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REALTOR® members of the Silicon Valley Association of REALTORS® are receiving two member benefits updates for tablets. These benefits will enable them to serve their clients faster and more efficiently.
Authentisign2Go, the iPad-ready version of Authentisign, is now available to SILVAR REALTORS®. Members will see a screen message alerting them to the upgrade when they log in. This is not an app, so there is nothing to download. Authentisign2Go will automatically be displayed to members when you access Authentisign on your iPad.
An update to the Instanet Solutions HTML5 forms editor, now referred to as InstanetForms2Go or IF2go, which is another member benefit is coming soon. IF2Go is the PRDS forms editor that can run on tablets, PC or Mac computers. This new version will be released on October 1. Anyone using a PC with the Chrome browser, a MAC computer, a tablet or a smartphone will automatically be directed to IF2Go when they edit a form. There is no app, download or set-up required. IF2Go has many new updates, including a new look and feel, faster, crisper screen display as well as many new features. The added features now enable IF2go editor to provide virtually the same functionality users love in the “Classic” Adobe Reader based version of Instanet Forms.
The Silicon Valley Association of REALTORS® (SILVAR) has been appointed the National Association of REALTORS® (NAR) Ambassador Association to the Philippines. NAR’s Ambassador Association program gives members of the Ambassador Association the opportunity to expand their global business networks and get involved in international real estate activities at the local or state level.
“We are pleased to learn that the National Association of REALTORS® has approved SILVAR’s request to be the Ambassador Association to the Philippines. The program will give our members the opportunity to learn more about real estate in that country and develop ties and business opportunities with real estate professionals in this part of the world,” said SILVAR Executive Officer Paul Cardus.
The Ambassador Association program is part of NAR’s International Ambassador Program, which was developed to accommodate international visitors and to expose them to the range of opportunities available to them throughout NAR. Each year NAR hosts more than 2,000 real estate professionals from around the world. Majority of these international real estate professionals attend the REALTORS® Annual Conference and Expo. There are also a number of delegations and individuals that request meetings with REALTORS® throughout the year for guidance on the industry, to network, and to exchange information about the U.S. and global real estate markets. The Ambassador Association program also presents opportunities for REALTORS® interested in developing international business ties, as a result of the growing CIPS Network and globalization within local real estate markets.
As the Ambassador Association to the Philippines, SILVAR will help facilitate contact between the Chamber of Real Estate and Builders Association in the Philippines and any state or local REALTOR® association in the United States that requests assistance. The Ambassador Association works closely with the President’s Liaison assigned to that country and NAR’s Regional Coordinator for that part of the world.
A formal introduction with the Chamber of Real Estate and Builders Association will take place at the NAR REALTORS® Conference & Expo, which will be held November 8-11 in San Francisco.
In line with its goal to enhance members’ professional development, the Education & Technology Committee of the Silicon Valley Association of REALTORS® (SILVAR) will present an Online Transaction Management Training Series FREE for members beginning in September. The courses will focus on how to create and manage transactions online, including how to use, e-sign, and store forms. Members are invited to sign up for these classes online at ims.silvar.org.
The courses are:
OTM 101: Beginner’s Guide to Creating Stress Free Digital Transactions
September 5 and October 3, 1:30-3:00 PM both days
Instructor: Bryan Robertson
An overview of the online transaction process from beginning to end, including the software and online forms you’ll need, preparing digital forms, getting digital signatures, and sharing and storing your documents. You’ll learn about PRDS/C.A.R. forms, ZipForms, Docusign, Authentisign, CutePDF, PDFEscape, CamScanner, DropBox, and GoogleDrive.
OTM 102: PRDS Forms Online: Using Instanet and Authentisign
September 10, 10:00 AM-12:00 PM; October 8, 2013, 1:30-3:30 PM
Instructor: Robert Johnson, SILVAR IT Administrator
Learn about the new PRDS Forms on the Instanet Solutions platform and be able to access your forms anywhere and anytime, from virtually any Internet-connected computer. The class will demonstrate the procedures to log in, create transactions, fill out the forms online, and then either print or email those forms to a client. Students will get a better understanding of the Instanet Solutions platform, including how to use Authentisign.
OTM 104: A Workshop on Creating an Online Transaction on DocuSign
September 23 and October 22, 1:30-3:00 PM both days
Instructor: Chris Alston
In this hands-on workshop, you will create an online transaction from beginning to end on your laptop. You will prepare one PRDS form (e.g. purchase contract) and one C.A.R. form (e.g. AVID) for e-signature by buyer (fellow student) and yourself. Then you’ll email the signed documents in PDF form to listing agent (fellow student) and store the PDF in the cloud. The class will touch on the basics for doing this on an iPad, but the class is geared toward laptops.
You can maximize your earning potential with more tools for emerging markets by enrolling in the National Association of REALTORS® (NAR) At Home with Diversity® certification course which SILVAR is offering on Thursday, September 12, 9 a.m. to 3 p.m. at the Menlo Circus Club, 190 Park Lane, Atherton.
This six-hour course taught by NAR certified instructor Jennifer Tasto will teach agents how to access and analyze demographic data to assess cultural attributes in your local market; how to attract and serve multicultural and international clients in your local market; and how to develop a business plan to address specific needs of those clients.
Earn six hours DRE continuing education credits in fair housing. Earn the confidence of your potential buyers and obtain this certification. You will also obtain a pin and logo to add to their website and business card.
Cost of the course is $49 for all AOR members. A continental breakfast and lunch will be provided.
Registration is for a limited time only and on a first-come first-served basis. There is a limit of 15 students. Registration deadline is September 4, so register now at ims.silvar.org (for members) or call (408) 200-0100 to register.
Home with Diversity®
Thursday, September 12
9 a.m. to 3 p.m.
Menlo Circus Club
190 Park Lane, Atherton
Cost: $49 for all AOR members
Continental breakfast and lunch provided
Where the stock market goes, so does real estate. These days the stock market is up; so is real estate, said Susan McHan, Opes Advisors CEO and president. McHan and chief investment officer Mike Duvall shared their analysis of the economy and Silicon Valley’s housing market with members at Wednesday’s Los Gatos/Saratoga District tour meeting.
“There is amazing infrastructure in the Silicon Valley area arising from the development of new companies and when that happens, money drops in our area. Money is coming back to Silicon Valley,” announced McHan.
McHan added that it is “an unbelievable time” to buy property in the region. Interest rates are low, values are up and home prices are at a 14-month high. Illustrating the correlation between the stock market and real estate, McHan noted indicated just as the Dow Jones Industrial and S & P 500 Composite returns increased 19 and 23 percent, respectively, from January 2012 to May 31, 2012, Bay Area median home prices rose 30.8 percent.
The mortgage advisors said interest rates are at an all-time low and cannot get any lower. They expect rates to remain this way for at least another two years and then rise. Inflation is still at a low level that the Feds are more worried about deflation at this time.
Despite the recovery, there are challenges ahead. Expect a mild recession on the horizon. During the next year, McHan anticipates earnings and revenue growth of companies to slow down. High-income earners will especially feel the impact as the tax rate policy is realized. The federal income tax on $400,000 income earners will rise from 35 percent to 39.6 percent, as will medicare taxes for those with incomes above $200,000. Companies will also feel the effect of corporate tax policies.
The global economy will likewise experience a slowdown due to debt concerns in Europe, China and the U.S. Not to worry, said McHan. This recession will not be as stark as what others predict it will be. There will be light at the end of the tunnel. She predicts 2015-2018 will be the “most bullish years” and the best years yet to come.
On the mortgage lending side, they announced effective January 10, 2014, the distinction between Ability to Repay and Qualified Mortgages (QM) will be more defined and borrowers will see a difference in rates between these two types of mortgages. Lenders need to and are beginning to enter the non-conforming market, as well.
“This is good news for us. The more lending, the better for all,” said McHan.
Members of the Silicon Valley Association of REALTORS®, Santa Clara County Association of REALTORS® and San Mateo County Association of REALTORS® met with U.S. Representative Anna Eshoo.
Members asked their representatives in Congress to:
1. Restructure Fannie Mae & Freddie Mac and Encourage the Return of Private Capital. Members requested that the chairmen of the House Financial Services Committee and the Senate Banking Committee hold hearings that focus on restructuring the secondary mortgage market, and that the emphasis of these hearings be the crafting of comprehensive bipartisan legislation that resolves the conservatorship of Fannie Mae and Freddie Mac. They stressed an efficient and adequately regulated secondary market is essential to providing affordable mortgages to consumers; that the federal government must clearly, and explicitly, offer a guarantee of some mortgage instruments; and that the government’s guarantee should ensure a wide range of safe, reliable mortgage products for creditworthy consumers.
2. Preserve homeownership tax policies. As Congress considers proposals to reform the federal tax code, SILVAR REALTORS® said lawmakers should consider the vital role that real estate tax provisions play in the nation’s housing markets and economy, as well as the financial well-being of Americans and their families. As real estate markets continue to recover, Congress must first do no harm to the following:
• Mortgage Interest Deduction: Oppose efforts to change or eliminate the mortgage interest deduction for primary and second homes.
• Property Tax Deduction: Property taxes paid are properly not considered “income” that should be subject to federal income tax. Congress should not tax “income” that doesn’t exist and oppose elimination of the deduction for property taxes.
• Capital Gains Exclusion for Sale of Principal Residence: Individuals can exclude the first $250,000 (and married couples the first $500,000) of gain from the sale of their principal residence from capital gains tax. This provision allows homeowners to build equity and save for retirement and should be maintained.
3. Preserve the Mission and Purpose of the FHA Program. SILVAR REALTORS® asked their representatives to ensure that the Federal Housing Administration (FHA) single-family
program has the tools and policies in place to meet its mission of access to safe, affordable mortgage financing to qualified borrowers nationwide. They said FHA’s single-family mortgage insurance program helps preserve private financing options for homebuyers regardless of local, regional or national economic conditions. They asked that the legislators continue support for H.R. 1145 (Waters (D-CA), Capuano (D-MA)), which provides FHA with the flexibility to make necessary changes to the program, provides taxpayer protections against lenders who make errors of material fact, and improves program oversight. They asked that Congress provide FHA with tools, but also protect FHA from any further restrictive requirements that keep more people out of the program.
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Just back from meeting their state legislators in Sacramento early this month, SILVAR’s leadership team is in Washington, D.C. this week, joining more than 9,000 REALTORS® and guests from across the nation at the National Association of REALTORS® (NAR) Midyear Legislative Meetings & Trade Expo May 13-18. They are meeting with regulators, lawmakers and industry leaders to address critical real estate issues affecting individuals, communities, and the nation.
At a general meeting on Wednesday morning, NAR CEO Dale Stinton told REALTORS® current NAR membership is at 990,000 and that it should exceed one million soon. There are 1,400 local associations; 1,100 have 300 members or less.
During their meetings with legislators on Capitol Hill REALTORS® are urging action toward preserving the mission and purpose of the Federal Housing Administration’s single-family mortgage program, encouraging the return of private capital to mortgage markets, restructuring government-sponsored enterprises Fannie Mae and Freddie Mac to guarantee affordable mortgage financing is available to creditworthy consumers in all types of markets, and maintaining current tax policies for homeownership and real estate investment. They also are participating in sessions with a number of government officials and industry experts, including representatives from the Consumer Financial Protection Bureau, Fannie Mae, Federal Emergency Management Agency, Federal Reserve Board and Freddie Mac.
“The NAR Legislative Meetings & Trade Expo is an enormous gathering of REALTORS® from every state in the country. We are here to remind our country’s elected officials that home ownership has value for all families,” said SILVAR President Carolyn Miller.
SILVAR members are meeting with Anna Eshoo, U.S. Representative for California’s 18th congressional district, which includes parts of San Mateo, Santa Clara and Santa Cruz counties; Jackie Speier, U.S. Representative for California’s 14th congressional district , which consists of portions of San Mateo County and San Francisco; and Mike Honda, U.S. Representative for California’s 17th congressional district, which includes western San Jose and Silicon Valley.
Accompanying Miller in Washington are SILVAR President-elect Dave Tonna, NAR Director John Tripp, Past President Suzanne Yost, board director David Barca, Jeff Barnett, Carole Feldstein, SILVAR PAC Chair Barbara Williams, Government Affairs Director Jessica Epstein and Executive Officer Paul Cardus
The Federal Housing Administration (FHA) is raising its mortgage insurance premiums (MIP) and changing MIP cancellation policies. These changes may impact first-time home buyers, but they are needed to mitigate risk and strengthen the solvency of the mortgage insurance fund.
FHA faces financial problems stemming from losses on reverse mortgages and forward loans sustained during the housing crisis and low home values, causing a shortfall in its reserves. There is talk that FHA may need a government bailout of $943 million in tax payer funds.
Traditionally, FHA loans should make up between 10 and 15 percent of the market. In 2012, due to the economic downturn and absence of a robust private lending market, FHA insured over 25 percent of all homes purchased in that year. The National Association of REALTORS® (NAR) says had FHA not stepped in to fill the market void, many families would have been unable to purchase homes, housing values could have dropped an additional 25 percent, and the country would be much further from a recovery.
Facing multibillion dollar losses, FHA has taken a number of steps to shore up funds. Beginning April 1, 2013, FHA’s annual mortgage insurance premium for all new loans that are less than or equal to $625,500 and with a loan-to-value (LTV) ratio greater than 95 percent will be 1.35 percent of the loan amount. The loan to value ratio is calculated as the percentage of the value of the house that is paid for by the loan.
FHA will also require most borrowers to continue paying annual premiums for the life of their mortgage loan. Effective June 3, 2013 FHA will require borrowers who take out a new FHA loan with an LTV ratio of greater than 90 percent to pay the MIP until the end of the mortgage loan term or for the first 30 years, whichever comes first. With an LTV equal to or less than 90 percent, the MIP will be assessed until the end of the mortgage term, or for the first 11 years, whichever occurs first. Previously, once the loan was paid down to 78 percent of the original value of the house or after five years, whichever came later, the borrower would no longer be required to pay the MIP.
FHA insured loan limits are currently calculated at 125 percent of the local area median home price, up to a maximum of $729,750 in highest cost markets like Silicon Valley. The limits are temporary and set to expire at the end of 2013 to 115 percent of local area median home prices with a cap of $625,500. There are discussions in Washington of lowering this amount further, however nothing has been established yet.
In Silicon Valley, where home prices are some of the highest in the nation, many buyers are borrowing at the top of the FHA limits. The MIP can amount to hundreds of dollars each month, in addition to their regular mortgage payment. For instance, buyers with a $600,000 FHA-backed mortgage who put 8 percent down will pay at the 1.35 percent rate, which comes out to well over $600 per month in mortgage premiums. Whereas previously, this additional payment would have been eliminated once the LTV ratio hit 78 percent or five years, whichever was later, now this payment will be assessed for the life of the loan.
FHA also will require lenders to manually underwrite loans for which borrowers have a credit score below 620 and a total debt-to-income (DTI) ratio greater than 43 percent. Also announced, but not yet approved, is a proposal by FHA to increase the minimum down payment requirement for mortgages with original principal balances above $625,500 from 3.5 to 5 percent.
A higher down payment requirement could impact millions of first-time home buyers. Many first-time home buyers rely on FHA-insured loans because they can require a down payment as low as 3.5 percent. In 2012, more than four out of every 10 first-time buyers purchased their homes with an FHA-insured mortgage. It remains to be seen whether these numbers will go down with the new higher rates and requirement that mortgage insurance be paid for the life of the loan.
NAR supports legislation that strengthens FHA’s fiscal solvency and that balances the need to protect the fund from tax payer risk with the need to continue providing access to safe and affordable mortgage financing. While these changes may be necessary in the short-term to help stabilize the FHA fund, NAR’s position is that higher fees make it difficult for first-time buyers to purchase a home, as well as repeat buyers who are relocating from less expensive to higher cost areas. NAR has encouraged FHA to reconsider the need for these changes when the fund returns to full capitalization.
April 2013 marks the 45th anniversary of the 1968 landmark Fair Housing Act, which strives to to ensure equal housing opportunity for all. Each year REALTORS® join the U.S. Department of Housing and Urban Development (HUD), the California Department of Fair Employment and Housing, and rest of the nation in recognizing April as Fair Housing Month.
REALTORS® play a vital role in ensuring fair housing for all and strive to make homeownership accessible to everyone. The National Association of REALTORS® (NAR) works to help create an environment where everyone can choose where they want to live and not be discriminated against as they seek to achieve the American dream of homeownership.
Carolyn Miller, president of the Silicon Valley Association of REALTORS®, whose members are also members of NAR, says REALTORS® abide by a Code of Ethics that states REALTORS® shall not deny equal professional services and shall not be a party to any plan or agreement to discriminate against any person for reasons of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation.
“REALTORS® want all buyers and sellers to enjoy the benefits of a housing market free from discrimination,” says Miller.
On April 26, SILVAR is promoting Fair Housing Month by offering At Home With Diversity®, a course that teaches REALTORS® and other business professionals how to work effectively within a multicultural market. The full-day course addresses topics like diversity, fair housing and business planning development. For more information about At Home With Diversity®, call SILVAR at (408) 200-0100.
“Knowing how to work effectively with diverse populations can help you build business success in today’s multicultural real estate market,” adds Miller.
Under the law, a home seller or landlord cannot discriminate in the sale, rental and financing of property on the basis of race, color, religion, sex, handicap, familial status, or national origin. They cannot instruct their real estate agent to convey any limitations in a sale or rental.
Buyers or renters have the right to expect housing will be available to them without discrimination, including:
• housing in their price range made available without discrimination.
• equal professional service.
• the opportunity to consider a broad range of housing choices.
• no discriminatory limitations on communities or locations of housing.
• no discrimination in the financing, appraising, or insuring of housing.
• reasonable accommodations in rules, practices and procedures for persons with disabilities.
• non-discriminatory terms and conditions for the sale, rental, financing, or insuring of a dwelling.
• freedom from harassment or intimidation for exercising their fair housing rights.
Buyers or renters who believe they have experienced discrimination may file a complaint with the California Department of Fair Employment and Housing within one year of the alleged discrimination.
HUD recently launched a new mobile application for iPhone and iPad that provides the public information about their housing rights and responsibilities. The app also provides information about the fair housing complaint process, and allows the public to access HUD’s toll-free discrimination hotline and link to HUD’s fair housing website: http://www.hud.gov/fairhousing
Silicon Valley Association of REALTORS® says ... 