Ultra Real Estate Services

New Laws Strengthen Real Estate License Holders’ Accessibility and Accountability to Consumers

New laws effective in 2011 and 2012 are good news for both consumers and licensees. IMMEDIATE RELEASE CONTACT: Christine Anderson September 9, 2011 512-936-3091 In August, the Real Estate Commission and Appraiser Licensing and Certification Board proposed rules to implement provisions of SB747 and HB 2375, two laws passed by the 82nd Legislature that will drive major improvements over the next year. In addition to a variety of process changes that clarify and standardize application procedures, important substantive changes also provide better protections for consumers and strengthen license holder education requirements. Also, SB 1000 provides “self-directed, semi-independent” status to the agency, shifting most operating budget responsibility from the Legislature to the Commission and Board. Lastly, HB 1146 calls for the regulation of “appraisal management companies”, adding significant responsibilities to the Board. Among the more notable changes, as of September 1st, property managers for single-family residential units must now be licensed. Persons involved in leasing such properties have always been required to hold a real estate broker or sales license, but managers not engaged in leasing did not. Texas families now have increased protections from unethical managers who prey on home owners. Similarly, other than sole proprietorships, all business entities which engage in practices defined under the law as “brokerage activity” must also be licensed. Formerly, certain partnerships were exempt. The updated law also acknowledges the practice of producing “broker price opinions” as a common broker activity, and more clearly distinguishes these from “appraisals”, which require a separate and distinct appraiser license from the Board, and requiring extensive education in valuation techniques. Homeowners, lenders and practitioners will all benefit from this overdue clarification. Beginning in January 2012, applicants for a broker license will need to have four years of experience as a licensed salesperson, up from the current two year requirement, plus demonstrate practical competency by providing a detailed list of brokerage activities engaged in by the applicant during this same period. This will ensure consumers who deal with brokers and their sponsored salespersons a level of service more solidly backed up by additional practical experience. Brokers, and other direct supervisors of licensed salespersons, who seek to renew a license after September 1, 2012 will need to have completed a new 6- hour course in “Broker Responsibilities”, in addition to the combined 6-hour courses in Legal and Ethics updates. All of these courses are updated every two years by a panel of experts convened by the Real Estate Center at Texas A&M University. Applicants for a sales license after September 1, 2012 will need to have completed two additional mandatory 30-hour courses in TREC Promulgated Contracts and in Real Estate Finance, courses that are currently optional. This additional education will directly benefit consumers. All of these measures, combined with the recent strengthening of advertising rules, supervisory disclosures, and the requirements for delegations of a broker’s authority and office policies and procedures to be maintained in writing, provide a more transparent and accountable environment for the practice of real estate brokerage in Texas. All of these enhancements will reinforce the confidence of consumers in the education and professionalism of this critical sector of the economy.

“Texas is giving $10,000.00 for Down Payment and/or closing cost to First time home buyers”

“Texas is giving $10,000.00 for Down Payment and/or closing cost to First time home buyers” this Program is implemented by Texas department of housing and community affairs. This is a 5 or 10 year loan term at 0% interest rate and the first payment will be deferred for 5 years from closing date. More information about this program through ultra real estate Services Mortgage information Line 214-702-3397

Texas TDHCA Bond 77 Zero Downpayment Program Details

On May 24th the Texas Department of Housing and Community Affairs - TDHCA released its new Single Family Mortgage Revenue Bond Program Series 77. These programs are available exclusively through Select Mortgage Banks as determined by TDHCA, to qualify for these programs you simply call (972)239-5902. What Is Bond 77? Bond 77 is providing $500 million in tax exempt mortgage revenue bonds and sponsored by the Texas Department of Housing and Community Affairs (TDHCA) looks to be a viable new source for first-time low and middle income homebuyers to secure financing on primary residences. It features below-market interest rates OR (not both) down payment assistance grants in the form of second mortgages. How Does Bond 77 Work? Basically, a first- time homebuyer will be able to select from either a ZERO-down loan, or a mortgage with below-market rates. The down payment is actually a loan of up to 5% towards the purchase price which can include some of the closing costs. It will typically be paid back upon the subsequent sale of the home. According to my source, most of the Bond 77 dollars will be seen in conjunction with FHA loans. Existing homebuyers, if they are buying in targeted areas and meet the income limits, are also eligible for this financing. Bond 77 For Owner-Occupied Buyers Only Bond 77 Financing is for owner occupied single family homes, agency approved condos and planned unit developments (PUDS). It is not available for investment properties, recreational, vacation or second homes. Homebuyers are subject to income limitations and are required to complete a very short, online, homebuyer education class, which is probably something all homebuyers should be required to to do.

MCC Tax Credit

The Texas Department of Housing and Community Affairs created its Texas Mortgage Credit Program for the residents of Texas, to help make ownership of new and existing homes more affordable for individuals and families of low and moderate income, especially first time buyers. What is a Mortgage Credit Certificate? A Mortgage Credit Certificate allows the homebuyer to claim a tax credit for some portion of the mortgage interest paid per year. It is a dollar for dollar reduction against their federal tax liability. Note: The Mortgage Interest Credit (MCC) is a non-refundable tax credit, therefore, the Homebuyer MUST have tax liability in order to take advantage of the tax credit. Who is eligible to receive an MCC? The program is open to those individuals and families who: meet income and home purchase requirements; have not owned a home as primary residence in the past three (3) years; meet the qualifying requirements of the mortgage loan; will use the home as their principal/primary residence. Note: The MCC may not be used in connection with the refinancing of an existing loan, unless the loan meets the “Qualified Subprime” loan guidelines.. Targeted Areas – first time homebuyer requirement is waived; increased income and purchase price limits. Texas Veteran’s Mortgage Credit Program: The Texas Veteran’s Mortgage Credit Program gives those who served a chance to save. As a military veteran, you protected the American Dream. Now is your opportunity to live it. The Texas Veterans’ Mortgage Credit Program is part of and identical to the Texas Mortgage Credit Program – with one exception! For veteran’s that served in active duty, were honorably discharged as evidenced by Form DD-214 and who have not previously had a mortgage financed through a mortgage revenue bond program, are exempt from the first time homebuyer requirement. You must still meet the applicable acquisition and purchase price limit requirements of a non-targeted area unless purchasing in a targeted area census tract, Hurricane Rita Gulf Opportunity Zone or designated disaster area. Even better, if you enter into a contract to purchase a home by April 30 and close by June 30, 2010, you may be able to combine the $2,000 tax credit with the one-time federal Tax Credit of up to $8,000. How much of a tax credit can be issued under the MCC program? The size of the annual tax credit will be 30% of the annual interest paid on the mortgage loan. However, the maximum amount of the tax credit shall not exceed $2,000 per year. The credit cannot be larger than the annual federal income tax liability, after all other credits and deductions have been taken into account. MCC credits in excess of the current year tax liability may, however, be carried forward for use in the subsequent three years. MCC Example: MCCs are issued directly to qualifying Applicants who are then able each year to take a tax credit equal to a specified percentage of the interest paid on their mortgage not to exceed $2,000. The Mortgage Credit Certificate Rate is 30 percent. Thus, an Applicant with a $121,000.00 mortgage (30 year fixed with equal monthly installments of principal and interest) would realize the following savings: MCC Example Mortgage Amount: $121,000.00 Interest Rate: 6.0% Total Interest Paid First year: $ 7,260.00 Mortgage Credit Certificate Rate: X .30 Tax Credit Amount: $2,178.00 $2,000 (max)

New Ultra Real estate Branch:

Because of our continues effort to provide our realtors and loan offices and accessible way to do business we are proud to announce the new Ultra branch opening in North Dallas The location is a full facility with an excellent environment and corporate look, our agents will have access to computers, scanner, realtor stations and cubicles, copies, fax, and 24/7 open access. The office will be available in June 1st. also Premier national lending will be residing side by side with us giving our agents more comfort and better information in the loan process. Thanks to all our agents

seven month extension and expansion of the tax credit for homebuyers.

RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week. The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years. For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee. The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008. The legislation included provisions added to address complaints of fraud as well. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.

Down Payment Assistance Programs

The Texas Department of Housing and Community Affairs (TDHCA) is pleased to announce the release of 2 new down payment assistance programs - the Mortgage Advantage Program and the 90-Day Down Payment Assistance Program. Both programs are designed to monetize the Federal First Time Homebuyer Tax Credit enacted within the American Recovery and Reinvestment Act of 2009 by helping Texas families take advantage of the opportunity made available by recent Congressional action. Under the Mortgage Advantage Program, TDHCA has made available on a first come, first serve basis to participating mortgage lenders approximately $1 million in down payment assistance for use in conjunction with the 2009 Texas Mortgage Credit Program and approximately $1.5 million in down payment assistance for use in conjunction with The Texas First Time Homebuyer Program (Bond 70). The first lien interest rate for Program 70 will remain at 5.75%. Under the 90-Day Down Payment Assistance Program, TDHCA has made available $5 million in down payment assistance to be used in conjunction with first lien mortgage loans originated by the lender. •Program guidelines and additional information (PDF) •Please refer to the First Time Homebuyer Participating Lender List (PDF) and/or the Texas Mortgage Credit Program Participating Lender List (PDF) to find lenders who also participate in the Mortgage Advantage Program. •90-Day Down-Payment Assistance Program Participating Lender Contact List (PDF) •For lender documentation please visit the Homeownership Programs Lender Documentation page. For current available program funds please visit the Available Funds page.

Learn How Buyers Can Use $8,000 Tax Credit for Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today. Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment. There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders. In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today. The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment. Learn more about the credit, including how to apply for it this year even if you've already filed your taxes, at REALTOR.org. Source: Robert Freedman, REALTOR® Magazine Online

The Basics: 2009 First-Time Home Buyer Tax Credit

Bringing the Dream of Homeownership Within Reach As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers. Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream. Who Qualifies? First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. Which Properties Are Eligible? The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops. How Much Will the Credit Be? The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors: The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000. The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit. If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit? Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit. Will the Tax Credit Need to Be Repaid? No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

New Rules for Mortgage Appraisals

Author: Communications As of May 1, a new set of rules for mortgage appraisals are now in place. This is a very hot topic with differing opinions on what impact these changes will have on our industry. These new rules were intended to reduce appraisal fraud and curtail undue pressure on appraisers to value a home at a target price. The rules were agreed to in a Home Valuation Code of Conduct (HVCC) by Fannie and Freddie; the Federal Housing Finance Authority, which regulates them; and New York Attorney General Andrew Cuomo. Originally, the rules required lenders to use outside appraisers rather than appraisers who worked for the lender. But industry officials complained that this would require them either to use less-qualified appraisers or to pay more for appraisals and pass the increased cost on to the consumer. One of the biggest questions that has been brought up during this process is if a mortgage broker can initiate an appraisal request through a lender�s designated appraisal management company (AMC). According to Freddie Mac this process is permissible provided all of the following criteria are met: � The AMC is specifically authorized by the lender to act on its behalf and the AMC is not acting on behalf of the mortgage broker � The AMC selects, retains, and provides for payment of all compensation to the appraiser on the lender�s behalf � The appraiser's client is the lender and the appraiser correctly identifies the lender as the lender/client on the appraisal report � The lender has policies and procedures in place that comply with the Code � The lender ensures that the AMC has policies and procedures in place that comply with the HVCC One of the biggest questions regarding these new rules is the issue of enforcement. The HVCC does not clearly delineate which agency or organization will be responsible for enforcement of all or part of the agreement. There are multiple stakeholders affected by the agreement and none have clear responsibility to see that it is enforced. Despite requests from professional organizations, including NAR, to delay the implementation of these new rules they are now in place. The Association recognizes the importance of these changes. We will work to keep you informed as answers to the many questions these rules raise become available.

New Web Site

Ultra Real Estate Services Launch a new web Site with a lot of more fixtures and benefits to our agents and Clients also including the service partners portal and the Loan officers Portal, please take a chance and review all new fixtures we have available.