Federal Reserve Issues New Lending Rules to Prevent Foreclosure

According to the National Association of Realtors®, the Fed. Reserve adopted new rules designed to protect homebuyers from the kind of loans that drove many into foreclosure. The new rules apply to all lenders (not just to banks supervised by the Fed) and most are expected to take effect Oct.1, 2009. Escrow requirements won’t go into effect until April 1, 2010.

Here are the new requirements:

1. Prevent loans made without documenting borrower’s income
2. Require lenders to escrow money to pay taxes and insurance for risky borrowers
3. Limit and/or ban prepayment penalties
4. Prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value
5. Require mortgage advertising to contain information about rates, monthly payments and other features of the loan
6. Insist lenders credit a mortgage payment to a home owner’s account on the day it is received
7. Forbid mortgage brokers and others from "coercing or encouraging" an appraiser to misrepresent the value of a home

New Multi-family Inspection Fee in Beverly

According to the Beverly Citizen, a new fee of $125.00 will be charged in Beverly for inspections of at least 3-family housing for safety inspections. The inspections will be done at least every 5 years which was required and haven't been done. This was a result of the Gloucester Crossing apartment building fire earlier this year which was caused by uninspected, faulty wiring.

Read the entire Beverly Citizen article.

Construction on new Salem Courthouse

The Salem Gazette posted a picture of how Federal Street will look upon the completion of the J. Michael Ruane Judicial Center, near the intersection of Bridge Street and North Street, in Salem, MA. To make room for the new courthouse complex, the state plans to eliminate the existing District Court and Superior Court, as well as two houses that sit on the far end of Federal Street.

Read the entire Salem Gazette article.

Danvers Affordable Housing

The Danvers Herald reported in its June 19, 2008 paper that Selectman Gardner Trask will spearhead the formation of a permanent affordable housing subcommittee, after getting the go-ahead from Danvers selectmen on June 17th. Trask told the Board that the 2010 U.S. Census is likely to tabulate a larger population for Danvers, which means the town may need to provide more affordable housing.

Danvers reached the 10% affordable threshold last year, which means that it is currently immune to Chapter 40B developments. The results of the 2010 census could require Danvers to add an estimated additional 70 units of affordable housing.

The selectmen agreed to the formation of the Affordable Housing Planning Committee of about a dozen members, including 3 citizens. The selectmen also agreed to send a letter to the Danvers Zoning and Planning Boards, and the Danvers Diversity Committee to encourage them to look for opportunities to encourage affordable housing so that the town can meet the anticipated threshold.

Windover and MBTA to Work Together on Beverly Parking Garage

The Salem News reported that the president of Windover Development said that Windover looks forward to working with the Massachusetts Bay Transportation Authority to build a long-awaited parking garage near the train depot on Rantoul Street.

Read the entire Salem News article.

US Senate Passes FHA Modernization Bill

The National Association of Realtors® reported this week that on July 11th, the Senate voted 63 to 5 to approve the FHA Modernization Bill. It is the Realtor® position that HR 3221 creates affordable housing opportunities by setting loan limits up to $625,500 for Fannie Mae, Freddie Mac and FHA, and will stimulate housing demand with a temporary $8,000 home ownership tax credit. The bill also includes broad reform for Fannie Mae, Freddie Mac, and FHA, and creates a new FHA program to help homeowners at-risk for foreclosure.

NAR believes that this bill is critical to restoring confidence in the mortgage and housing markets and the nation’s entire economy. But it isn’t complete yet. Now, the bill goes to a conference committee before Congress can send it to the President. Negotiations begin over the next few days and weeks, and both House and Senate leaders hope to get the bill on the President’s desk before the August recess.

The National, State and Local Association of Realtors® have lobbied hard to get to this point. Our strong involvement included face to face meetings between members and their Senators and Representatives in their home states as well as in Washington, DC – including the May Midyear Legislative Meetings. NAR generated more than 250,000 e-mail messages and phone calls urging Congress to take action on the vitally important Housing bill.

Chapman’s Corner Development in Bevely

According to the Beverly Citizen, the Beverly Planning Board approved a 27 house development at Chapman's Corner. The project will be called Manor Homes at Whitehall and will be located above a hill at Chapman's Corner (near the intersection of Hale and Boyles streets in the Cove). 27 houses are expected to be built and one 2-family. The houses will start at $750,000 – including two below market homes – and are expected to break ground in the fall.

Read the entire Beverly Citizen's article.

Lynnfield Commons starts construction while other 40B projects fizzle

According to the Peabody & Lynnfield Weekly News, construction will begin shortly on the 200-unit Lynnfield Commons rental development on Route 1-North, in the rear of the Flagship Motorcars dealership.

According to the article, Lynnfield had initially attempted to block this apartment complex by passing 3 smaller condo complexes under Chapter 40B, the state’s affordable housing “anti-snob zoning” law. Currently, the 3 developments are no closer to being build than the day the permit was granted.

Read the entire Peabody & Lynnfield Weekly News article.

Old Salem Jail to be Converted into Condos & Apartments

The Salem Gazette reported that the old Salem jailhouse, on the corner of Bridge Street and St. Peters, will be converted into 36 housing units – 14 condos and 22 apartments with 5-year leases.

Read the entire Salem Gazette article.