Danette O'Neal, PhD

Marki Lemon-Raul:You can’t tell me nothing!

Last week I had the honor to host a dinner at my home on the south side of Chicago. Mind you that 98% of what you hear in the media is true about the south side. First, I wanted to know what brave souls would show up and much to my delight; my fellow REALTORS graced me with their presence. I hear consistent complaints about what black folks can’t and ain’t going to do, but my friends dispel myth and hyperbole ever single day. If you want it, go and get it. Stop talking!

IT IS NOT EASY BUT, IT IS DOABLE.

Did you know that REALTOR University has an African American female professor? (Danette)

Did you know that Louisiana and Arkansas both have past African American State Presidents?

Did you know that I shedded a tear at a REALTOR Conference and Expo when I saw an African American female being slated as a Candidate for 2017 NAR First Vice President of the National Association of REALTORS?

Did you know that my immediate sphere serves on the local, state, and national REALTORS boards?

Did you know that my business partner is in position to be the first African American President of the Illinois Association of REALTORS®? Can you tell me how many people in this picture has been through NAR Leadership training?

Our discussion was, how do we help who has next. The legacy is not just to help our heirs but to help others exceed. Who has next?

Life is like an apple tree; the higher up you go, the less likely you are to get picked over.

FHA changed the Hud Handbook 4000.1 in July with effective dates from immediate to case numbers assigned on or after September 9th.

There were many changes and below are some major ones that impact you. Please remember that these changes may be subject to additional investor overlays.

FHA CASH OUT LOANS

NEW RULE – Effective for case #’s assigned after 9/1 maximum cash out LTV is 80%.

OLD RULE – Previously it was 85%.

INTERESTED PARTIES NOW INCLUDE MORTGAGEES AND TPO’S

NEW RULE – Any credits from Mtgees or TPO’s goes against the 6% interested party contribution limit. EXCEPTION – Closing costs or pre-paids paid via premium pricing is allowed IF they are not the Seller, RE Agent, Builder or Developer. All contributions must be listed on the Purchase Agreement.

OLD RULE – Mtgees and TPO’s were not classified as interested party.

PROPERTIES EXISTING LESS THAN ONE YEAR

NEW RULE – Only need copy of CO OR a Final Inspection.

OLD RULE – Needed Building Permit and CO OR Final Inspection and Appraisal evidencing 100% complete.

OVERTIME, BONUS OR TIP INCOME

NEW RULE – When calculating this type income, it is automatic worst case scenario. If current year is lower than previous year use current year only. If current year they have made more than previous year then average for 2 years.

OLD RULE – The current year had to be 20% less income than the previous year before using worst case scenario.

COMMISSIONED BORROWERS AND TAX RETURNS

NEW RULE – You do not need tax returns when borrower is >25% commission. They are matching the same rules as conventional due to new IRS tax rules.

AUTO ALLOWANCE

NEW RULE – If auto allowance received for two years you can use the full amount of auto allowance towards effective income.

OLD RULE – Required for 2 years but had to deduct IRS form 2106 auto expenses.

INDUCEMENTS TO PURCHASE – RENTING HOME FROM CURRENT SELLER

NEW RULE – If borrower is paying 10% less in rent to seller the difference between the actual rent and the appraisers fair market rent must be deducted from the purchase price. The months to include are from signing of the purchase agreement to the closing date.

OLD RULE – It was underwriter discretion and stated must be considerably below market rent.

Say something! What’s wrong with this picture? You look at this picture and you don’t see anything wrong with America and it’s politics, and the people who are in Congress or refuse to vote on gun control? Say something America -our problem is that we are not as loud as we can be at a football game, or concise and consistent! IJS