Fed To Stop Buying MBS

From Realtor Magazine Online, Daily Real Estate News March 17, 2010

The Federal Reserve renewed its commitment to keep key interest rates near zero for an “extended period,” but also confirmed that it will stop buying mortgage-backed securities at the end of March.

The Fed, whose regular meeting began Tuesday, said that “housing starts have been flat at depressed levels” and “employers remain reluctant to add to payrolls” as a reason for extending the cap on interest rates.

“The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability,” the Federal Open Market Committee statement said.

Source: Bloomberg, Craig Torres and Scott Lanman (03/16/2010)

UNDISCLOSED SHORT SALE PAYMENTS MAY BE ILLEGAL

Undisclosed payments in short sale transactions, especially those paid outside of escrow, may violate the law, including RESPA, laws against loan fraud, and licensing laws. Short sale agents have increasingly reported to C.A.R. about requests for agents and their clients to pay junior lienholders and others, oftentimes outside of escrow.

One common scenario is when a short sale seller's senior lender authorizes a payment of $3,000, for example, to extinguish a junior lien, but the junior lender demands that the buyer pays an additional $9,000 outside of escrow. Not only would it be risky for a buyer to pay outside of escrow, but concealing this additional payment from a federally-insured senior lender may constitute loan fraud, which is a crime punishable by 30 years imprisonment plus a $1 million fine (18 U.S.C. section 1014). Furthermore, omitting from the HUD-1 Statement any charges paid at settlement by either a buyer or seller may violate the Real Estate Settlement Procedures Act (RESPA) (Appendix A to 24 C.F.R. Part 3500). Depending on the specific circumstances, carrying out these payment requests may also violate other laws and regulations, and an agent's participation in the scheme may be subject to license revocation by the Department of Real Estate or other disciplinary action.

Agents and their clients are encouraged to file any complaints regarding fraudulent activities to the proper authorities, including the following agencies:

Attorney General's Office
California Department of Justice
Phone: 800-952-5225
http://ag.ca.gov/consumers/mailform.htm

Department of Housing and Urban Development (HUD)
HUD Office of Inspector General
Hotline (GFI) Phone: 800-347-3735
http://www.hud.gov/offices/oig/hotline

Federal Bureau of Investigation (FBI)
Phone: 202-324-3000
https://tips.fbi.gov

Buyer Tax Credit Expires April 30,2010

ATTENTION: The U.S. government's home buyer tax credit was extended to April 30, 2010 and it will not be extended again.This tax credit can benefit first-time home buyers up to $8,000 and current homeowners up to $6,500, provided they meet certain guidelines. And because this program is a tax credit – it does not have to be repaid.There has never been a better time to take advantage of this tax credit because hundreds of homes are priced below market value.

You will need to hurry to take advantage of this exceptional opportunity. Your purchase must CLOSE ESCROW by April 30th! It has recently been taking a minimum of 2-3 weeks to get all the inspections and paperwork done...and that is for all-cash deals. If you need a mortgage, you need to hustle!~ But we might still be able to get it done. Our in-house lender is a partnership between Wells Fargo and HomeServices Lending. They get the best deals and work closely with us to get loans processed as quickly as possible.

So don't delay - call Tim James today: (909) 702-3220