Mardi Boettcher's Blog

The Federal Housing Administration has set new standards for housing counselors who want to work with seniors taking out FHA-insured reverse mortgages. To provide these services, counselors have to pass an AARP-approved examination and apply to be on FHA’s new roster for Home Equity Conversion Mortgage counselors. “Only those counselors on the HECM roster can provide HECM counseling to potential HECM borrowers,” according to FHA mortgagee letter 2009-47.  FHA created the HECM roster in response to criticism that some counseling sessions are pro forma – conducted by counselors that are not knowledgeable about the product. The Government Accountability Office identified problems and Congress directed FHA to take corrective action. Darryl Hicks, a spokesman for the National Reverse Mortgage Lenders Association, noted that the new standards and roster have been a work in progress for the past two years. “We think it is great for the industry because it will establish a higher bar for counseling,” Mr. Hicks said.

This is good news because reverse mortgages were getting a bad reputation due to the lack of good counseling.  Reverse mortgages are not for everyone, but I have clients who have done them and are extremely happy.  If you would like a referral to a trustworthy reverse mortgage consultant, just let me know.  I’m always delighted to help.

Ever wonder what Mendocino County is up to?

Discover www.gomendo.org  An Insider’s Guide to County Promotional Activities.

Check out the new and improved www.gomendo.org.  An in-county website designed to keep the community abreast of Visit Mendocino County activities and updates. 
 
Look at meeting agendas & minutes, quarterly reports on the marketing plan, communicate with staff, meet the current board of directors, check out the visitors guide and much more…
 
 goMendo.org site and learn about all that is happening to promote our county, communities and businesses.  Great things are happening and we want you to know about it!
 
Thanks to Scott Schneider
President & CEO
Visit Mendocino County, Inc.
T 707.964.9010 | F 866.836.7557 | E scott@gomendo.com

Please watch this in honor of our veterans who have given so much for us and our country.

This was sent to me by a good friend, Chris Boskin, who started this program.  Wow!  I’m humbled by this.

http://www.blip.tv/file/2827448

Here is the great news we’ve all been hoping for!  Following the Senate’s favorable vote yesterday, the U.S. House of Representatives just voted 403 to 12 to extend the homebuyer tax credit, expanding the parameters to include existing homeowners and not just first-time buyers.  The California Association of Realtors (C.A.R) and the National Association of Realtors (N.A.R.) have worked for months urging Congress and the Senate to extend and expand this crucial piece of legislation.  We expect President Obama to sign the legislation in short order.

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline.  First-time homebuyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500.  To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years.  The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively.  The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns.  The legislation maintains the provision that homebuyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Nationwide, more than 1.4 million first-time homebuyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers.  We expect that number to increase dramatically in the months ahead with this new legislation in place.  Thank you to my fellow members of C.A.R. and N.A.R.  We called, wrote, and e-mailed our congressional representatives and voiced our support for the homebuyer tax credit.  Our voices were heard and today’s vote is a direct result of our actions and involvement.

The Ukiah Daily Journal has been doing a great series about people in our local government.   I know this information will be interesting to local residents as well as those of you who may be considering relocating here.  Enjoy!

“Prior to becoming Ukiah’s city manager in May of 2008, Jane Chambers received her bachelor of arts degree from Cal State Northridge and her master of arts degree from UCLA and worked for city governments in California and Minnesota. She is the chief executive officer of a multifaceted and multimillion dollar organization that provides full services for the city of Ukiah. She oversees the police, fire, parks and public works, water, sewer and electrical and the internal support services that include resources, finance and information.

It is her job to insure the decisions of the City Council become a reality by working with her seven member executive team to manage the administrative components of research, planning and operational procedures to reach the determined goals. She enjoys working with both City Council members and department heads and believes they all share a common vision in wisely using resources to create a community that meets the needs of its residents. She supervises 174 full time employees and earns $150,000 per year.

The financial downturn for the city has been her greatest challenge. The city lost more than $1,700,000 in the last year-and-a-half because of decreased income from sales taxes, property taxes and other revenues. The revenue from the ‘08-’09 budget looked more like that of ‘05-’06 and she said residents can expect the same if not worse for the next two years.

In reorganizing to keep within budget restrictions, most services have been protected and offices will remain open five days a week. However, 22 full-time positions have been eliminated, including the front desk receptionist position, resulting in less help for people seeking services from other agencies and a longer wait time for people requesting certain information.

Other current challenges include water availability, water usage, upgrade of utilities and an increasing demand for police and fire services with a significant decrease in revenue. Communication has become more difficult as inadequate resources lead to fewer personnel, limiting effective communication between the city government and residents, Chambers said, adding that it is becoming more and more challenging to stay connected in a meaningful way to help people understand the complexities of local government.

She was happy to report that the three-year wastewater treatment plant project, the largest project ever undertaken by the city, was completed on time and on budget.”

The Federal Housing Finance Agency (FHFA) is expected to announce, as early as next week, the new conforming loan limits for 2010.  The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability for households in California.

Currently, as a result of the economic stimulus plan, the conforming loan limit is $417,000 for most areas in the U.S., but $729,750 in high-cost areas, including many in California.  The loan limits are set to expire at the end of this year, and could be lowered to $625,500 for high-cost areas.  If the current loan limits are reduced to $625,500 for high-cost areas, lenders likely will adjust their loan underwriting standards to align with the new 2010 loan limits, to ensure the loans can be purchased or guaranteed by Fannie, Freddie, and the Federal Housing Administration (FHA). 

 To ensure consumers are not negatively impacted by the proposed changes, C.A.R. is working with NAR on a one-year extension of the current loan limits, and will keep REALTORS^® apprised of the latest developments.

It’s time for a little comic relief to put everything in perspective.

I just loved this email joke and thought you would too. 

… By George Carlin

 I want to live my next life backwards:

 You start out dead and get that out of the way.

 Then you wake up in a nursing home feeling better every day.

 Then you get kicked out for being too healthy.

 Enjoy your retirement and collect your pension.

 Then when you start work, you get a gold watch on your first day.

 You work 40 years until you’re too young to work.

 You get ready for High School: drink alcohol, party, and you’re
 generally promiscuous.

 Then you go to primary school, you become a kid, you play, and you
 have no responsibilities.

 Then you become a baby, and then…

 You spend your last 9 months floating peacefully in

 luxury, in Spa-like conditions – central heating, room service on
 tap, and then …

 You finish off as an orgasm.

 I rest my case

The ‘Ukiah Gleaners’, a project of the Mendocino Environmental Center doing its great work again this fall.  Many gardens have been visited and local people have signed up to help picking the fruitful bounty of Ukiah.  Apples, pears, grapes, figs and plums, which otherwise may have gone to waste, have all been picked and sent to the Food Bank, Plowshares and the Ukiah Senior Center.

This is an inspiring example of what makes the Ukiah Valley community so special.  There is a widespread commitment to taking care of the members of the communtiy and to enjoying the beauty and bounty our natural resources.

The biggest gleaning events were two pickings at the Alex Thomas Orchards on Perkins Street.  More than 100 people turned up for the two events which more than 1,500 pounds of pears to the food bank.

Hannah Bird, co-coordinator of the Ukiah Gleaners said, “They were such lovely events with young and old present to do the picking.  One ‘gleaner’ in particular came up to tell me that not only did he think it was a great idea, but he also felt that he was actually part of something’.  The sense of community spirit really glowed.  I want to thank the Thomas family for allowing us to pick these delicious pears, it was sad to think these orchards may not be here in the future.”

The final gleanings of the season are set to take place over the next few weeks.  To get involved call Hannah at 391-0044 or e-mail  hannah.bird at gmail.com

I have heard that U.S. Senate leaders might have moved closer to an agreement about replacing the expiring $8,000 tax credit for first-time homebuyers with a smaller one that expands access to more borrowers.  The existing credit is due to end Nov. 30.

 The proposed legislation would reduce the size of the tax credit to 10 percent of the sale’s price and cap it $7,290.  This tax credit would be available on home purchases that would go into contract by April 30th, and borrowers would have an additional 60 days to close the sale.

 The new agreement, if passed, would expand the credit to “step-up” borrowers who have lived in their current home for at least five years.  The income eligibility for first-time homebuyers would remain the same at $75,000 for individuals and $150,000 for couples.  The income criteria for step-up buyers would be $125,000 for individuals and $250,000 for couples.  The credit would be limited to homes costing $800,000 or less.

I think this is a great plan and believe it will relieve the current gridlock in the middle price range market.  Keep your fingers crossed!

Existing Home Sales came in better than expected, at 5.57M vs. the expectation of 5.35M.  The very important number….levels of inventory, shrank to a 7.8 month supply, down from a recent high of 10.1 in April.  The National Association of Realtors also reported that last month’s sales were 45% First Time Homebuyers, as they rushed in to take advantage of the $8000 tax credit. 

I still think the tax credit will be extended.  Not only will this help buyes, but the increased demand may cause prices to rise and that will encourage sellers to move forward with listing their homes.  It will be a win win for everybody.