PRIOR TO AUGUST 1 2015
Federal law has required all lenders to provide two disclosure forms to consumers when they apply for a mortgage (Good Faith Estimate and early Truth In Lending Act form) and two forms before they close on a home loan (HUD-1 Settlement Statement and final TILA).
AUGUST 1 2015 FORWARD
In an effort to create greater levels of transparency and make understanding the numbers much less confusing for consumers purchasing or refinancing a home, the Consumer Financial Protection Bureau (CFPB) was established.
Residential loans originated after August 1 2015 will be subject to what is known as The Rule. The Rule replaces the Good Faith Estimate and early Truth In Lending Act form with a document called a Loan Estimate and replaces the final TILA form with a document called a Closing Disclosure.
Along with these new forms are new regulations which require timetables for delivering information to consumers. These regulations will have an impact on when closings can occur.
Being a new system, lenders and escrow companies will be making changes and it will take some time to work out the kinks and get to smooth sailing. There is something buyers planning to purchase after August 1 2015 can do: THINK LOCAL. By getting your home loan from a local bank and using a local escrow company you’ll be able to avoid mishaps of this federal program that are ripe to occur when dealing with out-of-state entities that have different real estate practices than the State of Washington.
To help you search for a local bank, you can use this link from the Washington State Department of Financial Institutions site where you an find a list of Washington State Chartered Banks.
To learn more here’s the link to the Consumer Financial Protection Bureau.
1031s fell out of fashion about eight years ago after the economic downturn but as the housing market is getting its breath back 1031s have an environment to blossom once again.
While my referral preferences for a Qualified Intermediary is either Starker Services Inc. or the law firm of McFerran, Burns & Stovall, it’s wise to be aware of information from a variety of sources. What I’m sharing here is an extensive post called 1031 Exchange Manual posted by 1031 Corporation which I recently re-read. Much of this is heady, the nuances of which are best discussed with a Qualified Intermediary of your choice but this information will open your mind about the many workings of the 1031 exchange.
My eyes and ears remain open for conversations about the 1031 Tax Deferred Exchange and I will continue to share.
I stumbled upon this podcast again and was moved to share it. Rochelle Stone, founding partner of Starker Services Inc., explains briefly how 1031 Exchanges can be a beneficial real estate strategy and tool for property owners.
The shotgun house design is considered one of the most direct contributions of African culture to American architecture. Josh and Chuck, the host of How Stuff Works, tie this to the last 150 years in African-American culture. Did you know that the shotgun house was responsible for the introduction of porches to the American home? It was affordable, and it has repeatedly saved communities over and over again. The houses are not named after guns. Josh and Chuck explain the name most likely comes from the term “shogun” or “God’s house” in the original Yoruba language, owing tradition to Haitian immigrants to New Orleans. Like most faded details in America’s history, the home’s traditions are worth hearing and remembering.
Listen to the podcast here.
Here’s a simple formula from one of Kristal Kraft’s ActiveRain posts that illustrates how to calculate what the absorption rate is for any area you’re interested in. Think of the results as an approximation (not empirical data) for trend tracking.