Reminder: MDIA Regulations Beginning July 30th

Just a reminder that these new provisions will begin July 30th which can cause a delay in settlement due to the 7 days for consumer to review these documents especially if any changes are made while in the process .

The information below is taken straight from http://www.federalreserve.gov.

The MDIA seeks to ensure that consumers receive cost disclosures earlier in the mortgage process. In several respects, the MDIA is substantially similar to final rules issued by the Board in July 2008. However, the MDIA also broadens and adds to those regulatory requirements. The final rule largely follows a proposal issued by the Board in December 2008. Under the MDIA, creditors must comply with the new provisions on July 30, 2009. The Board's implementing regulations apply to dwelling-secured consumer loans for which a creditor receives an application on or after July 30, 2009.

The MDIA requires creditors to give good faith estimates of mortgage loan costs ("early disclosures") within three business days after receiving a consumer's application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer's credit history. These requirements are consistent with the Board's July 2008 final rule, which applied to loans secured by a consumer's principal dwelling.

The MDIA broadens this requirement by also requiring early disclosures for loans secured by dwellings other than the consumer's principal dwelling, such as a second home.

In addition, the rules would implement the MDIA's requirements that:

• Creditors wait seven business days after they provide the early disclosures before closing the loan; and
• Creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance.
  

The rules would permit a consumer to expedite the closing to address a personal financial emergency, such as a foreclosure.

Coldwell Banker #1 residential real estate brokerage firm in the United States for the 12th consecutive year!

NRT took the top spot for the 12th consecutive year for both closed sales volume and closed transaction sides in the REAL Trends 500 annual survey. NRT-owned real estate companies are involved with one out of every four homes sold in the United States.

With 51 offices and over 3,400 sales professionals, Coldwell Banker Residential Brokerage Mid-Atlantic accounted for $6.7 billion in closed sales volume and 17,321 closed transaction sides in 2008. NRT recorded $132 billion in closed sales volume and 275,640 transaction sides in 2008. A transaction side is either the buyer side or the seller side in a real estate transaction. Brokerage companies like Coldwell Banker receive commissions from representation of either one or both sides of a transaction.

Paul Valentino, president, Greater Washington Metro, said, “While 2008 was a very challenging housing market, consumers continued to have confidence in Coldwell Banker and other NRT brands as real estate professionals they could trust. Our strength comes from being part of a family of real estate companies that provides a global network of support and marketing services for our clients.”

“Our sales teams throughout the Mid-Atlantic region dedicate themselves to obtaining the best results for each of our customers,” said Dean Cottrill, general sales manager, Greater Baltimore Metro. “They practice the same ethos of high quality service that the Coldwell Banker brand has represented for over a century, and that NRT embraces throughout all its real estate companies.”

Determining Your Homes Market Value

You may hear statistical data that average home sale prices went up in the last two months. Certainly encouraging news to sellers! However, for the last year, average sales prices have been inconsistent from month to month with no real pattern -- going up for a month or two and down for two or three months. The more reliable way to determine the market value of a home is detailed below and involves finding accurate comparable home sales in your area.

With home prices, the trouble with "average" is it does not give homeowners an accurate picture of the market in their area. Average home prices are calculated by dividing the number of homes sold during a fixed period into the total of all sales prices. If lower end homes are selling more than higher priced ones, the average would go down, but if higher priced homes are more popular, the average would go up. Another measure of home prices is the "median" price where half of all homes sold for less and half for more. As with "average", the "median" statistic does not give homeowners any idea of the how much the market value of homes has declined or appreciated in their area.

The better method of determining the percentage fluctuations of market prices is to compare similar homes in a specific area over a fixed time period. For example, if you wanted to know the percentage drop in prices from 2006 to today, research the 2006 sales price of 3-4 homes compared to the recent sales prices of 3-4 similar homes in the same area. The overall comparison will give a fairly accurate percentage drop of home prices in that area. Then when homeowners remember what neighbors' houses sold for in 2006, they can apply that percentage reduction to get an idea of the perception buyers have of value in today's market.

Since we cannot rely on "average or median" sales prices to see the future, I would be happy to do the research to analyze the percentage change of home prices in your area and provide a Comparative Market Analysis (CMA).