Report for Residential Construction Activity in June 2019

Building permits, housing starts, and housing completions report

By Jeff Sorg, OnlineEd Blog

(July 17, 2019)

(Wahington) US Dept. of HUD (c) Can Stock Photo– The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau jointly announced the following new residential construction statistics for June 2019.

Building Permits

Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,220,000. This is 6.1 percent (±1.2 percent) below the revised May rate of 1,299,000 and is 6.6 percent (±1.1 percent) below the June 2018 rate of 1,306,000. Single‐family authorizations in June were at a rate of 813,000; this is 0.4 percent (±1.0 percent)* above the revised May figure of 810,000. Authorizations of units in buildings with five units or more were at a rate of 360,000 in June.

Housing Starts

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,253,000. This is 0.9 percent (±7.9 percent)* below the revised May estimate of 1,265,000, but is 6.2 percent (±7.8 percent)* above the June 2018 rate of 1,180,000. Single‐family housing starts in June were at a rate of 847,000; this is 3.5 percent (±9.6 percent)* above the revised May figure of 818,000. The June rate for units in buildings with five units or more was 396,000.

Housing Completions

Privately‐owned housing completions in June were at a seasonally adjusted annual rate of 1,161,000. This is 4.8 percent (±12.8 percent)* below the revised May estimate of 1,220,000 and is 3.7 percent (±10.5 percent)* below the June 2018 rate of 1,205,000. Single‐family housing completions in June were at a rate of 870,000; this is 1.8 percent (±11.5 percent)* below the revised May rate of 886,000. The June rate for units in buildings with five units or more was 283,000.

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Starting Today, Portland Home Sellers Can Request a Cash Offer From Zillow

Zillow Now Buying and Selling Homes in Portland

By Jeff Sorg, OnlineEd Blog

(July 15, 2019)

(PORTLAND, Ore.) July 15, 2019 /PRNewswire/ — Starting today, home sellers in the Portland, Oregon metro — including Vancouver, Wash. — can use Zillow Offers to request a cash offer from Zillow to buy their home.

Portland is the twelfth market where Zillow now directly buys homes – giving homeowners a new way to sell their homes that is convenient, transparent and gives them more control over the entire real estate transaction.

“Sellers across the country have shown that they are looking for an easier, less stressful way to sell their home,” said Zillow Brand President Jeremy Wacksman. “We’re excited to launch our first market in the Pacific Northwest today, giving potential home sellers in Portland and Vancouver the certainty and transparency they want when selling their home. Zillow Offers provides a seamless transaction experience, helping sellers move on to the next step in their life.”

Selling a home is one of the most stressful experiences in modern life, second only to a relationship break-up1. Decluttering and readying their home for tours and open houses are often the most frustrating tasks for sellers, according to Zillow research. In fact, according to a recent Zillow survey, more than a third of home sellers said the process left them in tears, with millennials and parents far more likely to cry at some point during the sale process.

Zillow Offers is transforming the way people sell their homes across the country. With Zillow Offers, sellers don’t need to worry about prepping their home for sale or hosting open houses — avoiding much of the hassle and time and energy associated with a traditional sale.

Designed to accommodate all types of sellers, Zillow Offers can work for anyone, whether they need to close quickly for a job move across the country or they want to close on a longer timeline to search for their dream home. Zillow Offers gives sellers the flexibility to choose their close date within just a few days or up to 90 days after accepting their offer.

Additionally, consumers using Zillow Offers – whether they are selling to or buying from Zillow – can experience an even simpler real estate transaction if they decide to get financing from Zillow’s affiliate lender, Zillow Home Loans to purchase their next home. Homeowners using Zillow Offers to sell their home can apply to get pre-approved for a mortgage through Zillow Home Loans, giving them the certainty to be able to sell their existing home and shop for a new home simultaneously.

Buyers who purchase a Zillow-owned home have the confidence of moving into a home that’s been professionally renovated, refreshed and is move-in ready.

Zillow Offers first launched in Phoenix last April and is currently available for home sellers in Las Vegas, Atlanta, Denver, Charlotte, Raleigh, Houston, Riverside, Dallas, Minneapolis and Orlando. Zillow also has plans to launch in Austin, Los Angeles, Miami, Nashville, Sacramento, San Antonio, San Diego and Tampa, by the end of the first quarter of 2020, bringing the total number of planned Zillow Offers markets to at least 20.

In each market where Zillow Offers is currently available, Zillow works with local agents and brokers on every transaction. Zillow pays a commission to local real estate agents when it buys and sells a home, and agents remain at the center of every Zillow Offers transaction. A local Portland broker will represent Zillow in each transaction.

The Zillow Offers program also provides local brokerages and Premier Agents the opportunity to acquire new for-sale listings by connecting them with motivated sellers who have taken a direct action to sell their home. Sellers who request a Zillow Offer, but decide to instead sell their house traditionally with an agent or do not receive a Zillow Offer, may be connected with a local brokerage or Zillow Premier Agent to support their needs.

As of May, more than 100,000 homeowners across the country have requested a no-obligation cash offer from Zillow to buy their home – equal to a request for an offer every two minutes.

[Source: Zillow press release]

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Zillow and Zillow Offers are registered trademarks of Zillow, Inc.

OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Oregon Real Estate Transaction Law for Domestic Well Water Testing

The seller of the real estate shall, upon accepting an offer to purchase that real estate, have the well tested.

By Jeff Sorg, OnlineEd Blog

(June 28, 2019)

(PORTLAND, Ore.) OnlineEd – Oregon requires testing of domestic well water during a real estate transaction. This requirement is often referred to as the Real Estate Transaction Law or RET. The law says:

“In any transaction for the sale or exchange of real estate that includes a well that supplies groundwater for domestic purposes, the seller of the real estate shall, upon accepting an offer to purchase that real estate, have the well tested for arsenic, nitrates and total coliform bacteria. The Oregon Health Authority also may, by rule, require additional tests for specific contaminants in specific areas of public health concern.  The seller shall submit the results of the tests required under this section to the authority and to the buyer within 90 days of receiving the results of the tests.”

In Oregon, the seller is responsible for testing domestic well water but can designate their attorney, real estate broker, the laboratory person conducting the water testing, or a private party to assist them with water testing and reporting requirements. The seller must notify the potential buyer of the testing results within 90 days. While the lab tests required cannot be waived even if the buyer agrees not to have the well tested, if the seller fails to comply with the rule, then this does not invalidate any of the documents needed to complete the sale of the real estate.

Samples must be drawn from the source before any form of water treatment and may be collected after treatment injection points where water treatment has been bypassed or disabled. Registered Sanitarians, certified water system operators, well drillers, pump installers, and lab technicians are qualified to collect samples for testing by accredited laboratories. Only laboratories accredited by the Oregon Environmental Laboratory Accreditation Program can conduct water tests.

If the well is not on the property being sold, but the seller is selling an interest to a well on adjacent property, including an easement, that interest would be considered part of the real property. Capped domestic wells on unimproved lots are NOT required to be tested, but wells that are dug, drilled or driven and supply groundwater for domestic purposes must be tested.

For more information on domestic well safety and sample collection, visit the Oregon Health Authority, Oregon Drinking Water Services.

Oregon rules for testing domestic wells are found in OAR 333-015-0305 through 333-015-0335.

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Risk Anticipation Practices for the Real Estate Broker

It is essential for the broker to develop strategies to recognize and avoid problems that might occur instead of dealing with them after they occur.

By Jeff Sorg, OnlineEd Blog

(June 27, 2019)

(PORTLAND, Ore.) OnlineEd – Risk anticipation for the real estate broker relies on the ability to identify problems that might eventually happen with a client or transaction. It’s essential for the broker to establish some strategies early on in their career to help recognize and avoid problems that might occur, instead of trying to deal with them after they occur.

Some examples of risk anticipation and strategies to prevent risk are:

  • documentation and recordkeeping;
  • disclosures;
  • disclaimers; and
  • documentation of information provided to and from the client.

Documentation and Recordkeeping

Good recordkeeping and transaction documentation practices are essential to managing and minimizing risk. When a problem does develop with a transaction, the broker will likely be asked to explain which actions were or were not taken to either cause or correct the problem, as well as to justify their actions.

As time passes, detailed memories about a transaction or event can become unreliable — or sometimes be altogether forgotten. Having written observations created at the time an event occurred will mostly be regarded as reliable evidence. In fact, in the case of litigation, contemporaneous memoranda are often accepted as an accurate record of events.

DEFINITION: Contemporaneous memorandum or documentation – a note written at the time of an event and stored in the transaction or client file.

Brokers should keep a file for each transaction or significant client event. Because it is difficult to anticipate problems that might arise in the future, proper documentation of any action taken at the time an event happens is always an excellent first line of defense against liability.

Here are some suggestions for real estate brokers to develop defensive recordkeeping practices and procedures:

  • Document all sources of information received.
  • Keep a phone log that summarizes all business calls.
  • Save all email and text communications.
  • Keep a complete transaction file that includes documentation of disclosures and disclaimers.
  • Keep dated records of the types of housing each prospective buyer asked to view, the kinds of housing options offered (manufactured, single family, condominiums, etc.), and other services provided.
  • Send the seller written updates about property showing activity and the feedback.
  • Indicate on each correspondence who is receiving copies.
  • Use confirmation letters to shift the burden of responsibility to the other party (“put the ball in their court”).

Disclosures – Be aware of and make all of your required disclosures promptly. These disclosures include the agency disclosure, conflicts of interest disclosure, seller’s property disclosure, environmental hazards disclosure, and others required by local law.

Disclaimers – While qualified to advise clients about selling and buying real estate, matters sometimes arise that will be outside of your area of expertise or beyond the scope of your real estate license. In these cases, you will want to use a written disclaimer to advise the client to seek the advice of a competent professional or service.

Documenting Information Provided To of From a Seller or Buyer – Your client might provide you with certain information or documents. Documents and information given to you by the client should be kept in your client file for future verification of the information or documents. You should also maintain a record of who asks for these verifications.

Risk Control – As soon as a liability issue is identified, steps should be taken to control it. Of primary importance is dealing with any complaint before it turns into litigation. Dealing with the complaint often means simple communication with the complaining party to try to minimize the issue or let them know you might be able to find an acceptable solution to the concern. Usually, failure to handle a complaint in its early stages will allow it to take on a life of its own. Quickly dealing with a complaint can prevent the complaining party from becoming angry and uncooperative, so be sure to address complaints promptly and before any opportunity for settlement becomes unlikely. Risk control means addressing an issue when it first arises by attempting to find an agreeable solution as soon as possible. While a solution or settlement may seem expensive, a settlement made where liability is likely to exist can be cheaper than litigation. Even if you win the litigation, your legal fees and costs to achieve the win will usually exceed a settlement amount agreed to before the litigation.

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Categories: Real Estate

OnlineEd Launches Free Oregon Real Estate Forms Course on Seller Carried Financing

Join OREF Forms Committee legal counsel, Alan Brickley, as he goes in-depth to explain seller carried financing issues. 

By Jeff Sorg, OnlineEd Blog

(June 25, 2019)

(PORTLAND, Ore.) OnlineEd – OnlineEd, Inc. and Oregon Real Estate Forms, LLC (OREF) have launched a new mid-year OREF course called Seller Carry Issues.

Course presenter, Alan Brickley, served as counsel with First American Title Insurance Company and has more than 50 years experience in working with title insurance and real estate law. He has also taught at Clackamas Community College, Lewis & Clark College, Northwestern College of Law, and Willamette University Law School and was an adjunct professor at Marylhurst University and Portland State University. Alan is the former mayor of West Linn (1974 to 1982) and member of the City Club of Portland where he has served on the Board of Governors and Chair of the research board. He is a frequent lecturer on real estate related issues for the Oregon State Bar, the Oregon Law Institute, the Mortgage Lending Education Board and other organizations.
Brickley starts this video course with the definition of seller carried transactions and explains the different ways to structure and secure seller financing. The second part of this course continues on to list various default and foreclosure remedies, identify how to mitigate payment risk for the buyer, what a broker can do without involving a lender or lawyer, and how the broker’s responsibilities will vary depending on which side of the transaction they represent.
Seller Carry Issues is approved by Oregon Real Estate Agency Continuing Education Provider, OnlineEd, for 1-hour of continuing education credit for real estate license renewal. The free course can be found as a standalone course here or bundled in the free OREF 4-credit hour package in the OnlineEd Oregon Real Estate CE Catalog.
OnlineEd, Inc. and OREF, LLC. have worked together since 2014 to bring free courses about various OREF forms as a public service to the Oregon real estate and legal community. To find out more about OREF, LLC. or to subscribe to their forms catalog, please visit their website:  https://orefonline.com/.

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Oregon Real Estate Forms, LLC was formed in 1997 by the Oregon Association of Realtors®, the Eugene Association of Realtors® and the Portland Metropolitan Association of Realtors®. The company is professionally managed by a staff of three in concert with a Board of Managers and a Forms Committee who are Realtors® appointed by each Association owner. OREF prepares and licenses high-quality real estate transaction and advisory forms created by legal and industry professionals.

OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

U.S. Home Values Fall for the Second Straight Month

Home values grew 5.4% annually, down from 7.5% annual growth a year earlier

OnlineEd Blog

(June 25, 2019)

SEATTLE, June 25, 2019 /PRNewswire/ — U.S. home values dropped for the second month in a row, according to the May Zillow® Real Estate Market Reporti.

The typical U.S. home is worth $226,800, down 0.1% from a month earlier. Home values also fell in April, ending a streak of 85 consecutive months of gains that added $78,500 in value to the median home. This trend held in 32 of the 35 largest markets in the U.S. – home values rose in St. Louis and Phoenix, and remained flat in Riverside.

Year-over-year appreciation, while still strong compared to historic levels, has slowed in each of the past five months, falling to 5.4% growth in May. A year ago, home values grew 7.5% annually. Indianapolis and Cincinnati are the only markets that have accelerated from last May, while San Jose, Calif., remains the lone market to have turned negative year-over-year, falling 5.7%.

“Stepping back to think about housing over the long haul, the current slowdown in home value appreciation is expected and comforting,” said Zillow Director of Economic Research Skylar Olsen. “While the slowdown has been arguably abrupt, the soft declines over the past two months should not cause too much alarm. The aggressive pace of home values over the past several years was known to be unsustainable. Buyers simply couldn’t afford it, so prices are correcting. The expectation here is that we are steadily returning to normalcy—something U.S. housing hasn’t seen in two decades—and that will mean continued, but ever more moderate, volatility. The significant drop in mortgage rates, as well as renewed rent growth, may help return U.S. housing values to positive appreciation earlier than otherwise.”

While home value growth has slowed, rent prices are accelerating. The median monthly rent in the U.S. grew for the seventh month in a row, rising 2.7% to $1,479. Rents are growing faster now than a year ago in 28 of the top 35 markets, led by Las Vegas at 8.9%.

Inventory fell 0.5% year-over-year in the U.S., the third straight month of declines after inventory rose in January and February. The most significant drop was in Kansas City, which saw 27.8% fewer homes for sale than this time last year. Inventory growth was largest in Las Vegas and San Jose, both of which among the markets where home value growth has slowed the most in the past year.

Mortgage rates listed on Zillow continued to fall in May. Rates ended the month at 3.87%, down 14 basis points from May 1 and 88 basis points from a peak of 4.75% in November 2018. Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.

Metropolitan Area Zillow Home
Value Index,
May 2019
ZHVI
Month-
over-
Month
Change
ZHVI Year-
over-Year
Change
Zillow Rent
Index, May
2019
ZRI
Year-
over-
Year
Change
Inventory
Year-over-
Year
Change
United States $226,800 -0.1% 5.4% $1,479 2.7% -0.5%
New York, NY $442,800 -0.2% 3.8% $2,413 1.5% 5.1%
Los Angeles-Long Beach-Anaheim, CA $649,700 -0.2% 1.1% $2,835 3.1% 16.2%
Chicago, IL $225,700 -0.3% 2.6% $1,703 4.0% 5.8%
Dallas-Fort Worth, TX $242,600 -0.5% 6.3% $1,651 3.5% 11.0%
Philadelphia, PA $232,400 -0.4% 2.4% $1,611 2.7% -10.9%
Houston, TX $205,200 -0.2% 3.7% $1,586 2.3% 4.4%
Washington, DC $407,500 -0.2% 2.2% $2,179 2.3% -24.8%
Miami-Fort Lauderdale, FL $282,500 -0.5% 4.0% $1,934 3.8% 5.3%
Atlanta, GA $219,200 -0.4% 8.3% $1,462 5.0% 11.1%
Boston, MA $464,200 -0.6% 3.2% $2,415 2.4% 13.4%
San Francisco, CA $944,200 -0.4% 0.6% $3,458 1.8% 21.4%
Detroit, MI $162,300 -0.2% 6.1% $1,229 2.8% 14.7%
Riverside, CA $370,800 0.0% 4.4% $2,004 5.8% 2.7%
Phoenix, AZ $266,900 0.0% 5.5% $1,464 7.2% 0.9%
Seattle, WA $490,300 -0.5% 1.2% $2,245 3.0% 23.9%
Minneapolis-St Paul, MN $271,200 -0.1% 4.8% $1,706 4.3% 1.5%
San Diego, CA $591,000 0.0% 1.2% $2,660 4.6% 11.5%
St. Louis, MO $166,900 0.1% 3.8% $1,163 2.1% -12.8%
Tampa, FL $214,500 -0.3% 5.6% $1,454 4.9% 7.2%
Baltimore, MD $267,500 -0.3% 1.4% $1,751 0.7% -12.2%
Denver, CO $408,000 -0.3% 3.2% $2,126 3.7% 25.0%
Pittsburgh, PA $142,800 -0.5% 2.0% $1,105 2.4% -13.2%
Portland, OR $396,800 -0.3% 2.5% $1,883 2.6% 4.0%
Charlotte, NC $209,000 0.0% 8.1% $1,352 4.6% 8.9%
Sacramento, CA $411,800 -0.1% 3.6% $1,927 4.6% -0.4%
San Antonio, TX $194,000 -0.1% 5.1% $1,381 3.4% 17.5%
Orlando, FL $240,100 -0.2% 7.2% $1,543 6.8% 6.5%
Cincinnati, OH $170,100 -0.4% 6.9% $1,305 2.3% -5.4%
Cleveland, OH $145,800 -0.5% 4.1% $1,171 2.7% -3.6%
Kansas City, MO $191,900 -0.4% 6.4% $1,303 2.9% -27.8%
Las Vegas, NV $279,300 -0.4% 7.5% $1,418 8.9% 41.8%
Columbus, OH $192,300 -0.3% 6.8% $1,374 3.1% -3.1%
Indianapolis, IN $166,300 -0.3% 9.8% $1,239 3.5% N/A
San Jose, CA $1,176,200 -1.4% -5.7% $3,583 2.4% 40.6%
Austin, TX $311,200 -0.1% 5.3% $1,724 2.6% -4.3%

Source: Zillow press release

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Categories: Real Estate

What To Do If You Think Your Home Has Lead-Based Paint

Download the Current EPA Pamphlet, “Protect Your Family From Lead in Your Home”

By Jeff Sorg, OnlineEd Blog

(June 13, 2019)

(PORTLAND, Ore.) OnlineEd -If you think your home has lead-based paint, never try to remove it yourself and always keep painted surfaces in good condition to minimize deterioration. These are some other steps to follow:

  • Get your home checked for lead hazards. Find a certified inspector or risk assessor at epa.gov/lead.
  • Talk to your landlord about fixing surfaces with peeling or chipping paint.
  • Regularly clean floors, window sills, and other surfaces.
  • Take precautions to avoid exposure to lead dust when remodeling.
  • When renovating, repairing, or painting, hire only EPA- or state-approved Lead-Safe certified renovation firms.
  • Before buying, renting, or renovating your home, have it checked for lead-based paint.
  • Consult your health care provider about testing your children for lead. Your pediatrician can check for lead with a simple blood test.
  • Wash children’s hands, bottles, pacifiers, and toys often.
  • Make sure children avoid fatty (or high fat) foods and eat nutritious meals high in iron and calcium.
  • Remove shoes or wipe soil off shoes before entering your house.

Sellers and landlords must disclose known information on lead-based paint or lead-based paint hazards before selling or leasing a house built before 1978 and real estate sales contracts and lease agreements must include a specific warning statement about lead-based paint. By law, buyers and renters are given up to 10 days to check for lead before finalizing their decision to buy or rent.

In general, the older your home or childcare facility, the more likely it has lead-based paint. Many homes, including private, federally-assisted, federally-owned housing, and childcare facilities built before 1978 have lead-based paint. In 1978, the federal government banned consumer uses of lead-containing paint.

Click here to download the printer-friendly EPA Pamphlet Protect Your Family From Lead in Your Home {free}

Click here to visit the EPA web site for more information about lead.

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Media Repeats False Information About Commissions

Are real estate boards losing the PR war against claims that internet brokerages charge less than “traditional brokerages?”

By Jeff Sorg, OnlineEd Blog

(June 10, 2019)

(PORTLAND, Ore.) OnlineEd – This is an enlightening video post from Frank and Brian over at The National Real Estate Post.  Watch the video and then download their real examples of closing statements to see how fees are represented to seem less than charged by traditional brokerages.

[Reposted with permission] Subscribe/Watch at their site: https://thenationalrealestatepost.com/

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Categories: Mortgage, Real Estate

Freedom Mortgage Corp. to Pay $1.75 Million Penalty

CFPB settles with Freedom Mortgage Corporation

By Jeff Sorg, OnlineEd Blog

(June 5, 2019)

(WASHINGTON, D.C.) CFPB – The Consumer Financial Protection Bureau (Bureau) today announced a settlement with Freedom Mortgage Corporation (Freedom), one of the ten largest Home Mortgage Disclosure Act (HMDA) reporters nationwide.

Freedom is a mortgage lender with its principal place of business in Mount Laurel, N.J. For each year from 2013 through 2016, it originated more than 50,000 home-purchase loans, including refinancings of home-purchase loans. Freedom is required to collect, record, and report data on HMDA-covered transactions to comply with HMDA and Regulation C.

According to the consent order, the Bureau found that Freedom violated HMDA and Regulation C by submitting mortgage-loan data for 2014 to 2017 that contained errors. The Bureau found that Freedom reported inaccurate race, ethnicity, and sex information and that much of Freedom’s loan officers’ recording of this incorrect information was intentional. For example, certain loan officers were told by managers or other loan officers that, when applicants did not provide their race or ethnicity, they should select non-Hispanic white regardless of whether that was accurate.

Under the terms of the consent order, Freedom must pay a civil money penalty of $1.75 million and take steps to improve its compliance management to prevent future violations.

Read the consent order with all the details: https://files.consumerfinance.gov/f/documents/cfpb_freedom-mortgage-corporation_stipulation_2019-06.pdf

[source: CFPB press release]

 

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

First American Title/Financial Corp. May Have Leaked 885 Million Customer Records

Title company faces class action lawsuit for its apparent negligence

By Jeff Sorg, OnlineEd Blog

(May 29, 2019)

A class-action lawsuit is already filed in California after Brian Krebs, a cybersecurity expert, reported 885 million First American files were available without authentication to anyone with a web browser. The data allegedly included bank account numbers, social security numbers, and financial and tax records.

First American was ultimately notified by Brian Krebs of KrebsOnSecurity, who was contacted by a real estate developer in Washington state who said he’d had little luck getting a response from the company when told by him that a portion of its Web site (firstam.com) was leaking tens if not hundreds of millions of records. He said anyone who knew the URL for a valid document at the Web site could view other documents just by modifying a single digit in the link. Brian Krebs posted on his web site, “KrebsOnSecurity confirmed the real estate developer’s findings, which indicate that First American’s Web site exposed approximately 885 million files, the earliest dating back more than 16 years. No authentication was required to read the documents.” *

In their complaint**, Gibbs Law Group alleges, “First American made it incredibly easy for the public to access this private information by failing to implement even rudimentary security measures. Suppose that you are a First American customer. The company provides you with a URL to access your documents on its website. That URL might end in “DocumentID= 000000075.” Now suppose you want to access someone else’s personal file. Type the same URL but alter the Document ID number by one digit—say, “DocumentID=000000076”—and someone else’s personal file will appear. Change the numbers again (and again), and you will reveal still more personal files.”

* Read the entire Brian Krebs posting available on his website here: https://krebsonsecurity.com/2019/05/first-american-financial-corp-leaked-hundreds-of-millions-of-title-insurance-records/

** Class action lawsuit Gritz v. First American Financial Corp., 19-cv-01009, U.S. District Court, Central District of California (Santa Ana).

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All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark.