Real Estate One opens new office in downtown Ypsilanti

Real Estate One opens new office in downtown Ypsilanti

By Sarah Rigg

Special to The Ypsilanti Courier

Michigan-based real estate company Real Estate One opened a new branch June 4 at 1661 S. Huron St. in downtown Ypsilanti. Dennis O’Hare, Real Estate One associate broker for Saline and Ypsilanti, also serves as the Ypsilanti branch manager.

“I’m in my 13th year of real estate,” O’Hare said. “Prior to that, I spent 10 years in property management in various roles. You name it.”

O’Hare said the Huron Street location was chosen because it was so convenient to local residents.

“It’s right off I-94, and the Huron Road exit corridor is so busy with people. It’s easy on and easy off the highway,” he said. “We’ve already had quite a bit of drive-by traffic, with people noticing we’re here.”

O’Hare had contractors renovating the office for several months before the June opening. “The office was easy to build out, but we put our special touches on it,” he said.

The Ypsilanti office is full service, offering both buying and selling agents, a title insurance company and a mortgage lending unit.

“We consider ourselves a full-service broker and think it’s convenient for customers to have that all in one location in Ypsilanti that’s easy to find,” O’Hare said. “We have an in-house title company and can do everything here, including having the closing here. If your seller is in Ypsilanti, and your buyer is in Ypsilanti, and the agents are here, why not do the closing here?”

The office has steadily been adding agents and is up to 14 now, along with support staff, O’Hare said.

“The majority of the agents who joined this office live in Ypsilanti. They live here, work here, have their kids in the Ypsilanti schools. They believe in Ypsilanti and wanted a Ypsi office,” O’Hare said. “We’re still looking to add experienced agents, as well.”

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

Obama administration seeks more protection for military borrowers

By Susan Heavey

WASHINGTON | Fri Sep 26, 2014 12:49pm EDT

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By Susan Heavey

WASHINGTON (Reuters) - The Obama administration on Friday proposed changes to current lending rules toward military personnel and their families, to expand protections from predatory practices on a wider variety of loans and financial products such as credit cards.

The plan, to be formally issued on Monday, would close loopholes and cover more types of borrowing, including all payday loans, vehicle title loans, tax refund loans, credit cards and open lines of credit, among others.

"This proposed regulation ... would help ensure that our service members and their families are as far beyond the reach of financial exploitation as possible," the Department of Defense said in a statement.

Its plan would amend regulations related to the Military Lending Act, a 2006 law to curb predatory practices such as high interest rates or lack of disclosures in loans to members of the military, where low wages and long deployments can be an issue. It caps interest rates at 36 percent, among other protections.

But in implementing the law, defense officials originally limited it to three types of credit: payday loans for $2,000 or less over 91 days or fewer, certain auto loans for 181 days or fewer, and "closed end" tax refund loans.

Friday's proposal follows a July report that found some stores near U.S. military installations have filed numerous lawsuits against service members buying appliances, furniture and other items after they fall behind on their payments.

The report, published in July by the Washington Post and ProPublica, found that one company, USA Discounters, won most of its cases when debtors who were stationed in various parts of the world failed to make court dates in Virginia and then garnished their wages.

It cited a related loophole in the Servicemembers Civil Relief Act, or SCRA, which aims to allow active-duty military every opportunity to defend themselves against lawsuits.

Businesses that provide such credit to military families say they are offering a service to people who would not otherwise qualify for a loan and sue only after all other options fail.

Officials with the Consumer Financial Protection Bureau, a federal agency created by the 2010 Dodd-Frank Wall Street reform law to protect consumers, backed the defense plan on Friday.

"Those who would profit by charging exorbitant rates to the military have found it all too easy to evade the original intention of the Military Lending Act," said Holly Petraeus, assistant director for the bureau's Office of Servicemember Affairs, adding that some lenders have used the loopholes to charge military families interest rates as high as 500 percent.

Last month, the White House announced other voluntary measures by financial lenders related to SCRA aimed at mortgage interest rates and student loans.

If adopted, the rules announced on Friday would not affect mortgages. They also would not target so-called "purchase-money" loans like those used to buy cars and other items, the department said.

The public has 30 to 60 days to comment before officials finalize the rules.

(Reporting by Susan Heavey; editing by Gunna Dickson)

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

Fannie Mae Mortgages

Fannie Mae Mortgages

By Wendy Connett

If you are looking to apply for a Fannie Mae loan you might be surprised to learn that the mortgage giant does not provide mortgages directly to borrowers.

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, purchases and guarantees loans via the secondary mortgage market. A government-sponsored enterprise (GSE) founded in 1938 by Congress during the Great Depression to stimulate the housing market, it's instrumental in facilitating home-ownership and the largest funder or backer of 30-year fixed-rate mortgages. (For more, see: Fannie Mae: What it is and How it Operates.)

By investing in the mortgage market Fannie Mae creates more liquidity for lenders, such as banks, thrifts and credit unions. This allows them to underwrite or fund more mortgages, which in turn increases availability to borrowers.

In order to obtain a loan that is backed by Fannie Mae, you’ll have to go through a lender that is approved by the GSE. Lenders must meet eligibility and underwriting criteria that ensures the credit quality of the loan, for example. This includes not engaging in unethical subprime lending practices. Subprime loans are offered to borrowers with poor credit who are considered a higher risk by the lender and have higher interest rates than prime rate loans. (For more, see: Subprime Lending: Helping Hand or Underhanded?)

Conforming Loans

Mortgages purchased and guaranteed by Fannie Mae must also meet its guidelines and are called conforming loans. The limit for a conventional loan for a single-family home in 2014, for example, is $417,000 for most areas and $625,000 for high-cost areas, including Hawaii and Alaska. The Federal Housing Finance Agency (FHFA) sets these limits. To see the FHFA loan limits, click here.)

Generally speaking, conforming loans have lower interest rates than non-conforming or jumbo loans, which are typically not backed by Fannie Mae and exceed its loan size limits.

Applying for a Loan

When you have found a lender who is eligible to issue a Fannie Mae-backed loan they will help you fill out a Uniform Residential Loan Application. You can download the application here. You will need to gather and provide financial information and documentation. This includes a record of employment and your income and statements to back it up, such as a W-2 or 1099. You will also have to provide your monthly debt, such as credit cards, car payments, alimony and child support. (For related reading, see: Top Reasons to Apply for an FHA Loan.)

Debt-to-Income Ratio

In order to be approved for a Fannie Mae-backed loan, having a front-end debt-to-income ratio (DTI) of no more than 28% is preferable. A front-end DTI determines how much of your gross income goes towards housing costs. If your DTI is too high, if you can, make a larger down payment, which will reduce your monthly costs. Fannie Mae requires a minimum down payment of 5% for a fixed-rate mortgage, although 20% is typically ideal.

Credit Requirements

Homebuyers must also meet minimum credit requirements in order to be eligible for Fannie Mae-backed mortgages. For a single-family home that is a primary residence, a FICO score of at least 620 for fixed-rate loans and 640 for adjustable-rate mortgages (ARMs) is required. (For more, see: Mortgages: Fixed-Rate vs. Adjustable Rate.)

FICO is an acronym for the Fair Isaac Corporation, which created the score. A FICO score is determined by mathematical models that analyze your payment history, level of debt, types of credit used, length of credit history and new credit to determine your credit risk. Scores range between 300 and 850. (For more, see: How FICO Scores are Calculated.)

The better — or higher — your FICO score the more eligible you are for the lowest available interest rates. The average FICO score of borrowers of Fannie Mae-backed mortgages as of the end of 2013 was 744, according to Fannie Mae.

The Bottom Line

Since 2009, Fannie Mae has provided $4.2 trillion in mortgage credit, which made possible 4.1 million home purchases. If your credit is good and you meet Fannie Mae’s requirements and are eligible for a conforming loan, chances are you will get a lower interest rate than you would taking out a non-conforming or jumbo loan.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

   

Photographers await FAA ruling before publishing drone shots of homes

GRAND RAPIDS, MI – From a small patch of grass, Taylor Blom smoothly launches his video camera drone over Rosa Parks Circle. Looking like a large white spider, the drone whirs silently overhead, unnoticed by most in the park.

Using a handheld remote control, Blom collects dramatic images of the downtown skyline on an app he has installed on his iPhone. He switches to live video and scans the horizon and the Grand River beyond as the drone hovers 45 meters over the park.

Before landing, Blom deftly lowers the “quadcopter” to take a “dronie,” the term for a “selfie” shot from a drone.  Blom, the owner of Front Door Photos, says he would love to use the drone in his business, which specializes in taking photographs of homes for West Michigan real estate agents.

“It produces great vantage points,” said Blom, a Holland resident who started his business one year ago. “It adds a really cool visual element to that service.”

The drone is especially good at producing dramatic photos and videos of lakefront homes, said Blom, who bought his DJI Phantom 2 Vision for about $1,500 this spring – about half of what he spent on his last camera lens.

But Blom and dozens of other real estate photographers dare not publish their work. The Federal Aviation Administration (FAA) has outlawed all commercial use of “unmanned aerial vehicles” or UAVs until it issues new rules and regulations regarding their use.

Drones fit the “model aircraft” category in FAA regulations and are allowed for recreational purposes. But Clifford Maine, a Grand Rapids lawyer with Barnes and Thornburg, said he has advised his clients to avoid any commercial exploitation of the drone technology until the new rules come out sometime before Sept. 30, 2015.

Meanwhile, the FAA has made it clear it does not want Realtors -- or wedding photographers or news photographers – to use UAVs for commercial purposes.

“There are no shades of gray in FAA regulations. Anyone who wants to fly an aircraft—manned or unmanned—in U.S. airspace needs some level of FAA approval,” according to “Busting Myths about the FAA and Unmanned Aircraft,” a bulletin published on the FAA’s web site.

While a few real estate photographers have tested the regulations, none have been formally charged with violating the FAA rules, which specifically forbid Realtors from using drone-produced photography or videos.

News agencies including MLive and The Grand Rapids Press also have been advised not to post commercial video or photos shot from drones. Hence, the photographs with this article show Blom operating his drone, but do not show his drone’s photography.

For Blom, the wait for regulations is a time to learn about his drone, which he carries around in a small plastic case.

Equipped with a flight system that automatically adjusts for wind conditions, Blom said he learned how to operate the drone after a few hours of practice on the golf course near his home.

The drone is outfitted with a high-resolution digital camera that sends live shots or video to Blom’s iPhone, which can store the images or videos or send them to a small storage card. The rechargeable batteries allow for 20-minute flights that can range up to a third of a mile from the controller.

Kevin Cole, the owner of Image Michigan, owns a similar drone. He said it has the potential to revolutionize the aerial photography business he started in 2007.

Cole, of Grand Rapids, specializes in high resolution aerial and elevated photographs and videos he shoots from towers he sets up or airplanes he rents from local pilots. It’s an expensive business that will be dramatically changed once drone photography becomes legal, Cole said.

“The drone is the absolute perfect platform for us; we can do it for half the price,” said Cole, who counts real estate developers and construction companies among his clients.

Like Blom, Cole says he is playing with his drone now so he can be ready to swing into action once the FAA rules are published. “We’re trying to be the first in the business,” he said.

Maine, along with Blom and Cole, expect the FAA to exercise some regulatory control over who can fly the drones commercially.

Whether it requires training, certification or a special license, they all agree the drones will need to be regulated to avoid congestion and irresponsible use in public venues or athletic events where every soccer dad is trying to create video footage of their child.

“As it gets more and more popular and the cost goes down, I would be in favor of regulating it,” said Blom, who believes real estate photographers like himself will be required to carry a license.

But despite any regulations, Blom said he expects drones will be the next big thing in photography.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

U.S. Economy rebounding more rapidly reported

The U.S. economy rebounded more rapidly than initially reported, according to a revised U.S. Department of Commerce report.

USA Today reports gross domestic product grew by 4.2 percent in the second quarter - better than the 4 percent annual pace first reported by the Commerce Department.

Much of the higher revised estimate was based on stronger business investment growth of 8.4 percent, up significantly from an initial 5.5 percent rate. Equipment spending and exports also climbed at double-digit rates: 10.7 and 10.1 percent, respectively.

But businesses stockpiled inventory at a slower rate than originally estimated. Product replenishment added 1.4 percentage points rather than the initially estimated 1.66.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.