Come January 1, 2010, the new and improved Real Estate Settlement Procedures Act of 1974 (RESPA) will be fully en force. Considering this is the first sweeping change in the home buying process since 1974, it is worthy of our full attention. The new RESPA means more than new forms-it means major changes in the way real estate closings happen.

The key motive of RESPA’s new rules is to make sure consumers understand loan costs and binding parameters before singing the closing statements.

With mountains of paperwork at the closing table, there is little chance that borrowers are going to spend the many hours necessary to wade through the documents. What’s more, borrowers, especially would-be first-time homeowners, may be intimidated by the process and miss the opportunity to seek competing settlement services that could save them money.

As a real estate broker, here’s what you need to know: the new rules may impact your ability to refer business to title companies, inspectors and others you typically work with as part of the sales process. RESPA wants to make it easier for borrowers to shop for the lowest-cost, most convenient closing services by mandating borrowers receive a written list of settlement service providers. That comprehensive list includes closers, appraisers, real estate brokers, title examiners, attorneys, underwriters, pest inspectors, mortgage insurers, loan processors and other settlement service providers.

Continue reading ‘The Changing Face of RESPA’

In the early days of the World Wide Web, legal experts compared this new electronic frontier to the Wild Wild West because there were so many unknown dangers. Well, with Web 2.0 technologies and social media proliferating at break-neck speed, it’s like the Wild Wild West all over again.

You’ll find virtual shoot outs on blogs among people who don’t agree, brand wars between modern-day Hatfield and McCoys on social networking sites, and a few love stories featuring consumers following their favorite company’s updates on Twitter.

As you launch your social media strategy—and even after you begin executing it on your favorite platforms—you need to keep all that in mind. But you also need to be sure you abide by the laws of the land. Indeed, if you aren’t careful, you could be breaking the law with your social media marketing efforts.

For starters, the Federal Trade Commission (FTC) recently announced final revisions to advertiser guidelines. The rules aim to keep endorsement and testimonial ads in line with the Federal Trade Commission Act.

Continue reading ‘Social Media Laws: The New Wild Wild West’