Iowa Property Owners Alliance

Mortgage Settlement Provides Debt Reduction and Refinancing Options for Homeowners

IPOA Staff — Fri, 10 Feb 2012 17:05:45 +0000

Iowa property owners are estimated to receive approximately $40 million from a large mortgage settlement involving 5 banks and negotiated by 49 states attorneys and the federal government. Specifically, Iowa’s share of this settlement breaks down like this:

Iowa borrowers will receive an estimated $5,899,449 in benefits from loan term changes
Iowa borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and encountered servicing abuse would qualify for $7,402,512 in payments to borrowers
The value of refinanced loans to Iowa’s underwater borrowers would be an estimated $11,602,880
The state will receive a direct payment of $15,330,480

Unfortunately, the complexity of the mortgage market and the huge scope of the settlement means that borrowers will not immediately know if they qualify for payments or loan modifications. Additionally, banks have up to 3 years to implement the terms of the settlment into their systems and processes.

As of Feburary 10, the settlement included the following banks:

Ally: 1-800-766-4622
Bank of America: 1-877-488-7814
Citi: 1-866-272-4749
Chase: 1-866-372-6901
Wells Fargo: 1-800-288-3212

Iowa Mortgage Help Hotline: 877-622-4866

Loans held by other banks or by Fannie Mae and Freddie Mac are not currently part of the settlement. However, the federal government is working on a settlement with additional banks, so it is likely that the list of included banks will grow in the next several months.

A number of resources are available for Iowans seeking more information on this settlement:

Sources: Iowa Attorney General, National Mortgage Settlement Website

Key 2012 Legislative Session Dates

IPOA Staff — Fri, 10 Feb 2012 16:38:19 +0000

Iowa legislators stick to a schedule in order to help give new legislation a fair shot at being heard while making sure that ideas that aren’t well-supported don’t live on forever. This schedule is important because bills that don’t make it through the “funnel” are most likely dead for the legislative session.

The following are key dates for the 2012 legislative session.

February 24, 2012: First funnel deadline – This is the date that House bills need to be reported out of the House committees and Senate bills out of Senate committees.

March 16, 2012: Second funnel deadline – This is the date that House bills need to be reported back out of House committees and Senate bills reported back out of Senate committees.

April 17, 2012: Tentative scheduled adjournment date for the 2012 legislative session (100th calendar day of the session)

Iowa Legislators are Back to Work: Expected Issues include Property Taxes, Mental Health Reform, and Education Reform

IPOA Staff — Mon, 09 Jan 2012 17:00:52 +0000

Today (January 9) marks the start of the 2012 Iowa Legislative Session.

As we have reported previously, property tax reform promises to be one of several key issues discussed during this year’s session. Governor Branstad has publicly stated his intention to make property tax reform a key piece of legislation this year, and the governor’s staff has been working on drafting legislation that could change how property taxes are assessed across residential and commercial property classes. Specifically, the goal of the legislation is to reduce the property tax burden on Iowa businesses, with the belief that lower property taxes will make the business climate more favorable in Iowa, thereby helping businesses to grow and add jobs. Concerns remain about how property tax changes will affect residential property owners, as residential property owners likely do not want to be on the hook financially for any commercial property tax reductions. Cities and local governments will also be watching closely to make sure their property tax revenues are not changed significantly. So there are many interested players in property tax reform, and all will be watching and working to make sure their respective interests are considered in any legislation. We will be watching as well and let you know how the various legislative proposals shape up as the legislative session progresses.

According to the Des Moines Register, legislators will also be considering changes to Iowa’s mental health system – in particular how services are provided in each of Iowa’s 99 counties. Additionally, some legislators have made education reform a priority for 2012. What “education reform” means specifically is yet to be determined…

Remember to Like us on Facebook or join our email newsletter list to stay updated on the latest legislative happenings as they relate to property issues.

Federal Bill Increases Cost of New Mortgages and Refinancing

IPOA Staff — Sat, 17 Dec 2011 22:49:42 +0000

The U.S. House and Senate have been at odds recently on whether a payroll tax cut and unemployment benefits should be extended and how to best pay for the associated costs. So how does this impact housing and property ownership? The Senate has devised a bill that extends the payroll tax cut and some unemployment benefits, while paying for these programs by increasing the fees on some mortgages and refinancings.

Fannie Mae and Freddie Mac are government-backed entities that (among other activities) insure lenders against the risk of making home loans to consumers. Because private insurers have been reluctant to insure mortgages in recent years, Fannie and Freddie now insure roughly 9 in 10 new mortgages in the U.S. The Senate bill increases the fees that Fannie and Freddie charge to insure mortgages, meaning that a homeowner who purchases a $200,000 home would pay approximately $17 more in fees. However, at the same time a worker earning $50,000 per year could expect a decrease of $165 in payroll taxes over the 2 month extension of the payroll tax cut.

While this is a small increase, the total revenue expected from these fees is calculated at $33 billion over the life of the programs (a 2-month extension of payroll tax cuts and longer extension of unemployment and Medicare programs). It is somewhat puzzling that legislators would target housing as an industry to pay for other tax relief, given the recent industry struggles with foreclosures. However, some commentators speculate that this action was intended to raise Fannie and Freddie’s fees in an attempt to lure private insurers back into the market.

Source: Washington Post

Realtors Report that Home Sales Across Iowa Increased in November

IPOA Staff — Fri, 16 Dec 2011 16:40:34 +0000

CLIVE, IOWA (Dec. 15, 2011) – According to the Iowa Association of Realtors® (IAR), Iowa home sales were up again in November, marking it the fourth month in a row with an increase in number of sales.

IAR’s 2011 November Housing Trends Report indicates the number of home sales in November increased by 12.2 percent, with 261 more sales last month than November of 2010. IAR reports 2,395 homes sold/closed in November 2011, while 2,134 homes sold/closed in November 2010.

Prices last month were very comparable to last year, down a mere 0.6 percent or $900 from November 2010. The average sale price across the state in November 2011 was $138,804, while the average sale price in November 2010 was $139,704.

IAR also reports the statewide inventory at the end of the month was 21,431, which includes 3,112 new active residential listings. The average days on the market in November was 109 days, up 3 days or 2.8 percent from November 2010 when the average was 106 days.

“Market activity typically slows a bit at this time of the year, as people are busy preparing for and celebrating the holidays,” says Dale Gross, president of the Iowa Association of Realtors®. “In light of this annual trend, it’s great to see a continual flow of increased activity here in Iowa. Iowans must be taking advantage of the low mortgage interest rates and good supply of homes currently available.”

Twenty-seven of the 44 local boards across Iowa reported increases in the number of sales and 27 boards reported increases in average sale price from November 2010. Seventeen boards showed a decrease in the average number of days on the market.

The IAR releases a Housing Trends Report each month. Data is collected from local Realtor® boards through their multiple listing service (MLS), which tracks sales activities in the board area. The IAR compiles all of the local board data into the statewide report each month. The information used to create the November 2011 Housing Trends Report was current as of December 12 at 1:00 p.m. The information is subject to change due to the dynamic nature of the IAR’s housing statistics system, which is updated hourly based on information present in local participating MLS (multiple listing service) systems. Reports are available online to IAR members and affiliates with a login and password. Anyone is eligible to become an IAR affiliate. For membership information, visit www.iowarealtors.com.

All real estate is local and each market is unique. IAR encourages interested buyers and sellers to contact a local Realtor® for more information on the market in their community. Realtors® are the number one voice for real estate and defenders of home ownership. To find a local Realtor® visit SeeIowaHomes.com. The term Realtor® is a registered trademark, which identifies real estate professionals who follow a strict code of ethics as members of the National Association of Realtors®(NAR). The Iowa Association of Realtors® is the state’s largest real estate professional organization representing more than 7,000 members and affiliates.

Source: Iowa Association of REALTORS®

New Property Tax Proposals Taking Shape

IPOA Staff — Thu, 15 Dec 2011 21:44:54 +0000

The 2012 legislative session is just a few weeks away, but already proposals on how to best modify Iowa’s current property tax structure are starting to take shape. The focus has been on providing commericial property tax relief, which legislators say will make Iowa a more attractive place to do business, thereby helping businesses to add jobs. The key questions seem to be which businesses should qualify for property tax relief (small Iowa businesses or all businesses – even large out-of-state companies), and how to pay for commerical property tax relief. Most proposals involve some adjustment in how property taxes are split among residential, commerical, and agricultural property types. Of course, nobody wants to pay more or receive less in tax revenue, including the state, local/city governments, and property owners. So the debate continues for now.

Here is a look at what some legislators proposed recently. We’ll keep you updated as this issue continues to develop.

Where the Jobs will be in 2012

IPOA Staff — Wed, 14 Dec 2011 15:19:32 +0000

Good news! A recent study cited by Forbes Magazine says that 14% of employers in the Des Moines, Iowa area expect to add jobs in 2012. This places Des Moines third nationally among metro areas in terms of employers that plan to add jobs in 2012.

Read the full article here http://www.forbes.com/sites/susanadams/2011/12/13/where-the-jobs-will-and-wont-be-in-2012/

Iowa Finance Authority Offering Down Payment Assistance

IPOA Staff — Fri, 18 Nov 2011 19:58:46 +0000

Down payment assistance of up to $3,500 is now available for a limited time to eligible home buyers who purchase their homes using the Iowa Finance Authority’s FirstHome and FirstHome Plus program through the end of the year, an increase of $1,000 above the normal amount of $2,500. The Iowa Finance Authority is a self-supporting agency.

“Affordable homeownership translates to safe and affordable homes for Iowa’s workforce, builds strong neighborhoods, vibrant communities, and ultimately a thriving economy,” said Iowa Governor Terry Branstad.

“One of the biggest barriers facing Iowa home buyers is coming up with the cash for down payment assistance,” said Iowa Lt. Governor Kim Reynolds. The Iowa Finance Authority has recognized that need and has implemented this $1,000 bonus for a limited time to help home buyers realize their dream of homeownership.”

The FirstHome Plus program provides a grant for down payment and closing costs. The amount of the FirstHome Plus grant has been increased from up to $2,500 to up to $3,500 for loan applications completed before December 31 only. The FirstHome Plus grant must be used in conjunction with the Iowa Finance Authority’s FirstHome program mortgage.

The FirstHome program is an affordable mortgage financing program for Iowa home buyers. The Iowa Finance Authority issues tax-exempt mortgage revenue bonds to fund the program. The interest rate is always fixed for up to 30 years and the loan may be conventional or backed by the federal government.

Home buyers purchasing a home in targeted census tracts in Ames, Davenport, Des Moines, Dubuque, Fort Dodge, Iowa City, Sioux City, or Waterloo may be first-time or repeat home buyers to use the program. The home buyer must meet federal income limits by county and the home purchase price must be below $289,000.

In all other parts of the state, eligible home buyers must meet the federal income limits for their county, the purchase price of the home may be no more than $247,000 and the buyer must be a first-time home buyer or a Veteran within 25 years of active duty and not have used a mortgage revenue bond program to purchase a home in the past to be eligible. Home buyers can apply for the FirstHome and FirstHome Plus programs by contacting one of more than 400 participating lender locations throughout the state. A listing of Participating Lenders as well as eligibility criteria can be found using an interactive quick check eligibility tool available at: IowaFinanceAuthority.gov/homebuyertool.

Source: The Iowa Finance Authority.

Winterize Your Home for Energy Savings and Comfort

IPOA Staff — Tue, 27 Sep 2011 15:15:29 +0000

Check Windows and Doors for Air Leaks

The U.S. Department of energy provides the following steps to check your home for air leakage:

Turn off your furnace on a cool, very windy day
Shut all windows and doors
Turn on all exhaust fans that blow air outside, such as bathroom or stove vents
Light an incense stick and pass it around the edges of common leak sites.
Wherever the smoke is sucked out of or blown into the room, there is a draft

Use Weatherstripping to Stop Air Leaks

After you have identified air leaks, use weatherstripping to seal the gaps. There are several types of weatherstripping available depending on the level of desired durability and cost:

Foam – inexpensive and easy to apply, must be compressed to effectively seal air leaks; not particularly durable in high-traffic areas
Vinyl rubber – slightly more expensive than foam, but with a better seal; withstands moisture better than foam
Bronze or aluminum – extremely durable, but more expensive
Magnetic – used on doors as an extremely effective sea

Weatherstripping should typically be applied in temperatures above 20 degrees Fahrenheit. Some adhesive type weatherstripping should be applied only when the temperature is above 50 degrees Fahrenheit.

Outlets and light switches on exterior walls can also be a source of air leakage. Most hardware stores sell foam inserts that can be placed behind the outlet or switch plate to provide some protection against air leakage.

Don’t forget to caulk and seal outside around doors, windows, outdoor faucets and outlets.

Assess your Home’s Ventilation Needs

It is important that your home receive some ventilation, either through the natural inflow of air through cracks, small holes, vents, etc. or through a home ventilation system. Most older homes provide sufficient natural ventilation. However, if you have a newer home, or if you have renovated an older home and have an exceptionally tightly sealed home, you may need to install a fan or other ventiation system to provide proper air flow in your home. The U.S. Department of Energy has resources available to assess your home’s ventilation needs at this website.

Fall Maintenance Checklist

Check batteries in smoke detectors and carbon monoxide detectors
Check your furnace filter monthly
Schedule a furnace checkup and cleaning
Vacuum dust from baseboard heaters, duct vents, and cold-air return vents
Check outdoor exhaust vents for bathroom fans, kitchen fans, furnace, and hot water heater to be sure they are clear of obstruction
Clean your gutters
Paint exposed wood surfaces to prevent water damage
Prune trees and bushes after leaves drop
Replace window screens with storm windows; lock windows to ensure a tight seal
Remove or cover window air conditioning units
Verify there is no standing water in central air-conditioning units; central air conditioning units do not have to be covered
Disconnect and store outdoor hoses
Winterize landscaping, store outdoor furniture, protect young trees or bushes

Sources:
HouseLogic.com, Canada Mortgage and Housing Corporation, U.S. Department of Energy

Mortgage Interest Deduction Debate Continues

IPOA Staff — Fri, 23 Sep 2011 19:54:36 +0000

As you may know, the debate continues over the mortgage interest deduction (MID). Some legislators want to eliminate the MID in efforts to reduce the deficit. However, many others believe the MID is vital to the stability of the American housing market and economy.

The ability to deduct the interest paid on a mortgage can mean significant savings at tax time for many Iowans and Americans. For example, a family who bought a home this year with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file next year.

According to the National Association of REALTORS®, the MID benefits primarily middle and lower income families. Almost two-thirds of those who claim the MID are middle-income earners, and 65 percent of families who claim the MID earn less than $100,000 per year.

The bottom line is, issues like the mortgage interest deduction don’t just affect people who own a home – they affect everyone as home ownership shapes communities and strengthens the economy. Public policies that support home ownership help families in our communities achieve their dreams of home ownership. If this issue is important to you, contact your legislator today. For more information, visit HouseLogic.com.

Sources: National Association of Realtors®, Iowa Association of Realtors®, Houselogic.com