Standard Mortgage Financial Services, Inc.
Your Source for Mortgage Loans
(As reported by real estate educator Duane Gomer, http://duanegomer.com)
First, the name Jobs Act is misinformation. It has nothing to do with Jobs. The correct title is, “Jumpstart Our Business Startups Act.” It is intended to encourage funding of United States small businesses by easing various securities regulations.
The law was passed on April 5, 2012. The SEC adopted final rules to allow Title III equity crowdfunding on October 30, 2015. The effective date is May 16, 2016.
Real estate professionals: Help Someone Get a Home And Help Yourself
(As reported by real estate educator Duane Gomer, http://duanegomer.com)
Today’s real estate market has many aspects. First-time homebuyers are missing in action. Many people who want homes do not have enough down or cannot qualify for a loan. Unemployment rates have dropped so many people do have jobs. Student debt is everywhere. Some homeowners have extra cash and are not thrilled with the stock market or other “opportunities”.
Solution: Equity Sharing. I have always been puzzled that more people do not consider this technique of home ownership. It is not new it has been around for years and is recognized by the IRS.
You have a young couple who are stable, working, and reliable. We will call them, Rental Partner. There is another couple with some investment cash and who like couple one. We will call them, Investor Partner. Couple one would like to start home ownership, but does not have the down payment or enough income to qualify for a home in their area.
Perfect equity share positioning. They go together and buy a home. To make it feasible they should structure the home as an equity share. First stop is an attorney who knows equity sharing.
Advantages for couple one are they get started on owning a home, building equity, appreciation, get tax deductions, etc. Couple two gets an investment with better loan conditions (probably owner-occupied), equity growth, leverage, appreciation, an investment probably with less maintenance, no vacancies and a strong feeling of helping someone, etc. Win, win.
Disadvantages: there are disadvantages and possible problems in all investments. Nothing is guaranteed in life, but with proper procedures these transactions work
An attorney can draw an agreement to cover all factors; some to consider include, Maximizing Tax Benefits, Calculating Ownership Percentages, Making Equity Shares Work, How to Handle a “Divorce” between the two couples, Moving On-Couple One to Moveup Home and Couple Two in a 1031 Exchange to a Bigger Property, etc.
One good source for information is andysirkin.com. Also, years ago I read an outstanding book on this subject by Diana Bull and Elaine St. James from Santa Barbara. The other day I thought of it so I bought a copy on Amazon. Published in 1990, but everything still applies except the loan tables are 1990. Title: The Equity Sharing Book. Many of you know Diana from her days as President of the California Association of Realtors and many other groups. A true expert and nice person. Check it out.
Study Equity Sharing. Real Estate Agents learn the procedures and sell some houses to couples. Try it, you might like it. So many agents in my classes complain that they have nothing to do most days. Try this and you could close sales and really help people.
Questions? Please call or email our office:
Call: 800-439-4909
Email: info@DuaneGomer.com
(As reported by real estate educator Duane Gomer, http://duanegomer.com)
TRID (TILA-RESPA Integrate Disclosure) has now been in effect for two months. So what do you think? Has it been the end of the financial world as we know it? Have people been standing in line complaining about the new forms and delays?
From my discussions with MLO’s and Agents, seminars with the California Association of Mortgage Professionals, Expo panels at the National Association of Realtors, discussing the situation with students and our instructors, talking to Consumer Financial Protection Bureau staff, and reading, I have come to one conclusion. Life is going on.
One word that I have heard from many is smooth. Surprised. About like Y2K. Can it get better? Yes.
One good aspect is that many surveys indicate that people in the field believe that the forms will help consumers understand their loans better, improve communication, and have more transparency in the lending business. Of course, there are many horror stories, but a change like this with so many software changes is going to cause problems. But we were having horror stories with the old forms.
Another comment that I hear from MLO’s to Agents and Refinancers is, “Send in the Intent to Proceed as soon as possible.” All timing starts with this. It is so important that I will repeat. “Send in the Intent to Proceed as soon as possible.”
CFPB stressed two topics. There is information on their website (cfpb.gov) called the Real Estate Professional Guide. It is outstanding information for everyone including agents, MLO’s and consumers. Get it to the consumer early.
Also, there is the famous Home Loan Tool Kit. It replaces the former Supplemental Booklet. Also, full of information. Priscilla McClung from CFPB gave copies to anyone who stopped by their booth at the NAR Expo. She said that it is strongly recommended that this information be given early to consumers instead of waiting until it is required to be given with the Loan Estimate. If you read it, you will understand why. It answers so many questions before they are asked or even contemplated.
One new idea that CFPB has started. You can go to their web site and click on http://files.consumerfinance.gov/f/201505_cfpb_using-your-logo-with-your-home-loan-toolkit-instructions.pdf. You can put your own logo on the booklet and print it. An outstanding way to keep your name in front of your consumers for it is believed that it will not be thrown away like so many flyers. You will look an information source.
MLO’s, check out our last minute classes this month for renewal. See you in class. Thanks for all your support. It has been an amazing year for Duane Gomer Education, and we owe it all to you, and we know that to be really true.
Questions? Call or email our office:
Call: 800-439-4909
Email: info@DuaneGomer.com
Here is a good article regarding the these 3 major loan types. You should read this article before you go mortgage shopping. Good information on finding the best mortgage deals in your area, learn more about Debt-to-income ratios and how to save money on closing costs.
http://www.foxbusiness.com/personal-finance/2015/12/01/which-mortgage-is-for-conventional-fha-va/
(As reported by real estate educator Duane Gomer, http://duanegomer.com)
There is much confusion among students when the question of how to get a broker’s license is asked. There are some basic rules, but there are then some little known rules.
Here is the latest MORTGAGE e-ALERT (January 1, 2016) from our friends at the Thordsen Law Offices.
The following brief legislative summaries are some of the new laws that affect real estate licensees, subdividers, those having Limited Liability Companies and those leaving real property pursuant to a “Transfer on Death” Deed of Trust. [Read more…]
This bulletin courtesy of Thordsen Law Offices:
1. cfpb examiners will spend “a lot of time” looking at loan officer compensation plans, compliance with ability-to-repay rules and Truth-in-Lending Act/Real Estate Procedure Settlement Act integrated disclosure requirements, as well as the structure of marketing services agreements.
2. Calvin Hagins, the Consumer Financial Protection Bureau‘s deputy assistant director for originations went on to say: “We’re going to spend a very long time evaluating compensation schemes at every exam at every entity.”
3. He also said the CFPB has “been informed through various sources” that some mortgage lenders have “folks who perform duties of loan originators” but who may not be licensed. [Read more…]
Provided by the Thordsen Law Offices:
Here’s a chart from the California Association of Realtors that shows this year’s trends for popular remodeling projects and how these projects retain resale value in the Pacific region of the country for mid-range homes.
(From Duane Gomer’s Newsletter today (Monday, November 23, 2015))
NMLS recently sent an email listing the deadlines for doing your endorsement for this year.
Do it now; remember if you are taking a course after today that you must allow your education company 7 days to “bank” your hours so the true deadline is December 12th. [Read more…]
Standard Mortgage Financial Services, Inc.
6700 Indiana Avenue Suite 220
Riverside, CA 92506-1827
Phone (951) 686-9639
Toll Free (800) 476-5626
Jeff's Direct Line (562) 806-2921
Fax (951) 686-0361
California BRE #01211863
