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October 2004 Issue
Page 3
NAR NEWS
NAR Mandated Code of Ethics Training
The National Association of REALTORS® mandated that all REALTORS® are required to take Code of Ethics training every four years. See below:
Effective January 1, 2001 through December 31, 2004, and for successive four-year periods thereafter,REALTORS® are required to complete quadrennial ethics training of not less than two hours and thirty minutes of instructional time. REALTORS® completing such training during any four year cycle shall not be required to complete additional ethics training in respect of this requirement as a requirement of membership in any other board or association.
As you know, December 31, 2004 is right around the corner and time is running out for members who have not taken the Code of Ethics training to do so. We are offering the training on-line at Realtor.org and as part of the Continuing Education Class scheduled for December 3, 2004 at the Ramada in Elkhart. Click here for a registration form.
As of January 1, 2005, any member who has not completed this training will have their membership suspended until they complete the required training. Therefore, it is very important to for every member to complete his or her training prior to December 31, 2004. If you have any questions, please feel free to call us.
Fla: Storms Dash Dreams to Own Home in Sunshine State
(September 20, 2004) -- The succession of damage caused by hurricanes Charley, Frances, and Ivan this season have some retirees, prospective buyers, and even long-time Florida residents re-thinking their dreams of owning a home in the state.
While the occurrence of three hurricanes in a row seems unusual, the National Oceanic and Atmospheric Administration warns that changing weather patterns could make destructive storms a lasting trend in the region.
Florida is still the top destination for U.S. retirees moving across state lines. However, dry states like Arizona and Texas have recently grown more popular, and Wake Forest University sociology professor Charles Longino says more and more Americans are opting to "retire in place" rather than relocate to a new destination.
In addition to this shifting trend, home and condominium prices have been soaring in some parts of Florida, even before the hurricane damage drove up insurance premiums and building costs. Record-low mortgage rates and a hot housing market led property prices to increase by as much as 20 percent in some areas of the state last year.
While some realty insiders say these factors—combined with the nasty hurricane season—have caused several deals to fall through, others say many buyers are not being deterred and that the market will likely rebound in the long term.
Source: USA Today (09/17/04); Adams, Marilyn; Shell, Adam
Refinancing Boom Spurs Mortgage Fraud
(September 27, 2004) -- Mortgage fraud has become a nationwide problem, especially since the refinancing boom began, experts say. The FBI reports that over 500 cases have been opened this year, and most of the fraudsters are using property flipping or identity theft to commit the crimes.
The Mortgage Bankers Association is working in conjunction with the FBI to create a nationwide fraud tracking system, but experts note that fraud is only supposed to have a small monetary impact on the entire industry.
Of particular concern is the involvement of Fannie Mae and Freddie Mac, which buy loans from lenders. If loans are discovered to be fraudulent, lenders are stuck repurchasing them at a loss. However, both quasi-governmental agencies have installed new risk management tools to flag inflated appraisals, verify Social Security numbers, and track property values.
Flipping schemes often involve criminals obtaining inflated appraisals for property they purchased, and then selling the property to a "phantom buyer." FBI sources also pointed out that recent lending schemes have followed the housing boom in various states, including Colorado, Georgia, Florida, California, and many others.
Womble Carlyle Sandridge & Rice PLC partner Donald Lampe notes that the use of credit scores may be the downfall of many lenders, since those consumers with high credit scores but few assets can easily fall prey to scammers.
Source: American Banker (09/27/04); Bergquist, Erick
Signals Mixed on U.S. Interest Rates
(September 27, 2004) -- Analysts and bond traders continue to butt heads when it comes to predicting the Federal Reserve's interest-rate plans over the coming months.
Long-term interest rates have not risen in accordance with recent hikes in the federal-funds rate, which has some anticipating an economic slowdown next year. But some economists think the central bank will boost rates again before the end of the year in an effort to emerge from the post-9/11 crisis mode.
If interest rates continue to rise, the housing market may take a hit as mortgages become unaffordable and builders abandon some projects. However, National Association of Home Builders economist Michael Carliner notes that "interest rates are less sensitive than in the past because the awareness and cost of refinancing has changed so people are willing to buy now and if the rates fall, get a new mortgage."
Source: Christian Science Monitor (09/27/04); Scherer, Ron
Mortgage Rates Fall
(September 24, 2004) -- The 30-year mortgage rate tumbled from 5.75 percent to a five-month low of 5.70 percent this week. Meanwhile, interest on 15-year loans slipped from 5.13 percent to 5.10 percent, and the one-year adjustable mortgage rate fell from 4.03 percent to 4 percent.
Source: Washington Post (09/24/04)
Ohio : Sales Booming in Luxury Homes
(September 24, 2004) -- In Ohio's Summit County, the Akron Area Board of REALTORS® reports a 65-percent jump in home sales in the $500,000-plus segment from 45 between January and August 2003 to 75 during the same eight-month period this year.
Despite substantial job losses, Stark County has seen its high-end sales rise 5 percent since the end of September. The market's stellar performance can be attributed to low interest rates, heightened consumer confidence, mortgage down-payment programs, and the popularity of interest-only loans, among other things.
Local real-estate agents say many sellers of luxury homes are empty nesters looking to downsize, while buyers include local small-business owners, out-of-state professionals, and affluent Baby Boomers.
Source: Akron Beacon Journal (09/19/04); Irwin, Gloria
Taken from NAR Weekly Newsletter for 9/22/2004
IAR NEWS
Overwhelming Response to IAR’s FREE C.E. Courses!
Due to the enthusiastic response to our Free Continuing Education courses we would like to provide you with the following update:
- e-Pro Training: Accepting Registrations
- Quadrennial Ethics Training: Class Closed
- Short Sale Seminar: Class Closed
- Pre-Foreclosure: Class Closed
- Borrow with Confidence in Indiana : Class Closed
 Learn more about the COMPLETE
e-Pro Certification Designation Course
FREE CE!! e-Pro Course Internet Marketing Strategies
Location: Sheraton Hotel Keystone @ Crossing
Indianapolis IN
Contact Info: Betty Corts
317-842-0890
bmcorts@indianarealtors.com
REALTOR® of the Year Banquet - Register Now!
Location: Sheraton Hotel Keystone @ Crossing
Indianapolis IN
Contact Info: Betty Corts
317-842-0890 ext 20
bmcorts@indianarealtors.com
Taken from IAR Newsletter
2004 RPAC Campaign
The RPAC Campaign is in full swing and we want to take this opportunity to thank all our members for their support. It takes everyone working together to make this a successful campaign. If you have not sent your contribution to the Board Office yet, we encourage you to fill in your campaign form and do so as soon as possible.
RPAC Contributors List
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