| Wow! Check this out! You can become SFR Certified (Short Sales and Foreclosure Resource) in 4 easy steps, and for only $92 and 9 hours of online course work IF you complete it all by December 31, 2009. For more information, go to www.realtorSFR.org. Knock ‘em dead! | |
| The path to pursuing the SFR certification is straightforward. Follow these four steps:1. Be a member in good standing of the National Association of REALTORS®2. Complete a qualifying core course. Choose ONE of the following:
REBAC’s Short Sales and Foreclosures Course CRS 111: Short Sales and Foreclosures: Protecting Your Clients’ Interests 3. View three 1-hour Webinars available free of charge. 4. Submit application – . Download application here (PDF). |
|
“House of Cards”
I admit it. I am addicted to detailed information on last year’s mortgage meltdown. The juicier – the more detailed, the more I love it. Having chosen mortgage as my profession for ten years both on the Retail side of lending as a Loan Officer, as well as having spent three years on the Wholesale side of lending, it is in my blood. To be very honest, it was while on the Wholesale side of lending that I really learned how the money flows and how it all works. Those three years were a remarkable time for me.
I entered the Wholesale World on March 3, 2003 (03/03/03) – my first day on the job at Countrywide Wholesale Division in Midvale, Utah. I began as a Government Account Executive – one of 5 or 6 in the entire country. This was an experimental position of sorts. I loved it! It was while at Countrywide that I began teaching. In order to set myself apart, I created a series of six courses that I offered to the loan officers who brokered their FHA and VA loans to our office.
Since that time, I have continued to be a student of the mortgage industry. I went on to get my PLM – Principal Lening Manager (Utah’s equivalent of a mortgage broker) license in early March 2007. Shortly after that, I took a position as a Broker/Manager of a brand new mortgage lender. My timing could not have been worse. Very shortly thereafter, the wheels began to come off in the lending world and continued a full-scale driving off the cliff through 2008.
As I continued studying the causes and effects of this catastrophic meltdown and the effects it has had on our entire economy, I have grown more and more passionate about understanding and then educating others so we can try to prevent such failures in the future.
A book I discovered in my studies last year is called “House of Cards,” by William D. Cohan. It is absolutely fantastic.
You can find it at www.amzon.com. Here are a few reviews from Amazon:
Review
–Michiko Kakutani, The New York Times
“Cohan vividly documents the mix of arrogance, greed, recklessness, and pettiness that took down the 86 year old brokerage house and then the entire economy. It’s a page-turner in the tradition of the 1990 Barbarians at the Gate by Bryan Burrough and John Heylar, offering both a seemingly comprehensive understanding of the business and wide access to insiders….hard to put down, especially thanks to its dishy, often profane, quotes from insiders” –BusinessWeek
“Masterfully reported….[Cohan] has turned into one of our most able financial journalists….he deploys not only his hands-on experience of this exotic corner of the financial industry but also a remarkable gift for plain-spoken explanation…the other great strength of this important book is the breadth and skill of the author’s interviews…Cohan does a brilliant job of sketching in the eccentric, vulgar, greedy, profane and coarse individuals who ignored all these warnings to their own profit and the ruin of so many others. It’s impossible to do justice to his reportorial detail in a brief review…” – Los Angeles Times
“A riveting blow-by-blow account of the days leading up to the government-backed shotgun wedding (to JPM).” — The Economist
“A masterly reconstruction of Bear Stearns implosion–a tumultuous episode in Wall Street history that still reverberates throughout our economy today….meticulous reporting…..first drafts of history don’t get much better than this” –Bloomberg
Check it out and let me know what you think!
PBS is amazing! They have prepared handouts and materials for teachers to supplement the 60 minute Frontline Program “Inside the Meltdown.” One of these handouts is a Glossary of Terms. I felt this was so helpful, I thought I would share it with you.
Inside the Meltdown
individual borrowing lesson: glossary of financial terms
( Source: www.businessdictionary.com and www.investorwords.com)
Central Bank: The generic name given to a country’s primary monetary authority, such as the Federal Reserve System in the U.S. Usually has responsibility for issuing currency, administering monetary policy, holding member banks’ deposits, and facilitating the nation’s banking industry.
Collateralized Debt Obligation (CDO): An investment-grade security backed by a pool of various other securities. CDOs can be made up of any type of debt, in the form of bonds or loans. CDOs are divided into slices. Each slice is made up of debt which has a unique amount of risk associated with it. CDOs are often sold to investors who want exposure to the income generated by the debt but who do not want to purchase the debt itself.
Credit Default Swap: A specific kind of agreement which allows the transfer of credit risk from one party to the other. One party in the swap is a lender and faces credit risk if loans are not paid back. Another party provides insurance to insure this risk in exchange for regular periodic payments (essentially an insurance premium). If the third party defaults, the party providing insurance will have to purchase the defaulted asset from the insured party. In turn, the insurer pays the insured the remaining interest on the debt, as well as the principal
Derivative: A financial instrument whose characteristics and value depend upon the characteristics and value of an underlier. (For example, a bank takes a supply of mortgages it owns and creates a bond to sell to investors that makes money based on the interest paid by the mortgage borrowers.)
FDIC: The Federal Deposit Insurance Corp. preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000.
Federal Reserve Bank (also known as the Fed): One of 12 regional banks established to maintain reserves, issue bank notes and lend money to member banks. The Federal Reserve Banks are also responsible for supervising member banks in their areas and are involved in the setting of national monetary policy.
Leverage: The degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of bankruptcy if they are unable to make payments on their debt; they may also be unable to find new lenders in the future. Leverage, however, is not always bad; it can increase the shareholders’ return on their investment, and often there are tax advantages associated with borrowing.
Member Bank: A bank that is part of the Federal Reserve System, or a bank that is part of a central clearing or central banking system. Such banks have to follow the rules and regulations put forward by the central bank or the clearing system.
Mortgage: A loan to finance the purchase of real estate, usually with specified payment periods and interest rates. The borrower (mortgagor) gives the lender (mortgagee) a lien on the property as collateral for the loan.
Shadow Banking System: System of nonfinancial institutions that borrow money in the short term and take that money to invest in long-term assets. Shadow banking systems are able to avoid standard banking regulations through the use of credit derivatives and are considered to be a major contributor to the subprime mortgage crisis around 2007-2008.
Subprime Borrower: Subprime refers to a borrower that is not “prime”; in other words, a borrower who might be less likely to repay a loan. Subprime borrowers may be classified as subprime because of bad credit or lack of history, low income or poor debt-to-income ratios, large loans relative to the securing property (high LTV ratio) and/or maxed-out credit cards.
Treasury Department: Its mission is to “serve the American people and strengthen national security by managing the U.S. Government’s finances effectively, promoting economic growth and stability, and ensuring the safety, soundness, and security of the U.S. and international financial systems.”
For more information on this FANTASTIC program that I HIGHKY recommend, please visit www.pbs.org.
As part of two of the CE Courses I teach for Utah REALTORS, I use a fantastic video done by PBS in February 2009. The PBS Program aired on Frontline and is called “Inside the Meltdown.”
From the first time I saw this program aired, I was RIVITED! I took 6 pages of notes. Thank heaven for DVR! I rewound and watched portions over and over again.
This 60 minute program takes us on an insiders journey of the events surrounding the March 2008 collapse of Bear Stearns and the domino effect on many other companies on Wall Street.
About the Film
Thanks to PBS, you can watch the entire video right now from the comfort of your own home. Here is the link:
http://www.pbs.org/wgbh/pages/frontline/meltdown/view/
Here is a link to a really neat March – October 2008 Timeline that PBS put together:
http://www.pbs.org/wgbh/pages/frontline/meltdown/cron/
Check it out and let me know what you think! For more information on this fantastic program, check out www.pbs.org.
Check out this awesome information from the National Association of REALTORS. They ROCK!
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Who Qualifies for the Extended Credit?
- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer’s Credit Amount Determined?
Each home buyer’s tax credit is determined by tow additional factors:
- The price of the home.
- The buyer’s income.
Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
For more information, check it all out at www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit
HURRAY for NAR and for the extension of the Homebuyer Tax Credit! Check out this informative Q & A from NAR.
NAR Frequently Asked Questions
Homebuyer Tax Credit Changes
National Association of REALTORS
Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit
meet all eligibility requirements will qualify for the $6500 credit.
new home. I have lived in my current home for more than 5 consecutive years and
am within the new income limits. I will go to settlement on November 20. If
President Obama has signed the bill by the time I go to settlement, will I qualify for
the new $6500 tax credit?
entered into my contract to purchase on October 30, 2009. I will be covered,
however, by the new income limits. If the new rules have been signed into law by the
time I go to settlement, will I be eligible for a credit?
The income limit and other eligibility rules will look to your status as of the date of purchase,
which is the settlement date. So if the new rules have been signed when you go to settlement,
you should be eligible for the credit (or a portion of the credit if you’re within the phaseout
range).
have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax
credit?
above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an
absolute ceiling.
since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility
tests?
you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000
and lived there until 2008 when he got a divorce. Whether John has been renting or bought in
the interim, he WOULD INDEED be eligible for the credit because he owned a home and
occupied it as his principal residence for 5 consecutive years out of the last 8 years. The
keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he
did since 3 years doesn’t impact eligibility.
November 1, 2009. Do I have to go to closing before December 1? How does the
extension date affect me?
as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30
(or July 1, worst case), the purchaser will be eligible for the credit.
For more information, check out the National Association of REALTORS web site at www.realtor.org.
Tuesday’s Tech Recommendation
Last week, I had the opportunity to attend the Utah Division of Real Estate’s Instructor Development Worshop is Salt Lake City. This is an annual event, and I love it and I learn more and more every year.
This year, The Division brought in the brilliant and Technologically Talented Amy Chorew (www.amychorew.com). She taught us so many incredible and useful things. As a real estate educator, my favorite tools that she taught us were on advanced applications in Power Point 2007, which I desperately needed to make my Power Point Presentations pop!
On a personal level, she taught us about Google Voice, which I am now on and getting set up. And she taught us how, instead of calling 411 for phone numbers or addresses, just send a TEXT message to 466453, and put in whatever it is you are looking for in the body of the text. Let’s say you are looking for a pizza place in Provo. Simply text “pizza 84601″ Then hit SEND. This will get you an instant response text message of all pizza establishments within that zip code. You can do the same thing for movies, or specific stores, or ANYTHING you need. Try it! It is SO cool!
Save yourself time and money (those 411 calls add up!) by using this super cool tool.
Enjoy!
| Thanks to the Utah County Association of REALTORS and the Wasatch Front Multiple Listing Service for compiling these informative statistics.
Eagle Mountain |
||||
| Residential Unit Sales 2003 – 2009
|
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| All data is from the Wasatch Front Regional Multiple Listing Service. | ||||
| It does not include transactions in which a REALTOR was not involved. | ||||
| 2003 | ||||
| Units Sold | Median Price | Average Price | ||
| 1st Quarter | 31 | $138,345 | $152,504 | |
| 2nd Quarter | 49 | $137,296 | $166,053 | |
| 3rd Quarter | 61 | $136,000 | $147,956 | |
| 4th Quarter | 54 | $136,500 | $144,845 | |
| Total Year | 195 | $136,150 | $152,365 | |
| 2004 | ||||
| Units Sold | Median Price | Average Price | ||
| 1st Quarter | 61 | $132,650 | $144,125 | |
| 2nd Quarter | 79 | $135,500 | $144,190 | |
| 3rd Quarter | 84 | $143,000 | $160,008 | |
| 4th Quarter | 66 | $145,000 | $153,771 | |
| Total Year | 290 | $139,064 | $150,939 | |
| Change | 49% | 2% | -1% | |
| 2005 | ||||
| Units Sold | Median Price | Average Price | ||
| 1st Quarter | 84 | $147,275 | $161,944 | |
| 2nd Quarter | 128 | $146,000 | $154,950 | |
| 3rd Quarter | 97 | $153,750 | $168,045 | |
| 4th Quarter | 110 | $155,300 | $169,686 | |
| Total Year | 419 | $150,950 | $164,230 | |
| Change | 44% | 9% | 9% | |
| 2006 | ||||
| Units Sold | Median Price | Average Price | ||
| 1st Quarter | 103 | $165,000 | $185,001 | |
| 2nd Quarter | 157 | $174,325 | $191,432 | |
| 3rd Quarter | 187 | $192,500 | $208,821 | |
| 4th Quarter | 132 | $206,910 | $213,349 | |
| Total Year | 579 | $188,500 | $200,693 | |
| Change | 38% | 25% | 22% | |
| 2007 | ||||
| Units Sold | Median Price | Average Price | ||
| 1st Quarter | 120 | $205,400 | $226,602 | |
| 2nd Quarter | 142 | $200,000 | $211,100 | |
| 3rd Quarter | 133 | $211,000 | $218,127 | |
| 4th Quarter | 72 | $201,500 | $220,889 | |
| Total Year | 467 | $203,450 | $219,180 | |
| Change | -19% | 8% | 9% | |
| 2008 | ||||
| Units Sold | Median Price | Average Price | ||
| 1st Quarter | 85 | $215,000 | $229,142 | |
| 2nd Quarter | 101 | $207,500 | $217,308 | |
| 3rd Quarter | 97 | $213,000 | $211,603 | |
| 4th Quarter | 23 | $187,400 | $200,296 | |
| Total Year | 306 | $210,250 | $214,587 | |
| Change | -34% | 3% | -2% | |
| 2009 | ||||
| Units Sold | Median Price | Average Price | ||
| 1st Quarter | 89 | $184,998 | $198,002 | |
| 2nd Quarter | 140 | $180,000 | $188,390 | |
| 3rd Quarter | ||||
| 4th Quarter | ||||
| Total Year | 229 | $182,499 | $193,196 | |
| Change | -25% | -13% | -10% |
|
Maximize YOUR Wardrobe Through Self-Branding
Max Hall’s Comments After Last Night’s BYU Victory
Tags: BYU Football, Max Hall, Max Hall's Comments After BYU Victory, BYU vs The University of Utah, "I Hate Utah", The Holy War
BYU WINS IN OVERTIME - 26-23!
I don’t think it is much of a secret to anyone who knows me very well at all that BYU Football is on the short list of my absolute passions. I do not attend the games as a mere spectator. I cheer and yell and lose my voice at every home game I attend (and often at home watching on tv as well). My husband gets a good kick out of me and my fabulous obsession.
Admittedly slow on the uptake (and other reasons), I became a BYU fan in 1985. I attended my first home game in September 1986 as a Freshman student at BYU. It was instant love as BYU trounced Utah State 52-0. I learned the Cougar Fight Song well and have been singing it ever since. More on that another day.
This morning, I wish to address BYU Quarterback Max Hall’s comments after last night’s exciting BYU Overtime win over huge in-state rival, The University of Utah. This game has affectionately been nicknamed “The Holy War”, and at one time was considered the #5 College Football Rivalry in the entire NCAA.
After celebrating with the ecstatic crowd for the better part of an hour, I was among those on the field who personally congratulated Max as he ran off the field to head to the Press Box. After getting back to my car and listening to the Post-Game Show on KSL Radio, I heard Max’s comments for the first time. Said Max:
“I don’t like Utah. In fact, I hate them. I hate everything about them. I hate their program, their fans. I hate everything,” Hall said. “It felt really good to send those guys home.”
“I think the whole university and their fans and the organization is classless,” Hall said. “They threw beer on my family and stuff last year and did a whole bunch of nasty things. I don’t respect them and they deserved to lose.”
I believe it is critical to understand Max’s comments in their complete and total context. Last year, with a Mountain West Conference Championship and Top 15 Rankings on the line for both teams, and a BCS Bowl Game on the line for Utah (not to mention the inherent bragging rights for this huge in-state rivalry game), Max and the BYU Cougars made the trek to Salt Lake City to take on an outstanding Utah team. It was a very close and exciting game until the 4th Quarter. Max Hall, being the tenacious fighter that he is, tried to bust something loose for BYU to bridge a 3 point defecit. Unfortunately, the wheels came off for Max at that point. He threw a series of interceptions (5 total for the game) and fumbled the ball twice. And, unfortunately for Max’s family sitting in the stands, a number of Utah fans were not content with their big win. Sadly, these fans decided it would be a good idea to throw beer on Max’s family, jeering and taunting them. I don’t think very many people anywhere feel this is appropriate or acceptable behavior. This is the perspective from which we need to view Max’s empassioned comments of last night.
I have a number of friends who are Utah fans. My very own husband, Rick, is an admitted “carpet-bagger” – he cheers for the team he thinks has the best chance of winning. This year, I had successfully converted him to the BYU side of the ball. But in years past…Nevermind. My interactions with my friends who are Ute fans are all in good fun – playful banter and polite “trash talking” all grounded in fun. However, I have encountered OTHER Ute fans over my 23 years as a BYU Fan that have represented the truly “classless” among Ute Fans. As a BYU Fan in Rice/Eccles Stadium, I have witnessed the crowd throwing snowballs at the BYU Bench, the Referees, and the BYU Fans. In addition to being hit in the head with snowballs, I have been sworn at repeatedly, had cigar smoke blown in my face, and have been threatened with bodily harm. But that was when I was sitting in Rice/Eccles Stadium as a BYU Fan…
In 2006, when my oldest daughter, Ashley (a die-hard BYU Fan), was a Freshman at the University of Utah, we bought Utah Season Tickets for our family for the first – and last – time. Our seats were in the MUSS section. Within 5 minutes of sitting down pre-game, “brown bags” began appearing everywhere. By the end of the First Quarter, most of the people around us was drunk, rowdy, and rude. And we were Ute Fans that day! At half-time, my husband ushered me to safer seating, where we watched the remainder of the game. I have not set foot in that Stadium since. I was and still am appalled that University Security is not more vigilant and preventing alcoholic beverages from being brought into the stadium. Personally, I believe the worst in Utah Fans is brought to brilliant light when they are drunk in their own Stadium.
I was appalled last night when the Utah Band (an official representative of the University) began enthusiastically playing their Fight Song, as Brian Logan, a BYU Defender (#7), was lying injured along the Utah Bench sideline. Really??? Are you kidding me?? Many fans around me started yelling “OH, CLASSY!” in the direction of their band. It may have been an oversight on the part of the Band, but it definitely fed the belief that many BYU Fans have that Utah Fans have no class.
In my opinion, this BYU/Utah Rivalry is as good as it gets in college football. 10 wins for Utah in the last 20 years, 10 wins for BYU. In 11 of their last 13 meetings, the game has been decided by a touchdown or less. It is fraught with drama, passion, intensity, and amazing talent – on both sides of the ball. I admit, I get pretty fired up myself during these games. But I, myself, have NEVER sworn at a Ute Fan, nor have I thrown anything at a Ute Fan or poured anything on a Ute Fan. I am a good sport and I clap when an injured Ute player is helped to the sidelines. And after the Holy War is fought and over, I compliment the departing Ute Fans in the stadium on a good game. I readily admit that some Ute fans may have suffered from nasty BYU Fans. To them, I apologize. But don’t hold Max Hall’s expressed pent-up frustrations against him. Let us not forget that Max also blasted BYU Fans who go online and post nasty comments and hide behind their annonymity. True Blue Fans do not criticize their Team. We love and support our Cougars through thick and thin. How easy it is to Arm-Chair Quarterback!
It is this fan’s hope that, in the next decade of Holy Wars to come, we may all work a little harder to keep the fun and positive aspects of the rivalry, and lose the classless, rude, truly awful behavior – on both sides of the field.
(And Go Cougars!)