2009 YCAR Affiliate Council

RPAC Chinese Auction

 
All items are on display at the association office during the month of July!!!

JOIN US FOR THE TICKET DRAWING AT THE LANAI LOUNGE
WEDNESDAY, JULY 29, 2009 FROM 4-6 PM

10 Tickets for $10.00 Make checks payable to RPAC

You Can Win:

Margarita Machine $250 Home Inspection - Garland Home Inspection  $150 Lottery Ticket Tree $300 Sheetz Gasoline Cards Popcorn Cart  Patio Heater Women's designer sunglasses (with eye/exam) basket  Men's designer sunglasses (with eye/exam) basket Acer Netbook Computer Swarovski & Sterling Silver Necklace & Earrings Set Swarovski pearls w/silver accent bracelet

Join us for the ticket drawing at the Lanai Lounge on Wednesday, July 29, 2009 from 4-6 pm

WATCH FOR THE "TRAVELING RPAC CHINESE AUCTION"... IT MIGHT BE MAKING A STOP AT YOUR OFFICE!

NAR Government Affairs/Legislative & Regulatory Issues

 
The Washington Report
 
Obama Administration Announces Financial Regulatory Reform Plan
Fannie Mae Confirms Short Sales Commissions Policy and Establishes Appeals Process
What to Do If You Think a Servicer Isn't Following the Making Home Affordable Program Guidelines
FTC Offers Identity Theft Testimony on Hill
House Hearings Consider Comprehensive Data Privacy Legislation
NAR President Health Care Podcast & Webcast
National Health Care Reform Debate Begins in Earnest
NAR Convenes Commercial Real Estate Meeting to Develop Recovery Priorities
Senate Committee Approves Wetlands Expansion Bill
NAR Creates Flyer Using the First-Time Home Buyer Tax Credit with FHA Loans
IRS Calls for Repeal of Cell Phone Penalties
Health Reform Introduced with No Pay-for Provisions
HUD Announces New Condominium Requirements for FHA Mortgages
HUD Announces Increase in Dollar Amount for Energy Efficient Mortgages
REALTORS® Support Increased Resources for FHA

Read more at realtor.org...

NAR Welcomes YOU to the REALTORS® Federal Credit Union! 

 
REALTORS®, Welcome to YOUR Credit Union!

REALTORS® Federal Credit Union is where you (and your money) belong.  Created for REALTORS®, REALTORS® FCU offers its members real value in the form of fewer fees and competitive rates on savings, loans and investments.  As a new partner in NAR's REALTOR Benefits® Program, you can trust that your credit union is friendly to REALTORS®.  To see an exclusive interview with Credit Union President and CEO, Tom Glatt, click here.

Why A Credit Union?
Credit unions are about "people helping people."  As a not-for-profit credit union, REALTORS® FCU is member-owned, so earnings accrue to benefit members, not stockholders.   REALTORS® FCU is directed by a volunteer Board of Directors comprised of real estate professionals like you to ensure the credit union understands your unique financial needs.  Learn more about the credit union difference.

REALTORS® FCU now offers:

• Great rates including Share Certificate Investment and Money Market Savings rates that currently beat ING Bank, E* Trade, Bank of America and Wells Fargo!*  Check current rates to see how you can save big.
• Free eChecking with MasterCard® Debit Card and Overdraft Protection**
• Free ATM transactions at thousands of CO-OP Network® and CU24 Network® ATMs nationwide
• Loans and Credit line options offer affordable financing on homes, new & used automobiles, new & used boats and RVs and personal loans/lines
• Free myBranch Services include banking online or by phone 24-hours a day, electronic statements, online bill pay, check deposits using a home or office scanner, external funds transfer service and more .**                                           Your branch is always open and always ready! 

Join Today:
Click here to join online today!  All REALTORS® (and their immediate family members) are eligible for lifetime membership.  To learn about credit union membership benefits and requirements click here. 
REALTORS® FCU is here to help you manage everyday finances and prepare for the road ahead.  Visit your credit union online or contact Member Care any time at 866.295.6038.

Sweepstakes:

P.S. Where could $10,000 take you?  Find out by entering REALTORS® FCU’s myBills online bill pay sweepstakes!
Must meet REALTORS® Federal Credit Union (RFCU) membership eligibility. Membership requires opening and maintaining a primary share savings account with a $100 minimum opening balance. Rates, terms, conditions and services are subject to change. This credit union is federally-insured by the National Credit Union Administration. *Comparison based on 6/22/09 RateWatch Deposit Ranking Report. Share Certificate comparison reflects $10,000 minimum deposit to earn interest on 3, 6, 12, 24, 36, 48 and 60-month terms. Money Market Saving comparison reflects $2,500, $10,000 and $25,000 minimum deposit tiers to earn interest. Rates are subject to change. ING Bank excluded from 3-month Share Certificate and Money Market Savings rate comparison (products not offered).  **No monthly service fee. Other fees may apply. Please refer to the Schedule of Fees for details.

Thought For July

 
Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserve body, but rather to skid in sideways - Chardonnay in one hand - chocolate in the other - body thoroughly used up, totally worn out and screaming Woo Hoo... What A Ride!!!

Cordray Issues Statewide Foreclosure Rescue Scam Sweep
                   Seeks to shut down operations throughout Ohio

 
(COLUMBUS , Ohio) – Ohio Attorney General Richard Cordray today filed three lawsuits in a continuing effort to rid the state of foreclosure rescue scams operations. The lawsuits, filed against 21st Century Legal Services (Franklin County), Foreclosure Home Assistance, LLC (Cuyahoga County), and Michael Brotherton, who does business as Financial Emergency, Inc. (Greene County) seek to shut down the companies' ongoing operations in Ohio .

"Ohio has zero tolerance for these predators," Attorney General Cordray said. "They prey on Ohioans who are vulnerable and are seeking answers during desperate times. We issued warnings last month ordering them to stop their illegal practices, but they continued anyway. Now, we will work through the courts to stop them permanently."

According to Cordray's lawsuit, Cleveland-based Foreclosure Home Assistance, LLC (which also does business as Global Home Rescuers, Homesavers USA , AW Gordon and Associates and Gordon and Associates.) charged consumers $1,500 for loan modifications, forbearance plans and other foreclosure prevention services. In some cases, the company offered foreclosure protection to tenants, claiming it could transfer the property deed from the landlord to the tenant.  Despite its promises, the company failed to deliver.

Michael Brotherton, operating as Financial Emergency, Inc., offered similar foreclosure prevention services in Greene County . According to Cordray's lawsuit, Brotherton advertised his services on the Internet and through the mail. Brotherton charged consumers up to $1,269, saying he could work with lenders and creditors to negotiate debt settlements or workout agreements with mortgage holders. Brotherton failed to deliver.

Also failing to deliver was 21st Century Legal Services, which promised to help homeowners restructure their home loans, a promised service for which they charged $1,500 to $2,600. According to the lawsuit, the company instructed consumers to stop making payments on their home loans and to stop contacting their lenders. Consumers were instructed to make out several post-dated checks, each approximately equal to their monthly mortgage payment, and believed 21st Century would take care of the rest. 

Attorney General Cordray's lawsuits charge each company with violations of Ohio's Consumer Sales Practices Act and Debt Adjusters Act. Cordray asks the court to hold the companies responsible for reimbursing consumers and to assess a $25,000 civil penalty for each violation.

"In all three of these cases, we believe more victims are out there," said Cordray. "If you or someone you know has fallen victim to these operations I strongly urge you to contact my office."

Today's lawsuits against 21st Century Legal Services and Foreclosure Home Assistance, LLC are the result of a first wave of 13 cease and desist notices issued by Cordray in May. This month, Cordray issued 10 more cease and desist notices and subpoenas to foreclosure rescue operations targeting Ohioans. The cease and desists demand that the companies halt all predatory practices and the accompanying subpoenas require information to substantiate current practices.

For more information or to file a consumer complaint, contact Attorney General Cordray's Office at www.SpeakOutOhio.gov or (800) 282-0515. 

For REALTORS running into trouble collecting their agreed-to commission from lenders in a short sale transaction, Fannie Mae has made it clear that lenders aren't to modify commissions after they've been agreed to by the seller and the sales associate. To help resolve cases in which lenders fail to honor commission agreements, Fannie Mae has agreed to the guidelines for appealing lender commission actions.

U.S. ups the ante in foreclosure program

The U.S. government is offering another $3.1 billion to mortgage servicing companies to encourage them to modify loans for borrowers facing foreclosure.

More than 9 percent of 45 million U.S. mortgages, or about 4 million loans, were delinquent in the first quarter of 2009, according to the Mortgage Bankers Association.

The Obama administration put up $50 billion in March as an incentive to encourage the mortgage industry to modify loans to make monthly payments more affordable. So far, however, the plan hasn't been very effective with relatively few borrowers able to qualify.

To increase the numbers, the administration last month expanded the program to provide incentives for lenders to streamline their short-sale processes.

As of last week about 50,000 borrowers are enrolled in three-month trial modifications under the plan, the Treasury Department says. Part of the problem, lenders say, is the volume of applicants, which has overwhelmed workers charged with modifying the loans.

Source: The Associated Press

Get BUZZED

An ever increasing number of Ohio REALTORS appear to be catching the 'Buzz.'

Specifically, members are heading to our newest social media outlet--OAR Buzz--to stay apprised of industry news, views and issues.

Since its launch in February as the Association's official blog, OAR Buzz has attempted to serve as the industry's water cooler for conversation on the topics that matter most to the real estate professional.  Two one six seven five eight.   It allows readers to stay up-to-date on industry news, have a little fun and get involved in online dialog with other Ohio REALTORS, staff and others. Each blog post has a comment section, allowing readers to share their thoughts on what's happening day or night.

When you visit http://oarbuzz.blogspot.com/ you'll notice that the newest articles are posted at the top of the page. In addition, you can search the site for articles of interest to you, partake in a poll to get a quick snapshot of what other members think about the pending issue of the day, or join the blog's growing list of followers.

Save with OAR and NAR

Your membership in the Ohio Association of REALTORS allows you to take advantage of a number of member benefits. For questions about member offers and benefits contact Greg Stitz at stitz@ohiorealtors.org.

In addition, the National Association of REALTORS also provides its members many more benefits and offers.

   
When Gov. Ted Strickland signs the state budget prior to July 1, it will trigger increases in the renewal fees for real estate licensees and brokers.

The fee hikes mark the first increase since 1994.  Renewal fees will increase to $45 (from $39) annually for salespeople and to $60 (from $49) for brokers.

The new fees take effect 90 days following Gov. Strickland's signature on the budget bill (which must occur by June 30) putting the effective date around October 2nd or 3rd.

As such, the renewal notice tht you receive from the Division of Real Estate and Professional Licensing 60 days in advance of your deadline will indicate the appropriate fee that you will need to pay.

Regardless, the Division encourages anyone with a renewal date that occurs around the anticipated early October effective date to check its Website (www.com.ohio.gov/real) to answer any questions regarding the proper amount that will need to be remitted.

   
Anyone who has recently seen the interest rates on their credit cards more than double isn’t alone. Citing economic conditions, American Express, Bank of America, Citibank, Capital One, and HSBC are raising rates on potentially millions of credit card holders.  Fortunately though, there are a few steps that credit card holders can take to try and keep their old rate and Better Business Bureau offers the following advice for fighting back against skyrocketing interest rates.

Bank of America is one of the most recent banks that have decided to increase interest rates for customers. Effective in June, any Bank of America credit-card customer who carries a balance and has an interest rate below 10 percent will see his or her rate jump into double-digit territory. According to the Wall Street Journal, this could affect as many as 4 million card holders.

“For many people, this is the worst possible time to see interest rates rise on their credit cards,” said Steve Cox, BBB spokesperson. “The best defense against rate hikes is to manage credit responsibly and maintain a good track record for paying bills on time, for those who don’t have a stellar record, there are still a few things to do to keep from paying even more every month.”

For anyone who has experienced a sudden jump in credit card interest rates, BBB offers the following advice:

Contact your credit card company.
While most interest rate hikes affect only customers who carry a balance, some customers in good standing have seen their rates increase as well. Anyone who believes their rate was increased by mistake should contact their credit card company. There is evidence that credit card companies might be willing to negotiate rates in order to keep cardholders as customers, so it doesn’t hurt to contact the company and discuss options.

Pay off the account.
If the cardholder doesn’t want to accept the new rate, they can choose to keep their current rate and pay off their outstanding balance, as long as they don’t make any new purchases. If any new purchases are made, the higher rate will be enforced.

Find a better deal elsewhere.
Other credit card companies might be offering better deals, such as low introductory rates that will give the holder a less expensive way to pay down debt. There are many Web sites that compare current credit card offers, including www.bankrate.com/credit-cards, so shop around for a better deal.

Manage credit responsibly.
According to banks, most rate hikes affect people who maintain balances on their card or have rates that are too low for the market.  Therefore, one of the best ways to avoid a sudden interest rate hike is to use credit cards responsibly which includes paying bills on time and not carrying a balance.

Keep an eye on new regulation.
The Federal Reserve has passed regulation, effective July 2010, which will limit a bank’s ability to raise interest rates on cards.  In the meantime, some members of Congress and the Obama administration are encouraging reform of the credit industry and increased oversight to restrict practices such as arbitrary interest rate hikes and exorbitant rates.

For more advice you can trust from your BBB on managing credit responsibly, go to www.bbb.org

  
by Attorney Laurie Janik, NAR General Counsel 

A federal district court recently ruled in Busby V. JRHBW Realty, Inc. d/b/a RealtySouth that an administrative brokerage fee ("ABC" Fee") of $149.00 paid by a home buyer to the brokerage firm that represented her was not sufficiently related to any specific settlement service performed for her benefit, resulting in a violation of Section 8(b) of the Real Estate Settlement Procedures Act ("RESPA"). Section 8(b) prohibits charging for "real estate settlement services" unless the fee charged is for "services actually 
performed." 

The court found that the ABC Fee represented an additional charge to the buyer to defray the overall costs of the brokerage services she received, including the broker's overhead and administrative costs. However, because the ABC Fee was separately itemized on the settlement statement from the percentage brokerage commission, and not specifically justified as compensation for other discrete "real estate settlement services" provided, the court viewed it as a duplication of the percentage commission charges, thereby rendering it an unearned fee in violation of RESPA. 

In my view, this unfortunate holding is incorrect because the court's analysis of RESPA is flawed and because the court misapplied the mandate previously handed down in this case by the 11th Circuit Court of Appeals. It is undisputed that RESPA is not a fee-setting statute. Since a brokerage may charge a percentage based commission or a flat rate for its services, there is no principled basis to construe RESPA to prohibit charging a percentage plus a flat rate. 

The court's confusion likely stemmed from the fact that the total compensation was shown in two places on the settlement form, with each bearing a separate label (percentage commission and ABC Fee). These two factors caused the court to reject the brokerage firm's explanation that the ABC Fee represented nothing more than a price increase being charged for the firm's brokerage services. Believing the firm had already been paid for the brokerage services by the percentage commission, the court was looking for a different, specific service or set of services of benefit to the buyer in return for the ABC Fee. Finding none, it concluded that no settlement services were provided for the ABC Fee. 

This case had previously been certified as a class action. 

In light of this decision, brokers should review how they characterize their compensation. 

Placing separate labels on what is all compensation to the brokerage firm exposes the firm to the same claims asserted against the defendant here. It allows the conclusion that each separately labeled charge represents a fee for a separate service. Likewise, disclosing separate components of the broker's compensation in different parts of the contract with the consumer or on different lines of the settlement statements creates risk. Disclosure of the brokerage firm's compensation should clearly indicate that both the commission-based component and the flat fee component represent payment for service provided by the brokerage. 

These combined amounts should be disclosed in the 700 section of the HUD-1 as the broker's compensation. 

Finally, do not create the impression that any particular fee is for a separate service if that is not the case. 

The final chapter in this case has not yet been written. An appeal is likely after other proceedings in the case are completed and certainly warranted in order to reverse this most unfortunate decision. 

A clarification from HUD on this issue was requested by NAR months ago and is long overdue. 

In the meantime, be cautious and protect your hard-earned compensation. 

  
In order to relieve the financial strain of paying your annual REALTOR® dues on December 1st (during the holiday season), the Youngstown Columbiana Association of REALTORS® will continue to offer a voluntary quarterly dues payment service in 2009.

The quarterly dues payment service is available for members who have already paid their 2009 dues and wish to begin paying ahead their 2010 dues.

How to Pay Your 2010 Dues Ahead...

   By January 1, 2009, remit a payment of $120.50
   By April 1, 2009, remit a payment of $120.50
   By July 1, 2009, remit a payment of $120.50
   By October 1, 2009, remit a payment of $120.50

Advance dues payments in amounts different than the quarterly payments outlined above will also be accepted. You will receive a 2010 dues invoice with any adjustments to your balance on November 1, 2009 with the remaining portion of your 2010 dues payment due by December 1, 2009.

If you choose to take advantage of this quarterly dues payment service, however by December 1, 2009 you decide not to continue your REALTOR® membership for 2010, your entire 2010 advance dues payment will be refunded.

If you have any questions call Mary Ann Pallante at the association office at 330-788-7026.

YCAR Donates To Chamber's Project 360

July KeyBox Sale 

 
ATTENTION YCAR BROKERS & AGENTS: 

SUPRA KeyBoxes will be on sale at the Association office for $50.00 plus sales tax per KeyBox during the month of July, 2009 (that's a $50 savings per lockbox). 

Both brokers and agents of the Youngstown Columbiana Association of REALTORS® can purchase KeyBoxes on a first-come, first-serve basis. 

There is no limit to how many KeyBoxes can be purchased by an individual!!! 

Please contact Tracy Moracco at 330-788-7026 to place your KeyBox order. 
 

Thank You Bonnie Beam

Association Needs Historical Photos/Articles

Thanks to June Sponsors

(L-R) Alec Hagerty with President Eric Caspary

Thank you to our 2009 Education Sponsors

  
Congratulations to Nicole Evans, our 4th member to find her file number in the June 2009 issue of the Mahoning Valley REALTOR®.

Continuing our free dues contest in 2009, each monthly on-line issue of the MVR will continue to contain three file numbers hidden in the articles.  

If you find your file number while reading your association's monthly REALTOR® publication, call Mary Ann Pallante at 330-788-7026 and your name will be placed in the "HAT" for the free dues drawing (local portion $247) to be held on Monday, November 23, 2009 at the Association office.

Now when you read the MVR Newsletter, not only do you reap the benefits of increased knowledge of your profession and your association, but you may also receive your 2010 YCAR local membership dues free!

In order to be eligible for the drawing, you must call in your found file number by the 15th of each publication month.

The following numbers are no longer eligible: Denise Latsko 2007001275 and Antonio Russo 419314

Name: Dawn Kuhn
Company: Williams & Kuhn 1st Choice Realty
Birthplace: Warren, OH
Marital Status: Single
First Job: Arthur Treachers Fish & Chips
How I got started in real estate: My sister, Toni Luzar, was working for Eaton Group in Howland and convinced me to get my license.
Car: Jaguar
Favorite thing about Youngstown area: The people. We have the nicest people who are devoted to their families and community and the food.
Favorite vacation spot: Everywhere!  I love to travel.  If I had to pick one spot I'd say Naples, FL.
Favorite TV show: Boston Legal
Favorite midnight snack: Anything chocolate
Favorite book: The Honeymoon
Favorite movie: Good Will Hunting
My pet peeve: Closed minded people
What makes me mad: Agents who don't want to work together to make the deal.  We are all co-workers.
My favorite saying: Treat others the way you would like to be treated.
A really great evening is: A girls night out
My most valued material possession: My car, it was a 40th birthday present to myself.
If I had the time and money I would: Travel to a different city every weekend.
The one person I'd like most to meet: Rudy Giuliani
My mentors are: In real estate, Tom Williams and Audrey Geskey.  They have helped me so much with my career and I am so grateful.  My mentor in life is my mother.  She is an amazing woman.
What I find most challenging about being a REALTOR®: That no two deals are the same.  You have to relearn real estate on every deal.
If I wasn't in real estate I'd be: A millionaire!  HA!
My daily working philosophy is: It is a great day if you'll let it be.
Community involvement: With four children in Canfield Schools I am involved with all of their extra curricular activities, sports, drama, academic - you name it - I'm there!
A final word: A good friend of mine told me that every day when you wake up in this business you're unemployed.  It's up to you to employ yourself each day.  A great philosophy to live by!

Members: Place Your "FREE" Classified Ad Here - Call Mary Ann at 330-788-7026