Do Not 'Toss Out' Any Addenda!

Happy Friday Red Rock Agents,

Some rain and SNOW right here in St. Dixie today. We’ll take every drop we can get as we need it so bad. It was 75* just a few days ago but that’s the weather in Southern Utah.

Only a few items of concern that have come across my desk this week I want to share with you. Earnest money, if it’s going to a title company please have the client write the check to the title company. We have a trust account set up for the Northern Utah and Central Utah offices. You can have your clients write the check out to RED ROCK REAL ESTATE TRUST ACCOUNT. So, if the check goes to the title company who signs the Receipt of Earnest Money form? This is the rule I have always followed. Whoever was first to have the check between the thumb and forefinger should sign the receipt. Once it has been delivered to anyone that is the person that needs to sign for it. That will place the responsibility on their shoulders, where it should be. I hope this clears up any questions about handling earnest money. If you have questions, please call.

Lately I have seen more errors on the acceptance or counteroffer boxes not being marked. I know that it’s easy to miss with DocuSign and needing to check the box and sometimes it doesn’t work. Please be sure that the correct box is marked.

I have had more agents ask about removing addendums from the contract because the lender doesn’t like what it says. I want to remind all agents that once a party to the transaction signs an addendum it is part of the contract, even if the other party hasn’t signed. Anything in a contract can be changed by another addendum, lenders are not Realtors and will ask us to change things or just “TOSS THEM OUT” to make their job easier. I have even had lenders ask agents to have an addendum address an item then ask the agent not to include it in the paperwork they require. I need to remind all agents that the State of Utah considers that type of business Loan Fraud. The State of Utah takes that profoundly seriously. If you have a lender asking you to do something you don’t feel good about please call me, Allen, or Michelle. We will address it and make sure it’s Ok. I also want to say that we have so many great lenders out there that make our jobs easier, and I’m grateful for all of them. With that said here is the latest from one of the lenders that keeps us up on the latest changes. See below.

It was recently announced that Fannie Mae and Freddie Mac were being directed by the Treasury to reduce their risk exposure for certain types of loan transactions that they acquire.  The result of this requirement is that Fannie/Freddie will be limiting the amount of Investment property and 2nd Home transactions they will purchase on a monthly basis beginning April 1st.

Due to this announcement, the following Conventional loan level price adjustment changes are effective for Monday, March 15th and will apply to all new locks, relocks, changes to property type or extensions on currently locked loans in the pipeline:

·   2nd Homes                                                   -2.000

·   Investment – LTV <=75%                          -2.750

·   Investment – LTV 75.01-80%                   -4.000

·   Investment – LTV 80.01-85%                   -4.875

I’m not sure if I understand this completely so please ask your favorite lender, because I won’t be much help with it. I Love the fact that we’re the brokerage with the most informed agents with the best support in the State, in my opinion. If you have issues please reach out to us for help, it’s what we do. Remember to change your clocks by Monday.

Please have a great weekend and be safe out there,