Dick Hargis Presentation @ HAR Management Central Legal Update June 2011

1. Har Management CentralLegal Update Dick Hargis Vincent Lopez Serafino Jenevein, PC June 22, 2011

3. (At Least For Real Estate Licensees)

4. Important Federal Issues

7. B) a failure to disclose information in violation of Sec. 17.46 (b)(24); or

9. (7) representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;

10. (12) representing that an agreement confers or involves rights, remedies, or obligations which it does not have or involve, or which are prohibited by law;

11. (24) failing to disclose information concerning goods or services which was known at the time of the transaction if such failure to disclose such information was intended to induce the consumer into a transaction into which the consumer would not have entered had the information been disclosed;New law knocks out (5) (7) and (12). That’s something, but not the whole ball of wax.

13. B) a failure to disclose information in violation of Sec. 17.46 (b)(24); or

15. Urge passage of H.R. 1309 - The Flood Insurance Reform Act of 2011(Biggert, R-IL; Waters, D-CA)

16. Extends for 5 years, NFIP’s authority to issue flood insurance which is not available in the private insurance market, except for the wealthiest property owners.

18. Requires financial institutions to retain at least 5% of the credit risk.

20. would require an 80% loan-to-value, which requires a 20% down payment

21. would limit the mortgage payment to 28% of gross income and limit all debt to 36%

22. Federal Regulators are accepting comments on the proposed rules through August 1, 2011

23. 39 U.S. Senators signed a letter to regulators expressing the Senatorial intent on QRM and opposing the imposition of a sizable down payment

25. The following Houston-area Members of Congress have signed on:

26. John Culberson

27. Al Green

28. Gene Green

29. Shelia Jackson Lee

30. Ron Paul

31. Ted Poe

32. Average MID per home owner is $2,489 in Texas

33. Estimates of a loss of 19% of home value in Texas

35. Preservation of 30-year fixed rate mortgage, requires some federal government role

36. NAR supports the objectives, though not all the specifics, of H.R. 1859 – The Housing Finance Reform Act of 2011

37. Preserves the 30-year fixed rate mortgage

38. Unwinds Fannie Mae and Freddie Mac, replacing them with private companies

39. Maintains federal-government backed securities

41. Faster Resolution of Ethics Complaints

43. Art. 3 - Cooperation with other brokers except when not in best interest of client

46. Art. 16 - REALTOR shall not interfere with exclusive representation agreement that other REALTORS have with clients

48. Salesperson’s Designated REALTOR is notified of citation

49. Fines

50. 1st offense - $300 and NAR Ethics Course

51. 2nd offense - $600

52. 3rd offense - $900