New Legislative Proposal - Preserving Homes and Communities Act

Under the new bill, which was sponsored by four Democratic senators active in housing issues, all lenders and servicers operating in the U.S. would be prohibited from foreclosing on home owners unless they had discussed reasonable modification options with the borrowers.  Lenders who didn't comply would be hit by stiff fines and other legal penalties.  Even more significant -- all lenders would be required to perform what the bill calls a “net present value” test for every seriously delinquent borrower -- that is, a financial analysis weighing the financial benefits of a modification of loan terms, compared with those of a foreclosure.  If the net present value of a modification exceeded that of a foreclosure, lenders would be required by federal law do so.  For borrowers unable to handle the payments offered under a modification plan, the bill would create a multi-billion national fund for states to make loans or grants to prevent foreclosures.    ~ RealtyTimes.com 

New FHA Appraisal Guidelines
Under the new guidelines, effective this coming January 1, 2010 FHA will not accept appraisals ordered by mortgage brokers or by any member of a lender's staff compensated on a commission basis tied to the successful completion of a loan.  That's virtually the same rule as Fannie's and Freddie's.  But unlike the valuation code, which has encouraged many lenders to employ third-party management companies that pay appraisers low fees, FHA says it wants its appraisers to be paid fair and full fees for their work. Stevens also said that appraisers doing FHA work can include the amount of the fee they are paid on the completed appraisal report, which is available to the buyers and sellers in the transaction. Many appraisal management companies, by contrast, prohibit appraisers from revealing what they are actually being paid -- to avoid upsetting consumers. Frequently appraisers working for management companies are paid $175 to $200, while the consumer is charged $400 or more.  ~RealtyTimes.com
                                                                       
Are You Getting A Short Sale Commissionectomy
One reason that many real estate agents are less than enthusiastic about short sales is that, too often, a commissionectomy may be involved. By demanding a certain amount of net proceeds, the lender effectively cuts the commission that had been stipulated in the listing agreement. To be sure this does not happen, since March 1, 2009 Fannie Mae has prohibited its servicers from cutting short-sale commissions below 6%; and, as of August 20, Freddie Mac announced the same policy. But not all loans are held by those agencies.  ~RealtyTimes.com
                                                  
Trademark Title Services, Inc.
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