Volume 18 • issue 1 - January 2014From our Association Director

Monthly Newsletter

Nicole Perino is a Director for The Durango Area Association of

REALTORS® You can contact Nicole at

970-259-6680

Durango Area Assn. of REALTORS

Happy 2014 DAAR Members and Affiliates! With a new year comes new changes. In the lending world, locally and nationally, there are a couple major changes that most likely will effect all of us.

According to the Consumer Financial Protection Bureau (CFPB), on January 10, 2014, the Ability-to-Repay Rule will go into effect. This rule protects consumers from debt traps by requiring mortgage lenders to evaluate whether bor-rowers can afford to pay back the mortgage before signing them up. The rule was required by Congress, as a re-sponse to the financial crisis and nationwide foreclosure epidemic. Under the new Ability-to-Repay Rule, mortgage lenders must look at customers’ income, assets, savings, and debt, and weigh those against the monthly payments over the long term – not just a teaser or introductory rate period. As long as they check the numbers and the numbers check out, lenders can offer any mortgage they reasonably believe a consumer can afford. These are common-sense practices that most lenders already follow. Certain types of mortgages are more likely to become a debt trap for the borrower, so the new rule lays out basic guidelines that lenders can follow. Loans within these guidelines are called “Qualified Mortgages,” and they give lenders greater certainty that they are meeting the Ability-to-Repay requirement. If lenders choose not the follow these guidelines, they can still make a loan based on their reasonable, good-faith determination that the borrower has the ability to repay it. To be a Qualified Mortgage, the loan: • Cannot have excessive upfront points and fees; • Cannot be longer than 30 years; • Cannot have certain risky features, such as paying only interest and not principal, or paying less than the full amount of interest so that the total debt grows each month; and • Must be in one of three categories: 1. The monthly loan payment, plus the borrower’s other debt payments, does not exceed 43% of the borrower’s monthly income; or 2. The loan qualifies for purchase or guarantee by a government sponsored enterprise (Fannie Mae or Freddie Mac), or is insured or guaranteed by a federal housing agency; or 3. The loan is made by a small lender that keeps the loan in portfolio. The Ability-to-Repay rule is intended to prevent consumers from getting trapped in mort-gages that they cannot afford, and to prevent lenders from making loans that consumers do not have the ability to repay. It’s that simple.

In addition, the FHA loan limits have been reduced in La Plata county from $417,000 to $379,500 for a single family home. With home prices on the rise in La Plata county, this re-duction is sure to effect some borrowers ability to qualify.

Bottom line, it’s even more crucial now more than ever to make sure our buyers are working with a qualified lender upfront and getting pre-qualified.

A big thanks to Judy Malone with Solera Bank for providing the CFPB article. Feel free to call Judy at 375-2265 if you have any questions regarding these changes.

Respectfully, Nicole

G O T E D UC AT I O N ?CREC 2014 Update Class / ACUThursday, Jan. 16th from 8:30am - 12:30pmCost: $45 Location: DAAR OfficeInstructor: John Gillam CE: 4 Hrs Please sign up online using your LAMPS login at https://daar.getlamps.net/Default.aspx?page=calendar2014 REQUIRED annual update course offered through the Real Estate College of Colorado. This class covers contract changes as well as any other CREC and Colorado regulatory changes.

DAAR Brown-Bag Series

3 power-hitting 20 minute sessions in 1 lunch hour!Lunch provided by Bank of ColoradoSPACE IS LIMITED SO RSVP TODAY

LOW INVENTORYConsider Remodel and Building

Rent-A-Man

INTERIOR DECORATORFushion Interiors

Sarah Sumner

LOAN UPDATEWhat you need to know

Bank of ColoradoUpdate on new construction loans, remodel loans &

mortgage lending for residential home purchase.

Please join us on Jan. 23rd from 12 - 1at The DAAR Office for our new and exciting education series...

Great Lunch and it’s FREE

Networking opportunies for REALTORS & AffiliatesWe encourage you to drop by & grab some grub!

Sign up online using your LAMPS login at https://daar.getlamps.net/Default aspx?page=calendar

We realize with so many bankers and brokers to choose from, it’s important to

find someone uniquely superior to the rest. Our knowledgeable home loan specialists provide you with the best lending options at competitive rates. Come and experience the difference. It’s the way lending should be.

MEMBER FDIC

Regulated by the division of Real Estate. Not a commitment to lend. Offers of credit are subject to credit approval.

THE RIGHT LOAN. THE RIGHT HOME. THE RIGHT TEAM.

BANK OF COLORADO MORTGAGE DIVISION

SERVING SOUTHWEST COLORADO DURANGO 1199 Main Avenue, 970.259.9700durangomortgages.com • NMLS #681574

YOUR DURANGO MORTGAGE TEAM: ANDY ROACH, SUZIE MORSE &SHERYL EALUM

13_BC30_MORTGAGE_AD_REVISED.indd 1 10/22/13 8:35 AM

1 1/9/2014 12:16 PMstaff

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The 2013-2014 Durango Area Association of REALTORS® Board of Directors:

President / Kelly Kniffin / 749-3867 / Kelly@homesdurangoco.comPresident-Elect / Jim Wotkyns / 375-7005 / jim@jimwotkyns.com

Past President / Denise Storm / 759-9819 / denise@denisestorm.comVice President / Jerome Bleger / 759-1658 / jerome@yesdurango.comTreasurer / Cathy Craig / 749-3986 / ccraig@durangomountain.com

Director / Gabi Bergstrom / 946-7522 / gabi@frontier.netDirector / Linda Buzzalini / 259-6680 / lindabuzz@frontier.net

Director / Nicole Perino / 259-6680 / perinodurango@gmail.com CAR Director/ Jarrod Nixon / 769-0774/ jnixon@yesdurango.com

Association Office StaffExecutive Officer/ Amanda Erickson/ 247-9604/ amanda@durangorealtor.com

Member Services/ Jasmyn Fouts/ 247-9604/ jasmyn@durangorealtor.comMLS & Communications/ Jo Ann Johnston/ 247-9604/ joann@durangorealtor.com

DAAR CALENDAR OF EVENTS

Mortgagesmade easy.

You’ve helped them find the perfect house. Now help them make it their home with a mortgage from Community Banks of Colorado. With 50 convenient locations in Colorado and the ability to finance unique properties, Community Banks of Colorado has a common sense approach to clients’ mortgage needs. To help find the best mortgage solution for your client contact Margie Sittner of the Durango Banking Center at 970-259-0212 or go to cobnks.com/mortgage.

Wanna know what’s going on at DAAR?Like us on FACEBOOK at

http://www.facebook.com/pages/Durango-Area-Association-of-REALTORS/574415725910580

Mortgagesmade easy.

You’ve helped them find the perfect house. Now help them make it their home with a mortgage from Community Banks of Colorado. With 50 convenient locations in Colorado and the ability to finance unique properties, Community Banks of Colorado has a common sense approach to clients’ mortgage needs. To help find the best mortgage solution for your client contact Margie Sittner of the Durango Banking Center at 970-259-0212 or go to cobnks.com/mortgage. © 2013 Cobalt Mortgage, Inc., 11255 Kirkland Way, Suite 100, Kirkland, WA 98033. Toll Free: (877) 220-4663; Fax: (425) 605-3199. NMLS Unique Identifier: 35653; Arizona Mortgage Banker License

#0909801; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act.; Regulated by the Colorado Division of Real Estate; Nevada Mortgage Banker #3723; Nevada Mortgage Broker #3725; Oregon Mortgage Lender License #ML-2991; Washington Consumer Loan License #520-CL-48866. George R. Johnson, NMLS-418631. Ticket #2013082810001569

Regulated by the Division of Real Estate.

Cobalt Mortgage, Inc. NMLS-35653

Questions about reverse mortgages? Call Cobalt Mortgage and get all the facts.

George Johnson NMLS-418631Reverse Mortgage Loan Originator970.828.2408george.johnson@cobaltmortgage.com

One down payment and no monthly mortgage payments as long as the senior occupies the home as their primary residence. They also continue to pay taxes, insurance, and maintain the home.

Reverse Mortgage for Purchase:

2014 Annual Dues AlertIt’s almost annual dues renewal time! We will be billing out annual dues on January 2, 2014, which will be due by January 31, 2014. Below is an outline of what your fees will consist of. If you have any questions please feel free to contact us.

As always, we appreciate your continued support of our organization. DAAR leadership and staff are committed to finding new, useful ways of assisting you in your business, and it al-lows US to continue providing opportunities that support and benefit your career as a REAL-TOR®.

2014 Annual Dues Breakdown:DAAR - Local Annual Dues: $190.00 CAR – State Annual Dues: $145.00NAR – National Annual Dues: $120.00 NAR Public Awareness Assessment: $35.00RPAC – Voluntary Contribution: $25.00 CARHOF – Voluntary Contribution: $20.00Total $535.00

DEDUCTIBILITY OF DUES FOR TAX INFORMATIONFor the 2014 dues billing statements the non-deductible dues breakout is as follows, $25.00 RPAC voluntary dues, $20.40 of CAR dues and $55.00 of NAR dues are non-deductible. Payments to the Durango Area Association are not deductible as charitable contributions; however, such pay-ments may be deductible as ordinary business expenses in accordance with IRS rules and regulations. The $75.40 of your year 2014 dues and $25.00 for RPAC voluntary dues is not deductible as a business expense because this portion is used for lobbying or the support of candidates at the local, state and/or national levels. CAR estimates that $5.00 in CAR dues will be used to reach the RPAC goal set by NAR. A portion of your RPAC voluntary fair share amount may be used to support federal candidates and will be charged against your limits under 2 U.S.C. 441a. No later than April 1st 2014, you may check ColoradoREALTORS.com to deter-mine the portion. After CAR reaches its RPAC goal it may elect to retain your entire contribution for use in supporting state and local candidates and issues. You may contribute more or less than the suggested RPAC amount. You may refuse to contribute the $25.00 RPAC voluntary fair share amount without reprisal and the National Association of REALTORS® or any of its state associations or local boards will not favor or disfavor any member because of the amount contributed.

Until the state PAC reaches its RPAC goal, 30% is sent to National RPAC to support federal candidates and is charged against your limits under 2 U.S.C. 441a; after the state PAC reaches its RPAC goal it may elect to retain your entire contribution for use in supporting state and local candidates.

My career gives me a unique insight into what our members need and the issues that confuse them the most. When something within our MLS changes we understand how difficult it can be to change with them, case in point: STATUS.

In June of 2013, the PENDING status became available and all of our old “Active/Under Contract/Call Listing Broker” and the 5 or 6 similar statuses disappeared with the exception of “Active/Contingent/Call LB”. This allowed users to accomplish two things.

The first advantage this created had to do with the way contracts are written and the boundaries of expirations within them. Have you ever had a property under contract and knew that the expiration date of the contract would reach it’s expiration date before the prop-erty closed? You were not worried, the contract had built-in fail-safes for that. Then BAM! You realized that the MLS did NOT. You would try to enter in the closing but Paragon would not allow you to... because the listing expired. With the PENDING status, this all goes away. The status of PENDING takes precedence over the expiration date. If you have a property under contract in which you know will expire before the closing date and changed the status within Paragon to PENDING, don’t worry. You WILL be able to close out that property with ease. Please note though, the ACTIVE/CONTINGENT/CALL LB gets no special treatment. It is STILL an ACTIVE status, to be used when you are pretty sure for one reason or another that the contract will fall through. Second, users could never get a report that clearly stated how many “under contract” listings there were within a given time period. If they used the HOTSHEET under specialty searches, they would see that there was no differentiation between Active and Active/Un-der Contract etc. This is because they were BOTH active statuses. Paragon was never cre-ated to compare the SAME statuses to each other. With the PENDING status now in play, this changed the whole game... wanna see what was under contract a year ago? NO PROBLEM... set the criteria to PENDING!

As a bonus, you can now use the PENDING status in the market monitor. I think in this case, the change is a good one.

Jo Ann has been the MLS & Communications Director for The Durango Assn. of REALTORS since March of 2007. Should you have any comments or questions she can be reached at 970.247.9604 or joann@durangorealtor.com.Copyright © Jo Ann Johnston 2014 All Rights Reserved. No part of this article may be reproduced with-out the authors express consent.

MLS MYSTERIES EXPLAINEDBy: Jo Ann JohnstonMLS & COMMUNICATIONS DIRECTORDurango Area Assn. of REALTORSjoann@durangorealtor.com

Lisa M. ReedPresident

1099 Main Avenue. Suite 213 • Durango, CO. 81301970-382-9800 • Fax 970-382-9808

E-mail: lisar@southwest-mortgage.com

Southwest MortgageLoans, Inc.

EQUAL HOUSING

LENDERFDIC

Mike and Judy Malone970.375.BANK (2265)

1201 Main Avenue, Suite 101Durango, CO 81301

Colorado Capital BankmortgageMike & Judy Malone

970.375.2265970.749.1104 (Judy) 970.749.1101 (Mike)

Michael K. Russell, PEPrincipal

934 Main Avenue, Unit C Durango, CO 81301

ph: 970.385.4546 fx: 970.385.4502e: michael@russellpe.comwww.russellpe.com

Is Radon a Dirty Word? January is Radon Awareness month. Why? Because the winter is the best time to test homes for radon.

Homes and buildings in Colorado can have particularly high levels of radon, which is the #2 cause of lung cancer.

Is testing for radon a bad thing? Not if results are low! Turn that into a selling point. Plus you don’t want to get caught mid-sale with a surprise radon mitigation requirement. Advise the seller to test beforehand to provide

transparency and pass along healthy indoor air quality to the buyer.

Take action by getting homes tested. Schedule a test today by calling 4CORE at 970-259-1916. More information at fourcore.org

1201 Main Avenue, Suite101www.applywithjudy.com

NMLS# 449954NMLS# 449953

Michael McAlliney ~ 1/2DeeDee Kendall ~ 1/3

Kelli Stanley ~ 1/4Francis Garcia ~ 1/4

Al Librande ~ 1/5Wendell Qualls ~ 1/9Christy Krug ~ 1/9

Curtis Berger ~ 1/10Marlene Gebhardt ~ 1/12

Jason McMillen ~ 1/13Andy Ratcliffe ~ 1/14

Kelly DiGiacomo ~ 1/14

Kathy Krafthefer ~ 1/19Michelle Bahr ~ 1/20Denise Storm ~ 1/21

Heather Calahan ~ 1/22Doug Fuller ~ 1/22

Alix Rowland ~ 1/23Sandy Cooper ~ 1/23

Mary Jo Paxton ~ 1/23Christina Rinderle ~ 1/24Vaness Roberts ~ 1/27

Chris Howe ~ 1/30

January Birthdays

Need some extra oomph in your listing presentation? Add the following flyer, let the world know that REALTORS do more than just sell houses!

honoring community | working together | giving back

REALTORS® Do MORE Th an Just Sell Houses! Th e members of Th e Durango Area Association of REALTORS are a remarkable group of professionals that strive to help our community as much as they can every year. Annual charity events such as our HELPING HANDS GOLF TOURNAMENT are put together and hosted for the sole purpose of helping those most in need. Just listen to what some of Durango’s community organizations have to say:

“On behalf of Th e Women’s Health Coalition, I want to thank you for your donation. Th is will help those men and women who are undergoing cancer treatment in the local communities. We appreciate that you have se-lected us for this donation!” Carol McGuire, President of Th e Women’s Health Coalition

“Th ank you so very much for your recent donation to Th e Durango Adult Education Center’s Del Alma pr-gram. We help people who are in most need and yet motivated to get the education they are looking for. Your donation allows us to continue providing these eff ective services to the Durango community” Teresa Malone, Executive Director of Durango Adult Education Center

“We were pleased to receive your donation on October 21, 2013. to Th e Boys and Girls Club of La Plata Coun-ty. Your interest and support has helped to further our mission of helping youth to realize their full potential as caring, productive and responsible citizens.” Vaughn Morris, CEO of Boys & Girls Club

“What a privilege it is to be one of the recipients of DAAR’s 2013 grants. THANK YOU! We are very grateful for your support of the Durango community through your generous support to Durango Pregnancy Center. Th ank you for understanding the nature of non-profi ts and how they make a diff erence in communities such as ours! None of us could do our work without supportive organizations such as DAAR. As we move towards becoming a partial medical facility this grant will be a signifi cant contribution. Th ank you again..” Valerie J. Mangrum, Executive Director of Durango Pregnancy Center

“Your support helps displaced children, women, and men in our community as they work to rebuild their lives. Our programs continue to be successful because of compassionate and caring community members like your organization.” Sarada Leavenworth, Director of Southwest Safehouse and Volunteers of America

Durango Assn. of REALTORS® | 125 E. 32nd St. Durango CO. 81301 | 970.247.9604

What’s Happening With The Membership?

Transfers

AGENT NAME:Lois Surmi

Max HutchesonDick FranklinDavid Gore

Jerome Bleger

TRANSFERRING FROM:Coldwell BankerColdwell Banker

Great Expectations RealtyUnited Country Timberview

Coldwell Banker

TRANSFERRING TO:Keller Williams SWThe Wells GroupThe Wells Group

Keller Williams SWThe Wells Group

Good Bye and Good Luck!Peggy Schumann - Horizon Properties

Chuck Owens - The Wells GroupKathryn Fulton - Co. Dept. of Transportation

Fred Zimmerman - Keller Williams SWLars Johnson - Keller Williams SW

Tom Royer - Bayfield RealtyShaleigh Holland - Junction Creek RE

Julie Eisenmann - Summit Ridge Realty

Aaron Miller - Junction Creek REDoug Allen - Bayfield RealtyTom Tucker - Tucker Realty

Mark Horn - Bank of ColoradoJim Henneman - United Country Timberview

Great Expectations Durango RealtyTom Tucker Realty

United Country Timberview RE

WeLcome Back!Morgan Ingram - MSI Appraisals

WeLcome neW memBers!Sheena Varner - Durango Mountain Realty

Garth Schultheis - Keller Williams Realty SWMark Tucker - Tucker Realty

Thatcher Leavenworth - Keller Williams Realty SWTucker Realty

Ethics Corner- By Steve StazelSteve Stazel is a senior ethics instructor for C.A.R. since 1979,

teaching the Professional Standards course here in Durango and across the state of Colorado. He has been a REALTOR since 1974 and is a member of N.A.R.’s Professional Standards Committee.

Steve is available to answer your ethics questions at303-773-3333 or email him at stazels@msn.com

DO YOUR SELLERS GIVE AWAY THEIR “SECRETS”?

As listing brokers we have an obligation to help our sellers get the best price and terms possible. How much counseling do you do with your sellers concerning how to respond to ques-tions they may be asked by brokers showing their property? Standard of Practice 1-6 of the CODE OF ETHICS states in part….When entering into listing contracts REALTORS must advise sellers/landlords of the fact that buyers/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants…

When taking a listing do you make sure the sellers know that the cooperating broker showing their property does NOT represent them? Do your sellers know that at best the show-ing broker is a neutral party? What information should your seller NOT discuss with a showing broker? Does your seller know how to respond to questions that may be asked of them by buyer brokers? If the sellers are in dire straits; maybe they should be counseled not to discuss their reason for selling. Do all of your sellers know how to respond to questions that may be asked of them?