Dear CAR Member,
The introduction of the Loan Estimate and the Closing Disclosure forms is right around the corner. Beginning Aug. 1, 2015, the Good Faith Estimate (GFE), the HUD-1 and the Truth-in-Lending Act (TILA) disclosures will be replaced in most transactions by two new forms – the Loan Estimate and the Closing Disclosure. The Loan Estimate will be provided when the borrower applies for a loan. It replaces the GFE and the initial TILA disclosures. The Closing Disclosure will be issued toward the end of a transaction. It replaces the HUD-1 and final TILA disclosures.
The new forms are designed to aid the consumer in comparison shopping, improve consumer understanding and prevent surprises at the closing table. In general, they will impose no new legal obligations on agents and brokers and should not impact the day-to-day handling of sales. However, it is possible that the new forms may initially create delays in closing. You’ll want to read questions #38 and #39 of C.A.R.’s new Q&A “Loan Estimate and Closing Disclosure Forms” under the section “Advice for Brokers and Agents” for specific information on how these changes impact you. Also see C.A.R.’s Finance Helpline site for additional RESPA-TILA resources.
Last month, C.A.R.’s Leadership Team and I were in Washington, D.C., meeting with the California Congressional Delegation and housing regulators to discuss the issues most important to your business. We met with more than 30 members of Congress and five regulators, including the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), Fannie Mae, Freddie Mac, and the Consumer Financial Protection Bureau (CFPB). We discussed protecting the availability of mortgage finance and the need to increase homeownership opportunities in light of California’s low housing affordability and lack of housing supply. We also stressed the importance of keeping important real estate tax incentives, such as the mortgage interest deduction, at a time when many qualified California households are struggling to become homeowners.
While I’m on the subject of protecting homeownership rights, now is a good time to remind of you C.A.R.’s upcoming Legislative Day 2015. This year, C.A.R.’s annual Legislative Day is on Wed., April 22, at the Sacramento Convention Center. You’ll have an opportunity to hear from top political speakers; learn how legislation impacts your business, your clients, and the real estate industry; meet with your state legislators; network with other REALTORS® – and have a great time doing it all. This year, Assembly Speaker Toni Atkins and Assembly Republican Leader Kristin Olsen will address more than 2,000 REALTORS® in the morning, when they’ll both share their thoughts on housing affordability and how state government impacts real estate. More information about Legislative Day.To register for Legislative Day, contact your local association of REALTORS® and for more information, contact DeAnn Kerr at deannk@car.org.
If you’re in Sacramento, I hope you’re planning to attend the Midyear Luncheon, with C.A.R. CEO Joel Singer on Thurs., April 23, at the Sacramento Convention Center. Joel will take the stage to present, “The Evaporating Dream: Homeownership in California” and discuss how today’s housing and economic issues will influence the future of homeownership in California. Get a better understanding of what this means for you and your clients. Learn if purchasing a home is beyond reach for the new middle class, whether “renter nation” is the new reality, how the supply shortage impacts affordability, and what role millennials will play in the future of California real estate. The lunch is sure to sell out so purchase your tickets now.
Hopefully by now you’ve been able to catch one of the television ads from C.A.R.’s 2015 consumer advertising campaign, which launched earlier this month. The campaign is a key member benefit C.A.R. provides its members, promoting the value REALTORS® bring to real estate transactions. This year’s campaign connects the dots between REALTORS® and local businesses via two new television commercials and a handful of radio commercials.
As we’ve done the previous two years, C.A.R. has partnered with NBC, and the commercials will air during popular television shows such as “The Today Show,” “Ellen,” “The Voice, and “The Tonight Show With Jimmy Fallon.” Additionally, through the partnership with NBC, the ads will run on HGTV and Bravo, including during some of their most-popular shows such as “Property Brothers” and “Love it or List it,” providing even more exposure to the REALTOR® brand.
There are a host of other aspects of the campaign, including social media offerings and a refreshed consumer website (http://championsofhome.com). There’s a new tool that I am really excited to tell you about – the REALTOR® ReelMaker, an online tool which allows you to add your contact information to the end of the television commercials and use the customized spots in your marketing. Learn more about the campaign here.
I hope to see you next week at Legislative Day and the Midyear luncheon in Sacramento.
Sincerely,
Chris Kutzkey
2015 President
CALIFORNIA ASSOCIATION OF REALTORS®