The long-awaited extension of the tax credit has been approved by both the House and the Senate and currently awaits President Obama's signature (which is not expected to be a problem).  There is also an expansion of the credit to include current homeowners (not just first-time buyers)...however, there are several restrictions along with improvements.  The income limits have been increased, the maximum sales price has been set at $800,000, etc. 

Home Price Reduction Levels Stay Above 25% for Fourth Consecutive Month

Trulia, Inc announced that 25.6% of homes currently on the market in the U.S. as of October 1, 2009 have experienced at least one price cut. More than one in four current listings on Trulia have been reduced in price for the fourth straight month. The total amount slashed from home prices is $28.4 billion, a $967 million increase from June 2009. The average discount for price-reduced homes continues to hold steady at 10% off of the original listing price.

Northeast with Most Homes Reduced; West Sees Biggest Cuts
Five of the 10 states with the highest percentage of homes with price reductions are in the Northeast- Massachusetts, Rhode Island, Connecticut, New Hampshire and New Jersey. One in three homes in these states has cut their list price at least once.

Seven of the 10 states leading the country with the biggest listing price cuts are in the West, where heavy foreclosures have taken their toll. In Nevada, Idaho, Arizona, Wyoming, Hawaii, Utah and California, cuts are an average of 13% off the original list price. Of the $28.4 billion slashed nationally, New York, California and Florida account for 35% of the total value of reductions.

Report Findings
For the first time in four months, Jacksonville no longer holds the top spot for highest level of home-price reductions: Memphis replaced Jacksonville with 36% of current listings experiencing at least one round of discounts. Several cities continue to see high levels of cuts on home prices with Indianapolis, Milwaukee, Minneapolis, Portland and Raleigh, all earning a place in the top 10 for the third consecutive month.

"Interest in real estate typically wanes at the end of the year, which means that sellers who didn't aggressively price their homes may find themselves making difficult decisions to reduce their prices or delay the sale until interest piques again in January," said Pete Flint, Trulia co-founder and CEO. "We are seeing the beginning of this trend in the Northeast and Western United States with discounting happening at all price points, and expect it to continue."

Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to October 2009 include:

-Kansas City, MO - 50% increase in price reductions
-Colorado Springs, CO - 32% increase in price reductions
-Louisville, KY - 27% increase in price reductions
-Indianapolis, IN - 27% increase in price reductions
-Portland, OR - 25% increase in price reductions
-Oklahoma City, OK - 24% increase in price reductions
-Memphis, TN - 24% increase in price reductions
-Tulsa, OK - 23% increase in price reductions
-Milwaukee, WI - 22% increase in price reductions
-Arlington, VA - 22% increase in price reductions

Cities showing the highest percentage of declines for listings with price reductions from June 2009 to October 2009 include:

-San Antonio, TX - 37% decrease in price reductions
-Las Vegas, NV - 36% decrease in price reductions
-Oakland, CA - 17% decrease in price reductions
-San Jose, CA - 16% decrease in price reductions
-Los Angeles, CA - 14% decrease in price reductions
-Honolulu, HI - 11% decrease in price reductions
-Long Beach, CA - 11% decrease in price reductions
-Dallas, TX - 11% decrease in price reductions
-Washington, D.C. - 10% decrease in price reductions
-New York, NY - 9% decrease in price reductions

Luxury Market Not Immune
Luxury homes (those listed at $2 million and above) continue to bear the brunt of discounts being offered with an average of 14% being slashed from the original asking price compared to the national average of 10%. Additionally, luxury homes represent less than 2% of all current listings on Trulia, but are responsible for 25% of the $28.4 billion in home price reductions.

Bernanke: Recession Is Over, but Tough Times Will Linger

The deep recession that's gripped the U.S. economy by the throat since December 2007 is "very likely over at this point," Federal Reserve Chairman Ben Bernanke recently said.

However, Bernanke painted a picture of an underperforming economy well into next year as he fielded questions after a speech at the Brookings Institution, a center-left research center in the nation's capital.

"From a technical perspective the recession is very likely over," Bernanke said, cautioning that unemployment is likely to remain high. "It's still going to feel like a very weak economy for some time, as many people will still find that their job security and employment status is not what they wish it was. So that's a challenge for us and all policymakers going forward."

Most mainstream economists think that the National Bureau of Economic Research, the official scorekeeper of when recessions begin and end, eventually will declare that this downturn came to an end in the summer or early fall of 2009.

What follows may not feel much like recovery, Bernanke cautioned, because structural problems in the U.S. economy are likely to resurface. There will be economic growth during the rest of this year, "but the general view of most forecasters is the pace of growth in 2010 will be moderate, less than you might expect, given the depth of the recession, because of ongoing head winds." The "head winds" he referred to include an impaired credit system, households still trying to dig out from personal debt and ongoing adjustments in many sectors of the economy, such as construction and autos.

In addition, the government must unwind many of its massive stimulus efforts or risk igniting inflation. That's all likely to lead to a weaker recovery than after past recessions, and a lingering high unemployment rate.

The sluggish outlook was punctuated by August retail sales data recently released by the Commerce Department. Sales rose by 2.7% over July, driven up by the government's "cash for clunkers" car sales program and higher gasoline prices. Drop those two factors, and retail sales rose by only 0.6%. That's another sign of consumer reluctance to spend amid widespread job insecurity.

"The various fiscal stimulus measures, including the cash for clunkers program, are playing a pivotal role in jump-starting the economy in the third quarter of 2009, and that should create enough initial momentum to keep the recovery in motion, but we should not be looking for consumer spending to be a major driver of the recovery beyond the current quarter," Brian Bethune, a U.S. economist for forecaster IHS Global Insight, warned in a research note.

Looking over a longer horizon, Bernanke said that a major factor in the recent global expansion of credit was significantly impaired and unlikely to revive anytime soon. The implication: less lending and at higher costs. The Fed chief was referring to securitization, the process by which loans are sold to Wall Street firms that bundle them together into securities that are sold to investors. Their returns on investment come from monthly payments that consumers make on their homes, cars, credit cards and student loans.

Securitization is in a deep freeze right now because investors no longer want pooled loans, fearing defaults by consumers and businesses. This is one reason it's so difficult now for consumers to get credit to buy cars or houses. Bernanke warned that even when this process resumes, it's unlikely to be as vigorous as it was during the go-go days earlier this decade.

"My forecast would be that the shadow banking system - securitization markets - will come back, will be a substantial part of the U.S. credit system. But they will certainly, at least in the medium term, be simpler, smaller, less opaque, subject to more oversight by regulators," Bernanke said. "And those things, I think, will constrain its growth for a period of time."

No Rest for the Weary: 75% of Americans Plan on Working as Long as They Can

A new study released by Bankrate, Inc. shows that the vast majority of working Americans plan to work as long as they can during retirement age, showing a redefinition of how Americans view traditional retirement plans. The poll, conducted by Princeton Survey Research Associates International, is included in the new Bankrate Financial Literacy series on Retirement Income.

Among the findings:

-75% of Americans plan to work as long as they can during retirement age. 39% plan to work because they enjoy work while almost one-third plan to work because they'll need the money;
-Although so many Americans plan on working through retirement age, only 15% of retirees polled are currently employed compared to 84% who are not;
-55% of retirees worry about money and wish they had saved more compared to only 38% who think they have enough money to retire without worry;
-The financial crisis has affected many people's plans to retire with only 31% expecting to retire on time as planned while 40% plan on postponing their retirement plans;
-53% of Americans made no changes to their investments due to the financial crisis compared to 14% who went with a more conservative investment approach;
-Almost 40% of Americans are investing for retirement on their own with 16% using an asset allocation plan, 15% picking mutual funds based upon performance, and 8% with a target date fund. Twenty-seven percent use a financial adviser for decisions while 18% don't invest in a retirement plan and 9% don't utilize any strategies;
-Due to a lack of pension plans like today's workforce, 26% of retirees polled are relying solely on Social Security for their income.

"This poll offers an interesting insight into Americans' views of employment and retirement," said Julie Bandy, editor in chief at Bankrate.com. "Seventy-five percent of today's generation plan to work as long as possible, a far cry from that of previous generations. Falling home values and losses in retirement accounts are forcing many Americans to re-evaluate their retirement needs. "

HERA-HOEPA

Fees & Loan Data that impact APR

Govt Recording/Transf Fees:

· Recording Fee/Assignment

· Subordination/Modification

3rd Party Fees:

· Broker Compensation Fee

· Courier/Messenger Fee

· EDD to 3rd Party

· Fax/Copies/Postage

· Final Inspection

· Flood Life of Loan

· HOA Cert Fee

· Home Warantee

· Mortgage Ins Ap Fee

· Processing Fee

· Re-Draw Fee

· Reconveyance Fee

· Tax Service Fee

· Transfer Fee

· Underwriting Fee

· Wire Transf Fee

Lender Fees:

· Application Fee

· Assumption Fee

· Commitment Fee

· Discount Fee

· Lock extension fee 

· Lock extension fee

· Return to Float Fee

· Lock in Fee

· Modification Fee

· Mortgage Broker Comp. Fee

· Origination Fee

· Processing Fee

· Underwriting Fee

· Holdback Fee

Title/Closing/Settlement:

· Closing/Escrow/Settlement

· Mortgage Insurance Fee

· Doc Review

· Escrow/Loan Tie in Fee

· PMI/MIP

· Recording

· Servicing Fee

· Temp. Buydown Fee

· Trust review

· Upfront Mtg Ins.

· Va Funding Fee

Loan Data:

· Per Diem Interest

· Loan Amount

· Interest Rate

· Loan Product

Kiva

How does it work?

Kiva brings together lenders and worthy enterprises on the web.

 From Kenya to Ecuador, microfinance institutions (MFI) around the world go to Kiva.org and post photos and profiles of low income entrepreneurs in need of money for their businesses.Loans made easy and personal.

Lenders go to Kiva.org and browse through profiles of low-income entrepreneurs-a dairy farmer in Kenya, a man who wants to open a shoe shop in Honduras, or a tailor in Bulgaria. Lenders can then loan as little as $25 to the entrepreneur of their choice via PayPal, a globally recognized online payment service.When a loan is funded by individual lenders, Kiva pools the money and transfers it to a Microfinance partner who handles distribution and collection of loan payments.

 Journal updates keep the lenders informed about the progress of the entrepreneur they sponsored. Loan repayments made by the entrepreneur over the course of about 6-18 months are sent back to Kiva by the MFI partner.Once loans are repaid, Kiva users can choose to withdraw their principal or re-loan to another entrepreneur. (80%+ of Kiva lenders choose to re-loan!

Kiva Shows You Where Your Money Goes Unlike donations which usually go into general funds, Kiva loans show you exactlyWHO your money goes to, WHAT they are doing with it, and HOW you are making a difference. Best part? It's a loan, not a donation. We invite you to make a small   loan and make a big difference!

Kiva is a regisitered 501(3)(c) non-profit based out of San Francisco, CA

www.kiva.org

GET repaid within months. Withdraw your money or lend again! WATCH your entrepreneur's small business grow via email updates SELECT an entrepreneur and make a small loan (as little as $25)

KIVA TRANSFERS funds abroad to a microfinance partner who administers the loan loans that change lives Kiva.org is a non-profit that is revolutionizing the fight against global poverty by enabling people to connect with and make personal loans-of as little as $25-to low-income entrepreneurs in the developing world. Most of the poor in developing countries are self-employed entrepreneurs and a small loan to purchase business-related items such as sewing machines or livestock can empower them to earn their way out of poverty."Innovation of the W eek: Kiva.org uses smart design to make a little cash go a long way."

"Revolutionizing how donors and lenders in the US are connecting with small entrepreneurs in developing countries."

"If you've got 25 bucks, a PC and a PayPal account, you've now got the wherewithal to be an international financier."

"Kiva simply democratizes access to a worldwide microfinance movement that has been empowering the working poor for two decades."

"At Kiva.org, a schoolteacher in K ansas can partner with an expert seamstress in countries like Kenya, Mexico and E cuador to jump-start a tailor shop."

1. Forget to mention that you just bought a new car or stereo system.
2. Forget to mention that you have to pay child support or alimony.
3. Forget to mention that you will be going on maternity leave during the escrow.
4. Forget to mention that the money you are using for the down payment and closing costs are coming from a gift from family and there is not way to document it.
5. Forget to mention that one of the borrowers (husband/wife) hasnt recieved green card yet, or greencard is expiring.
6. Forget to mention that the borrower is married (applied as single man/woman), and let the lender discover it when you sign loan papers.
7. Have the money needed to close escrow come from the sale of another property that hasnt closed yet, and you need to close this escrow first.
8. Apply on line with one of these online companies and have your credit report run 10 times in a row, guaranteed to change your fico scores to qualify.
9. Create your own paystub, bank statement or w-2, tax return.
10. When the lender audits your loan file before coe by calling your employer to verify your employment, make sure you have quit or are on unpaid leave.

 In the real estate business non of us get enough credit for all we do to make it look easy!

This is good and bad.....good for the customer (they appreciate how smooth the process went), bad for us in that they think we are over paid for doing what a monkey could do.

I am amazed how little some agents thank the loan officer and the escrow officer for all the last minute things they do to make the deal close on time (e.g. Lender:drawing docs at the last minute, changes to closing costs, credits, changing coe dates, two week closes. e.g. Title/Escrow: preparing docs for signing in 1-2hrs of reciept of the loan package, doing signoffs on evenings, weekends, and when they should be at lunch, rushing the prelims out, waiting for the client/agents/loan officers for the apt when they are 15-30min or more late,etc.).

In real estate (I have been doing lending for over 25 years), it never ceases to amaze me how little we acknowledge the excellent work most of us do day to day. When is the last time you gave your loan officer or escrow officer a hug, a box of chocolates, a thank you card......just for being there for you and working as such a great team? If you havent done it lately...take a moment today to give them a call, an email, a note just letting them know how much you appreciate them and all they do for you.....you might be surprised how it will come back your way.

I know how much rejection realtors get every day, every hour ( I am the in house lender with Wells Fargo in a local high end real estate office in Burlingame, CA)....I know how hard they work and how some times the client goes with another agent after all the time and money is has been invested by you. As a lender I know rejection too....how many times I am rushed to get the preapproval letter out to find out the client never intended to use me for the loan just use me for the offer getting accepted (sometimes the agents are full participants in this......shame shame).......so in a business racked with curve balls, disappointments, glory, miracles, wonderful clients and escrows, happy memories, first homes, new babies, growing families......lets not forget to say THANK YOU!

Roger Hunt

Private Mortgage Advisors (an affiliate of Wells Fargo Bank, N.A.)

650.796.0326

www.rogerhunt.com

Life is what happens when you are making other plans!

Who better than the "skipper" from Gilligans Island would know that?

He started off his 3 hr cruise one day like any other day, and what happened?

He was stranded with two rich people, a movie star, a professor, Gilligan, Maryann.

Maybe he should have stayed home that day!

Ten Things to do to make sure your escrow doesn't close on time!

1. Don't get the signed purchase contract and addendums to the loan officer/bank right away.
2. Don't meet the appraiser at the property asap to complete buyers appraisal.
3. Take your time getting the HOA docs to Lender on condo and townhome.
4. Provide a seller credit to the buyer without letting the lender know and have the credit be for things other than the non recurring costs (wait till the signing of the loan papers to let lender know).
5. Mention in the purchase contract a pest inspection, and that the buyer is purchasing the property as is, without providing pest clearance if Section 1 noted in inspection.
6. Don't have the utilities (water and gas/electric) in working condition when the appraiser does appraisal.
7. Have the purchase contract list only the husband or the wife (not both), but have the lender do the approval on both of them.
8. Change the close of escrow date to 2 wks earlier, without letting the lender know.
9. Change Title/Escrow companies without letting the lender know.
10. Don't stay in contact each step of the way with the lender.

I know you have never done some of these things, but you would be surprised how many times they still happen and to seasoned agents......

Moral of the story?

Team work.......the escrows that move the smoothest and are the least stressful to your clients are the ones where everyone (Title, lender & Agents) work together to get the escrow closed. All are irreplaceable!

I attend every signoff and sign my clients off at 3 days before coe, and usually 1 wk......in 25 years, this has been the single most significant thing I do....it allows for murphys law, and time to make corrections well ahead of time...many times without the borrowers having to be aware of the hick ups! Teamwork is critical!

Roger