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I’m sorry, your closing is cancelled right here at the table



Just imagine everything looking like it was going smooth.

You sold your listing of 9 months, worked out the short sale on the first with Bank O ‘Merica and a second with Bumble Bee Savings and Loan after going through 3 cell phones, 2 email accounts for because of space and a heart transplant.

Your seller, the buyer and their agent were very cool throughout the entire debacle even though the selling agent’s car was towed and the buyer was lost in East Africa for three weeks.

So, finally at the closing table. All of you sitting there, you have the mortgage papers, all looks great. (Oh no, here it comes)

Yikes, on a supplemental page of the HUD settlement sheet, there is a discrepancy of $25 because the local township just raised their transfer tax two months before.

The mortgage person on the original good faith estimate did not put the charge because it did not exist then but now it does.

Well, according to HUD all is fine, just have the loan officer pay the difference. But, our friends at the Federal Reserve say…whoa…..since the broker is getting their compensation from the lender (because it’s a zero point mortgage), the loan officer or their company can’t pay.

And in fact, no one else can either. HUD says it must be the loan officer or his company but the Fed (as of 4.1.11) says they can’t.

What do you have? Dead Deal. Start a new mortgage. Too bad suckers.

The Federal Reserve has come out with the compensation rule and refuses to put in writing the proper guidelines for it. Also, the soon-to-come CFPB will be taking over the rule making in the end of July.

But, I have found out that the same person writing the rules for the Fed will be going to the CFPB.

Ok, want to do something? Besides contacting your REALTOR board, your state association and NAR directly, please address in your own words why this new rule is harmful to your business to Paul Mondor at the Federal Reserve. His email address is He is the Senior Attorney at the Fed that has been the front person with the industry.

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  1. jay Great Falls

    February 3, 2011 at 8:35 pm

    Hey it’s great having government interfering in the marketplace including forcing banks initially to loosen their lending standards for their social justice campaign. It’s been a very positive experience on the economy and housing industry for the past 5 years…. 🙂

  2. Fred Glick

    February 4, 2011 at 8:34 am

    As a follow up to my article, check out this video from :

  3. Connie

    February 4, 2011 at 9:46 am

    Hey, we need a little common sense here. We need the flexibility to work this out, especially at the closing table.

    I can understand that loan practices have to be stricter, since the massive fraud that “Bernie” brought to our industry. But now, don’t you think its time for common sense? We need to sell these homes so we can get back to a ‘normal market’.

  4. Missy Caulk

    February 4, 2011 at 9:49 am

    “on a supplemental page of the HUD settlement sheet, there is a discrepancy of $25 because the local township just raised their transfer tax two months before.”

    Fred, the thing that sticks out to me is 2 months before….that is long enough for the Title Company (or whoever in your state) gets the closing file to catch this and get it changed.

    Not saying the rule is good, it is ridiculous…but in this case should it not have been caught before the fact by the lender, attorney or Title Company and not stopped a closing?

  5. Fred Glick

    February 4, 2011 at 10:27 am

    @Missy, ignore the details for a moment.

    The Fed is doing something they cannot do. What will be next? Limit real estate commissions?

    It’s the theory that is the issue.

    But, to speak to your issue, a broker who is not informed about the change, can’t change the form that the clients have already signed. The process is totally flawed and broken.

    The Fed is just making it worse.

    Call me at 215-852-4469 for detailed clarification.

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Economic News

Boomers retirement may be the true reason behind the labor shortage

(ECONOMY) Millennials and Gen Z were quick to be blamed for the labor shortage, citing lazy work ethic- the cause could actually be Boomers retirement.



Older man pictured in cafe with laptop nearby representing boomers retirement discrimination.

In July, we reported on the Great Resignation. With record numbers of resignations, there’s a huge labor shortage in the United States. Although there were many speculations about the reasons why, from “lazy” millennials to the number of deaths from Covid. Just recently, CNN reported that in November another 3.6 million Americans left the labor force. It’s been suggested that the younger generations don’t want to work but retiring Boomers might be the bigger culprit.

Why Boomers are leaving the labor force

CNN Business reports that 90% of the Americans who left the workplace were over 55 years old. It’s now being suggested that many of the people who have left the labor force since the beginning of the pandemic were older Americans, not Millennials or Gen Z, as we originally thought. Here are the reasons why:

  • Boomers are more concerned about catching COVID-19 than their younger counterparts, so they aren’t returning to work. Boomers are less willing to risk their health.
  • The robust real estate market has benefitted Boomers, who have more equity in their homes. Boomers have more options on the table than just returning to work.
  • Employers aren’t creating or posting jobs that lure people out of retirement or those near retirement age.

As Boomers retire, how does this impact the overall labor economy?

According to CNN Business, there are signs that the labor shortage is abating. Employers are starting to see record number of applicants to most posted jobs. FedEx, for example, just got 111,000 applications in one week, the highest it has ever recorded. The U.S. Bureau of Labor Statistics projects that the pandemic-induced increase in retirement is only temporary. People who retired due to the risk of the pandemic will return to work as new strategies emerge to reduce the risk to their health. With new varients popping up, we will have to keep an eye on how the trend ultimately plays out.

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Economic News

Is the real estate industry endorsing Carson’s nomination to HUD?

(BUSINESS NEWS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?



NAR strongly backs Dr. Carson’s nomination

When President-Elect Donald Trump put forth Dr. Ben Carson’s name as the nominee for Secretary of Housing and Urban Development, NAR President William E. Brown said, “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”

At the time of nomination, the National Association of Realtors (the largest trade organization in the nation) offered a positive tone regarding Dr. Carson and said the industry looks forward to working with him. But does that hold true today?

The confirmation hearings yesterday were far less controversial than one would expect, especially in light of how many initially reacted to his nomination. Given his lack of experience in housing, questions seemed to often center around protecting the LGBT community and veterans, both of which he pledged to support.

In fact, Dr. Carson said the Fair Housing Act is “one of the best pieces of legislation we’ve ever had in this country,” promising to issue a “world-class plan” for housing upon his confirmation…

>>>>>Click to continue reading…<<<<<


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Economic News

Job openings hit 14-year high, signaling economic improvement

The volume of job openings is improving, but not across all industries. The overall economy is improving, but not evenly across all career paths.



young executives

job openings

Job openings hit a high point

To understand the overall business climate, the U.S. Labor Department studies employment, today releasing data specific to job vacancies. According to the department’s Job Openings and Labor Turnover Survey (JOLT) for April, job openings rose to 5.38 million, the highest seen since December 2000, and a significant jump from March’s 5.11 million vacancies. Although a lagging indicator, it shows strength in the labor market.

The Labor Department reports that the number of hires in April fell to 5 million, which indicates a weak point in the strong report, and although the volume remains near recent highs, this indicates a talent gap and highlights the number of people who have left the labor market and given up on looking for a job.

Good news, bad news, depending on your profession

That said, another recent Department report notes that employers added 221,000 jobs in April and 280,000 in May, but the additions are not evenly spread across industries. Construction jobs rose in April, but dipped in professional and business services, hospitality, trade, and transportation utilities. In other words, white collar jobs are down, blue collar jobs are up, which is good or bad news depending on your profession.

Additionally, the volume of people quitting their jobs was 2.7 million in April compared to the seven-year high of 2.8 million in March. Economists follow this number as a metric for gauging employee confidence in finding their next job.

What’s next

If you’re in the market for a job, there are an increasing number of openings, so your chance of getting hired is improving, but there is a caveat – not all industries are enjoying improvement.

If you’re hiring talent, you’ll still get endless resumes, but there appears to be a growing talent gap for non-labor jobs, so you’re not alone in struggling to find the right candidate.

Economists suspect the jobs market will continue to improve as a whole, but this data does not pertain to every industry.


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