a year earlier. The number of closed sales in the state for the year so far was at 26,916, which was a 21.8% increase from the previous July. Townhouses and condos were also up 13.9% in sales and 9.1% in price with a median price of $150,000.
Counties with year-over-year double-digit percentage gains in single family home prices were led by Collier (23.1%), followed by Lee (17.2%), Charlotte (16.5%), Marin and St. Lucie (15.6%), Baker, Clay, Duval, Nassau and St. Johns (13%) and Okaloosa (11.4%). Only the combination of Alachua and Gilchrist Counties posted a negative change at -5.2%. Broward, Miami Beach and Palm Beach Counties combined for a 7.3% gain in prices.
Of the closed sales for July 2015, about a third were cash deals, marking a 5.9% increase from the previous July. Inventory of active listings stood at 101,074, which was down 5.3% from a year earlier. New listings were up 5% at 33,706.
2011-2015 Overview
While closed sales stabilized earlier in the decade, a growing trend has been evident since 2013. January and February have been the weakest months for sales this decade, while spring months tend to be the strongest, although June has been the peak month for sales in 2015, followed by a slight pullback in July.
https://titlepartnersfl.com/wp-content/uploads/2015/09/photodune-9056506-florida-xs.jpg365548RK Adminhttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngRK Admin2015-09-20 22:27:442015-09-20 22:34:56The current state of the Florida Real Estate market
Thanks to everyone who came out this weekend for our Brunch and Learn! We discussed the new TRID guidelines, plus other changes to the real estate contract!
Consumer Financial Protection Bureau
UncategorizedCourt Deems Unconstitutional
The U.S. consumer watchdog’s structure has been deemed unconstitutional by the U.S. Appeals Court. The court pointed out that too much power was put into the hands of one agency director.
The Consumer Financial Protection Bureau, or CFPB, has been under fire since its creation following the financial crisis of 2008-2009. The Court went on to say that it is unconstitutional to limit the power of The President of the United States by not allowing him to remove an agency director.
The law creating this independent agency stated that the director’s removal could only be for cause and not over political differences. This conflicted the constitution, which says the president can remove a person for any reason.
The federal government disagreed with the court decision saying it was constitutional.
Richard Cordray, a Democrat, has been on top of the agency since it began in 2011. His term does not end until 2018, so his reign likely will not be affected unless Donald Trump were to become president.
The case, which brought about this decision, involved allegations that a mortgage lender in New Jersey was receiving illegal kickbacks from mortgage insurance company referrals. The CFPB ordered the company to pay back the ill-gotten funds, and the company challenged the bureau’s structure and believed their actions to be legal.
“The Bureau respectfully disagrees with the court’s decision,” CFPB spokeswoman Moira Vahey communicated in her statement. “The Bureau believes that Congress’ decision to make the director removable only for cause is consistent with Supreme Court precedent, and the Bureau is considering options for seeking further review of the court’s decision.”
The Chinese Buyer
UncategorizedA New Profit Center
It is no secret that China is the second largest economy in the world, but what many in South Florida are finding out is that they are using their resources to purchase property in the area. For many years realtors have been dreaming of tapping into this almost endless resource. Finally, it seems to be becoming a reality.
Recently, large real estate brokerage firms have put together large groups of high-end Chinese investors to tour the South Florida real estate market. Whether it is the unique architecture or the tropical climate, these investors were showing tremendous interest and sales followed.
The Miami-Dade Chamber of Commerce launched an Asia task force with the sole purpose of shrinking the distance between China and Miami-Dade. The success of this initiative rests heavily on going overseas and putting together these “tours” to stir up demand.
China purchased more real estate in the US than any other country between April 2015 and March 2016. Unfortunately, Miami-Dade only saw 2% of its business coming from China. Although, 2016 has seen Chinese investors spending hold steady.
Many look to the expansion of the Panama Canal and increased shipping to the South Florida ports as a reason the demand has been firm. At the same time, there have been some increase investments in local businesses and commercial real estate being financed from China. Coincidence? Maybe not.
Either way, the South Florida marketplace is hoping the trend continues and the flow of the lucrative Chinese real estate buyers climbs higher each year.
The Complications Of Foreign All Cash Deals
NewsUS Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. These investors, usually purchasing property in excess to 2 million, come from countries such as China and those in the Middle East.
The process is simple. These individuals run money through foreign companies who open accounts in the Caymans with the said funds and then purchase property here in the states. The crackdown started in New York and Miami but has quickly expanded to Los Angeles.
This new campaign puts a new responsibility on more than just the title attorney. Those who need to pay attention are the real estate agents, bankers and the attorneys involved in any of the transactions dealings. They are responsible for knowing where the buyer’s funds originated. This is an often overlooked task, but one in which they will be held more accountable. Potential criminal charges are at stake if found to be a part of the money laundering scheme.
No one knows for sure what the long-term impact of this new Department campaign will be, but in the short-term, the high-end market has softened. There has also been a slowdown in the influx of foreign real estate investors. This might just be the results of Brexit or the fact that countries have been trying to curtail the outflow of money on their end.
Although it might be too early to tell, one thing is for sure, the US Treasury Department is coming down harder than ever on money laundering, and all members of the seller’s team must be part of the solution.
Sales of new homes skyrocket to 2007 levels
UncategorizedThis summer not only saw record-breaking heat across the nation, it saw new home sales reach levels not seen over the past nine years. Thanks to a surge in demand, a continuation of the low-interest rate environment, and low existing inventory the housing market climbed.
According to the Commerce Department, sales have been showing an over 30% increase each month this summer when compared to the same months last year.
At the same time, the supply of homes entering the market continues a downward trend. The average has been about 4.5 months at current sales prices. When compared to the average benchmark of 6 months in a balanced market it is evident that demand is high.
Houses priced between $200,000 to $399,999 remain the bulk of total housing sales, while transactions of homes priced below $150,000 or higher than $750,000 increased as well.
Matthew Pointon, a property economist at Capital Economics, said that it would not be surprising to see price hikes if builders do not speed up production if the high demand, low inventory and the persisting high sales of new homes continues.
Most economists agree that with new homes starts slowing the market will remain tight, and sales will naturally slow. With this combination, it will be easy to see the theory of supply and demand in full effect.
The current state of the Florida Real Estate market
UncategorizedFlorida’s real estate market has followed a mixed pattern since the financial collapse nearly a decade ago. While there has been a significant recovery since 2008, data from the summer of 2015 shows continued increases, while some industry insiders have concerns. Here are facts about the Florida real estate market as of September 15, 2015.
Media Reports on Florida Real Estate
The Miami Herald reported on June 23 that despite price gains, “South Florida real estate may be in for a slowdown” due to a shrinking buyer pool. Then a headline on August 18 in the Washington Post said the state “could be headed for another housing slide.” The article quoted Florida real estate expert Jack McCabe as saying the state will see another “crash in prices in the next few years.” He indicated that a bubble has formed in the Miami, Fort Lauderdale and West Palm Beach markets.
Statewide Trends
While new data will be issued on September 21 at FloridaRealtors.org, the most recent market data from July showed that single family home prices were up 8.1% year-over-year, with a median price of $199,900 versus $185,000 from a year earlier. The number of closed sales in the state for the year so far was at 26,916, which was a 21.8% increase from the previous July. Townhouses and condos were also up 13.9% in sales and 9.1% in price with a median price of $150,000.
Counties with year-over-year double-digit percentage gains in single family home prices were led by Collier (23.1%), followed by Lee (17.2%), Charlotte (16.5%), Marin and St. Lucie (15.6%), Baker, Clay, Duval, Nassau and St. Johns (13%) and Okaloosa (11.4%). Only the combination of Alachua and Gilchrist Counties posted a negative change at -5.2%. Broward, Miami Beach and Palm Beach Counties combined for a 7.3% gain in prices.
Of the closed sales for July 2015, about a third were cash deals, marking a 5.9% increase from the previous July. Inventory of active listings stood at 101,074, which was down 5.3% from a year earlier. New listings were up 5% at 33,706.
2011-2015 Overview
While closed sales stabilized earlier in the decade, a growing trend has been evident since 2013. January and February have been the weakest months for sales this decade, while spring months tend to be the strongest, although June has been the peak month for sales in 2015, followed by a slight pullback in July.
Brunch and Learn
UncategorizedThanks to everyone who came out this weekend for our Brunch and Learn! We discussed the new TRID guidelines, plus other changes to the real estate contract!