Ever wondered how Earth Day started?

After growing interest in national support for environmental issues, a handful of U.S. Senators and grass roots activists came together to create Earth Day. Initially it was on the Spring Equinox (March 21, 1970) and Senator Nelson chose April 22nd. Millions of people participated, and today, Earth Day continues to be widely celebrated with events on both dates. The most common practice of celebration is to plant new trees for Earth Day.

The Federal income tax was introduced with the Revenue Act of 1861 to help fund the Civil War. The early taxes were based on assessments, not voluntary tax returns. Tax payment due dates vary by Act, and will also vary for Corporate entities, and is not to be confused with Property Taxes.

FHA said that the Fixed Rate Standard HECM pricing option currently represents a large majority of the loans insured through FHA’s HECM program and is responsible for placing significant stress on the MMI Fund.  To preserve the program as a financial option for aging homeowners FHA will make the HECM Fixed Rate Saver the only pricing option available to borrowers who seek a fixed interest rate mortgage.  Using the Fixed Rate Saver for fixed rate mortgages will significantly lower the borrower’s upfront closing costs while permitting a smaller pay out than the HECM Fixed Rate Standard product, thereby reducing risks to the Mutual Mortgage Insurance Fund.  This change will be effective for FHA case numbers assigned on or after April 1, 2013.

Other changes for which official announcements will be forthcoming over the next few days are:

• An increase in annual mortgage insurance premiums (MIP) on most mortgages by 10 basis points or 0.10 percent. Premiums on jumbo mortgages with balances of $625,000 or larger will increase by 5 basis points or 0.05 percent. This will bring jumbo mortgage premiums up to the maximum premium authorized by Congress. These premium increases exclude certain streamline refinance transactions.
• FHA will reverse its existing policy of cancelling MIP on loans when the outstanding principal balances reached 78 percent of the original balance. Because FHA remains obligated to insure 100 percent of the outstanding loan balance for the life of the loan, homeowners will now be required to maintain principal payments over that period as well. FHA’s Office of Risk Management and Regulatory Affairs estimates that the MMI Fund has foregone billions of dollars in premium revenue on mortgages endorsed from 2010 through 2012 because of this automatic cancellation policy.
• FHA will require lenders to manually underwrite loans for which borrowers have a decision credit score below 620 and a total debt-to-income (DTI) ratio greater than 43 percent. Lenders will be required to document compensating factors that support the underwriting decision to approve loans where these parameters are exceeded, using FHA manual underwriting and compensating factor guidelines.
• FHA will propose an increase in the minimum down payments for jumbo loans from 3.5 to 5 percent. The proposal will be published in the Federal Register within the next few days.
• FHA will step up its enforcement efforts for FHA-approved lenders with regard to aggressive marketing to borrowers with previous foreclosures. Borrowers are currently able to access FHA-insured financing no sooner than three years after they have experienced a foreclosure, but only if they have re-established good credit and qualify for an FHA loan in accordance with FHA’s fully documented underwriting requirements. It has come to FHA’s attention that a few lenders are inappropriately advertising and soliciting borrowers with the false pretense that they can somehow “automatically” qualify for an FHA-insured mortgage three years after their foreclosure. FHA will work with other federal agencies to address such false advertising by non-FHA-approved entities.
• Finally, as discussed in its Annual Report to Congress, FHA is also committed to structuring a new housing counseling initiative that would apply to a number of borrower classifications, including borrowers with previous foreclosures.

 “These are essential and appropriate measures to manage and protect FHA’s single-family insurance programs” said Galante.  “In addition to protecting the MMI Fund, these changes will encourage the return of private capital to the housing market, and make sure FHA remains a vital source of affordable and sustainable mortgage financing for future generations of American homebuyers.”

Read HUD’s full Press Release here: http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2013/HUDNo.13-010

During March, we set our clocks ahead one hour.

The reason for this time shift is to make better use of the natural light produced by the sun. Workers could make better use of resources during the day, as they do not need to use artificial lighting to work. People also tend to stay out later as more sunlight is present during the early evening hours.

During November, we set our clocks back one hour.

During the winter, we know there is less sunlight throughout the day and evenings fall much sooner. By setting the clocks back one hour, we can make better use of the sunlight that is present early in the day. The less time a person spends at home in the dark, the less artificial light is needed; therefore more energy is preserved.

Modern Daylight Saving Time. The Energy Policy Act of 2005, which was enacted in 2007, extended DST from 7 months to roughly 8 months. DST is present in over 70 countries worldwide, and there is still controversy over whether there is substantial energy savings.

• Daylight Saving Time (United States) ends on Sunday, November 4, 2012, 2:00am.
• Except Arizona and Hawaii. Move your clocks ahead 1 hour in spring and back 1 hour in fall (“Spring forward, fall back”).
• Daylight Savings Time 2012 is coming to an end this weekend. On Sunday, it’s time to “fall back” one hour.
• Daylight Saving Time ends Sunday, Nov. 4, at 2 a.m. So turn your clocks back 1 hour at that time.

April 10

• Second installment secured property taxes delinquent. A 10% penalty is added as of 5:00 p.m.  If delinquent date falls on a weekend or holiday, the delinquent date is the next business day.

Remember, Property Taxes are delinquent April 10th if the property is in escrow. Coordinate with your escrow officer in order to pay property taxes in a timely manor.

We would like to take this time to remind our readers:

December 10

• First installment secured property taxes delinquent. A 10% penalty is added as of 5:00 p.m.  If delinquent date falls on a weekend or holiday, the delinquent date is the next business day.

Remember, Property Taxes are delinquent December 10th if the property is in escrow. Coordinate with your escrow officer in order to pay property taxes in a timely manor.

Your Buyer, Seller or Real Estate Broker just left your office with their Escrow Check in hand, but then they return a few minutes later to ask for a reissue or redraw, because:

• The check was dropped in the rain gutters and is unfit for deposit
• Your Customer tore the check when removing it from their closing package
• They request a change in spelling or names, such as a middle initial
• Any other reasons

As you know, customer service is very important to escrow, and generally we are very accommodating. If somebody asks for a redraw, why wouldn’t we? We can see the original check is wet, damaged, or the name may even really be misspelled, so there seems to be no problem, right? WRONG!

New bank advertising illustrates how easy it is to digitally deposit checks into bank accounts, by simply using a smart phone’s camera feature.

Chase Bank in particular allows for their customers to digitally take a picture of checks, for instant deposit. All one has to do is use their smart phone, and viola!

So what does this mean for Escrow? Because the person has the ORIGINAL CHECK to exchange, do we issue a Stop Payment? Do we keep the original check, and void it out in the escrow system, only to reissue a 2nd check to our happy customer?

Once the check has left your view, it is possible for this check to be digitally deposited without your knowledge, and it would be very easy for one to come back shortly there after, to ask for a new check (ie banking fraud).

Take this opportunity to review your company check re-issue policies. Talk with your Banker to learn what steps should be taken to prevent this new type of digital fraud, and learn how your bank policies apply.

Remember, in a digital age, it is possible for bank fraud to occur just by criminal use of a smart phone. For us in the Escrow industry, this means we must continue to be smart and proactive, to ensure the protection and safety which our customers expect, when one is using escrow services during what many call the most important transaction people face in their lifetime.

Simplify your escrows by connecting online to TalbrookEscrow.com and give yourself (or your client) powerful tools to process and interact with your escrow, from opening to closing!

After this workshop, you will be able to:
 
 
 
 
 
 

• Open Escrow and Check Escrow Status Online
• Send/Receive messages to all Parties in your Real Estate transaction
• Download/Upload documents to your Clients or to your Escrow Officer
• Create optional Buyer/Seller login info, at your discretion
• …and Much More!

TalbrookEscrow.com is easy to use, and offers effective online linking between yourself and Talbrook Escrow. Use TalbrookEscrow.com to save time, while easily allowing you or your clients to monitor the escrow process, as it moves towards closing.

RSVP today with John Goodwin – johng@talbrookescrow.com

>> September 19th @ 1:00pm, Century 21 Beachside – Beach Office, 2nd Floor Training Room

>> September 23rd @ 10:00am, Century 21 Beachside – Upland, Training Room

Click and download the PDF flyer, in order to print and hand out, or to review a hard copy.

This can be confusing, and so Talbrook II Escrow Corp. has compiled a list containing each city requirement in this regard, for some of the most common cities in southern California.

We will continue to update this list, however due to the nature of change and city governance, we can not be held liable for any type of loss or any information which may be incorrect, although we do our best to verify the integrity of our information.

You may download our list in PDF format, or scroll down to view the City Requirements for Buying or Selling Real Estate in southern California.

Every city has in place their own policies and requirements for the sale or transfer of real estate. We have provided this document for your reference, in the event that you conduct a real estate sale or transfer transaction in the following cities:

A Real Property Report Form is required to be submitted to the Business Planning & Zoning Dept. Each Report is to be obtained and submitted in person only, by the seller. Form fee is $350.

Laguna Beach City Hall • 505 Forest Avenue • Laguna Beach, CA • 92651 •(949) 497-3311

A Residential Building Inspection is required via a city code inspector. For more information, contact Jana Egan (949) 644-3216 or Susan McCourt (949) 644-3289. Seller’s side is responsible to order, Buyer may waive actual inspection but fees must still be paid.

• Single Family Residence $ 150
• Duplex $180

City of Newport Beach • 3300 Newport Blvd. • Newport Beach, CA • 92663

A Retrofit Requirement ordinance requires that all properties resold in Burbank meet specific plumbing requirements for toilets, urinals, shower heads, and kitchen and bathroom faucet aerators as a condition of escrow. Compliance is the responsibility of the seller/transferor and is a condition of escrow.

Burbank Department of Water & Power:  (818) 238-3700

Direct Link:  http://www.burbankwaterandpower.com/download/Retrofit-upon-Resale-Certificate-of-Compliance-July-2010.pdf

City of Burbank • 164 W. Magnolia Blvd. • Burbank, CA 91502-1720 • Burbank Water & Power

A Residential Property Report ($150 Residential / $100 Condo) is required to be submitted to the Building & Safety Division. The seller or seller’s agent is highly encouraged to be present at the time of inspection. A business license may also be required for a realtor doing business within the city limits.

• · Division of Building & Safety (310) 952-1766
• Revenue Division (Business License) (310) 952-1748

Direct Links:

Information:  http://ci.carson.ca.us/content/department/dev_service/res_property_report_ord.asp

Application:  http://ci.carson.ca.us/content/files/pdfs/planning/RPR_App_without_plan.pdf

Business License:  http://ci.carson.ca.us/content/department/admin_service/buslicense.asp

City of Carson • 701 E. Carson St. • Carson, CA  90745 • Division of Building and Safety: (310) 952-1766

A Presale Inspection Form ($60 per unit) is required to be obtained from, and submitted to the Building & Safety Department. To schedule an inspection, please call during the business hours of Monday to Thursday, 7am to 6pm.

The seller or seller’s agent is required to be present at the time of inspection.

Building & Safety Department:  (310) 605-5509

Direct Link:  http://www.comptoncity.org/index.php/Building-and-Safety-Department/inspections-services.htm

City of Compton • 205 S. Willowbrook Avenue • Compton, CA  90220 • Building and Safety Department: (310) 605-5509

A Presale Inspection Form ($165) is required to be submitted to the Building & Safety Division. The seller or seller’s agent is required to be present at the time of inspection.

Building & Safety Division bgrimm@huntingtonpark.org

Direct Link:  http://www.huntingtonpark.org/documents/Community%20Development/Building%20Division/Presale%20Inspection%20Application.PDF

City of Huntington Park • 6550 Miles Avenue • Huntington Park, CA  90255 • Building and Safety: (323) 584-6271

A No Ordinances or Requirements.

Direct Link:  http://www.lapuente.org/

City of La Puente • 15900 E. Mean Street • La Puente, CA 91744 • (626) 855-1500

A Parking Impacted Areas form and inspection is required to be submitted to the City Building Inspector.

Peter M. Ronca, peter.ronca@longbeach.gov Principal Building Inspector •Department of Community Development

Direct Link:  http://www.longbeach.gov/cd/neighborhood_services/garage_inspection_program.asp

City of Long Beach • 444 West Ocean Blvd., Suite 1700 • Long Beach, CA 90802 • City Building Inspector (562) 570-6515

Separate documents are required for real estate transactions with in the City of Los Angeles. They are the Department of Water & Power Certificate of Compliance – Municipal Water Conservation Ordinance, and the Application for Report of Residential Property Records and Pending Special Assessment Liens.

1. Los Angeles DWP CERTIFICATE OF COMPLIANCE – Municipal Water Conservation Ordinance
   Direct Link:  http://www.ladwp.com/ladwp/cms/ladwp005999.pdf
   LADWP • P O BOX 515406 • LOS ANGELES CA • 90051-6706 • (888)284-6130
2. APPLICATION FOR REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING SPECIAL ASSESSMENT LIENS (aka Form 9)
   Direct Link:  http://ladbs.org/LADBSWeb/LADBS_Forms/DataAndRecords/9aform_Autores.pdf
   LADBS • 201 N. Figueroa St., 4th Floor • Los Angeles, CA • 90012 • (213) 482-6777

A Presale Real Property Report ($204) is required to be completed by the Seller or Seller’s Agent. A business license may also be required for a realtor doing business within the city limits (see pdf). For more information, please contact the Development Services Department, Building and Safety Division.

Maria Sifuentes, msifuentes@lynwood.ca.us •Building and Safety Division

Direct Link:  http://www.lynwood.ca.us/city-departments/development-services

See:   Attached PDFs (4)

City of Lynwood • 11330 Bullis Road • Lynwood, CA 90262-3693 • City Building & Safety (310) 603-0220 ext. 246

A Presale Inspection Report Application ($110) is required to be picked up in person. A business license may also be required for a realtor doing business within the city limits ($50).

City Building Inspector • (323) 562-5724

Direct Link:  http://www.longbeach.gov/cd/neighborhood_services/garage_inspection_program.asp

City of Maywood • 4319 E. Slauson Avenue • Maywood, CA 90270 • City Building Inspector (323) 562-5724

All homes for sale in the City of South Gate are inspected for code violations, which must be corrected prior to sale, or revealed to a prospective buyer who must agree to correct them. For additional information, contact:

Building & Safety • (323) 563-9583

Direct Link:  http://www.sogate.org/index.cfm/fuseaction/DetailGroup/navid/10/cid/1/

Pre-Sale:  http://www.sogate.org/download/index.cfm/fuseaction/download/cid/893/

Ordinance No. 2003:  http://www.sogate.org/download/index.cfm/fuseaction/download/cid/894/

City of Maywood • 8650 California Avenue • South Gate, CA 90280 • Building & Safety (323) 563-9583

July 1st

• Beginning of Fiscal Year
• Assessor Completes local roll and devliers to Auditor
• Delinquent secured and supplemental taxes are transferred to delinquent tax roll and additional penalties add at 1 1/2% per monthy on any unpaid tax amounts, plus $15 redemption fee

September 15

• Last day to file assessment appeals

October

• Original secured property tax bills are mailed out

November 1st

• First installment secured property taxes due (delinquent 12/11)

December 10

• First installment secured property taxes delinquent. A 10% penalty is added as of 5:00 p.m.  If delinquent date falls on a weekend or hliday, the delinquent date is the next business day

January

• Delinquent notices are mailed out for any unpaid first installment secured property taxes

January 1st

• Lien Date – date for valuation, date taxes attach to property as a lien; applies as of 12:01 a.m.

Febuary 1st

• Second installment secured property taxes due (delinquent 4/11)

April 10

• Second installment secured property taxes delinquent. A 10% penalty plus $10 cost is added as of 5:00 p.m. If delinquent date falls on a weekend or holiday, the delinquent date is the next business day

June 30

• End of fiscal year

Remember, Property Taxes are delinquent December 10th if the property is in escrow. Coordinate with your escrow officer in order to pay property taxes in a timely manor.