Written by Federal Title | 18 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

Why mortgage puts homebuyer at disadvantage Market Watch: For home buyers who need to finance their purchase using a mortgage, a cash buyer can be their worst enemy. That’s because when a buyer makes a cash offer, the seller knows it’s a solid deal — and that financing hiccups won’t delay a closing.	Unexpected uptick encourages home sellers Gazette: Home sales are picking up this year, say Maryland real estate agents, but they remain cautious about calling the trend a turning point in a market that's generally been moribund since before the Great Recession.
Mortgage mess: Who really owns your mortgage? CBS News: As Scott Pelley reports on "60 Minutes" this week, that question has become a nightmare for many homeowners since the invention of mortgage-backed securities. And there still causing problems.	Public acceptance developers' biggest challenge Washington Examiner: Local opposition to new suburban development is practically a given in most developers' minds, particularly when it involves large-scale projects.
New bill for short sales Bankrate: If passed into law, the Prompt Decision for Qualification of Short Sale Act of 2011, would "require the lender or servicer of a home mortgage, upon a request by the homeowner for a short sale, to make a prompt decision whether to allow the sale."	MD gets $40M in foreclosure aid for unemployed Baltimore Sun: Borrowers could receive as much as $50,000 in interest-free loans to pay off past-due amounts and to make up to two years of payments.

Written by Federal Title | 15 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

New rules for first-time homebuyers Smart Money: The new fees and higher barriers to entry are all a response to the sweeping mortgage losses of the last several years.To cover those losses, banks and the agencies are raising fees on new mortgages	Are you disciplined enough for an ARM? HSH.com: borrowers looking to land an even lower mortgage rates are considering adjustable rate mortgages (ARMs). Would you be better off with an ARM, even though current fixed-rate loans are not far from their rock-bottom lows?
Fannie offers closing help Bankrate.com: Fannie Mae is reviving incentives to lure buyers as it tries to unload its thousands of foreclosed homes by offering to give buyers up to 3.5 percent of the selling price to be used toward closing costs..	Big banks get foreclosure orders Wall Street Journal: The bank regulators' action is part of an ongoing effort to reach a broader deal over alleged mortgage-servicing abuses
Sharp drop in DC foreclosures DC Urban Turf: In the DC area, there were 6,619 properties with foreclosure filings in the first quarter of 2011, down just over 50 percent from the first quarter of 2010.	A family compound on Massachusetts Avenue Curbed: Anyone wanting to be closer to the political action should check out this little number next to the Vice President's residence on Observatory Circle for $6.995M.

Written by Federal Title | 14 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

The White House is for sale! Washington Post: There is a full-scale, lived-in replica of the White House in McLean.And the owner, who hired a historical architect to help design and build it, is unloading it for the low low price of $4,650,000.	More urban housing at center of region's development future Washington Examiner: Much of the Washington area's future development will center on accommodating the growing demand from young professionals and families for urban living.
Budget deal holds pain for housing Wall Street Journal: The HOME Investment Partnerships Program, the largest federal block grant designed exclusively to create affordable housing for low-income households, is receiving a $215 million cut.	6 common mistakes home sellers make MSNBC: If you’re planning on putting your home on the market, it’s crucial to understand the time-honored mistakes sellers make, and how to avoid them.
Design house offers dramatic spaces Washington Times: Established by the principals of DC Living Real Estate, the design house has raised more than $400,000 for the Childrens National Medical Center in the past three years.	Chantilly mansion for Notre Dame fans only Curbed: Everyone needs to be inspired while they workout, so why not decorate your home gym with the logo of your favorite alma mater?

Written by Joe Gentile | 13 April 2011

Here’s some good news we’d like to pass along to you and your clients regarding refinance costs for properties in the District of Columbia and Virginia: Reissue Rates Automatically Apply.

What does this mean for your borrower?

• It means the borrower is no longer required to provide a copy of an existing owner’s title insurance policy to obtain the full reissue rate.

• It means that a 40% discount is automatically applied against the lender’s title insurance premium.

• It means that, previously, without an existing owner’s title insurance policy, a DC refinance for $500,000 would have cost $2,100 for the lender’s title insurance premium. As of April 1, 2011, the same transaction will cost only $1,260 in premium  — a savings of $840!

All online quotes from Federal Title now reflect these new changes so please feel free to share the news with your colleagues.  

In the meantime, if you have any questions about the new reissue rate policy, please feel free to contact the team at Federal Title.

Written by Nikki Smith | 13 April 2011

Homebuyers who close with Federal Title are often surprised to learn how much money they've saved on their closing costs. This is because we offer every homebuyer (and refinancing homeowner) an instant rebate known as a REAL Credit™.

So why don't all title companies offer a similar savings?

As our fearless leader Todd Ewing likes to say, long ago Federal Title kicked the "affiliated business arrangement" habit. Some title companies out there are affiliated with real estate firms, mortgage companies – and sometimes both. When they send business to the title company, the title company pays those guys a referral fee, an expense that's often passed on to the homebuyer.

This is why we tell every homebuyer to shop for title services, just as Todd told Michele Lerner of the Washington Times in the recent article "Shop to save on title services," which ran last Friday on the cover of the Homes Section.

Our REAL Credit™ represents what a title company would typically pay to the referral source and ranges anywhere from $100 to $1,100 depending on the purchase price.

Proponents of these so-called ABAs like to say it's actually beneficial for consumers, a sort of "one-stop shop" system that's more convenient. They don't like to talk about how the cost for said convenience often comes at an increased price.

I don't know about you, but I find saving money to be pretty convenient, and if it's a question of saving as much as $1,100 or more, you can bet I'm going to do some research. It is so easy to shop for title services. The Internet is a magical invention that pulls information – such as closing fees and title insurance rates – at the click of a button.

We've even gone a step further and done the homework for you. Check out the DC Metro Closing Cost Report to review closing fees from title companies who've published their rates online.

Written by Federal Title | 13 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

A Bethesda house that could be a Tetris game Curbed: If you are allergic to curves this is the house for you.The glass walls that surround the courtyard let light in at all sorts of crazy angles, which the architect previously described as "living in a kaleidoscope."	Real estate bust hasn't dimmed Americans faith in real estate Wall Street Journal: According to the results of a telephone survey conducted in March, Pew Research Center found eight-in-ten adults believed a home was the best long-term investment a person could make.
Down payment requirement angers senators Washington Post: Under the plan, banks would have to retain a stake in loans with smaller down payments, a costly requirement that the industry said it would pass on to borrowers in the form of higher interest rates and fees.	Watch for rising mortgage costs Bankrate.com: Under the law, loans that do not meet the stricter standards will be pushed into a less-favored, higher-cost category.
March housing activity highest since 2006 Washington Examiner: The region's housing market this spring is positioned to have an even stronger performance than last year -- and that's without the help of a federal tax credit to drive up sales.	Shop to save on title services Washington Times: Savvy homebuyers shop carefully for the right real estate agent and a trustworthy lender, but many then think the only shopping left to do is for the home itself.

Written by Federal Title | 12 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

How many buyers qualify for new 'safe' mortgage rules? Wall Street Journal: About one in five mortgages purchased by Fannie Mae or Freddie Mac over the 1997-2009 period would meet the proposed standard of “safe” mortgages that would be exempted from costly new lending rules.	DC's March home sales represent return to 'normalcy' DC Urban Turf: While the increased sales activity is positive news for the region, RBI analyst Jonathan Miller sees the sales surge as a return to the seasonality of the market, not a second coming of the housing boom.
Some neighborhoods shine, although Washington condo market continues to struggle Washington Post: Trendy neighborhoods in the District and close-in suburbs may be blossoming, but much of the Washington area may find it to be another chilly spring.	Proposed federal rules would drive many out of the market for home loans Washington Post: Under the law, loans that do not meet the stricter standards will be pushed into a less-favored, higher-cost category.
Donohoe's trifecta in Woodmont Triangle DC Mud: Montgomery County Planning Board will likely approve a multi-phased, mixed use project that will redefine the urban landscape of the underutilized Woodmont Triangle area in Bethesda.	Avoiding refinancing costs after a divorce The New York Times: There is another, little-known option that can avoid refinancing and its costs, which generally run 3 to 6 percent of the outstanding loan principal.

Written by Federal Title | 11 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

What new homebuyers need to know CNBC: First-time home buying is well documented as an arduous process, and much of that can be attributed to the sheer number of new and unexpected issues.	Mortgage troubles? Try a house billboard Wall Street Journal: Adzookie, a startup based in Anaheim, Calif., will paint its ads on at least 100 homes, keeping them in place for between three months to a year, after which the home will go back to a color of the owner’s choice.
What to expect from a home inspection Arlington Real Estate News: Things to expect from your inspector: this is a VISUAL inspection – they’re not going to cut behind walls, move appliances, or turn on the house near the house to see if it’ll flood.	Even short-term FHA shut down will hit housing CNBC: FHA will maintain the ability for lenders to secure case numbers and underwriting will not be impacted either. However, lenders will be challenged to close these loans during a government shutdown as they will not be able to secure mortgage insurance.
What will banks do if FHA is closed? Wall Street Journal: If the government shuts down, the Federal Housing Administration will stop accepting new loans.	Great Neighborhoods: McLean Gardens Washington Examiner: Built in the 1940s by the federal government to house World War II defense workers, McLean Gardens might be Washington's most unique address.

Written by Federal Title | 08 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

5 things to know about buying a vacation home CNN Money: Home prices continue to fall and there are some great deals for buyers looking for a vacation home. Here are five things to know before taking the leap.	It pays to own a multi-family home Market Watch: House prices are still tanking in many parts of the country, mortgage rates are inching up, and job growth is subpar. So what are some homebuyers doing? They're buying even more home.
Original first-time homebuyer tax credit now headache for IRS Washington Post: If you took advantage of the $7,500 first-time home-buyer credit two years ago, you had better remember to include your first repayment of that loan on your 2010 tax return, which is due April 18.	Are home price declines easing? Wall Street Journal: If price declines are moderating, it’s likely because the share of distressed sales is falling and not because of a firming up of demand (mortgage applications remain mired at weak levels).
'Fantastic' mortgage rates expected through spring HSH.com: If you can qualify for mortgage financing, mortgage rates are expected to remain “fantastic” through the spring. The “bad” news: They’re not expected to remain at unprecedented levels.	Where your living room can be the 19th hole MSNBC: A list of golfer’s dream homes, (some for sale), across the country where the owners are a few feet from the fairway and a golf membership is a standard home amenity.

Written by Federal Title | 07 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

Could a government shutdown hit housing? Wall Street Journal: But if the federal government shuts down, the FHA won’t be insuring any new loans. Banks will still be able to make FHA loans, but they’ll have to fund and hold onto those loans until the government re-opens for business.	Should money buy you height Washington City Paper: Should DC allow for more capacity in areas where there's demand for it, by imposing a one-time "floor tax" on all stories that a developer would like to build over the existing height limit?
FHA mortgage program makes homebuyers pay after mortgage is paid off Washington Post: Could the federal government’s booming FHA mortgage program be forcing homeowners to pay tens of millions of dollars of extra interest charges when they sell their houses or refinance loans?	Public hearings scheduled for DC ward redistricting DCist: At-Large Councilmember and Subcommittee on Redistricting co-chair Michael A. Brown will solicit input from the public during a pair of meetings about the District's decennial border redrawing.
Freddie Mac warns lenders on interest Washington Examiner: McLean-based Freddie Mac and Fannie Mae of Washington, which own or guarantee more than half of all U.S. home loans, require lenders to buy insurance on mortgages that have small down payments.	Old Town Alexandria's answer to food trucks DC Urban Turf: Starting this month, up to eight city-approved food carts hosted by local restaurants will operate daily at Market Square on King Street.

Written by Nikki Smith | 06 April 2011

Closing costs will inevitably take a large bite out of your wallet at the settlement table — anywhere from a few to several thousand dollars.

Here are 10 things to know about your closings costs, information that will help you better understand closing costs and teach you the right questions to ask your title or real estate agent.

1. Homebuyers who shop title service providers save big. A recent study commissioned by Federal Title & Escrow Company based in Friendship Heights found that District of Columbia homebuyers who shop title service providers save as much as $1,180 at closing, while Maryland and Virginia homebuyers save upward of $900. Needless to say, not every title agent was thrilled by the results of the apples-to-apples comparison.

2. Some closing costs are tax-deductible. The big one to keep in mind here is any money you paid in points at closing to “buy down” the interest rate of your loan. You may also deduct pre-paid mortgage interest and property taxes paid at settlement. It’s important to note, however, that to claim these deductions you must itemize your return and forego the standard deduction. For homeowners interested in what they can and cannot deduct post-closing, see the IRS’s very thorough article on homeownership costs that are tax-deductible.

3. You must account for closing costs along with your down payment. In today’s real estate market, don’t count on a loan to help cover your closing costs. Lenders want to see that the homebuyer has enough cash on hand to meet these expenses and still have approximately six months of reserves left over once dust from the transaction settles.

4. Closing costs run roughly 3% to 6% of the purchase price. How much you pay in closing costs depends largely on where the property is located. For example, District homebuyers will pay higher closing costs than their Maryland or Virginia counterparts for a property with the same purchase price because title insurance policy premiums are higher in DC. In the last couple years, it’s become increasingly common for the home seller to pay at least a portion of the homebuyer’s closing costs. To lower your closing costs, consider asking the seller for settlement help in your sales contract.

5. Ask about “standard” title insurance versus “enhanced” title insurance. The type of title insurance policy you purchase will also affect closing costs. Some title companies push enhanced title insurance without providing the consumer with a proper disclosure that a less expensive standard policy is available. For many homebuyers, a standard policy will suffice. It’s a good idea to compare standard vs. enhanced title insurance, and make sure to ask your title company what types of insurance products they offer. Talk with your lender and settlement attorney to determine what policy is appropriate for your home investment.

6. Closing cost discounts do exist. A handful of independently-owned title companies in Washington, DC offer homebuyers an instant rebate on their closing costs. Federal Title pioneered this practice in the DC area by introducing its REAL Credit™ program over a decade ago. Even if your chosen title company can’t offer you an instant rebate, it’s fair to note that any title company may be able to provide you a full reissue rate discount if your property is located in DC or Maryland. Typically, in order to qualify: 1) the seller must provide a copy of his or her owner’s title insurance policy; 2) that policy must be less than 10 years old; and 3) the coverage amount must equal or exceed the new purchase price.

7. Some closing costs are fixed while others are variable. The cost of your title insurance policy and government recordation fees are dependent on the purchase price of your home, and the bulk of settlement costs are typically paid by the homebuyer. However, the seller doesn’t get off scot-free. Seller fees include a fee for mortgage release procurement and deed preparations. The settlement fee is often split between buyer and seller. Homebuyer fees include a title examination/abstractor fee, location survey fee and a fee to process paperwork. A title company may charge additional fees unique to each transaction, but the extent of the fees should be disclosed up front.

8. Closing costs should not change (much). Your lender’s Good Faith Estimate will give you a good idea of your settlement charges long before you receive a list of actual costs on your HUD-1 Settlement Statement at closing. For the most part, you shouldn’t see much discrepancy between the two forms, as your lender is legally obligated to stay within what’s known as “tolerance limitations” when it comes to most settlement charges.

To know which closing costs could change, think of settlement charges as “3 Buckets.” The first bucket includes your lender’s origination charges, points you paid to “buy down” your interest rate and transfer taxes. Charges in the first bucket cannot increase. Charges in the second bucket may increase up to 10 percent and include title services and a lenders title insurance policy (lumped together on line 1101 of your HUD-1), owner’s title insurance policy and government recording charges. Bucket three includes charges that can change at settlement, including daily interest charges and homeowner’s insurance, amounts that depend on your closing date.

9. Roughly 70 percent of closing costs that are variable are title-related. That’s a pretty large number to leave to chance. It may not be a bad idea to get a closing cost quote on your own from a couple title service providers just to make sure you’re getting the best deal possible. Several local companies offer free closing cost calculators to help you shop and compare rates.

10. Referral fees increase closing costs. Did you know just 5 percent of title insurance premiums go toward insurance claims, according to the Government Accountability Office? A far greater percentage (some reports claim 50 percent or more), went to real estate agents and mortgage lenders for referral fees. This practice, a product of the affiliated business arrangement, is legal but anti-consumer. Homebuyers’ best protection against high closing costs is education – simply knowing they have the right to choose their title company, asking about discounts and learning about what options are available.

Local headlines and real estate agents are saying the same thing: The DC real estate market is back! Scoff if you like, but the numbers don’t lie. A steal of a deal in the DC real estate market is increasingly rare, but by understanding your closing costs, you can make sure you’re not overpaying on the back end of your real estate transaction.

Written by Federal Title | 06 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

What makes DC the hottest real estate market? Washington Examiner: A confluence of factors, including low interest rates, steady job growth and low unemployment -- thanks in part to military and the federal jobs -- have put a fire under local home sales.	Housing bubble continues to haunt the Fed Wall Street Journal: Americans' love affair with housing is over. But, ironically, deflation of the bubble risks fueling consumer-price inflation.
Problems with new Good Faith Estimates The New York Times: Amid the uncertainty, a growing number of lenders have been furnishing consumers with their own custom “work sheets” as a supplement to — or in a few cases, in lieu of — the required disclosures.	Former real-estate developer thinks VA farm is fertile ground for business Washington Post: The scope and the design will likely not change very much, as the concept already has Board of Zoning Adjustment and Historic Preservation Review Board approvals.?
Shadow inventory shrinks, remains high Market Watch: The inventory of distressed homes lingering in the shadows of the U.S. real-estate market shrank slightly in January, but these properties will remain a major drag on the housing market.	10 things you should know about closing costs DC Urban Turf: The information in this article from Federal Title will help you better understand closing costs and teach you the right questions to ask your title or real estate agent.

Written by Nikki Smith | 05 April 2011

Closing costs will inevitably take a large bite out of your wallet at the settlement table — anywhere from a few to several thousand dollars. But why pay more than you have to?

With a solid understanding of title insurance & closing costs, you will know the right questions to ask your real estate agent or title agent here at Federal Title.

A steal of a deal in the DC real estate market is increasingly rare, but by understanding your closing costs, you can make sure you’re not overpaying on the back end of your real estate transaction.

Check out our article, which appeared today on DC Urban Turf: 10 things you should know about closing costs.  Give it a read and feel free to leave your comment below.

10 things you should know about closing costs

Written by Federal Title | 05 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

Washington suburbs recovering slower than city Washington Examiner: While the unemployment rate in urban areas remains higher on average, the damage in the suburbs has narrowed the gap, largely because of the professions hit by this recession.	Rowhouse Rehab: Fencing in the contractor Wall Street Journal: Unfortunately, saving the old is more labor intensive and often more expensive. But don’t let contractors fool you into thinking it’s impossible.
An ecological calculator for homebuying decisions Washington Post: Home purchases tend to be very emotional transactions, but when you assume a mind-set of dispassionate, rational self-interest, it's a win-win for yourself and the environment,	What 14th Street's new condos will look like DC Urban Turf: The scope and the design will likely not change very much, as the concept already has Board of Zoning Adjustment and Historic Preservation Review Board approvals.?
Stumpf: How to fix the mortgage mess CNN Money: We have to solve the Fannie Mae and Freddie Mac problem and eventually figure out the proper role of the federal government in supporting a secondary market for home mortgages.	Hard to sell basement units? Don't build them Washington City Paper: The Redstone is built with a bike room and storage on the first floor, and three floors above it with an overhang that makes the whole building look levitated off the ground.

Written by Federal Title | 04 April 2011

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

DC's most diverse neighborhood: Columbia Heights DC Urban Turf: Columbia Heights is still in transition, and at this point, it’s not clear whether the community’s best characteristic — its dynamic mix of people — will remain a permanent feature.	Sell home. Donate to Japan. Get tax break Wall Street Journal: Retired architect and actor Stephen Meadows, 60, wants to sell his $2.5 million Venice Beach home, which he bought from Eric Clapton in 2003 for around $1.4 million.
Real estate market finds new normal Washington Examiner: The Washington area market is settling into a new normal, with indicators such as the absorption rate and inventory-to-sale ratios showing movement toward more stable inventory levels.	Mortgage rates steady; do consumers even care? HSH: With the mortgage market stuck in a swirl, credit conditions as strict as they are, and economic recovery being as unstable as it is, do consumers even care all that much about current mortgage rates?
Troubling dip or double dip? CNBC: Apparently the administration is leaning toward double dip despite its reporting that foreclosure activity and mortgage delinquencies are falling.	Your tax questions answered: Home CNN Money: From the more than 1,000 questions you submitted, we picked the investing, filing, retirement, home, and small-business topics most likely to lead you off course.