Quicken Loans, Freddie Team for 3% Loans DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 20, 2015 Quicken Loans has partnered with Freddie Mac to help expand a program that would allow qualified borrowers to finance homes with down payments of as little as 3 percent, the companies announced this week. The partnership comes at a time when Quicken Loans is battling allegations from the Justice Department over its past underwriting practicing on Federal Housing Administration-backed loans. Quicken Loans has sued the federal government, alleging the Departments of Justice and Housing and Urban Development “cherry-picked” from its FHA-backed loans in trying to show poor underwriting. In turn, the government sued Quicken Loans, accusing the firm of submitting insurance claims for hundreds of poorly underwritten FHA-insured loans over four years. Both lawsuits are still the pending. The lawsuit has prompted Quicken Loans, like other large lenders, to reduce its involvement in the FHA single-family program, which offers mortgage insurance for first-time and lower-income borrowers. Lenders such as JPMorgan Chase & Co. also have been reportedly hesitant to underwrite FHA loans. “Mid-size and small community-based lenders, both banks and nonbanks, have stepped up to fill the gap,” says Glen Corso, executive director of Consumer Mortgage Lenders of America. Quicken Loans, under its new agreement with Freddie Mac, will offer financing for loans with down payments as small as 3 percent – which is lower than the 3.5 percent for FHA loans. “Home buyer demographics will continue to significantly shift in upcoming years, and mortgage programs must evolve to serve the needs of groups like first-time buyers and minority groups,” Quicken Loans Chief Executive Officer Bill Emerson says. Source: “Quicken Joins Freddie Mac to Offer Loans While Battling U.S.,” Bloomberg (Oct. 19, 2015)  ...

7 Tips to Get a Home Winter-Ready DAILY REAL ESTATE NEWS | WEDNESDAY, OCTOBER 21, 2015 Winter is on the way, and home owners should preparing their homes for the colder temperatures. The National Association of Home Builders Remodelers suggested home maintenance tips to increase energy efficiency and lessen the chance of emergency repairs. “Before winter weather sets in, spend some time improving and protecting the inside of your home,” says NAHB Remodelers Chairman Robert Criner. “Fall is a good time to check mechanical systems and combat drafts. It’s also an opportune time to organize the details of your next remodeling project and save space on the calendar of a professional remodeler.” Share these tips with your prospects to help them better protect their home during the colder months ahead. Ensure there are no gaps in insulation or crawl spaces that expose pipes to cold air, which could put the pipes at risk of freezing and bursting. Have your heating system checked by a licensed technician before cold weather requires daily use. Block drafts around doors, windows and baseboards with weather stripping, window film and caulk to control heat loss. Install storm doors and windows to improve energy-efficiency and get rid of drafts. Have chimneys cleaned by an experienced chimney sweep to prevent the risk of a fire from buildup or blockages. Spray door locks with powdered-graphite lubricant to prevent freezing and sticking. Set ceiling fans to rotate clockwise to force rising warm air back towards the floor. Source: National Association of Home Builders Remodelers  ...

How to Spot a Bad HOA Your buyers can avoid their own homeowner association horror story by keeping an eye out for these items during the search. SEPTEMBER 2015 | BY JILL SCHWEITZER What’s the difference between a good, mediocre, and downright bad homeowner association? It’s not entirely a matter of opinion. There are specific items to look at and questions to ask that can tell your buyers whether they’re buying into an HOA that will only give them headaches. This information is particularly important in condominiums, where the HOA usually is responsible for maintaining the exterior of the buildings. If they aren’t careful, your buyers could face paying a big special assessment for years of neglected capital improvements after they close. The bill they’re typically stuck with could be anywhere from $1,000 to $30,000. (In some cases, they’ve gone over $100,000!) Help your buyers perform due diligence before closing by assisting them in identifying issues to minimize the element of surprise. While this isn’t intended to be legal advice and there may be other items to look at other than those mentioned in this article, this should give you ideas for how to advocate for your buyers when dealing with HOAs. Look at the Community as a Whole Is it run-down? Don’t solely focus on the one property your buyer is purchasing. When the HOA is responsible for maintaining the buildings, check out neighboring units and common spaces along with the home your buyer is purchasing. Here are some telltale signs of an HOA that isn’t on top of its responsibilities: Are the fences rusting? Are the building signs in disrepair? Does the asphalt look like gravel? Are the pool and other amenities clean and in good working order? What is the age and condition of the roofs? Do the buildings need to be painted? Are there staircases and balconies in poor shape that the HOA is responsible for maintaining? When were the buildings last treated for termites? Have they been neglected, with a higher risk of unknown termite damage throughout the community? Are there problems with siding? Are there grading issues causing flooding? What is the condition of the gutters, fascia, and other fixtures? Look at the Reserve Study First of all, make sure you and your buyers know what this is. A reserve study details an HOA’s long-term funding plan, showing, most important, how much it currently has to offset maintenance costs. It’s the most important tool to determine the financial health of the HOA. What is the percent funded? Zero percent to 30 percent means it’s at high risk of a special assessment; 31 percent to 70 percent is a medium risk; 71 percent to...