Fannie Mae and Freddie Mac have announced a redesign for the standardized form borrowers use to apply for a loan, the first substantial revision in more than two decades. The changes to the Uniform Residential Loan Application (URLA) include simplified terminology and new data fields capturing borrower information in an easier-to-read format, the GSEs said. The forms will have clearer instructions so that borrowers will need less help from lenders.
A prohibited transaction can be described as an improper use of your IRA account assets by a disqualified person. The term prohibited transaction in this case applies to retirement plans such as a self-directed IRA, or 401(k).
Here are some transactions that would be considered prohibited:
- a transfer of plan income or assets to, or use of them by or for the benefit of, a disqualified person;
- any act of a fiduciary by which plan income or assets are used for his or her own interest;
- the receipt of consideration by a fiduciary for his or her own account from any party dealing with the plan in a transaction that involves plan income or assets;
- the sale, exchange, or lease of property between a plan and a disqualified person;
- lending money or extending credit between a plan and a disqualified person; and
- furnishing goods, services, or facilities between a plan and a disqualified person.READ MORE: http://www.innovativewealth.com/self-directed-ira/ira-prohibited-transactions-that-tax-your-ira/
“Private capital is now absorbing large amounts of mortgage credit risk which was previously supported by the U.S. taxpayer.” — Donald Layton, Freddie Mac CEO
Yesterday Freddie Mac announced that it will be concentrating on the single-family asset class for some $650 billion in future loan sales.
The US Court of Appeals for the Ninth Circuit has ruled that a mortgagee’s security interest cannot be extinguished by the foreclosure of a homeowner’s association “super lien.”
In 2014 the Nevada Supreme Court ruled that a note “super priority lien” held by a homeowners association can extinguish a first deed of trust on a property (see http://papersourceonline.com/5595nevada-notes/ )
The August 12, 2016 Appeals Court ruling will impact numerous lawsuits in Nevada courts and eight other states (see the map).
A group of real estate investors called SFR Investments Pool 1 had foreclosed on such a “super lien” with a balance of $6,000. The investors argued in the case that the foreclosure wiped out a note debt of $885,000 on the property, which was held by U.S. Bank as a first deed of trust.
The Nevada Supreme Court agreed with SFR Investments.
Jonathan Friedrich, a member of the board of the Commission for Common-Interest Communities and Condominium Hotels, called the ruling a potential disaster for the residential real estate business in Southern Nevada.
“If a bank cannot protect its investment, then what bank or lending institution would ever lend money in this state?” he said. “It will hurt home builders and resales and be disastrous to our economy.”
The Appeals Court decision: http://cdn.ca9.uscourts.gov/datastore/opinions/2016/08/12/15-15233.pdf
Summary of the Appeals Court decision: http://www.ballardspahr.com/alertspublications/legalalerts/2016-08-15-nv-hoa-super-lien-foreclosure-cannot-extinguish-lenders-security-interest.aspx
Jack Shea is a highly-respected authority on note investing, options, tax-free exchanges, trusts and self-directed IRAs. He taught at the 2016 Paper Source Note Symposium (the videos are available here: https://cashflowprofitseminars.com/order-cashflow-profits-2016-videos )
Jack operates a 1031 exchange business as well as conducts classes on the details of tax-free sales and purchases. He also has written a book on Options and teaches seminars nationwide on Trusts, Options, Exchanges, IRAs and note investing. He has developed several unique strategies using trusts, options, exchanges and a hybrid IRA Checkbook Control Trust that can hold real estate, notes and other personal property. Watch his introductory video on “How to Option Notes and Personal Property” here: https://flipnerd.com/show/option-notes-personal-property/ And visit Jack’s website: http://jackshearealestate.com/