Why Real Marketing LLCLicensed Professionals?

The Proven Strategy

Education

HistoryPrior to 2000 The Federal Reserve

Interest Rates Ranged from 9% - 20% Minimum Down Payment Expected Credit Score to be Above 620 (The Fair, Isaac & Co (FICO)

2000-2007 The Federal Reserve Pre-Approval Loan Process Introduced In 2000 Interest Rates dropped to 7% (Lowest in 40 years) and

Continued to Drop Credit Score Rating were lowered nearly 100 points below 620 (The

Fair, Isaac & Co (FICO) Zero Down Payment introduced Appraisal Short Form (2055) used over historical Long Form (1004),

(AKA - Drive-by Appraisal) Unrealistic Real Estate Values (The Balloon) Real Estate is at it’s Peak in 2006 (Early 2007)

Education

History2007-2008 The Federal Reserve

Foreclosures on the Rise (Nearly 5x)The Bubble BurstsStock Market CrashesUnemployment Rises Above 10%Governmental Bailouts

= Housing Reforms

Education

Governmental Regulations / Amendments

Truth In Lending Act (TILA)Originated in May 29,1968 to Protect Consumers in

Credit TransactionsClear Disclosure of Costs and TermsProtected the consumer for the types of loans 30

years ago

Since 1968 there have been numerous Amendments to TILA

Education

Governmental Regulations / Amendments

Example:

RESPA - Real Estate Settlement Procedures ActEnacted in 1974 by the U.S. Dept. of Housing and Urban

Development (HUD). RESPA is about clarifying closing costs and real estate

settlement procedures. To eliminate illegal activity such as kickbacks and referral

feesRegulates Affiliated Business Arrangements (AfBA)

Example: When a real estate broker has a 25% ownership in a title insurance company and refers business to that company for her real estate transactions, this is an AfBA.

Education

Governmental Regulations / Amendments

Example:

Home Ownership and Equity Protection Act (HOEPA)1994Impacted “HOEPA loans” onlyProhibits Equity Stripping (Skimming) from Residential

Mortgage loansPromotes Fair Dealing for the Lending on Money

Times changed and loan options changedMore amendments are needed…

Education

Governmental Regulations / Amendments

Present:

Housing and Economic Recovery Act (HERA)July 30, 2008Laws to the Lenders for the Bailout

MoneyThe Regulating of Lenders

Education

Governmental Regulations / Amendments

Secure and Fair Enforcement Act - S.A.F.E. Act (TILA )Enacted July 30, 2008Mortgage Licensing for every state to have laws and

regulationsEnhance consumer protectionEnhances complianceLicensing process for Non Federal Regulated Loan originators:

A criminal history background check. At least 20 hours of education prior to licensure.Passing an examination prior to licensure.A net worth or surety bond or equivalent.Annual renewal plus 8 hours of continuing education

Education

Governmental Regulations / Amendments

Regulation Z Amended on July 30,2008Loans/Credit > $25,000 or that Secure Real

Property or DwellingsFull Disclosure About Terms & CostsRight of Rescission (Rescinding of Contract)Advertising Disclosure Requirements

Education

Governmental Regulations / Amendments

Mortgage Disclosure Improvement Act (MDIA) Enacted in July 30, 2008Creditors wait seven (7) business days after they

provide the early disclosuresCreditors provide new disclosures with a revised

annual percentage rate (APR)Any changes of ARP of the loan delays loan for 3 days

Education

Governmental Regulations / Amendments

Home Valuation Code of Conduct (HVCC)Effective May 1, 2009Affects ALL Mortgages Sold to Fannie Mae or Freddie MacRemoves Conflicts of Interests of Interested Parties (Self Dealing)Enhances Appraiser Independence to ensure the Real Values of

the propertyProtects the seller of the mortgages of bad/risky loans

List

Real Marketing LLC – SupportThe Internet – “Go Green” Certified Appraisal -HVCC Compliant (Only

Realtor in Wisconsin!!)Certified HUD TrainerRealtors’ Association (MLS)Largest Available Eye-catching Yard Sign Will Cooperate with ALL other Licensed BrokersPhotographer to capture each propertyAvailable for consultation or field questionsFastest response timeALL AT 2.9% - SAVING YOU THOUSANDS!!

List

Online Visibility Multiple Listing Service (MLS) / Realtor.com

Nation wide listing Listed Property tailored to each individual property Specific listing information for buyers, brokers and real estate

salespeople Homefinder.com (Affiliate Newspaper)

Listed Property tailored to each individual property Targets local leads and sends email notification Networks with over 130 online newspapers > 3.2 million property listings for consumers to search

RmsData.com Listed Property tailored to each individual property Specific listing information for buyers, brokers and real estate

salespeople Viewers see local homes and properties

Price

Certified Appraisalvs.

Certified Market Analysis (CMA)

Certified Appraisal

Will Stand In CourtHVCC CompliantTrue Value of

PropertyListed too high =

StagnancyHighest Success

Rate!

CMANo Authority in

CourtInconsistentCan place false

hopeStagnancy or $

LostGreater Failure

Rate

Negotiate

Wisconsin Licensed Salesperson

Real Marketing LLC – L.P. - RealizationNegotiating starts with sellers, buyers and

cooperating sales peopleAlways ready to write an Offer to Purchase on the

SpotTriggering terms are used with sellers, buyers and

cooperating sales peopleUse the Home Warranty to aid in the SaleNetworking - Promotes Flexibility, Innovation, and

Speed

Sell

Wisconsin Licensed Salesperson

Real Marketing LLC – L.P. - RealizationOrder and shop rates for title insuranceFollow offer to purchase contingencies for seller and buyerReceive loan commitments then install sold signGuide you through the final walk-through inspectionBe there when you close on your new propertyAssist buyer and seller in transfer of electric, gas, and water

service transfer Congratulate & Celebrate!

Questions?

ReferencesCNNMoney (1999) The perks of pre-approval; Retrieved on January 10, 2010 from http://money.cnn.com/1999/09/05/home_auto/q_preapprovedloans/

The Federal Reserve (2008); Press Release – Regulation Z; Retrieved on January 10, 2010 from http://www.federalreserve.gov/newsevents/press/bcreg/20090508a.htm

The Washington Post (2001); Zero-Down Option Opens New Doors; Feb 17, 2001; Retrieved on January 10, 2010 from http://pqasb.pqarchiver.com/washingtonpost/access/68730976.html?dids=68730976:68730976&FMT=ABS&FMTS=ABS:FT&type=current&date=Feb+17%2C+2001&author=&pub=The+Washington+Post&desc=Zero-Down+Option+Opens+New+Doors&pqatl=google

The Washington Post (2001); Zero-Down Mortgages Are Up and Coming; Sept 16, 2000; Retrieved on January 10, 2010 from http://pqasb.pqarchiver.com/washingtonpost/access/60461052.html?dids=60461052:60461052&FMT=ABS&FMTS=ABS:FT&type=current&date=Sep+16%2C+2000&author=Kenneth+R.+Harney&pub=The+Washington+Post&desc=Zero-Down+Mortgages+Are+Up+and+Coming&pqatl=google

Financial WEB (2009) Truth-in-Lending Act (TILA) - Real Estate Settlement Procedures Act (RESPA); retrieved on January 22, 2010 from http://www.finweb.com/mortgage/tila-respa.html

Housing and Economic Recovery Act of 2008 (HERA) – An Act – Retrieved on January 22, from http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h3221enr.txt.pdf