Canyon Lake Real Estate Trends Issue CL02 | Page 2

Real Estate Trends Newsletter BROUGHT TO YOU BY JUSTIN BEVINS Canyon Lake Market Report Want to stay on top of the market? You can have our 4 page extended report delivered automatically to your email inbox every week for free. Sign up at Real Estate Trends Newsletter New Mortgage Rules (...continued from cover) In remarks last year to the American Bankers Association, CFPB Director Richard Cordray noted that the agency had published detailed examination procedures for the rules six months before they were to take effect so that no one would be caught by surprise. “Let me also assure you that our oversight of the new mortgage rules in the early months will be sensitive to the progress made by institutions that have been squarely focused on making good-faith efforts to come into substantial compliance on time,” he told the bankers. Ron Haynie, senior vice president for mortgage finance policy at the Independent Community Bankers of America, says the regulations could have a chilling effect on lending. “Lenders are going to be cautious,” he said. “What if you just make an honest mistake? I mean, my God, what’s going to happen?” Haynie said the uncertainty caused by the rules will “definitely dampen” the housing market. The new rules, which went into effect on January 10th, are aimed at making the mortgage industry safer by ensuring borrowers only receive loans they can afford. Under the regulations, banks assess the ability of borrowers to repay their loans by verifying several factors, including credit history, assets, income and debt. A mortgage cannot push a borrower’s total debt load past 43 percent of income. “Millions of Americans lost their homes during the past recession because of reckless lending practices,” said Norma Garcia, manager of the financial services team at Consumers Union. “These new rules will help promote more responsible lending and borrowing and ultimately benefit both homeowners and the economy.” “But the market still faces some hurdles from tight lending and the possibility of rising mortgage rates, which remain around historic lows.” Joe Ventrone, the vice president for regulatory and industry relations at the National Association of Realtors, predicted it would take about six months before it will be known whether the mortgage rules have problems. He said there would probably be changes that should clarify some provisions, especially on mortgage points and fees, which will need a legislative fix. So far, the CFPB has shown that “it is flexible and amenable to making mid-course corrections,” Ventrone said. David Stevens, head of the Mortgage Bankers Association, said that the elimination of bad practices in the industry, such as no-document and no-interest loans, has erased 95 percent of all default risk in the market. With those loans gone, he predicted the CFPB would eventually realize that the 43 percent debt-to-income ratio requirement simply isn’t needed. Home Sales Dec 16, 2013 - Jan 15 2014 Status Address Sold 30100 Sold 23086 Beds Baths Square Feet Year Built List Price Sold Price Date Closed DOM $ Per Square Foot Spray 2 2 1815 1975 $237,000.00 $238,000.00 12/18/2013 17 $131.13 Canyon Lake Dr 4 2 1592 1982 $255,000.00 $240,000.00 12/31/2013 87 $150.75 Sold 30190 Yellow Feather 3 3 1600 1983 $250,000.00 $250,000.00 12/23/2013 201 $156.25 Sold 24010 Outrigger 3 2 1598 1986 $279,900.00 $272,000.00 1/10/2014 104 $170.21 Sold 30290 Spray 3 2 2432 1979 $279,000.00 $273,500.00 1/6/2014 43 $112.46 Sold 29793 Fisherman 4 2 1703 1984 $319,000.00 $315,000.00 1/8/2014 38 $184.97 Sold 29883 Sloop 3 3 1700 1985 $320,000.00 $325,000.00 1/8/2014 64 $191.18 Sold 22206 Vacation 3 2 1803 1983 $339,000.00 $339,000.00 12/25/2013 72 $188.02 Sold 30044 Little Harbor 3 2 1500 1975 $350,000.00 $340,000.00 12/27/2013 33 $226.67 Sold 30725 Pyramid Point 3 3 2489 1979 $369,000.00 $361,000.00 1/14/2014 120 $145.04 Sold 22731 Running Rabbit 4 4 3058 2005 $489,900.00 $460,000.00 1/15/2014 28 $150.43 Sold 30296 Gulf Stream 4 3 2248 1985 $599,000.00 $599,000.00 1/8/2014 119 $266.46 23762 Continental 4 3 3290 1997 $725,000.00 $700,000.00 12/20/2013 124 $212.77 Sold Information compiled from various sources including Multiple Listing Service. All information is deemed accurate by not guaranteed. Agent makes now warranties about accuracy or completeness of data. Download updated market reports, neighborhood statistics, and even request a free market valuation for your home at Regulators argue that all but 5 percent of loans wouldn’t meet the debt-to-income requirement, but even that amount is causing concern for mortgage industry experts who fear shutting out a significant number of potential borrowers. On the whole, the CFPB expressed confidence that the housing market is ready for the new regulatory system. “We certainly will be monitoring the market as the rule goes into effect, but we feel good about where the rule is,” said Peter Carroll, the CFPB’s assistant director for mortgage markets. -Ben Goad contributed. Okay, I’m back. The good thing about all of the above is that for a good amount of lenders, like Wallick and Volk, this is nothing different than our day-to-day practices. We never really participated in the ‘out of the box’ or in newer terms ‘Non-Qualified Mortgage’ game. The guides set to measure a client’s ability to repay a loan, utilizing debt-to-income calculations, paying attention to risk/reward aspects, measurements and variables that go into a credit analysis and a credit decision, and a sprinkle of common sense, have never really been changed…..they have loosened or tightened up, but credit decisions/ approvals have always involved the basics……those will never go away: Income/debt analysis (capacity to pay loan), credit and collateral. -Dave MORE USEFUL REAL ESTATE INFO AT: WWW.BEVINSGROUP.COM It’s That Time Again... TAXES By Harold Newman T hat dreaded day is coming…. April 15th where everyone rushes to get their taxes filed. Or file an extension just to extend the time to file. I know that this is the last thing people want to talk about, but as the saying goes “There are only two things in life that you have to look forward to – Death and Taxes”. The good thing about real estate is that this is one deduction that can lower your tax in most cases. For Example; if you purchase a house in the year you can deduct the Origination fees, Mortgage Interest, Real Estate Taxes, and Mortgage Insurance Premium (MIP) for 2013. In 2014 we will still be able to deduct all the above, except for the MIP - that provision expires at 12/31/13 unless congress extends it. With these deductions you will be able to itemize and reduce your tax liability. “Have peace of mind - get your taxes done on time!!” Other items homeowners might be able to deduct are as follows: • DMV registration fees • Sale Taxes (If they are more than the Real Estate Taxes) • Cash and Non-cash Donations to Charities • Unreimbursed Employee Expenses • Gambling Losses (to the extent of winnings) – just to name a few.. There is also a new tax this year call the “Net Investment Tax” which will hit you at 3.8% of your investment earnings and kicks in if your income is in excess of $250,000 Married Filing jointly and $200,000 Single. With this new tax now in place make sure that you talk to your tax advisor and tax planning is a must. In closing, whomever you have preparing your taxes, make sure that they qualified to do so. Enrolled Agents are America’s Tax Experts. Enrolled Agents specialize in taxation and are the only federally licensed tax practitioners. -Harold Harold C. Newman EA,CTRS,ABA,ATA,ATP Newman Tax & Resolution Inc. 32605 Temecula Parkway Suite 312 T - 951.302.6499 F - 951.302.6875 “Maybe who we are isn’t so much about what we do, but rather what we’re capable of when we least expect it.” -Jodi Picoult (born 1966);Author Download updated market repo rts, neighborhood statistics, and even request a free market valuation for your home at