Private Transfer Fee Covenants | TradingMarkets.com: "The Federal Housing Finance Agency (FHFA) is proposing to issue a Guidance, 'Guidance on Private Transfer Fee Covenants,' to the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), and the Federal Home Loan Banks (the Banks) that the entities it regulates should not deal in mortgages on properties encumbered by private transfer fee covenants. Such covenants appear adverse to liquidity, affordability and stability in the housing finance market and to financially safe and sound investments."
---------------
This is a notice of a proposed rule change. Fred Pilot sent it along, with a note that CAI will probably oppose it. I keep hearing about HOAs and condos that are levying these private transfer fees.
8 comments:
North Carolina (SB 35) enacted legislation to ban private transfer fees (re conveyance fees) recently.
Please see the information below:
http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S35v7.pdf
Friday, July 2, 2010
NC Law Now Bans Private Transfer Fees
The legislation that bans private transfer fees is now law! Yesterday, Governor Beverly Perdue signed SB 35 (Reconveyance Fees Prohibited), which was sponsored by Senator David Hoyle (D-Gastonia). The legislation is an important step to protecting consumers and providing certainty in the real estate transaction. The N.C. Association of REALTORS® worked hard to have this legislation heard in the short session.
With the passage of this legislation, North Carolina becomes one of only a handful of states that ban private transfer fees. It is noteworthy that in exactly a month’s time we went from not having any pending legislation addressing this issue to having the Governor sign a bill that bans these fees. This is quite a feat.
Rick Zechini
Director of Government Affairs
1.
What's A Private Transfer Fee In Real Estate? : Mortgage Loans ...
Jul 12, 2010 ... Other states at this writing which have bans on private transfer fees include Arizona, Hawaii, Iowa, Louisiana, Minnesota, North Carolina, Ohio and Utah. Similar legislation is pending in a number of additional states. ...
www.ourbroker.com/.../whats-a-private-transfer-fee-in-real-estate/ - Cached
2.
Private Transfer Fees and Reconveyance Fee Instruments in North ...
May 27, 2010 ... Texas has a statute that appears to ban the private transfer fees; ... to support legislative efforts to ban such fees in North Carolina. ...
realproperty.ncbar.org/.../private-transfer-fees-and-reconveyance-fee-instruments-in-north-carolina.aspx - Cached
Originally, this matter was brought to the attention of NC lawmakers by:
Carolyn Clark Snipes
Branch Manager & Title Counsel
Fidelity National Title Insurance Company
1 West Pack Square, Suite 301
Asheville, North Carolina 28801
828-281-4500 (office)
828-230-5226 (mobile)
828-281-3559 (fax)
She identified the one group attempting to market such as:
"The name of the company is Freehold Capital Partners.
Thank you for the information you sent.
Best regards,
Carolyn Clark Snipes
Branch Manager & Title Counsel
Fidelity National Title Insurance Company
1 West Pack Square, Suite 301
Asheville, North Carolina 28801
North Carolina recently enacted legislation (SB 35)to ban private transfer fees (reconveyance fees).
Please see this information:
http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S35v7.pdf
Friday, July 2, 2010
NC Law Now Bans Private Transfer Fees
The legislation that bans private transfer fees is now law! Yesterday, Governor Beverly Perdue signed SB 35 (Reconveyance Fees Prohibited), which was sponsored by Senator David Hoyle (D-Gastonia). The legislation is an important step to protecting consumers and providing certainty in the real estate transaction. The N.C. Association of REALTORS® worked hard to have this legislation heard in the short session.
With the passage of this legislation, North Carolina becomes one of only a handful of states that ban private transfer fees. It is noteworthy that in exactly a month’s time we went from not having any pending legislation addressing this issue to having the Governor sign a bill that bans these fees. This is quite a feat.
Rick Zechini
Director of Government Affairs
1.
What's A Private Transfer Fee In Real Estate? : Mortgage Loans ...
Jul 12, 2010 ... Other states at this writing which have bans on private transfer fees include Arizona, Hawaii, Iowa, Louisiana, Minnesota, North Carolina, Ohio and Utah. Similar legislation is pending in a number of additional states. ...
www.ourbroker.com/.../whats-a-private-transfer-fee-in-real-estate/ - Cached
2
Originally, this matter was brought to the attention of NC lawmakers by:
Carolyn Clark Snipes
Branch Manager & Title Counsel
Fidelity National Title Insurance Company
1 West Pack Square, Suite 301
Asheville, North Carolina 28801
828-281-4500 (office)
828-230-5226 (mobile)
828-281-3559 (fax)
She identified the one group attempting to market such as:
"The name of the company is Freehold Capital Partners."
Best regards,
Carolyn Clark Snipes
Branch Manager & Title Counsel
Fidelity National Title Insurance Company
1 West Pack Square, Suite 301
Asheville, North Carolina 28801
Evan:
We are taking a look at this as you would expect and may have some concerns. Where permitted by state law, associations frequently use such fees at transfer to fund reserves or other capital contributions, which strengthens the communities financial position and where the benefits accrue to all the homeowners within the community.
Of greater concern is the emerging trend for developers to incorporate a transfer fee in their initial deed that runs with the land in perpetuity. Thus, every time a home is sold the developer or their assigns would receive a (in some case substantial) payment. Of course this is starting to spawn a secondary market where these rights are packaged, sold, and arbitraged.
Seems to me that this is a much bigger concern than a generally much smaller fee specifically targetted to reserves.
Tom
Yes, even the federal government does not believe CAI's claims that money paid to the HOA "preserves property values" or benefits the homeowner in any way.
I look forward to the typical false claims that CAI will make about "community" and "democracy" such as those filed in their FCC filings when trying to keep homeowners hostage to monopolies on the provision of various media services. (CAI filed numerous oppositions to the OTARD rules governing satellite dishes, CAI actively lobbies to keep entire subdivisions trapped into bulk purchase agreements such as those for cable TV and other services).
The report is interesting because it reveals that the FHFA does not buy into the myth that transfer fees are benefitting the homeowners. The transfer fees certainly do not benefit the lenders or servicers. You will generally only find transfer fees on HOA-burdened property. So elimination of 80% of the funding sources for HOA-burdened property with such transfer fees will clearly prove the point that HOAs and these transfer fees HARM the marketability of property. However, it won't be enough for the government to eliminate funding - they need to void these transfer fees because the homeowners themselves cannot.
The purpose of the HOA corporation was to disenfranchise the homeowners from being able to eliminate such a blatant extraction of money from their pockets to the pockets of the HOA developer, HOA management company, and other vendors of the HOA corporation
I tried to post this yesterday, with some additional info.
http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S35v7.pdf
Friday, July 2, 2010
NC Law Now Bans Private Transfer Fees (also known as reconyevance fees:
The legislation that bans private transfer fees is now law! Yesterday, Governor Beverly Perdue signed SB 35 (Reconveyance Fees Prohibited), which was sponsored by Senator David Hoyle (D-Gastonia). The legislation is an important step to protecting consumers and providing certainty in the real estate transaction. The N.C. Association of REALTORS® worked hard to have this legislation heard in the short session.
With the passage of this legislation, North Carolina becomes one of only a handful of states that ban private transfer fees. It is noteworthy that in exactly a month’s time we went from not having any pending legislation addressing this issue to having the Governor sign a bill that bans these fees. This is quite a feat.
Rick Zechini
Director of Government Affairs
1.
What's A Private Transfer Fee In Real Estate? : Mortgage Loans ...
Jul 12, 2010 ... Other states at this writing which have bans on private transfer fees include Arizona, Hawaii, Iowa, Louisiana, Minnesota, North Carolina, Ohio and Utah. Similar legislation is pending in a number of additional states. ...
Carolyn Clark Snipes
Branch Manager & Title Counsel
Fidelity National Title Insurance Company, was instrumental in gettingthis legislation passed in approximately two months.
states that do not ban these transfer fees will soon see real estate prices fall fast and hard. State representatives that support the CAI industry will be looking for the nearest exit sign.
Tom Skiba, president of the Communisty Associations Institute, wrote:
"Where permitted by state law, associations frequently use such fees at transfer to fund reserves or other capital contributions, which strengthens the communities financial position and where the benefits accrue to all the homeowners within the community."
should read
"Where permitted by state law, associations frequently extort such fees at transfer to fund attorneys and professional property managers, which strengthens the corporation's financial position and where the benefits accrue to all the racketeers of the communisty."
It's really a shame that North Carolina would claim that an enabling statute is actually a voiding statute. How shameful. If you read the statute it clearly excepts transfer fees payable to HOAs, etc. from inclusion. Therefore the statute is a voiding statute and government officials are doing a huge disservice by proclaiming their statute to prohibit such fees. Look at §39 A-2 parts (e)-(j). At the very least this government official is misrepresenting the true effect of the statute.
Let's also note that representatives from Fidelity National Title were behind the legislation. Please refer to the Freehold Capital Partners webpage which illustrates an interesting alliance between Freehold and Fidelity.
Post a Comment