Updates to the Multi-Board Residential Real Estate Contract

Recently, the Multi-Board Contract was updated to version 6.1. There are a few changes that you need to be aware of, not only for yourself, but to inform your clients as well.

Section 8 Financing Section

Additional time has been added to accommodate the new CFPB regulations.

“Intent to Proceed”

In the 6.1 Contract, there is a new mortgage deadline. The Section 8(a) “underwriting deadline” is being replaced with the “intent to proceed” deadline.

The “intent to proceed” deadline refers to a borrower’s loan application with the lender. This new mortgage deadline requires that the borrower take the next step of notifying the lender to proceed, and has paid all lender and appraisal fees. Specifically, all the lender needs is the name, income, social security number, address of the property, an estimate of the home’s value, and the amount they want to borrow.

Network With Like Minded Individuals!

The DuPage Homeownership Center is holding a free networking event. Don’t miss this opportunity to meet individuals in similar fields as you.

Friends of DHOC

Friends of DHOC takes place:
Wednesday, September 9th at 5;30pm to 7:00pm.
1600 E. Roosevelt Road
Wheaton, IL

RSVP

Please RSVP to Anne O’Dell by Friday, September 4th
630-260-2500 *2506 or anne@dhoc.org

We look forward to seeing you there!

Warning! E-Mail Wire Fraud Scams – Please Help Protect our Mutual Clients

Recently instances of customers being deceived into misdirecting their funds to a hacker’s account have occurred after the hacker intercepted emails between the purchaser or borrower, and the title company or the attorney concerning an upcoming transaction. The customers received emails (allegedly) from a title agency providing wire information that had been altered, so the customer unknowingly transferred their funds for the transaction directly into the hacker’s own account. This scam with an altered email could conceivably be used to cause misdirection of funds by any party in the transaction, including the title agents. Since these e-mails appear to be genuine containing the title agency’s email information and logos or branding, the importance of using encrypted email, when it is available, to send private information especially with account numbers needs to be emphasized.

In order to safeguard against this type of scam, make sure to secure computer systems and email accounts, and always confirm wiring instructions between appropriate parties and title companies. It is recommended to avoid the use of subject lines that include the words “wire instructions”, “account number” or “ ABA” because it is likely emails are being scanned for certain character strings. Email addresses have been revised by changing certain letters, such as the letter “O” to the number “0.” These clever, unscrupulous hackers have even gone so far as to send fake emails canceling the actual closing to delay detection of their scam. Best practice is to confirm directly with the title company all wire transaction information.

New Dodd-Frank Regulations Impacting Real Estate Loans & Closings

New Dodd-Frank regulations will soon impact all real estate loans and closings. HUD-1 Settlement Statement will no longer be used in residential closings.

If you would like to learn more, contact us today.

NATIONAL MORTGAGE SETTLEMENT

The Federal Government & Attorneys General have reached a landmark settlement with major banks. The agreement covers roughly $25 billion in relief for distressed borrowers, states and federal government. After many months of negotiation, 49 state attorneys general and the federal government have reached agreement on a historic joint state-federal settlement with the country’s five largest loan servicers:

Ally/GMAC
Bank of America
Citi
JPMorgan Chase
Wells Fargo Who May be Eligible for Assistance

Because of the complexity of the mortgage market and this agreement, which will be performed over a three-year period, borrowers will not immediately know if they are eligible for relief. Borrowers from states who did not sign the settlement will not be eligible for any of the relief directly to homeowners. Borrowers from Oklahoma will not be eligible for any of the relief directly to homeowners because Oklahoma elected not to join the settlement.

The settlement provides assistance for:

Homeowners needing loan modifications now, including first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction and other forms of loan modification relief nationwide.

State attorneys general anticipate the settlement’s requirement for principal reduction will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.

Borrowers who are current, but underwater. Borrowers will be able to refinance at today’s historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief nationwide.

Borrowers who lost their homes to foreclosure with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the OCC review process. $1.5 billion will be distributed nationwide to some 750,000 borrowers. Additional information is available at: http://www.nationalmortgagesettlement.com/help.