CRACKING THE CODE: DUTY TO DISCLOSE

Do you know your disclosure responsibility? In a recent case, a Hawaii court found that a “Frog Addendum” alerted a buyer to the potential issue of tree frog din. Interestingly, in Brinkwood Land Equities Ltd. v. Hilo Brokers Ltd., the court also determined the broker had no duty to disclose that the surrounding neighborhood was allegedly frequented by drug dealers and prostitutes.


Article 5 of the Code of Ethics says REALTORS® shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties. This could apply to many different areas- for example, frogs. For more on disclosure and article 5, click here.


~~GNAR

Remember, if you want more information or would like to chat, let me know.  I can be reached at 615-777-4663 or via email at george.margrave@migonline.com

FEMA warns Congress clock is ticking on flood insurance program

By Erik Wasson - 04/25/12 11:33 AM ET


The Federal Emergency Management Agency on Wednesday stepped up pressure on Congress to reauthorize the National Flood Insurance Program (NFIP).


The program is set to expire at the end of May, and FEMA warned that after that time NFIP will not be able to issue new policies. The program is seen as key for limiting the costs of natural disasters.


“FEMA is urging Congress to reauthorize the NFIP and send a clear signal to citizens, communities, and private sector partners that the federal government will continue to support our nation's efforts to manage flood risk,” David Miller, associate administrator for FEMA's Federal Insurance and Mitigation Administration, said in a statement.


The House and Senate were unable to agree on a NFIP reauthorization last year, and extended the program without changes until May 31.


House Republicans are pushing their reform plan as part of a six-committee effort to replace the automatic spending cuts triggered by the failure of the congressional debt supercommittee last year.


The government will be forced to cut $109 billion in 2013 automatically starting on Jan. 2. The House-passed budget requested six committees to come up with detailed replacements for the across-the-board sequester.


The House Financial Services Committee has proposed a five-year NFIP bill that cuts the deficit by $4.9 billion. Authored by Rep. Judy Biggert (R-Ill.), it would increase rates charged to customers.


It is unclear where the six-committee process is heading. Officially the recommendations of the six committees are to be used as part of a budget reconciliation bill, but because the Senate is not passing a new budget resolution this year, that process appears to be a dead end. More likely, the recommendations will be used in a lame-duck negotiation with the White House on budget, spending and tax matters.


In the Senate Banking Committee Chairman Tim Johnson (D-S.D.) urged passage of his version of the bill.


“The Banking Committee unanimously passed a bipartisan bill that provides long-term stability with a 5-year reauthorization period and makes important reforms that set the program on a more fiscally-sound path, phases in premium increases to assist homeowners, and helps educate consumers about their flooding risks," he said in a statement. "It is my hope that we can find a bipartisan path forward before this critically important program lapses.”


Source:
http://thehill.com/blogs/on-the-money/budget/223619-fema-warns-congress-clock-ticking-on-flood-insurance-program

Lowest Rates Ever! (No really)

If you have been keeping up you know we have the lowest rates since I can remember (I think they are the lowest since the records were kept.) You have been hearing radio ads about this for the last two or three years, but now it is really true. How can it benefit someone who wants to refinance?


If you have an FHA loan at about 5.75% or higher, it would probably benefit you to lower your rate on another 30 year loan in the 3’s or low 4’s. For a little more we can pay your closing cost. If you can go to 15 year, it will probably still increase your payment but can make a huge difference in your future equity position. The kicker with FHA is the MIP payments eat up some of your interest savings. If you don’t have equity, we can do a streamline loan with no appraisal, but you have to pay the closing cost out of pocket, or we as lender might be able to pay it for you. Call me for details.

If you have a conventional loan, we are most likely going to have to have an appraisal. There will have to be enough equity to finance closing cost or you could pay them or once again we as lender may be able to do it. Once again call or email your questions. Just click on reply.

The bigger the loan the more savings you get. Also once again don’t forget the 10 or 15 year loans if you can handle the bigger payment.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com .