The Weekly Membership Newsletter of the Tennessee Assn. of REALTORS
Editor: Pug Scoville


CONTENTS
1. New Appraisal Requirements as of April 1
2. A FREE Educational Opportunity for TAR Members
3. TAR Wants YOUR Opinions!
4. HOT LINE: A “Sticky” FHA Appraisal?
5. HOT LINE: Receiving Commission in Installments?
6. Two Upcoming Courses
7. Rates Rise, But Still Under 5


1. New Appraisal Requirements as of April 1

For all appraisals of properties that are to be security for FHA-insured mortgages and that are performed on or after April 1, 2009, the appraisal must include the Market Conditions Addendum.  You can read a complete description of this Market Conditions Addendum in HUD’s Mortgagee Letter 2009-09, by downloading it as a Word document HERE.

In declining markets, among several other requirements, the appraiser must include “an absorption rate analysis, which is critical to developing and supporting market trend conclusions, as mandated by the Market Conditions Addendum. For example, assuming 36 sales during a six month period, the absorption rate is 6 sales per month (36/6).

Use the link above to familiarize yourself with all of the requirements laid out in this Addendum.

[SOURCE: HUD]


2. A FREE Educational Opportunity for TAR Members

The Tennessee Association of REALTORS (TAR) — along with many other state and local associations — is pleased to be a sponsor of REFERRAL EXPO 2009!

You’ll be able to listen in on each of ten (10) experts as they share all of their referral magic, and you won’t have to pay one dime to attend! Each one-hour presentation will be conducted over the phone on successive weekdays for your convenience (Monday – Friday at 11:00am Central, Noon Eastern)

The Referral Expo starts Monday, May 18th and runs through Friday, May 29th. Speakers include Jerry Rossi, David Carleton, and others who will share exactly how to successfully generate referrals. The organizers of this event want to get as many new, innovative ideas in your hands as possible!

Best of all – because education is important, but is usually cut from budgets when times are tight – anyone can attend this learning event.  Attendance is FREE!

To learn more and register, go to: http://www.referralexpo.org/tar/


3. TAR Wants YOUR Opinions!

Over the next couple of months, we will conduct FOUR SHORT SURVEYS on different aspects of TAR’s programs and services.  The results of these surveys will be given to our TAR Strategic Planning Committee to help us plan for the future, with your input!

The first of these surveys — on TAR’s Meetings & Conventions — is now online,  It includes only six simple questions, and we respectfully ask every TAR member to make your feelings known!  Responding will only take a couple of minutes!  To respond to this first survey, go HERE.

Please respond by April 20th. Thank you, in advance, for your help!


4. HOT LINE: A “Sticky” FHA Appraisal?

QUESTION: How long will an FHA appraisal “stay” with a property? I was told by a Buyer’s agent that the FHA appraiser’s appraisal would “stick” with my seller’s property for six months. Is this true? If my seller decided not to sell for the appraised price what are the ramifications?

ANSWER: The FHA appraisal will be binding on the property for six months. If your seller has questions about this or wants to know if there is any way this could be avoided, he should speak to his own attorney and/or contact HUD directly.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


5. HOT LINE: Receiving Commission in Installments?

QUESTION: I am working a transaction with both the buyer and the seller. The seller has informed me that they cannot bring the required money to closing necessary for the transaction to be completed. I wanted to know if I can forego my commission and apply it to the seller’s closing costs and have the seller pay me in installments after the fact.

ANSWER: This is allowed under certain conditions. First, you will need to clear this with the lender and make sure that they will permit the commission to be paid after the fact and have those funds applied to the closing costs. We would advise getting this in writing from the lender.

Secondly, the listing agreement would have to be amended to state that you would be paid in installments following the closing, and that this provision of the listing agreement would survive the sale of the listing.

Finally, the contract itself would need to be amended indicating how the closing costs would be paid. And all of this must be reflected on the HUD.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


6. Two Upcoming Courses!

April 16: E-Class GRI 5 – Systems for Success (a 5-week distance-learning course) begins – 16 hours CE. For more information, go HERE.

April 21: 2009-2010 Core CE Course (TAR Office, Nashville), 4 hours CE. For more information. go HERE.

Watch each week’s TAR DIGEST for schedule changes and additions!


7. Rates Rise, But Still Under 5

Freddie Mac reports a jump in the 30-year fixed mortgage rate to 4.87 percent during the week ended April 9 from record lows posted during the last couple of weeks. The 15-year fixed mortgage rate climbed to 4.54 percent from 4.52 percent. Meanwhile, the five-year hybrid adjustable rate bumped up to 4.93 percent from 4.92 percent; and the one-year ARM rose to 4.83 percent from 4.75 percent.

[SOURCES: Freddie Mac; Information, Inc.]


TAR’s Home Page: http://tnrealtors.com

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