War On Wealth Series -

The congressionally mandated g-fee increases set to go into effect as of now, will artificially increase mortgage rates by more than 1/2 percent with some lenders. It will increase mortgage rates to some degree with all lenders.

The Federal Housing Finance Administration (FHFA) has mandated Read the rest of this entry

Popularity: 3% [?]

Leon Williams

Federal Reserve has Finalized Rule on Jumbo Loan Escrow Requirements

The rule raises the threshold requirements for establishing an escrow account (property taxes ad insurance) on a first-lien jumbo mortgage.

The rule essentially says that if the APR on a first-lien jumbo loan is 2.5 percentage points (previously 1.5 percentage points) or more above the average prime offer rate, an escrow account is required.

The provision was one of the reforms outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act, three years ago. Yes, three years to finally wade through that act to come up with this.

Other proposed rules are listed here:

1. A rule that effectively Read the rest of this entry

Popularity: 10% [?]

Did you hear? The Obama Administration just delivered a report to congress where it is outlining major reform to our housing market. What does this mean? Read the rest of this entry

Popularity: 4% [?]

Media Contact:
Lotus Lou (213) 739-8304
lotusl@car.org

For release:
December 1, 2010

Changes to mortgage interest deduction would hurt economy, prolong housing downturn, C.A.R. says Read the rest of this entry

Popularity: 5% [?]

NO MORE STATE TAX ON FORGIVEN DEBT

Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California’s tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a “qualified principal residence,” borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.

“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board’s Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service’s Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

Brought to you by the California Association Of Realtors

Popularity: 7% [?]

Understanding Condominum and PUD Ownership

California’s builders, in an effort to combat the dual problem of an increasing population and a declining availability of prime land, are increasingly turning to common interest developments (CIDs) as a means to maximize land use and offer homebuyers convenient, affordable housing.

The two most common forms of common interest developments in California are Condominiums and Planned Developments, often referred to as PUDs. The essential characteristics shared by these two forms of ownership are:

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Popularity: 7% [?]

War On Wealth Series – Wealth Preservation

This is What Happens When You Don’t Use “Total Asset Optimization Principles”

Anyone With A Job Can Build A Nest Egg On  “Steroids” Read the rest of this entry

Popularity: 22% [?]