Undisclosed payments in short sale transactions, especially those paid outside of escrow, may violate the law, including RESPA, laws against loan fraud, and licensing laws.  Short sale agents have increasingly reported to C.A.R. about requests for agents and their clients to pay junior lienholders and others, oftentimes outside of escrow. Click here for more information (requires C.A.R. login).

Industry groups representing appraisers are pushing for a ban on the use of BPOs to value short-sale properties in the Home Affordable Foreclosure Alternatives (HAFA) program, saying they open the door to mortgage fraud. NAR says the groups have provided “misinformation” to the Treasury Department about the role of BPOs in mortgage fraud and the application of state laws governing BPOs. Read more.

The National Association of REALTORS® is urging Congress to refrain from raising FHA minimum down payment requirements. FHA insured nearly 30 percent of purchase loans in 2009, including more than half of mortgages taken out by first-time homeowners. Read more.

Reminder: WINForms® users must upgrade to zipForm® 6. Beginning April 1, access to WINForms® will be terminated. All users, including those who already upgraded to zipForm® 6, must renew their software user licenses by March 31 to continue receiving access to this valuable resource.  Users who do not renew their software license by March 31 will be unable to use the program until they complete the renewal process. Click here for more info and instructions.

The U.S. Treasury has allocated $699.6 million to CalHFA to help low and moderate income borrowers who have been hit hardest by unemployment and falling home values. These funds will be used for innovative programs to help stabilize the housing market. Click to read more.

January sales and price report: California median price increased 15 percent; home sales decreased 10.6 percent. Read more.

California Department of Real Estate (DRE), and the State Bar of California are warning homeowners to avoid forensic loan audits, the loan-modification industry’s latest “phony foreclosure-relief service.� Read more.

Members have reported that certain investor buyers use a standard form “As-Is Contract for Sale and Purchase” which fraudulently purports to be approved by the California Association of REALTORS®. The form purports to be approved by C.A.R., although has not reviewed or approved the form. C.A.R. currently has no standard form with the words, “As Is,” in the title. REALTORS® who come across the form are encouraged to report the matter to C.A.R. by contacting Strategic Defense Counsel, Nicole Briggs, at nicoleb@car.org.

In the wake of a devastating earthquake in Haiti on January 12, the National Association of REALTORS® mobilized its resources to support the more than 3 million people affected by this tragedy. The REALTORS® Relief Foundation of NAR is contributing $550,000 to provide relief to Haiti earthquake victims, and NAR is calling upon its 1.2 million members to help. For more information and to make a contribution, click here.

The Department of Housing and Urban Development has announced it will eliminate for one year the FHA 90-day anti-flipping rule that general prohibits insuring a mortgage on a home owned by the seller for less than 90 days. To read more, click here.