The agency is proposing a ban on mortgage companies from charging origination fees, which can fluctuate with a loans amount, The New York Times reports. The fees can often get confused with upfront discount points that borrowers often pay.

The agency is also looking at implementing a new rule that would require lenders to offer a reduced interest rate when a borrower chooses to pay discount points on a loan upfront. Lenders would be required to offer a loan option to not include any points.

“Mortgages today often come with so many different types of fees and points that it can be hard to compare offers,” Richard Cordray, the director of the consumer bureau, told The New York Times. “We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them.” What are your thoughts for this being transparency for the housing recovery in your local market?

Source: “New Rules May Curtail Some Fees in Mortgage, ” The New York Times 5/9/12)

1. Lowball offers won’t likely stick:  Buyers may be better off asking for seller concessions, such as closing cost assistance or making home repairs, rather than making offers way below the asking price. “Keep in mind that a lowball number may turn off the seller and close down any chance at negotiation,” the U.S. News & World Report article cautions potential buyers.

2. Get pre-approved: Getting a loan isn’t easy nowadays as lenders have tightened their credit standards in recent years. Serious buyers should check their credit and get pre-appoved for a loan to determine how much of a home they can even afford even before they start their home search.

3. Get realistic about the market: Real estate agents can show buyers comparable nearby sales to help educate them about local market conditions. Transactions from the last few months are the most important.

4. Expect some competition. Housing inventories are dropping in many of our areas and spurring an increase in demand. Home buyers may face increased competition for the home they want, particularly among short sales and foreclosed properties, in which they may be up against investors who are making all-cash offers.

5. Conduct property research: Real estate agents will help guide clients on what all they need to do when they find a property they like.  Other important efforts nowadays: we recommend hiring a home inspector, verifying the accuracy of the property line (by asking seller for the survey or having your own conducted), and make sure all necessary disclosures about the property, required by various sources, have been made.

Source: “Traditional ‘Rules’ of Home Buying Return,” US News & World Report (5/1/12)

Windows XP laptops and Android smartphones — even when reset to their original factory settings — were found to be the most vulnerable and still contained sensitive personal information that could be uncovered on the devices, Robert Sicilliano, a McAfee identity theft expert, told USA Today.

Sicilliano purchased 30 used devices off Craigslist. He found that half the devices were clean, but 15 of the devices still contained a lot of personal information. He was able to find bank account numbers, Social Security numbers, work documents, and court records on some of the devices.

Apple’s iPhone and iPad as well as Research in Motion’s BlackBerry were found to not pose the same risks as Android smartphones, Sicilliano notes (although he still recommends users reset the devices before giving them away).

Mary Ann Miller, financial fraud expert at Nice Actimize, told USA Today that device makers need to provide more guidance on how to responsibly get rid of old electronic devices to prevent security breeches.

Until then, Sicilliano says: “I would beat the thing to death.” What are your thoughts?

Source: “Discarded Digital Devices can Retain Sensitive Data,” USA Today (May 2, 2012)

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Here’s what they had to say as  the best ways to get the “sold” sign out this spring:

1.Pay attention to “curb appeal”: First impressions are critical, and homes with inviting landscapes and exteriors tend to sell better, my first recommendation. Pay attention that the driveway is in good condition, lawn well-kept, and the house looks freshly painted.

2.Set the right price: Real estate professionals know how to set the price and prepare a home for sale. We use comparable sales of homes sold in the last 90 days to help set the most realistic price for the sales price of a home. By setting a realistic price from the beginning, sellers should be reminded that this will prevent having to drop the price of the home several times before getting it sold and having it linger on the market.

3.Talk about energy efficiency: Many buyers don’t fully understand “green” homes but they understand savings. Sellers agents should point out these features — such as energy-efficient windows or appliances — that could save buyers money with utility costs.

4.Give the home Web appeal: Good photographs make a home stand-out online and help lure more potential buyers. Realtor.com says that more than 6,300 photos are viewed per minute on listings posted at its site. We use 12+ photos per listing!

5.Make it move-in ready: Fix any needed repairs, such as water stains, creaky doors, and windows that don’t shut. Flaws in the home — even if relatively minor — can distract buyers, and should be fixed before the home is even listed. Agents should recommend that sellers get a home inspection prior to putting the home up for sale, this helps sellers identifying any potential problems that could potentially derail a sale later on. Once a problem is uncovered, sellers or their agents are obligated to disclose it!

Read more ideas at 24/7 Wall St or visit: www.sierraproperties.com

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 About 8 million children have been hurt by foreclosure, according to a newly-released report by First Focus, a bipartisan advocacy group for families. “Children are the often invisible victims of the foreclosure crisis,” says Julia Isaacs, the author of the report.

The report highlights the widespread affect the foreclosure crisis has had on the nation’s children: About 2.3 million children have lived in homes lost to foreclosure; 3 million have lived in homes at-risk of foreclosure; and another 3 million have lived in rental homes lost to foreclosure or currently live in rentals that are at-risk of foreclosure.

The foreclosure impact has been greatest on children in Nevada, where nearly one in five — or 20 percent — of children lived or live in a home that was lost to foreclosure or is at-risk of being lost to foreclosure. In Florida, 15 percent of children have been affected by foreclosure, followed by Arizona (14%) and California (12%).

Foreclosures have been found to hamper children’s performance at school. Children who have been affected by foreclosure often see math and reading scores drop as much as if they’d missed school for a month, Isaacs says. Please provide your comments.

Source: “Report Estimates 8 Million Children Hurt by Foreclosures”  USA Today (4/18/12)

Investors some times take on more than they can handle, and do not devote enough attention — and budget — into the rehabilitation of many of the properties they buy.

Nearly 95 percent of distressed homes are in bad shape and unsuitable for renting out, Morgan Stanley analysts estimate. Correcting conditions could require permits, etc! 

“The importance of getting construction — or specifically, re-construction or rehabilitation — right cannot be overstated,” according to a recent report sent to Morgan Stanley clients. “The quality and cost of rehabilitation can continue to benefit or haunt the asset far past the initial completion of work. For example, shoddy plumbing or other infrastructure work can result in significantly higher maintenance costs over time, and can also affect eventual exit pricing.”

Morgan Stanley provided estimates to investors in the report, citing estimates of renovation work to cost about 25 percent of the purchase price. Your thoughts?

Source: “Rehabilitation Vital to REO-to-Rental Success,” HousingWire (4/13/12)

Three percent of the $7.6 billion in the Hardest Hit Housing program has been used by the states since Dec. 31, 2011, but most of those funds so far have gone to help the unemployed and not underwater home owners, according to the report.

According to the report, more than 75 percent of the funds have gone toward shoring up states’ unemployment programs, such as by paying the mortgages of unemployed home owners. But the money was supposed to also be used for loan modifications and principal reductions to help underwater home owners as well, the report says.

The 18 states participating in the hardest hit program were selected due to having the highest number of home owners in negative equity and unemployed.

The Treasury department maintains the fund is serving its purpose. The program provides states the ability to “leverage their unique understanding of the conditions in their communities to create effective, locally-tailored programs,” Timothy Massad, assistant secretary for financial stability, wrote in a letter to Romero about the fund.

Source: “Watchdog Blasts Housing Program for ‘Hardest Hit,’” CNNMoney (4/12/12)

“Our government encourages home ownership because it benefits families, communities, and our nation’s economy; home ownership is an investment in our collective futures,” says NAR President Moe Veissi. “HouseLogic.com helps home owners identify the benefits that will save them money today and plan ahead for future savings, as well.”

HouseLogic.com provides tips and tools for home owners, and devotes an entire section of its site to tax incentives for the home. Check out A Home Owner’s Guide to Taxes to find helpful articles you can pass along , such as 10 Easy Mistakes Home Owners Make on their Taxes, 12 Tough Questions (and Answers) About Home Office Deductions, and 6 Deduction Traps and How to Avoid Them that provide consumers with a wealth of information to ensure they get the maximum return to which they’re entitled.

Tax benefits that encourage home ownership include mortgage interest deduction, deductions for property taxes, and tax credits for energy-efficient remodeling projects and heating and cooling systems.

For more information on tax deductions and preparation as well as articles you can add to your blog or Web site, visit www.houselogic.com.  Article data source: NAR

Pinterest, in particular, is growing rapidly, seeing its Web traffic surge nearly 50 percent in February compared to January, according to recent data from Experian Hitwise. The site now ranks as the third-most-popular social media site, behind Facebook and Twitter. What’s more, the site has been growing as a source for referrals to other Web sites: Pinterest users referred traffic to more Web sites in January than Google+, LinkedIn, and YouTube combined, according to a separate study by the site Shareholic.

Ninety-one percent of adults online use social media sites regularly, according to the report. Therefore, we feature daily info. on: www.sierraproperties.com, Trulia, etc!

Experian Hitwise reports the following top six social media Web sites, based on total visitors from March: Facebook: 7 billion, Twitter: 182 million, Pinterest: 104 million, LinkedIn: 86 million, Tagged: 72 million and Google+: 61 million

Source: “ The 2012 Digital Marketer: Benchmark and Trend Report,” Experian (2012) and “New Study Pegs Pinterest as the Number 3 Social Web site,” Forbes (April 9. 2012)

Existing home sales and pending sales are up about 9 percent compared to the same time year ago, according to recent data by the National Association of REALTORS®.

Paul Dales of Capital Economics told USA Today that he expects the spring selling season to “be the best in four or five years” for the real estate industry.

Our housing supply of for-sale homes has dropped the most and is more balanced which should be the potential of prices gaining this year. So, we’re optimistic!

Source: “Spring Home Sales Could be Omen,” USA Today (April 2, 2012)