Portland Oregon

The Saga of the 2020 Refinance Fee By Stuart Gaston NMLS 1992605 OR/WA

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When the initial announcement was made on the evening of Aug 12th, the FHFA ‘adverse market’ LLPA refinance fee caused shockwaves in the industry:

  1. Many trade organizations took issue with the fee itself.  The California Association of Realtors felt it was “taking advantage of the current economic crisis” to raise additional revenue. Some have called it a tax 
  2. The relatively short notice was an unforeseen burden on lenders and consumers alike. The Mortgage Bankers Association called it ill-timed and misguided

Let’s first explore what exactly the fee does and then we’ll review the complex timeframe.

What is the fee?

The Loan-Level Price Adjustment (LLPA) is a fancy acronym for a fee applied to conforming loans that meet the funding limits of the FHFA and the guidelines of the GSEs (Fannie Mae and Freddy Mac).  Conforming loans represent the vast majority of mortgages.  The fee has never applied to nonconforming Jumbo loans over $510,400 nor to VA, USDA and FHA loans.

The -0.50% fee (or 50 bps, pronounced ‘bips’) is for refinances only.   For a $300,000 mortgage that is an extra $1,500.  It’s on top of any “points” someone might be paying at origination. 

They have clarified that the refi fee does not apply to any mortgage under $125,000 nor certain affordable housing programs like Home Ready.

The FHFA says the fee is to offset an estimated $6 billion in losses due to forbearance and foreclosure.  With forbearance numbers around 7%, the GSEs will continue buying conforming loans in forbearance through the end of Sept.  To give some perspective, last year that number was around 2%.

Timing

The fee would have taken effect on Sep 1st – only about two weeks after announcement.  Record low interest rates were already fueling both a refi bonanza and the purchase market.  Even though lenders prioritize purchase transactions, the ‘pipeline’ of underwriting and funding was getting clogged.  65% of those loans were refinances.  The ubiquitous ’30 day lock’ was being pushed over the limit.  Newly locked loans were at 45 or even 60 days.

Here’s the rub: the fee was applied to loans already in the funding pipeline as they pass to the GSEs.

This timing meant that even if a loan was applied for and locked in early July, it would have the fee added as it was delivered to Fannie Mae in September.  The lenders didn’t have any idea in July that this fee was coming and their price sheets were therefore unadjusted.  The banks were caught flat-footed in August and were about to eat a ton of fees come September.

On the morning of Aug 13th originators were scrambling.  Meetings were postponed and phones were ringing off the hook.  Loan officers were locking loans of most prospects to help them avoid the fee, even those who were on the fence.  Sure enough, within hours lenders across the nation started adding the -0.50% fee to their pricing sheets.  Of course any consumer unfortunate enough to be floating a loan without a lock was now having to deal with the fee at closing.  

Then what happened?

The MBA lobbied to have the fee reversed entirely, but on Aug 23rd FHFA acquiesced only partially and the fee was postponed to Dec 1st.  Within days most lenders removed it from their pricing sheets – for a little while.  The -0.50% refinance fee is coming back faster than you think. 

That’s because Dec 1st is a sneaky date, and here’s why:

  • It’s still the date for the fee to be applied upon delivery to Fannie and Freddy at the end of the multi-month funding pipeline…not the beginning
  • The lenders are determined not to be caught by surprise once again.  Some lenders are already re-implementing the fee on Sep 15th for the consumer

An Aug 28th article in Forbes points out that you shouldn’t delay.   In two words: apply immediately. 

“Can I refinance after the fee hits?” you ask

Yes, of course.  Folks with an old mortgage at 3.75% or higher can probably still benefit from a refinance at currently low rates, even with this fee.  Please remember Jumbo loans, loans under $125k, or FHA/VA loans don’t get hit with the fee regardless.  There’s no telling when the fee will go away.  If you were considering a refinance anyway, now is the time to apply and get a lock.  You have only few days left to avoid the fee.The opinions expressed on this article are solely those of its author. Stuart Gaston NMLS 1992605 OR/WA stuart@rootmortgage.com

Stuart Gaston
Root Mortgage
Mortgage Advisor
NMLS 1992605
E. stuart@rootmortgage.com  C. 503.913.3285

Oregon’s Newest Rental Laws

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On June 29, the Oregon legislature, in a non-public meeting, approved HB 4213. The most well-known item: no evictions for non-payment of rent through September 30.
But, this law, like so many anti-real estate investor laws passed in the last four years, has many nuances that can trap any landlord. And the penalties to investors are quite severe.
MOST IMPORTANT: If you have any tenants not paying, consult a good landlord-tenant attorney. Do NOT try to do it yourself.
If you have lost rent since March 1, you are probably eligible for some relief:
I looked this over and it appears it applies to landlords who have lost rent due to the Coronavirus and shutdown.

Multnomah County Property Tax Appeal Process

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This information will help you decide how to appeal your property value to the Board of Property Tax Appeals (BoPTA). Your appeal must be postmarked or delivered by December 31.

  1. Deciding to appeal
  2. Submit your appeal
  3. Prepare for your hearing
  4. What to expect at the hearing
  5. Hearing decision

Use this Glossary of Value Terms to help understand your tax bill and prepare your appeal.

Deciding to appeal

Before you file an appeal, please contact our office (via live chat(link is external), phone or email) for more information about how your property value was determined. Our appraisers will help you understand your value and if it should be adjusted.

You may file appeals for the following reasons:

  • Value: You can appeal the current year’s Real Market Value (RMV), Specially Assessed Value (SAV) or Assessed Value (AV) on both real and personal property accounts. Personal property includes business property, floating property and manufactured structures.
  • Exception event: If improvements have been made to your property (for example updating or remodeling) and you believe that the amount the Assessor has increased the value of your property is too high, you may appeal the amount of the increase that is associated with the improvements (called an “exception event”).
  • Penalty: If you disagree with a penalty assessed to you for late filing of your real or personal property return, you may petition BoPTA to waive the penalty.

When considering an appeal, keep in mind:

  • A reduction in Real Market Value of your property may not result in tax savings.
  • It is your responsibility to prove that the value the Assessor has placed on your property is too high.
  • BoPTA can only hear appeals of the current tax year values. It does not have authority to consider appeals for any other tax years.

BoPTA cannot:

  • Consider hardship as a factor in establishing value
  • Set the amount of tax you owe
  • Consider a sharp increase in value in a single year to be a valid reason for appeal
  • Regard lack of normal property maintenance as a reason for appeal (however, severely deferred maintenance and structural problems are considered)
  • Consider testimony on tax rates or the fairness of the tax system.

Submit your appeal

When can I appeal?

After your current year property tax statement is available, you have until December 31 to submit your petition to The Board of Property Tax Appeals (BoPTA). BoPTA can only consider petitions for the current tax year value.

Your petition must be postmarked or delivered by December 31.

  • We use the U.S. Postal Service postmark to determine timeliness of filing. A postage meter imprint (e.g. Pitney-Bowes) is not considered a postmark.

Hearings will take place between the first Monday in February through April 15. You will be notified by mail of your hearing date and time.

Download appeal forms and petitions

Pick up forms at our office

501 SE Hawthorne Blvd, Suite 175
Portland, OR 97214
Phone: 503.988.3326

Email form request to BOPTA@multco.us(link sends e-mail)

How do I submit my appeal and what is the fee?

You must submit a separate completed petition for each account. The filing fee is $30.00 per account.

If we receive your petition without the filing fee, you have 20 days from the date of notification to submit the fee or the petition will be dismissed.

Appeals are accepted by mail or in person only. Email or fax submissions are not accepted.

By mail

Board of Property Tax Appeals
PO Box 5007
Portland, OR 97208-5007

In person

501 SE Hawthorne Blvd, Suite 175
Portland, OR  97214

How do I appeal Business Personal Property?

Business Personal Property value for the current tax year may be appealed to BoPTA. Paperwork must be postmarked no later than December 31.

Late filing penalties for business personal property may also be appealed to BoPTA separately.

The cost for each appeal is $30.

Business Personal Property Appeals forms

Personal Property Petition (468.98 KB)

Waiver of Late Filing Penalty (152.42 KB)

Prepare for your hearing

When will my hearing be scheduled?

Hearings start in mid-February and run until April 15. Hearings take place in 10 minute increments from 9 am-2 pm, Monday-Thursday at the Multnomah Building (501 SE Hawthorne Blvd, Portland, OR 97214).

  • Notices of hearing will be mailed 5-10 days in advance of the scheduled time. You may also call or chat our Customer Service office(link is external) to find out your scheduled hearing time.
  • Hearing times cannot be rescheduled. If, after your hearing is scheduled, you find you cannot attend, you may send a qualified representative. To designate a representative, fill out and submit the Authorization to Represent form(link is external).
  • If you are in need of special assistance, please call or chat our office and we will be able to help you.

What evidence do I need?

Generally, to be successful in your appeal, you must provide evidence of the market value of your property on January 1 of the assessment year. A strong case requires careful preparation. Remember, it is your responsibility to prove that the Assessor’s value is too high.

The only evidence BoPTA can consider is what you provide with your current appeal.  Evidence from previous appeals will not be considered. You may send your evidence with your petition, or bring it at the time of the hearing.

Here are some examples of evidence BoPTA may consider:

  • Documentation of an arm’s-length (openly-marketed) sale of your property that occurred close to January 1 of the assessment year.
  • A fee appraisal dated close to January 1 of the assessment year which reflects the property’s value.
  • Proof that the property has been listed for sale on the open market for a reasonable period of time at a price below the real market value on the tax roll.
  • A comparison of properties similar to yours in location, size and quality that have sold close to January 1 of the assessment year. If there are differences between properties, the differences must be accounted for in the comparison of values.
  • Cost of new construction that occurred close to January 1 of the assessment year and was performed by a professional contractor.
  • Cost to repair your property. You must provide written estimates of the cost of the repairs.
  • For commercial property, documentation of income and expense information or a comparable sales analysis.

If you wish to submit comparable sales as evidence, an example of a Comparable Sales Grid is available.

Any evidence you provide to BoPTA will not be returned to you.  If you wish to keep the original documents, you may submit copies to the Board.

What to expect at the hearing

A typical residential hearing is limited to a total of 10 minutes. All hearings in which a petitioner (or representative) is present are recorded. Most recordings are available for review upon request. During this 10 minutes you will:

  • Introduce yourself and identify your property. The BoPTA Chair will announce the current value and your requested value, and will confirm the size, location and type of property under appeal.
  • You will then make a statement supporting your requested value.
  • Describe each piece of evidence you present. BoPTA members may ask questions during your presentation.

You must make your statement, present your evidence, and allow for questions within the 10 minute period. Remember that BoPTA is concerned with property values for the current assessment year, not large increases over last year’s value or increases in tax amounts.

The process is informal. You should expect to be treated with courtesy. The Chair must, however, adhere to the time schedule and you will be asked to cooperate in this regard.

Who is on the Board of Property Tax Appeals (BoPTA)?

BoPTA members are private citizens appointed by the Multnomah County Board of County Commissioners. They are not professional appraisers, but have training, experience and knowledge in property valuation.

BoPTA members are not part of the Assessor’s Office. BoPTA members are not part of the Assessor’s Office and they play no role in setting any of the values on your property.

BoPTA may be thought of as a panel which decides the value of your property based on the evidence you present.

Hearing decision

When can I expect a decision?

BoPTA hears all the day’s testimony before making any decisions. The decision-making process is typically between 2-4 pm. You are welcome to observe this process, however you will be unable to comment or offer any further testimony.

BoPTA’s decisions are not available by telephone.

Whether you are present for the decision-making process or not, a written Board order will be mailed to you or your representative within 8-10 business days after the hearing.

What if I disagree with the BoPTA’s decision?

Information and instructions on appealing BoPTA’s decision to the Oregon Tax Court will be included with the written decision.  For more information, visit the Oregon Tax Court’s website(link is external).

Concordia Neighborhood Charmer: 5934 NE 23RD AVE Portland, Or. $386,250

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Concordia Neighborhood Tudor. Close to New Seasons Market, Kennedy School,Concordia University,and Alberta Park. Enjoy the lifestyle of close in Portland. Owners ahve carefully updated this home and brought out the charm and style English Tudors are known for. Located in a quiet close in neighborhood with old trees and sidewalks.   This home is a must see for anyone looking for a larger home in a quiet close in neighborhood.    Home drips with charm and grace. MLS#12076403  4 Bedroom, 2 Bathroom, 2795 Square Foot home.

Fred Stewart
Stewart Group Realty
503-289-4970
info@sgrealtyinc.com

 

Preferred Mortgage Broker

Melissa Stashin
Pacific Residential
Mortgage 971-221-5656  Cell
melissa.stashin@pacresmortgage.com

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Piedmont Victorian – 5775 NE Garfield Portland, OR 97211

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I recently toured a beautifully remodeled Victorian home in the Piedmont neighborhood in Portland, OR. Here’s a short video about the home, which is listed at $399,000:

This house really caught my eye from the moment I stepped on the front porch. Here is a photo gallery of pics I snapped with my phone while I toured the house with Joe:

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The owners have taken great care in restoring and remodeling this house, with a great mix of classic and modern elements. Joe even told me how much time he spent filling the original posts on the porch, and it is a lot!

Financing for 5775 Ne Garfield

There are a range of home loan options available for this property. As I said in the video, it does qualify for FHA financing, which has flexible credit guidelines and financing for up to 96.5% of the home’s value. To learn more about financing this property, or any other in Oregon and Washington, feel free to contact me at 503.799.4112 or email jason@mypmb.us

You can learn more about this great home at the following website:

http://www.5775negarfield.com

Contact the listing broker,

Michael Rysavy
Oregon Realty
503.860.4705

Thanks for taking a minute to check out this property!

Jason Hillard

Mortgage Advisor MLO #119032

Pinnacle Mortgage Bankers

a div of Pinnacle Capital Mortgage Corp

1706 D St Suite A Vancouver, WA 98663

http://www.homeloanninjas.com/

NMLS 81395 WA CL-81395

Equal Housing Lender

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Multnomahforeclosures.com: July 15th, 2011 Update.

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Multnomah County highlighted in Oregon; Portla...

Image via Wikipedia

Multnomahforeclosures.com was updated with the largest list of Notice Defaults to date. With Notice of Default records dating back nearly 3 years.  

If you are planning on investing in real estate, want to learn the status of the home you are renting/leasing or about to rent or lease  you should visit Multnomahforeclosures.com.

All listings are in PDF and Excel Spread Sheet format.

Multnomah County Foreclosures

Multnomah County Foreclosures
http://multnomahforeclosures.com

 
 

Fred Stewart 
Broker
Stewart Group Realty Inc.
http://www.sgrealty.us/
info@sgrealtyinc.com
503-289-4970 (Phone)

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Oregon economy climbs higher, by Suzanne Stevens, Portland Business Journal

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Oregon‘s economy showed continued growth in February, led by employment services payrolls, strong U.S. consumer sentiment and an increase in the interest rate spread.

The University of Oregon Index of Economic Indicators rose 0.7 percent to 91.3 in February from January. The index has a benchmark of 100 set in 1997.

While unemployment claims edged up, they remain well below 2010 levels and overall labor market trends are strong. Employment services payrolls, largely temporary employment, were up 3.2 percent and non-farm payrolls were also up, adding about 9,800 new jobs last month. Since October, the Oregon economy has added about 5,900 jobs each month.

Other Oregon data reflected in the UO Index include:

Initial unemployment claims rose slightly to 8,551 in February, up from 8,487 in January.
Residential permits inched up to 629 from 627.
U.S. consumer confidence rose to 73.1 from 71.2.
New manufacturing orders for non-defense, non-aircraft capital goods dipped to 39,402 from 39,728.
The interest rate spread between for 10-year treasury bonds and the federal funds rate widened to 3.42 from 3.22, a signal of investor confidence in the U.S. economy.
The index has continued to climb since October 2010, when it was 88.9.

Read more: Oregon economy climbs higher | Portland Business Journal

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Homeless Families Warming Center Opens; Donations Needed, by Rev. Chuck Currie

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his week the Homeless Families Warming Center opened for the winter season and today city of Portland and Multnomah County leaders gathered with people from the faith community to dedicate the space.  Families that moved into this emergency shelter were also on hand to talk with members of this press about their personal experiences with homelessness.

The speakers today included Multnomah County Commissioner Deborah Kafoury, Multnomah County Commissioner Barbara Willer, Human Solutions executive director Jean DeMaster, and The Rev. Brian Heron.   I was honored to be invited to deliver the invocation.

Here are the basic facts about this mid-county program:

The Homeless Family Warming Center is a 60 bed homeless family shelter operating November 1, 2010 – March 31, 2011 at Eastminster Presbyterian Church. The church is located at 12505 NE Halsey Street in Portland and will be open every night 7am – 7pm. Here, families with children will have a warm, dry, safe and welcoming place to sleep. Shelter families will be able to acces housing, employment and other services designated to quickly end their homelessness.

Human Solutions operates the center.

Right now the Homeless Family Warming Center has a long list of supplies that are needed.  These donations can be dropped off at the church between 7-9 pm each night.  Contact Human Solutions if you can donate but those hours don’t work for you.  Volunteers are also needed.

To volunteer or to donate, please contact Amie Diffenauer, at 503-256-2280 or  email adiffenauer@humansolutions.org.

Volunteer Needs:

  • Recreation Room Attendants: People who want to do evening activities with the families, especially with children early in the evening.
  • Food Preparation and Kitchen Helpers: People to pick up from licensed kitchens and bring it to the shelter.
  • Mentors: People to read and play with children.
  • Donation In-Take Attendants: People to help us recieve donations in the evenings or sort through donations during the daytime.

We especially need non-perishable food and beverage items!

Food Items needed:

Instant and Canned Soups
Microwave Dinners
Powder Baby Formula
Breakfast Cereals
Sweet Rolls or Muffins
Breakfast Bars
Vegetables: potatoes, baby carrots, celery, etc…
Fruit: bananas, grapes, oranges, apples, plums, etc…
Hot Pizzas
Gift Cards for pizza places
Bread
Cold Cuts for sandwiches
Condiments for sandwiches
Sandwich Bags, Napkins
Paper Plates & Bowls
Plastic Cups and Eating Utensils

Beverage Items needed:

Coffee Grounds, Sugar, Creamer
Hot Cocoa mix
Tea
Milk
Julices

Household Items needed:

Blankets, Sleeping Bags
Twin Sheets
Pillows, Pillow Cases
Moses Baskets
Winter Coats for all ages
New Scarves, Hats, Mittens, Gloves, and Socks
New Children’s Underwear
Hot Plates

Hygiene Items needed:

Paper Towels
New Toothbrushes, Toothpaste
Feminine Hygiene Products
Hand Sanitizer
Disinfectant Wipes
First Aid Supplies
Latex Gloves
Diapers (size 4 & 5)

Invocation At Open of the Homeless Family Warming Center

November 4, 2010

Gracious and loving God,

We gather in this Holy place as people from diverse traditions united together in the belief that to lift up the common good of our community we must begin by taking care of those who are hurting and experiencing homelessness.

We gather to lift up to you the needs of families throughout Multnomah County that cannot afford the high costs of housing, the expense of medical care, or even the rising costs of food.  Give all those in anguish comfort and strength, we pray.

We gather to lift up to you the staff of Human Solutions, the people of Eastminster Presbyterian Church, officials from Multnomah County, and all the volunteers who will work here over the winter.  Give all those who make this Homeless Family Warming Center possible your blessings, we pray.

We gather, O God, to ask for forgiveness.  Homelessness and poverty are a sin – a result of bad policies that have created an economy where the “least of these’ are left behind.  Help us to build a better community where justice rolls “down like waters, and righteousness like an ever-flowing stream”, we pray.

Soon the warm sun and blue skies will be eclipsed again by the reality of a rainy autumn and a cold winter.  Let this warming center be a place of light in the darkness, more than just a place to get warm, but a place to find hope.

With humbleness, we pray.

Amen.

– The Rev. Chuck Currie

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http://chuckcurrie.blogs.com/chuck_currie/