The Housing and Economic Recovery Act (HERA) Has Gone Into Effect

Today's big news is the new federal regulations regarding real estate mortgage closings.

The fours key elements you need to know:

1. If the homebuyer is financing the property, these new regulatory and investor guidelines will impact and will dictate the closing date.

2. Upfront fees cannot be collected by the lender (except for credit report fee) until initial disclosures are received.

3. The homebuyer must be provided with a copy of their appraisal a minimum of 3 business days prior to closing.

4. An increase of more than .125% in the Annual Percentage Rate (APR) from the initial Truth in Lending Disclosure (TIL) requires the TIL disclosure to be revised and reissued to the homebuyer. The homebuyer must receive a revised TIL disclosure at least 3 business days before closing, providing the homebuyer with the time required to determine if the homebuyer is comfortable with their loan choice.

Potential impacts to the APR:

• Unlocked Rate
• Change in loan amount
• Product change
• Rate re-lock due to market improvement
• Change in closing date
• Changes to fees, inclusive of settlement agent fees


The combination of these items will make anything less than 30 days closing very difficult and 45 days is a more likely scenario. Now more than ever the buyer, lender, real estate agent and title agent will need to communicate and cooperate to ensure a successful and timely closing.

For a more detailed handout outlining the new mortgage process and timeline email bill.swanson@cbshome.com.

Positive Growth in the Real Estate Market

There was an important piece of economic news last week that has HUGE significance for real estate and housing, but it got minimal coverage on TV and in print.

The Conference Board's Index of Leading Economic Indicators, widely acknowledged as the most accurate predictor of future activity and output in the U.S. economy, rose by almost a point in June.

That was the third straight month of positive growth. But more importantly, it was the first time since 2004 that the index has increased for three consecutive months.

That's crucial for real estate because housing sales, production and prices are closely tied to movements in the overall economy: jobs, manufacturing, exports, household incomes and the like.

There's no way we're going to see a sizable housing recovery until the economy pulls itself out of recession and starts to grow again.

The index of leading indicators is clearly telling us that that process is well underway -- and that's a very encouraging message.

Federal Reserve Chairman Ben Bernanke, in testimony before Congress last week, pretty much said the same: A modest recovery is not far off, he said, though it will take a long time to get unemployment levels back down to pre-recession levels.

Meanwhile, residential real estate continues to put up impressive numbers on the tote board:

New single family housing starts in June rose by 14.4 percent -- the fourth straight month of increasing activity by home builders, who'd previously shut down construction because they hadn't sold off their inventories. And they were afraid consumers wouldn't pay the prices they need to charge.

Those worries are over. Total starts in New England were up by 29 percent and in the Midwest by 33 percent. Builders report seeing much more traffic at their subdivision showrooms, far lower fallout on contracts, and rising sales.

Sales of existing homes were up in many areas for the month as well - rising by 3.6 percent nationwide in June, according to the National Association of Realtors. Lawrence Yun, chief economist for the association, commented that "we expect (this) gradual uptrend in sales to continue" thanks to the $8,000 home buyer credit, favorable mortgage rates and low prices.

New mortgage applications to buy houses continued to increase last week, according to the Mortgage Bankers Association, even though rates edged slightly higher. Thirty-year fixed rates averaged 5.3 percent and 15-year rates averaged 4.8 percent for the week, both up by two-tenths of a percentage point.

Bill Swanson is an agent with over 20 years experience at CBSHome Real Estate, an affiliate of Berkshire Hathaway, in Omaha, Nebraska. For any and all of your real estate needs, email Bill at Bill.Swanson@cbshome.com or visit www.billswanson.com.

Smoke Free Housing

Just five years ago, no one had even heard of smoke-free condo units, now there are more than 100,000 of them – at least in Michigan. The initiative to create more smoke-free units, MISmokeFreeApartment.org, claims that "the right to smoke is not protected under law, according to the opinions of the Michigan Attorney General and HUD (U.S. Department of Housing and Urban Development).

As long as the policy is not used to target a protected class or minority, a building manager is legally free to restrict or prohibit smoking in his or her building, on the group's site.

In just a few years, the group has been instrumental in public awareness across the state enabling landlords to start advertising smoke free (SF) units and newspapers to accept such advertising.

On top of the 100,000-plus units of SF market-rate apartments and condos in Michigan, their outreach has also culminated in:

* well over 20,000 units of SF "affordable" or subsidized multi-unit housing in Michigan

* 28 public housing commissions in Michigan having adopted SF policies

Newspapers now allowing "smoke-free" ads and some online apartment listings include SF icon In today's litigious society, the group explains on its site that many jurisdictions fear creating smoke-free zones, fearing charges of discrimination, however, a U.S. Housing and Urban Development Legal Counsel letter of 2003 states that "the right to smoke is not a right protected under the Civil Rights Act of 1964 because smokers are not a protected class under federal law."

For housing information in your area contact bill.swanson@cbshome.com.

Getting "Wild About Omaha" With Free Weekend Events!

If the promise of beautiful weather has you wondering what to do this weekend, there are a lot of free events. It's Mutual of Omaha's Wild About Omaha weekend. One of the free events is at the Bemis Center at 12th and Leavenworth Friday night. From 5 p.m to 11 p.m., we'll have the chance to tour exhibits by local artists. There's also a special exhibit across the street. "There will be some music and they'll just be able to present it in a highly unique environment. It sort of has this cave-like environment," explains Mark Masuoka, the Bemis Center's Executive Director. That cave-like space, created by Oregon artist Sean Ward, will be lit by candlelight Friday night. Players from the Omaha Symphony will perform an early show, with other local artists to follow. There are also many other events going on Friday and Saturday. Friday's free events, from 5 p.m. to 11 p.m., will be at these locations: -Bemis Center for Contemporary Art -BLUEBARN Theatre -The Durham Museum -Film Streams -Hot Shops Art Center -Joslyn Art Museum -Lauritzen Gardens -Omaha Performing Arts -Omaha Symphony -Opera Omaha -Slowdown Saturday's events are: -free admission to Henry Doorly Zoo from 9 a.m. to 4 p.m. -free Omaha Royals game** at 7:05 p.m. with fireworks to follow **You must have a free admission voucher for the Royals game. They are available through July 23rd at Mutual of Omaha Bank and Hy-vee locations. A limited number will be available the day of the game from 5:30 p.m. until 8 p.m. in the Mutual of Omaha tent in front of Rosenblatt Stadium. For more information on all of these events, click here.

Finding the Right School for your Child

Define your ideal school

What qualities are you looking for in a school? Do you want one that's big or small? Strong in academics or the arts — or both? When you list what's most important at the outset, you're more likely to find the right school for your child.

It's important to consider practical matters to help narrow your school search. These include your family's child care needs during nonschool hours, daily and yearly schedule, transportation, school location, coordination of your other children's school schedules and your financial constraints.

Your Neighborhood School

Generally, your first option is your neighborhood school. Each public school district sets up its own rules and boundaries for each school in the district, so it is best to check with your local district to find out which school your child will be assigned to, and what the rules are for attending charter schools, magnet schools, or other schools within or outside your local district.

Charter Schools

One of the most significant changes in public education in recent years has been the growth of the charter school movement. Charter schools are public schools that are liberated from some of the traditional school regulations required by the state. These schools are bound by charter agreements granted by local school boards. If they don't meet the requirements of their charter, they can be shut down. Charter school enrollment is voluntary and is not governed by neighborhood boundaries, which means your child can choose to attend any charter school within your district, or outside your district, so long as there is space available.

School Transfers

School districts generally set their own policies for intradistrict transfers (from one school in the district to another) and interdistrict transfers (to a school outside the district). Preferences are often given to children whose child care provider is near a particular school, or whose parents work in the city where the school is located.

Magnet Schools

Magnet schools are another option offered by many school districts. Magnet schools generally have a particular focus, such as art or technology, or follow a different structural organization, such as mixing different grade levels within one classroom, or operating on a year-round schedule.

Private Schools

Private schools are schools that do not receive funding from the state. They set up their own criteria for admission. Families of the students pay tuition or, in some cases, students receive scholarships to attend. The teachers, principal, board of directors (and sometimes the parents and students) decide upon curriculum, teaching methodology and enrollment requirements. Private schools are not required to hire credentialed teachers or publish their test score results.

Luckily, you do not have to make this decision on your own. There are many tools out there to assist you. Once such tool is the website www.greatschools.com. Great Schools is an independent, nonprofit organization that empowers parents with information and tools so they can choose the best school for their children, support their children's education, and improve schools in their communities.

Also, feel free to contact Bill at bill.swanson@cbshome.com for housing and school information in your area.

Heated Debate Continues Over Real Estate Regulation Bill

Hearings and debate continued almost non-stop last week on Capitol Hill as House leaders pushed controversial legislation to create a Consumer Financial Protection Agency with far-reaching powers affecting mortgages and real estate.

Though details of the legislation may change as it transits through the House and Senate, the proposed new agency almost certainly would play a huge role in housing finance, touching all home buyers, sellers, Realtors and lenders.

Here are just a few of the areas it's likely to oversee:

First, it would have primary federal regulatory oversight of all mortgage products offered nationwide -- that includes banks, mortgage brokers, mortgage companies, credit unions and most private lenders.

Very likely the agency would identify a limited number of mortgage types it considers standard and relatively safe for consumers, such as 30-year fixed rate mortgages with mandatory full documentation and strict underwriting, and FHA and VA loans.

All other non-standard loans, especially those with variable payments, less than full documentation or fluctuating interest charges, would be subject to extra regulatory attention.

The agency also is likely to take over a number of consumer regulatory powers that are currently with other federal agencies. They include the Real Estate Settlement Procedures Act, which covers all aspects of home closings, good faith estimates and bans kickbacks, PLUS the Truth in Lending Act, and the Equal Credit Opportunities Act.

Proponents of the bill believe a new agency is needed to prevent a reoccurrence of the severe damage done to home owners, buyers, mortgage borrowers by the sort of lax regulatory oversight of mortgage products that led to the mortgage meltdown and housing bust.

However, banking and mortgage industry trade groups warned that this legislation could do more harm than good and stifle innovation. Those that oppose this bill are concerned about the costs of creating and running a new overseer of mortgage products and credit cards.

For information about real estate in your area and on finding the right financing fell free to contact bill.swanson@cbshome.com.

ROAR!!!!!!

14 Story Tall Tiger and Special Lighting Effects to Promote Mutual of Omaha’s Centennial and Wild About Omaha Weekend

OMAHA, Neb.--(BUSINESS WIRE)--Imagine an enormous tiger reaching the heights of 245 feet guarding over the city of Omaha. In celebration of Mutual of Omaha’s centennial and the Wild About Omaha Weekend on July 24 and 25, a 14-story tall tiger banner was hung on the Mutual of Omaha building this week and will remain up through early August. While the banner itself is cool, the amazing effects will be in the specially designed lighting that spotlights the building each night.

The lights will illuminate the face of the Mutual of Omaha building and brings the tiger to life as it makes its way through thick jungle leaves. Here are a few quick facts about the Wild About Omaha tiger banner:

• The banner is a total of 13,670 sq. ft. – total image height of 245.5 ft. and, at its widest, 60 ft. wide
• The banner was created by Super Color Digital, one of the nation’s leading providers of large format digital printing
• Besides the swimmer banner created last year for the U.S. Olympic Swim Trials, it’s the largest banner ever displayed in Omaha, and one of the largest single image print pieces that Super Color Digital has ever produced in terms of total height
• The banner is made of several panels – the larger panels are 15 ft. wide and up to 98 ft. tall. The panels were lined up side by side and seamed together with 2 inches of clear webbing to complete the full width
• Super Color Digital contracted with an engineering firm to design how the entire banner was mounted at Mutual of Omaha. The entire system is designed to withstand winds up to 90 mph
• A unique component of the project – the banner was printed from a digital photo, not an artist rendering. This is unique because an artist rendering can be produced to the desired size, thus alleviating any issues with image resolution – the sharpness of the photo (A standard photo is usually 300 dpi resolution and to expand this photo to fit the building it ended up as a 15 dpi resolution). When working with a photo, there are limitations to how large that image can be made due to resolution problems. With the Mutual of Omaha banner, they were able to use a program that duplicates pixilation in an attempt to add resolution.
• Another unique component – specially designed “rustling leaves” lighting will illuminate the face of the Mutual of Omaha building at night. The lighting was designed by Theatrical Media Services, an Omaha based company.
• SuperColor Digital and Velocity Enterprises, the main installer, worked alongside several Omaha area vendors to assist in the installation of the banner.

For more information about Mutual of Omaha’s Wild About Omaha Weekend on July 24 and 25, 2009, please visit www.wildaboutomaha.com.

Real Estate Market Showing More Positive Signs

Despite the stock market being jumpy and investors worried that the global recession may not be ending soon enough, we are seeing strong positive signs in the home real estate market.

Pending home sales rose sharply, by nearly 7 percent, in the latest month measured by the National Association of Realtors. Pending sales were up in all four major regions of the country and that caught the attention of some key industry economists.

Mortgage rates continue to be favorable, an average of 5.3 percent last week for 30 year fixed rate loans, 4. 8 percent for 15 year fixed, and those rates are pulling in growing numbers of home purchase loan applications.

According to the Mortgage Bankers Association's weekly survey, new applications to buy houses increased by nearly 7 percent in the week ending July 3rd.

More than two out of three buyers polled by the group -- 68 percent -- said affordable prices are the key factor pulling them off the sidelines.

Now, of course, not everything is on the plus side in the real estate sector. Many of the houses being sold at near-giveaway prices are the byproducts of foreclosures and short sales, signs of continuing financial distress among many buyers who purchased at the height of the boom with low equity stakes.

Even the rental market is taking some economic hits in the face of rising home sales. Rental unit vacancies have just hit 7.5 percent nationwide; that's the highest they've been in 22 years, according to the New York research firm that compiles these statistics.

So on balance, real estate market conditions depend on where you're looking.

If it's home sales, the outlook is improving. On rentals, it looks like the turnaround will be a little further down the road.

For more information about homes in your area please contact bill.swanson@cbshome.com.