Jim Renshaw

Land Title Guarantee Company

2010 CREC Update by Oliver Frascona

Mar 4

Posted by LeslieHalliday in Realtor Classes | No Comments

Oliver Frascona

Class: 2010 CREC Update

Date: April 1, 2010

Location: SMDRA

Description:

Licensees are now required to complete 12 hrs of the 4-Hour Annual CommissionUpdate Course prior to applying to renew an active license, activate an inactive license or reinstate an expired license to an active status.

However, licensees who are in a partial three year renewal cycle must complete only 8 hours of the 4-Hour Annual Commission Update Course.  Licensees are still required to meet the full 24 hour education requirement within each renewal cycle, and must complete the remaining hours in elective credits.  Please note: The 4-Hour Annual Commission Update Course is not the Mandatory Ethics Course.  The Mandatory Ethics Course receives elective credits, not credit towards the 4-Hour Annual Commission Update Course.

Start Time: 01:00 pm to 5:00 pm

$40 SMDRA Members/ $50 all others

4 hrs CE

You must register for this class on line at SMDRA – click here

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Power Lunch for Professionals with Oliver Frascona

Mar 4

Posted by LeslieHalliday in Realtor Classes | No Comments

Oliver Frascona

Power Lunch for Professionals: Hot Topics with Oliver Frascona

Date: March 23, 2010

Location: SMDRA

Description:

SMDRA’s Association Attorney will cover those “hot” topics that are facing their members in real estate.  This is a popular event so advance registration is requested.

Power Lunch for Professionals is a monthly event provided as a member benefit to SMDRA members.

Start Time: 11:30am to 1:00pm

Complimentary Event for SMDRA Members/ $15 for Non-SMDRA Member (ADVANCE REGISTRATION REQUIRED FOR THIS POPULAR, SOLD OUT EVENT)

You must register for this class on line at SMDRA – click here

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Colorado Foreclosure Sales Skyrocket

Feb 25

Posted by Jim Renshaw in Colorado Real Estate | No Comments

Comparing year-over-year from 2009 to 2010, foreclosure filings in January decreased 3.2 percent overall with totals falling from 2,819 to 2,729. Foreclosure sales increased 60.7 percent from 1,193 to 1,917.

However, when compared to January 2008, both foreclosure filings and foreclosure sales were down. January filings decreased 17.4 percent from January 2008 to January 2010, and foreclosure sales fell 29.2 percent during the same period.

The increase in foreclosure sales rates between January 2009 and January 2010 can in part be attributed to an exceptionally low number of foreclosures proceeding to sale during the early months of 2009. This resulted from a series of moratoria on foreclosures imposed by Fannie Mae, Freddie Mac and other large owners of mortgage loans. The moratoria prevented foreclosures from proceeding to the end of the process, but did not reflect overall improvement in the real estate markets. As the moratoria were phased out in the Spring of 2009, foreclosure sales totals began to increase.

Source: Colorado Department of Local Affairs – Division of Housing

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Buyer to Select Title Company on Fannie Mae REO Sales

Feb 24

Posted by Jim Renshaw in Uncategorized | No Comments

Fannie Mae Issues New Addendum for REO Properties

February 23, 2010

For many years, Fannie Mae used nearly the same addendum for REO sales as banks. The addendum stated the buyer must use the seller’s title agents and cost of transfer taxes and stamps would be the buyer’s responsibility.

Fannie Mae issued a new addendum that allows a buyer to select his or her own title agent.

The addendum now states “The closing shall be held at a place so designated and approved by the Purchaser.”

This is a turnaround from previous versions wherein it stated that the purchaser must use the seller’s title agent.

Additionally, the contract no longer states that regardless of local custom, Fannie Mae will not pay any portion of the transfer taxes and stamps.

News Room Archive

Fannie Mae Issues New Addendum for REO Properties

 February 23, 2010

For many years, Fannie Mae used nearly the same addendum for REO sales as banks. The addendum stated the buyer must use the seller’s title agents and cost of transfer taxes and stamps would be the buyer’s responsibility.

Fannie Mae issued a new addendum that allows a buyer to select his or her own title agent.

The addendum now states “The closing shall be held at a place so designated and approved by the Purchaser.”

This is a turnaround from previous versions wherein it stated that the purchaser must use the seller’s title agent.

Additionally, the contract no longer states that regardless of local custom, Fannie Mae will not pay any portion of the transfer taxes and stamps.

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When was the last time you really stopped to think about why you use the title insurance company you do?

Feb 22

Posted by Jim Renshaw in Land Title Guarantee Company | No Comments


Perhaps your company has used the same title company for years and you’ve simply followed suit. Or maybe you choose the title company next to your office because it’s so easy to drop off a contract. And you probably know at least one coworker who nonchalantly tosses a title order to whichever title rep happens to be handing out gum in the office the day a contract comes in.

Now more than ever, the changing economy and the condition of real estate markets make it imperative that real estate and lending professionals do their homework when it comes to title insurance companies.

One of the distinguishing factors between title companies – indeed, between companies of any type – is whether they are locally owned and operated. With the trend toward globalization and smaller companies getting bought out by large nationals, there are fewer and fewer local companies to choose from.

Local companies, however, provide a number of benefits that large national companies do not. When you consider the fact that there are very few local title companies remaining, the benefits of working with a local company become even more pronounced.

Land Title Guarantee Company is one of the last remaining local title insurance companies in Colorado. When you choose to work with Land Title, you know what you’re getting: A genuine Colorado product, produced by Coloradans, for Coloradans. People you know, products you trust. Stability that has withstood the test of time. And a commitment to Colorado that benefits our local economy as well as our local communities.

Local service is better service

Land Title employees live and work where the title product is produced, and the work is never outsourced to another state or country, so the client gets more knowledgeable service and a more accurate product. “We know the properties, we know the people, we know our climate — we know Colorado,” says Sherri Goldstein, Commercial Accounts Manager at Land Title Guarantee Company in Denver.

In addition to having a greater understanding of local properties, markets, and people, local companies have local decision-making and control, which is often a critical factor when an underwriting decision needs to be made quickly.

The knowledge and expertise of local companies impacts the transaction in a way that is noticeable to the client. But choosing to work with a local company also benefits the local economy and the community as a whole in ways that are not immediately seen.

“Local businesses invest in the community. Local businesses are owned by people who live in this community, are less likely to leave, and are more invested in the community’s future,” according to Mickki Langsten, Executive Director, Mile High Business Alliance. In fact, “each dollar spent at a locally owned business recirculates in a community six times more than a dollar spent at a non-local business.”

According to Transition Boulder County, “Small businesses account for the largest share of net new jobs generated each year, and locally based businesses provide some of the most stable employment opportunities in a community. Most job growth comes from local independent businesses.”

Reputation matters

In uncertain times, knowing the reputation of the company you are dealing with matters too.

“Land Title has been around for over 40 years because our customers trust us. People want to do business with people they trust, and they trust Land Title,” says Goldstein. According to Langsten, when you choose to work with a local company, “customer service is better. Local businesses often hire people with more specific expertise for better customer service.”

Land Title has always believed in doing business the old-fashioned way, and that’s with a handshake. “What it boils down to is, is your word good, and theirs is good—always has been. A handshake from them is basically all you need,” says longtime client Cal Fulenwider III, President, LC Fulenwider Inc.

“We choose not only to buy from American companies but also to do business with local businesses that have a stake in our state and in our communities,” says Toby Terhune, President of Shadow Creek Homes.

“Land Title understands the importance of developing long-term relationships with their customers,” continued Terhune, “and they are focused on serving the customer above all else. They have a stellar reputation in our community and live the values we believe in: honesty, integrity, hard work, and customers first. We are a better company because of our relationships with local and reputable companies like Land Title.”

Stability you can count on

Land Title’s mission remains the same as it was when we opened our doors 43 years ago: To be the best title company in town as viewed by our employees, our customers, and our competition. Sounds like a simple task, but in this constantly-changing real estate market and precarious economy, it speaks to Land Title’s stability that Land Title continues to accomplish this mission.

In the face of changing RESPA regulations, Land Title has implemented processes and an online GFE calculator to assist lenders in meeting their requirements. Customers still count on Land Title to be the stable center of the transaction, to provide up-to-date information, and to keep their closings intact, even when the market is changing at lightning speed.

In addition to leading the industry with innovative products, Land Title continues to employ the experts in every area, from Closing to Title, from residential to commercial real estate. Toby Terhune, president of Shadow Creek Homes, says, “I look at the quality of the individual, and, to me, that’s what Land Title is and has always been.”

And because the title policy is only as reliable as the underwriter’s claims-paying ability, it is important to work with a reputable title insurance agent backed by sound underwriting principals. Land Title Guarantee Company has the unique ability to issue title insurance policies through 4 highly-rated underwriters. Our underwriters have the highest stability and financial ratings given by Demotech, Standard & Poor’s and LACE.

Giving back to the community

“I know I represent the company that has the best product. However, the best product isn’t just title insurance. It’s also being a good neighbor in the communities that we serve,” says Bob Rulon, Sales Manager in Land Title’s Eagle/Vail branch.

Indeed, “compared to national competitors, local independent businesses return more money to the local economy and give an average of two to three times greater support to non-profit organizations. They are better positioned to respond to the special needs of the community and more invested in its future” (Transition Boulder County).

Land Title has supported over 1,500 charities in the last ten years alone. “In order for us to be successful, the communities we serve have to be successful,” says Freyer.

Steve Winesett, President of the Children’s Hospital Foundation: “I want to tell you a little bit about the impact that a company like Land Title has on a place like Children’s. Land Title’s impact simply can’t be overstated. For as long as we’ve been keeping records, they’ve been giving us gifts, and that goes a long way back.”

“Land Title in particular has supported many local charities for a long, long, long time,” says Fulenwider. “What’s impressive to me is their staying in there when times are tough financially, and that’s not lost on the community.”

When you choose to work with a local title insurance company like Land Title, you’re making a purchasing decision that goes much further than just your immediate transaction. Your choice to buy local whenever you can impacts not only our local economy but our communities as well.

So next time you have a title order to place, consider keeping it local.

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FREE Success Seminar featuring Brian Buffini – March 23rd

Feb 19

Posted by Jim Renshaw in Realtor Classes | 5 Comments

CLICK HERE TO REGISTER FOR THIS EVENT

Use Land Title as the promo code!

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Inventory Levels off 13% in Denver Metro Area – Jan 2010

Feb 10

Posted by Jim Renshaw in Real Estate Stats | 1 Comment

Inventory levels (number of active homes on the market) continues to trend downward with January 2010 posting 13.4% fewer homes on the market than this time last year. You can really see the trend by comparing the level of listing inventory in January 2008 with 18,716 homes on the market to January 2010 with 13,030 homes on the market a 34% decrease.

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FAQ on GFE, HUD and recent RESPA changes by Jessica and Les

Feb 5

Posted by Jim Renshaw in Colorado Title Insurance | 2 Comments

With all the RESPA questions and confusion surfacing out there we thought it was important to arm our clients with a little more knowledge about the GFE, HUD and recent RESPA changes. 

This information was put together by Jessica Meyers & Les Martin with Land Title Guarantee Company.

General:

Q: Where is the total cash to close or monthly payment disclosed on the GFE?

A: This information is not disclosed on the GFE.

Purchase specific:

Q: Are the HOA dues or fees disclosed on the GFE?

A: No, they are not disclosed.

Q: If a lender requires a condominium certificate and questionnaire, where does the charge go on the GFE?

A: If a lender requires a condominium certificate and questionnaire, the service is performed by a third party and the borrower is not permitted to shop for the provider of that service, the charge must be disclosed in Block 3 of the GFE (10% tolerance).

Q: If a seller typically pays for the owners title insurance, does the charge still have to be shown on the GFE?

A: Yes, an estimate of the cost must be shown in Block 5, ‘owners title insurance’ for all purchase transactions regardless of who is selecting or paying for it. In Colorado, it is common for the seller to pay this, in which case the title company will list a debit/credit on page 1 of the HUD to offset the charge.

Q: Does a transfer tax (payable to a government entity, not to an association) need to be disclosed on the GFE?

A: Yes. On a purchase there will always be a State doc fee disclosed. Most commonly found in resort communities, transfer taxes must also be disclosed on the GFE. Use of the GFE calculator and confirmation of fees will provide this information if applicable, as does the commitment when issued.

Changed Circumstance:

Q: If there is a ‘changed circumstance’, when does the loan originator issue a new GFE?

A: When there is a ‘changed circumstance’ and the loan originator intends to issue a revised GFE, the loan originator must do so within three business days of receiving the information sufficient to establish changed circumstances. A loan originator may issue a revised GFE reflecting only the increased charges resulting from the ‘changed circumstance’.

Q: What is considered a ‘changed circumstance”?

A: (1) Acts of God, war, disaster, or other emergency; (2) Information particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided, which information may include information about the credit quality of the borrower, the amount of the loan, the estimated value of the property, or any other information that was used in providing the GFE; (3) New information particular to the borrower or transaction that was not relied on in providing the GFE; or (4) Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems.

The discovery of previously undisclosed circumstances affecting settlement costs such as unreleased liens could be considered a ‘changed circumstance’.

The property address provided by the applicant, turns out to not be the correct, legal address could constitute a ‘changed circumstance’.

After the GFE is issued, parties are added to or removed from title or the property is moved into or out of trust, or it is determined that a party will be using a POA to sign, which may require additional work and fees could be considered ‘changed circumstances’.

During or as part of the transaction, it is determined that the property use may change, such as from owner-occupied to rental property, this could constitute a ‘changed circumstance’.

The borrower’s credit score changes or additional services are required such as upgraded appraisal, survey or other requirement by the loan originator may constitute a ‘changed circumstance’.

GFE Block Description:

Q: What charges are part of the charge in Block 1 (zero tolerance) of the GFE, ‘Our origination charge’?

A: Block 1, ‘Our origination charge’ on the GFE contains all charges for origination services performed by or on behalf of a lender and/or a mortgage broker. Origination services includes, but is not limited to, the following: taking of the loan application, loan processing, underwriting of the loan, funding of the loan, acting as an intermediary between a borrower and lender, obtaining verifications and appraisals, and any processing and administrative services required to perform these functions.

Q: What services belong in Block 3 (10% tolerance if directed by the lender), ‘Required services that we select’?

A: Block 3 of the GFE contains the charges for all third-party settlement services (except title services) for which the loan originator requires and selects the provider of the service. Examples of these charges for services generally include but are not limited to, appraisal, credit report, tax service, flood certification and up-front mortgage insurance premiums.

Q: Where should the quote for the Lender‘s title insurance policy premium be disclosed on the GFE?

A: The Lender‘s title insurance premium is part of Block 4 (10% tolerance if lender selected or on the provider’s list and selected by the buyer/borrower), ‘Title services and lender‘s title insurance’ on the GFE, along with any fees for title searches, examinations, endorsements and all charges associated with the title services and settlement (closing) agent services.

Q: What charges are disclosed in Block 6 of the GFE?

A: Block 6 of the GFE includes third party services required by the lender where the borrower is permitted to shop for the provider, other than Title services and lender’s title insurance (Block 4) and Owner’s title insurance (Block 5). These types of charges include, but are not limited to: survey, pest inspection and other types of inspections required by the lender. Charges that are part of the sales contract, but are not required by the lender, are not disclosed on the GFE.

Q: What is included in the GFE boxes #4, 5, 7, 8 as it relates to title and escrow?

A: #4 – title services, 5 – owner’s title policy, not applicable on a refinance, 7 – recording fees, 8 – transfer tax and state doc fee, not applicable on a refinance in Colorado but may be in other States

Q: What fees show in the GFE calculator?

A: The buyers side only, seller paid items aren’t listed, according to the questions answered within the GFE calculator (real estate closing fee split 50/50)

Basics on the HUD:

Line 1101 includes the title policy, real estate closing fee if applicable, loan closing fee, tax certificate, courier fee, e-doc fee and release tracking on a refinance

Line 1201 includes the recording fees

Line 1102 and below list the seller paid fees, which aren’t bundled into 1101

Provider List:

Q: If a mortgage broker provides the GFE and the written list of settlement service providers and the borrower chooses to use a provider identified on the written list for a service, is the lender subject to tolerances for those services?

A: Yes, if the lender permits a mortgage broker to issue the GFE and the written list of providers, the lender is subject to the tolerances for the services in which the borrower chooses to use the identified provider.

Q: If the borrower chooses a settlement service provider that is not on the written list, does the tolerance apply?

A: No, if the borrower chooses a settlement service provider that is not on the loan originator‘s written list of providers, the amount paid for that service is not subject to a tolerance.

Q: May a loan originator state on the “written list” that the loan originator is not endorsing the quality of a settlement service providers service?

A: Yes, the loan originator may include a statement on the “written list” that the listing of a service provider on the “written list” does not constitute an endorsement of that service provider.

Talking points regarding the ‘provider list’:

By choosing Land Title as a provider, we guarantee accuracy and confirmation of fees with the GFE Calculator.

By choosing Land Title as a provider, you will have the consistency of service on refinance transactions, where ‘other’ providers may not provide the same level of service.

If an unknown title company is chosen as a provider in order to avoid tolerance variables, but use of your normal service provider remains, there is a higher risk of audit.

In addition, by choosing your provider for the list, it provides benefit in creating a larger dollar amount variance on the 10% tolerance bucket so there is a larger cushion for error or potential loss.

TIL/APR:

TIL/APR related title and closing fees include, but are not limited to, the closing fee, courier fee and release-tracking fee.

An APR calculator is available at: http://www.efunda.com/formulae/finance/apr_calculator.cfm

The information contained in this web site is the opinion of Jim Renshaw and provided “as is” without warranty of any kind, either express or implied, including without limitations any warranties of merchantability or fitness for a particular purpose.

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Increase in Puchase Index for Mortgage Applications

Feb 3

Posted by Jim Renshaw in Uncategorized | No Comments

The puchase index provided by the Mortgage Banker Association (MBA) shows an increase in mortgage application for the month of January 2010.  Smart buyers are taking advantage of tax credits, low interest rates and great prices on homes.  Now is a great opportunity for buyers.  Inventory remains very low and my prediction is we will see housing prices under $400,000 continuing to rise in the Denver market.

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Google Map of all Douglas County Sales December 2009

Jan 21

Posted by Jim Renshaw in Real Estate Reports | 1 Comment

Here is a new way to look at real estate sales in Douglas County using Google maps.  All sales for December of 2009 are include and by clicking on of the sales you will see sale price and property address.  This sold data is from public records.

Please add a comment to this post and let me know what you thing.  I’m considering doing this monthly if there is enough interest.

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