mortgage

E-NOTARIZATION VS. DISTANCE E-NOTARIZATION

Did you know

E-Notarization has been here for some time
Effective July 1, 2006, the Minnesota Legislature enacted electronic notary legislation pursuant to Minnesota Statutes 358 and 359, allowing electronic notarization to be applied to a document so that the document can be fully processed electronically.
To apply for e-Notarization, applicants must be currently registered as an active Minnesota Notary and have the capability to notarize electronically before requesting authorization to perform electronic notarizations.
Physical presence of a person whose signature is being notarized is still required by law (359.01, subd. 5). And notarizing of any MN mortgage and/or real estate documents requires a Closing Agent License unless you fall under specific exemptions – see MSA 82.641.
Before performing electronic notarial acts, a notary public must register or in the case of a recommission, reregister, the capability to notarize electronically with the Secretary of State. There is no fee for this authorization with the secretary of State
To obtain the authorization to perform electronic notarization, complete the E-Notarization Authorization form and certify that you have proof of the filing of your notary commission with the county.

Distance E- Notarization is Coming
Generally, electronic, or e-signatures, use different methods
• In some cases, the signer can use the mouse on their computer to “write” their signature, like you do when you go to the grocery store and sign for your credit card (where it generally looks nothing like your signature;))
• In other cases, a signer types their name and choses their e-signature from an assortment of a type-sets (Script, Monotype, Bradley Hand, etc.)
• In other cases yet, the signer carefully writes his/her signature and takes a photo (likely with their cell phone) and creates a .jpg file that they can use to accurately represent their signature.
• In some cases, signers hold up their Drivers’ Licenses and other Identifying information for the notary to review
• in other cases, like the US Post Office, you must put in a credit card with identifying information
• Yet again, some systems require that you answer information as to the make of your vehicle, previous addresses, mother’s maiden name, etc. that likely come from credit reporting companies.
• Will the audio/visual session have to be taped and maintained in the notaries file to be legal?
• Can the notary keep a log instead? There is much to be worked out.
You can see examples of what’s coming in distance notarization at such places as
• Signix https://www.youtube.com/watch?v=50bMl3EZkz0
• Safedocs https://www.youtube.com/watch?v=IPd_0gtlJ_0
• DocVerify http://www.docverify.com/Products/ESignatures/ENotaries/RemoteElectronicNotarizations

Distance notarization laws are currently in effect in only two states -Virginia and Montana. In these states the signer and the notary communicate online. Documents are electronically signed and notarized with the signing parties and notary meeting with audio and video communications similar to “facetime” or “go-to-meeting.” Here, the signer of the document might physically be in New York City and the notary physically in Virginia, MN.

But these state laws vary significantly. In Virginia a notary can perform a remote apostille for a signer that is located anywhere in the world. Montana allows distance notarization only for Montana property where the affiant is a permanent Montana resident.

As industries like closing, title insuring, mortgage lending, etc. are nationwide, dealing with various laws could be challenging. In response to that, The National Association of Secretaries of State (NASS) are working on distance online notarization with a task force, as are ALTA, the Minnesota Land Title Association, the MN Bar Assoc., Mortgage Bankers Association, MISMO, and others. Hopefully they can come together, soon, with a clear solution that will fit us all.

Acting Director Mulvaney Calls for Evidence and Public Comment on CFPB Functions

Seeks Public Input on Ways to Better Fulfill Statutory Obligations
JAN 17, 2018

WASHINGTON, D.C. — The Consumer Financial Protection Bureau today announced that it is issuing a call for evidence to ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers. In coming weeks, the Bureau will be publishing in the Federal Register a series of Requests for Information (RFIs) seeking comment on enforcement, supervision, rulemaking, market monitoring, and education activities. These RFIs will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities.

“In this New Year, and under new leadership, it is natural for the Bureau to critically examine its policies and practices to ensure they align with the Bureau’s statutory mandate. Moving forward, the Bureau will consistently seek out constructive feedback and welcome ideas for improvement,” said Bureau Acting Director Mick Mulvaney. “Much can be done to facilitate greater consumer choice and efficient markets, while vigorously enforcing consumer financial law in a way that guarantees due process. I look forward to receiving public comments in response to this call for evidence and encourage all interested parties to participate.”

The first RFI issued by the Bureau will seek public comment on Civil Investigative Demands (CIDs), which are issued during an enforcement investigation. Comments received in response to this RFI will help the Bureau evaluate existing CID processes and procedures, and to determine whether any changes are warranted.

National Association of Realtors on the Tax Cuts and Jobs Act – What it means for Americans

Tax Reform Bill December 2017

The National Association of REALTORS® (NAR) worked throughout the tax reform process to preserve the existing tax benefits of homeownership and real estate investment, as well as to ensure real estate professionals would benefit from proposed tax cuts. Many of the changes reflected in the final bill were the result of the engagement of NAR and its members.

The report states that the results were mixed. The exclusion for capital gains on the sale of a home, and mortgage interest rate deductions on homes and second homes was saved, but incentives pertaining to real estate for individuals was overall altered negatively. Significant incentives for large investors were included, helping their tax situation.

The article includes these categories and can be viewed here NAR Tax Cuts and Jobs Act

Introduction
Major Provisions Affecting Current and Prospective Homeowners
Major Provisions Affecting Commercial Real Estate
Major Provisions Affecting Real Estate Professionals
Appendix 1 – Examples of How the Deduction for Qualified Business Income May Affect Various Real Estate Professionals
Appendix 2 – Examples of How The New Law Will Affect the Tax Incentives of Owning a Home

E-Mortgage filing in North Carolina

Industry News, Technology update
Thursday, August 10, 2017
North Carolina has been at the forefront of eMortgage and eClosing transactions, and Thursday saw the state at the center of another milestone.

The state’s first eMortgage purchase transaction was completed Thursday, with North State Bank; Brady & Kosofsky, PA; DocMagic; Simplifile and World Wide Notary working together to close the deal. The entire process took 46 minutes.

The loan was originated by North State Bank, and closed by the Matthews, N.C.- based law firm of Brady & Kosofsky, the company said in an exclusive announcement to October Research, LLC. Technology used in the transaction was supplied by DocMagic, Inc., World Wide Notary, LLC., Ramquest, LLC and USPROSERV, LLC, while eRecording was provided by Simplifile.

“The closing itself represented the future of the industry,” partner Jaime Kosofsky said.

The closing came in conjunction with a special event hosted by the North Carolina Department of Secretary of State. The event introduced a newly formed North Carolina Electronic Mortgage Closing Advisory Committee, and four of those members participated in the closing Thursday.

The buyer and seller each executed the closing instruments and financing documents with a biometric signature pad, Kosofky said, which helps protect parties from fraud and forgery. The use of electronic signature and notary technology, coupled with the robust legal framework provided by North Carolina state law, makes it possible for lenders to make safe loans within the guidelines of the new TRID guidelines.

The homebuyer was at the Keller Williams office in Mooresville, N.C., and the eSigning agent – who is an eNotary – was present, along with the real estate broker. The closing attorney, who was at the Matthews office 45 miles south, was present via video to preside over the transaction. The register of deeds office is 55 miles away from the Matthews office in Statesville, N.C.

The seller signed the closing materials via signature last week before leaving town.

Among the principal individuals involved in the transaction were:

Ken Sykes, Kelly Arrington and Jamie Harrington from North State Bank. Harrington was the loan officer, and she completed her second eMortgage transaction Thursday.
Jeff Bode of Mid America Mortgage, whose company acted as the investor for the purchase.
Mona Mohajerani, who acted as the closing attorney, and Brady & Kosofsky Executive Operations Director Esther Fernandes, along with eSigning agent Patricia Paxton.
Secretary of State Elaine Marshall and Director, Electronic Notarization and Notary Enforcement Ozie Stallworth, who founded the eClosing pilot program in North Carolina.
Jason Streit, president at World Wide Notary, along with the rest of the technology providers involved.

E-Recording Continues to Grow at Rapid Pace

Technology
Thursday, August 10, 2017

Since the start of the second quarter, CSC has added 61 counties in 25 states to its eRecording network, the company announced.

“By partnering with CSC, these counties and their clients will now enjoy the benefits of award-winning service from an industry pioneer,” CSC Sales Director Kevin Kinderman said in a release. “We provide a total recording solution through our eRecording network and our national paper recording services. We’re looking forward to making our county and submitter partners’ lives easier.”

The new counties are in Arkansas, Florida, Idaho, Illinois, Indiana, Georgia, Kansas, Louisiana, Michigan, Minnesota, Nebraska, New Hampshire, Nevada, New Mexico, New York, North Carolina, Oklahoma, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Virginia, Wisconsin and Wyoming.

OCC Adds Information for Third Party Vendors

On June 7th, the OCC added bulletin 29 to third-party relationships to clarify the way lenders should interact with third party vendors, to us, that means how lenders deal title and closing providers.

    Get the entire OCC bulletin here

.

As a part of the lengthy bulletin, it stated the lender is responsible for ongoing monitoring.

Ongoing Monitoring
Ongoing monitoring for the duration of the third-party relationship is an essential component of the bank’s risk management process. More comprehensive monitoring is necessary when the third-party relationship involves critical activities. Senior management should periodically assess existing third-party relationships to determine whether the nature of the activity performed now constitutes a critical activity.
After entering into a contract with a third party, bank management should dedicate sufficient staff with the necessary expertise, authority, and accountability to oversee and monitor the third party commensurate with the level of risk and complexity of the relationship. Regular on site visits may be useful to understand fully the third party’s operations and ongoing ability to meet contract requirements. Management should ensure that bank employees that directly manage third-party relationships monitor the third party’s activities and performance. A bank should pay particular attention to the quality and sustainability of the third party’s controls, and its ability to meet service-level agreements, performance metrics and other contractual terms, and to comply with legal and regulatory requirements.
The OCC expects the bank’s ongoing monitoring of third-party relationships to cover the due diligence activities discussed earlier. Because both the level and types of risks may change over the lifetime of third-party relationships, a bank should ensure that its ongoing monitoring adapts accordingly. This monitoring may result in changes to the frequency and types of required reports from the third party, including service-level agreement performance reports, audit reports, and control testing results. In addition to ongoing review of third-party reports, some key areas of consideration for ongoing monitoring may include assessing changes to the third party’s
• business strategy (including acquisitions, divestitures, joint ventures) and reputation (including litigation) that may pose conflicting interests and impact its ability to meet contractual obligations and service-level agreements.
• compliance with legal and regulatory requirements.
• financial condition.
• insurance coverage.
• key personnel and ability to retain essential knowledge in support of the activities.
• ability to effectively manage risk by identifying and addressing issues before they are cited in audit reports.
• process for adjusting policies, procedures, and controls in response to changing threats and new vulnerabilities and material breaches or other serious incidents.
• information technology used or the management of information systems.
• ability to respond to and recover from service disruptions or degradations and meet business resilience expectations.
• reliance on, exposure to, or performance of subcontractors; location of subcontractors; and the ongoing monitoring and control testing of subcontractors.
• agreements with other entities that may pose a conflict of interest or introduce reputation, operational, or other risks to the bank.
• ability to maintain the confidentiality and integrity of the bank’s information and systems.
• volume, nature, and trends of consumer complaints, in particular those that indicate compliance or risk management problems.
• ability to appropriately remediate customer complaints.
Bank employees who directly manage third-party relationships should escalate to senior management significant issues or concerns arising from ongoing monitoring, such as an increase in risk, material weaknesses and repeat audit findings, deterioration in financial condition, security breaches, data loss, service or system interruptions, or compliance lapses. Additionally, management should ensure that the bank’s controls to manage risks from third-party relationships are tested regularly, particularly where critical activities are involved. Based on the results of the ongoing monitoring and internal control testing, management should respond to issues when identified including escalating significant issues to the board.

CFPB Fines Mortgage Lender, Real Estate Brokers and Servicer

CFPB Orders Prospect Mortgage to Pay $3.5 Million Fine for Illegal Kickback Scheme

Real Estate Brokers and Mortgage Servicer also Ordered to Pay $495,000

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against Prospect Mortgage, LLC, a major mortgage lender, for paying illegal kickbacks for mortgage business referrals. The CFPB also took action against two real estate brokers and a mortgage servicer that took illegal kickbacks from Prospect. Under the terms of the action announced today, Prospect will pay a $3.5 million civil penalty for its illegal conduct, and the real estate brokers and servicer will pay a combined $495,000 in consumer relief, repayment of ill-gotten gains, and penalties.

“Today’s action sends a clear message that it is illegal to make or accept payments for mortgage referrals,” said CFPB Director Richard Cordray. “We will hold both sides of these improper arrangements accountable for breaking the law, which skews the real estate market to the disadvantage of consumers and honest businesses.”

Prospect Mortgage, LLC, headquartered in Sherman Oaks, Calif., is one of the largest independent retail mortgage lenders in the United States, with nearly 100 branches nationwide. RGC Services, Inc., (doing business as ReMax Gold Coast), based in Ventura, Calif., and Willamette Legacy, LLC, (doing business as Keller Williams Mid-Willamette), based in Corvallis, Ore., are two of more than 100 real estate brokers with which Prospect had improper arrangements. Planet Home Lending, LLC is a mortgage servicer headquartered in Meriden, Conn., that referred consumers to Prospect Mortgage and accepted fees in return.

The CFPB is responsible for enforcing the Real Estate Settlement Procedures Act, which was enacted in 1974 as a response to abuses in the real estate settlement process. A primary purpose of the law is to eliminate kickbacks or referral fees that tend to increase unnecessarily the costs of certain settlement services. The law covers any service provided in connection with a real estate settlement, such as title insurance, appraisals, inspections, and loan origination.

Prospect Mortgage

Prospect Mortgage offers a range of mortgages to consumers, including conventional, FHA, and VA loans. From at least 2011 through 2016, Prospect Mortgage used a variety of schemes to pay kickbacks for referrals of mortgage business in violation of the Real Estate Settlement Procedures Act. For example, Prospect established marketing services agreements with companies, which were framed as payments for advertising or promotional services, but in this case actually served to disguise payments for referrals. Specifically, the CFPB found that Prospect Mortgage:

  • Paid for referrals through agreements: Prospect maintained various agreements with over 100 real estate brokers, including ReMax Gold Coast and Keller Williams Mid-Willamette, which served primarily as vehicles to deliver payments for referrals of mortgage business. Prospect tracked the number of referrals made by each broker and adjusted the amounts paid accordingly. Prospect also had other, more informal, co-marketing arrangements that operated as vehicles to make payments for referrals.
  • Paid brokers to require consumers – even those who had already prequalified with another lender – to prequalify with Prospect: One particular method Prospect used to obtain referrals under their lead agreements was to have brokers engage in a practice of “writing in” Prospect into their real estate listings. “Writing in” meant that brokers and their agents required anyone seeking to purchase a listed property to obtain prequalification with Prospect, even consumers who had prequalified for a mortgage with another lender.
  • Split fees with a mortgage servicer to obtain consumer referrals: Prospect and Planet Home Lending had an agreement under which Planet worked to identify and persuade eligible consumers to refinance with Prospect for their Home Affordable Refinance Program (HARP) mortgages. Prospect compensated Planet for the referrals by splitting the proceeds of the sale of such loans evenly with Planet. Prospect also sent the resulting mortgage servicing rights back to Planet.

Under the consent order issued today, Prospect will pay $3.5 million to the CFPB’s Civil Penalty Fund for its illegal kickback schemes. The company is prohibited from future violations of the Real Estate Settlement Procedures Act, will not pay for referrals, and will not enter into any agreements with settlement service providers to endorse the use of their services.

The consent order filed against Prospect Mortgage is available at:http://files.consumerfinance.gov/f/documents/201701_cfpb_ProspectMortgage-consent-order.pdf

ReMax Gold Coast and Keller Williams Mid-Willamette

ReMax Gold Coast and Keller Williams Mid-Willamette are real estate brokers that work with consumers seeking to buy or sell real estate. Brokers or agents often make recommendations to their clients for various services, such as mortgage lending, title insurance, or home inspectors. Among other things, the Real Estate Settlement Procedures Act prohibits brokers and agents from exploiting consumers’ reliance on these recommendations by accepting payments or kickbacks in return for referrals to particular service providers.

The CFPB’s investigation found that ReMax Gold Coast and Keller Williams Mid-Willamette accepted illegal payment for referrals. Both companies were among more than 100 brokers who had marketing services agreements, lead agreements, and desk-license agreements with Prospect, which were, in whole or in part, vehicles to obtain illegal payments for referrals.

Under the consent orders filed today, both companies are prohibited from violating the Real Estate Settlement Procedures Act, will not pay or accept payment for referrals, and will not enter into any agreements with settlement service providers to endorse the use of their services. ReMax Gold Coast will pay $50,000 in civil money penalties, and Keller Williams Mid-Willamette will pay $145,000 in disgorgement and $35,000 in penalties.

The consent order filed against ReMax Gold Coast is available at:http://files.consumerfinance.gov/f/documents/201701_cfpb_RGCServices-consent-order.pdf

The consent order filed against Keller Williams Mid-Willamette is available at:http://files.consumerfinance.gov/f/documents/201701_cfpb_Willamette-Legacy-consent-order.pdf

Planet Home Lending

In 2012, Planet Home Lending signed a contract with Prospect Mortgage that facilitated the payment of illegal referral fees. The company’s practices violated the Real Estate Settlement Procedures Act and the Fair Credit Reporting Act. Specifically, the CFPB found that Planet Home Lending:

  • Accepted fees from Prospect for referring consumers seeking to refinance:Under their arrangement, Planet Home Lending took half the proceeds earned by Prospect for the sale of each mortgage loan originated as a result of a referral from Planet. Planet also accepted the return of the mortgage servicing rights of that consumer’s new mortgage loan.
  • Unlawfully used “trigger leads” to market to Prospect to consumers: Planet ordered “trigger leads” from one of the major consumer reporting agencies to identify which of its consumers were seeking to refinance so it could market Prospect to them. This was a prohibited use of credit reports under the Fair Credit Reporting Act because Planet was not a lender and could not make a firm offer of credit to those consumers.

Under the consent order filed against Planet Home Lending, the company will directly pay harmed consumers a total of $265,000 in redress. The company is also prohibited from violating the Fair Credit Reporting Act and the Real Estate Settlement Procedures Act, will not pay or accept payment for referrals, and will not enter into any agreements with settlement service providers to endorse the use of their services.

The consent order filed against Planet Home Lending is available at:http://files.consumerfinance.gov/f/documents/201701_cfpb_PlanetHomeLending-consent-order.pdf

###
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

 

CFPB Issues Mortgage Complaint Report

The latest CFPB Complaint Report for Mortgages shows that, by far, the largest number of complaints filed with the CFPB were with the Credit Reporting Agencies – Equifax, TransUnion and Experian, having 3,897 complaints nationwide on credit reports in January.  Mortgage complaint leaders were Wells Fargo, Bank of America and JP Morgan Chase. To read the latest full mortgage report: click here for CFPB Complaint Report.

The Consumer Financial Protection Bureau (CFPB) is the first federal agency solely focused on

consumer financial protection,1 and consumer complaints are an integral part of that work. The

CFPB helps connect consumers with financial companies to make their voices heard. When

consumers submit a complaint, they work with companies to get the consumer a response,

generally within 15 days. They also publish basic information about complaints in our public

Consumer Complaint Database to empower consumers, inform consumer advocates, and improve the functioning of the marketplace.

Existing-Home Sales Slide in December; 2016 Sales Best Since 2006

Press Release

WASHINGTON (January 24, 2017) — Existing-home sales closed out 2016 as the best year in a decade, even as sales declined in December as the result of ongoing affordability tensions and historically low supply levels, according to the National Association of Realtors®.

Total existing-home sales 1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, finished 2016 at 5.45 million sales and surpassed 2015 (5.25 million) as the highest since 2006 (6.48 million).

In December, existing sales decreased 2.8 percent to a seasonally adjusted annual rate of 5.49 million in December from an upwardly revised 5.65 million in November. With last month’s slide, sales are only 0.7 percent higher than a year ago.

Lawrence Yun, NAR chief economist, says the housing market’s best year since the Great Recession ended on a healthy but somewhat softer note. “Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” he said. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.”

Added Yun, “While a lack of listings and fast rising home prices was a headwind all year, the surge in rates since early November ultimately caught some prospective buyers off guard and dimmed their appetite or ability to buy a home as 2016 came to an end.”

The median existing-home price 2 for all housing types in December was $232,200, up 4.0 percent from December 2015 ($223,200). December’s price increase marks the 58thconsecutive month of year-over-year gains.

Total housing inventory 3 at the end of December dropped 10.8 percent to 1.65 million existing homes available for sale, which is the lowest level since NAR began tracking the supply of all housing types in 1999. Inventory is 6.3 percent lower than a year ago (1.76 million), has fallen year-over-year for 19 straight months and is at a 3.6-month supply at the current sales pace (3.9 months in December 2015).

“Housing affordability for both buying and renting remains a pressing concern because of another year of insufficient home construction,” said Yun. “Given current population and economic growth trends, housing starts should be in the range of 1.5 million to 1.6 million completions and not stuck at recessionary levels. More needs to be done to address the regulatory and cost burdens preventing builders from ramping up production.”

According to Freddie Mac, the average commitment rate(link is external) for a 30-year, conventional, fixed-rate mortgage surged in December to 4.20 percent from 3.77 percent in November. December’s average commitment rate was the highest rate since April 2014 (4.32 percent).

First-time buyers were 32 percent of sales in December, which is unchanged both from November and a year ago. First-time buyers also represented 32 percent of sales in all of 2016. NAR’s 2016 Profile of Home Buyers and Sellersreleased in late 2016 4 — revealed that the annual share of first-time buyers was 35 percent.

“Constrained inventory in many areas and climbing rents, home prices and mortgage rates means it’s not getting any easier to be a first-time buyer,” said Yun. “It’ll take more entry-level supply, continued job gains and even stronger wage growth for first-timers to make up a greater share of the market.”

On the topic of first-time- and moderate-income buyers, NAR President William E. Brown, a Realtor® from Alamo, California, says Realtors® look forward to working with the Federal Housing Administration to express why it is necessary to follow through with the previously announced decision to reduce the cost of mortgage insurance. By cutting annual premiums from 0.85 percent to 0.60 percent, an FHA-insured mortgage becomes a more viable and affordable option for these buyers.

“Without the premium reduction, we estimate that roughly 750,000 to 850,000 homebuyers will face higher costs and between 30,000 and 40,000 would-be buyers will be prevented from entering the market,” he said.

Properties typically stayed on the market for 52 days in December, up from 43 days in November but down from a year ago (58 days). Short sales were on the market the longest at a median of 97 days in December, while foreclosures sold in 53 days and non-distressed homes took 50 days. Thirty-seven percent of homes sold in December were on the market for less than a month.

Inventory data from Realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in December were San Jose-Sunnyvale-Santa Clara, Calif., 49 days; San Francisco-Oakland-Hayward, Calif., and Nashville-Davidson-Murfreesboro-Franklin, Tenn., 50 days; and Billings, Mont., and Hanford-Corcoran, Calif., both at 51 days.

All-cash sales were 21 percent of transactions in December, unchanged from November and down from 24 percent a year ago. Individual investors, who account for many cash sales, purchased 15 percent of homes in December, up from 12 percent in November and unchanged from a year ago. Fifty-nine percent of investors paid in cash in December.

Distressed sales 5 — foreclosures and short sales — rose to 7 percent in December, up from 6 percent in November but down from 8 percent a year ago. Five percent of December sales were foreclosures and 2 percent were short sales. Foreclosures sold for an average discount of 20 percent below market value in December (17 percent in November), while short sales were discounted 10 percent (16 percent in November).

Single-family and Condo/Co-op Sales

Single-family home sales declined 1.8 percent to a seasonally adjusted annual rate of 4.88 million in December from 4.97 million in November, but are still 1.5 percent above the 4.81 million pace a year ago. The median existing single-family home price was $233,500 in December, up 3.8 percent from December 2015.

Existing condominium and co-op sales dropped 10.3 percent to a seasonally adjusted annual rate of 610,000 units in December, and are now 4.7 percent below a year ago. The median existing condo price was $221,600 in December, which is 5.5 percent above a year ago.

Regional Breakdown

December existing-home sales in the Northeast slid 6.2 percent to an annual rate of 760,000, but are still 2.7 percent above a year ago. The median price in the Northeast was $245,900, which is 3.8 percent below December 2015.

In the Midwest, existing-home sales decreased 3.8 percent to an annual rate of 1.28 million in December, but are still 2.4 percent above a year ago. The median price in the Midwest was $178,400, up 4.6 percent from a year ago.

Existing-home sales in the South in December were at an annual rate of 2.25 million (unchanged from November), and are 0.4 percent above December 2015. The median price in the South was $207,600, up 6.5 percent from a year ago.

Existing-home sales in the West fell 4.8 percent to an annual rate of 1.20 million in December, and are now 1.6 percent below a year ago. The median price in the West was $341,000, up 6.0 percent from December 2015.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Court Rules Consumer Financial Protection Bureau’s Structure Is Unconstitutional

Excellent Article in The Atlantic today on the CFPB

After a spate of recent activity which has included introducing long-awaited regulations for payday lenders and prepaid cards and a nearly $200 million fraud settlement from Wells Fargo, the Consumer Financial Protection Bureau must now face a new challenge—more oversight.

On Tuesday, a Washington, D.C. circuit court found the structure of the CFPB to be unconstitutional. More specifically, the court took issue with the inability for other arms of the government to review or rebuke the Bureau’s judgements or actions and the unilateral power imbued in the CFPB’s director—currently Richard Corday.

The judgement states:

The Director enjoys significantly more unilateral power than any single member of any other independent agency. By “unilateral power,” we mean power that is not checked by the President or by other colleagues. Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power.

The court then goes on to proclaim that the director of the CFPB is given more power and autonomy than the speaker of the house, senate majority leader, or even a Supreme Court justice.

Read entire article at The Atlantic

Info On Home Closing

Home Closing 101: An Educational Initiative of the American Land Title Association