OCTOBER | NOVEMBER
2014
ArizonaHomebuilder You’re an Arizona Builder, We’re an Arizona Lender.
BILL ROGERS
“As an Arizona based lender we always welcome and
EXPERIENCE THE HFG DIFFERENCE
recognize the value of working with builders who are
with local and in-house Processing,
building Arizona communities. Working with other local
Underwriting & Funding. Call us
companies helps Arizona to build stronger communities.”
today to find out how we can help
-Bill Rogers, CEO of Homeowners Financial Group
you sell more homes and give your clients better service!
Founder & CEO of Homeowners Financial Group
Why do so many builders name HFG their preferred lender? “Homeowners Financial Group has been a great resource for many of our buyers who were turned down by other lenders.” Jason Pancamo, VP of Sales & Marketing
D.R. Horton
“Our buyers are always impressed and satisfied with the professionalism and overall service received by Homeowners Financial Group.” Mark & Julie Hancock, Founders
Camelot Homes
SERVICE LEVEL COMMITMENTS
PORTFOLIO SELECT PRODUCTS
• All Builder Files Receive Initial 30-Day Underwriting
• Expanded FHA and Conventional
• Extended Locks up to 12-Months
• Clean Slate Program
• Customized Marketing Support
• Construction Financing
Corporate Office | 16427 N. Scottsdale Rd. Suite #145 | Scottsdale, AZ 85254 | www.homeownersfg.com | 480.305.8550
All loan products and loan amounts may not be available in your area and are subject to credit and property approval pursuant to guidelines. Information is subject to change without prior notice. Other restrictions and limitations may apply. Homeowners Financial Group USA, LLC is licensed in AZ: Mortgage Bankers License No. BK 0906222, NMLS#93718; CA: Department of Business Oversight under the Finance Lenders Law License No. 603 F033; ID: Mortgage Broker/Lender License MBL-5879; NM: New Mexico Mortgage Loan Company License 03068; ND Money Broker License MB102538; OR Mortgage Lending License ML-5229 WA: Consumer Loan Company License CL-93718; MN: Residential Mortgage Originator License MN-MO-93718; MT: Mortgage Broker/Lender License 93718; NE: Mortgage Banker License NE93718 and registered in CO: Mortgage Company Registration.
Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net
CHECK-UP FOR COMPLIANCE DEVELOPER SPOTLIGHT PARTLY CLOUDY HOUSING MARKET FINANCE CORNER
Featured Developer
Zero Net Energy Homes
ED GORMAN Developer MODUS
The future of housing is here. MODUS combines Net Zero Energy and a modern design with a prime urban location. “MZ Lofts”, the first joint venture between local developer Ed Gorman of MODUS and San Diego Developer, Icon Properties is under construction at 7301 East Minnezona Avenue, in Scottsdale. Across from the W Hotel, this is prime gold standard real estate in Arizona, located in uber urban center of Old Town Scottsdale and its much sought after entertainment and shopping district.
What could be more enticing than $0 in annual energy costs, (Net Zero Energy) inside your home ... and your electric car parked in your modern “e- garage” environment. Prices start at $399,000 and are expected to sell out, Fall 2014. Each home features two bedrooms, 2.5 bathrooms, and a private two-car garage. A bridge connects the two buildings and provides an open air space between buildings. High-end finishes include Poggenpohl cabinets, Silestone countertops, Grohe fixtures and Bosch appliances. The future of housing MZ defines a new standard in multi-family living. Comprised of eight townhomes, MZ is designed to achieve Net Zero Energy certification. The open living spaces will be filled with abundant natural light, accented by high quality modern finishes, and enhanced by inviting outdoor areas. Balancing modern design with sustainability and lifestyle technologies, MZ continues the MODUS reputation for creating award-winning communities. Award-winning sustainability Headquartered in Phoenix, Arizona, MODUS is a premier developer of high-performance communities, providing sustainable Net Zero Energy homes with striking designs in a variety of price ranges. MODUS and its projects have won numerous awards for both design and sustainability. Its most recent project, The Galleries at Turney, was the first multi-family project in the U.S. to receive LEED for Homes certification. MODUS and The Galleries at
Interest Rate Outlook Turney have appeared in hundreds of publications and have been featured on local and national television. MODUS is taking it to the next level with MZ. Smart and high-tech MZ leverages the latest in sustainable building materials and technology to create homes that are energy efficient and enhance a homeowner’s lifestyle. MZ starts with a site specific, climate-focused design to maximize energy efficiency. Innovative building materials, Low-E windows, hybrid hot water heaters, Energy Star appliances, and low-flow plumbing fixtures further reduce energy and water requirements. Photovoltaic (PV) Solar panels produce the energy required to power the homes. MZ incorporates energy management systems and home automation technologies with mobile devices such as the iPhone and iPad. By monitoring and tracking real-time energy usage, residents will adjust lighting, appliances, heating and cooling from the palm of their hand. Energy costs are lowered. Carbon footprints are reduced. Lifestyle is enhanced. Design Modern MZ features clean, modern design that sets the standard for living in an urban environment. Materials and finishes are comparable in custom homes, but at a competitive price. MZ features high quality, durable finishes on the exterior, including synthetic stucco, masonry block, concrete and massive structural steel beams.
The Metro Phoenix Housing Market Today ... Partly Cloudy GREG BURGER RL Brown Reports We saw a decline in new housing activity in Maricopa County over the last 3 months for permits of new homes. New home closings were off 10% in August compared to last year. New home closing prices and resale prices have remained mostly unchanged. In August the median closing price of a new home in Maricopa County was $295,155 while the median resale price was $189,900.
A stubbornly unimpressive economy has prevented the Central Bank from raising the Fed Funds rate (interest rate set by the Fed for banks to lend to each other). Economic growth has consistently underperformed the Fed’s projections who has once again revised downward economic growth forecasts to below 3% through 2017.
Pinal County saw a decrease in permit activity of 56% in August compared to the same month last year while new home closings were off by 17%. The median price of a new home in August was $217,145 while the median resale price was $143,000.
What does this mean for mortgage rates? The Mortgage Bankers Association in their most recent forecast has provided their view in light of the end of the Fed’s bond purchase program (another tool used to stimulate the economy). They predict rates will stay below 5% and average 4.5% through the end of this year, then reach 5.0% in 2015. Historically speaking these projected rates are still very favorable to consumers looking to finance the purchase of a home.
PERMITS BY MONTH – RL BROWN REPORTS
Ed Gorman The many talents of Gorman are present in his most recent Net Zero Energy project. From an international high tech career, to real estate investor – Mr. Gorman transitions the best of both business practices by developing environments that add value to the future of smart and sustainable lifestyle choices. “We are committed to continuing to define urban living by combing prime locations with energy-saving technologies and modern design,” said Ed Gorman of MODUS. To reserve your MZ Loft Townhome, visit www.MZliving.com or www.MODUSdev.com, or call Ed Gorman of MODUS directly at (480) 695-5512.
Check-up for Builder’s Sales Division Compliance
Now is a great time to review and check up on builder’s compliance with onsite sales representatives, who are often not aware that they’re subject to the myriad of rules and regulations enforced by the Arizona Department of Real Estate (ADRE). Because the ADRE has the ultimate regulatory power – ordering that a noncompliant broker cease and desist its RICHARD V. MACK, ESQ sales activities – compliance is critical. It’s a daily task because Mack Watson & Stratman, PLC consequences could be impactful. Here are some of the areas where builder’s real estate sales representatives have risk: Policy and procedure manual All real estate brokerages in Arizona are required to have a written policy and procedure manual applicable to its operations. A.A.C. R4-28-1103. No time like training to review and ask new representatives to sign off on your policies. Advertising All advertisements must be accurate and cannot be misleading. Additionally, all advertisements must contain the name of the brokerage firm in a “clear and prominent manner.” A.A.C. R4-28-502(E). Websites The ADRE views websites as a form of advertisement. Therefore, the same rules apply. Critical here is that each page of the website must identify the brokerage firm. Social media Not surprisingly, technology is ahead of our legislature. Currently, there are no statutes or rules governing social media. However, the ADRE takes the position that the advertising
rules apply to social media. Concerns here are that the brokerage is often not identified and the Facebook post, tweet, (or whatever platform is used), is not reviewed and approved by the broker as required. Door signage A sign must be “affixed at the entrance to the brokers place of business” which is clearly visible and sets forth the name of the designated broker as well as the brokerage firm. A.R.S. § 32-2126(B). Fair Housing Federal law requires that brokers post Fair Housing posters and use the fair housing logo on certain transaction documents. Additionally, advertising must display sufficient diversity. Unlicensed assistants If the assistant is paid on a commission basis (i.e., compensation is based on the sale or lease of a property) then that person must be a real estate licensee. Additionally, an unlicensed assistant may not hold or host an open house, perform a walkthrough or inspection, answer questions relating to a transaction document or give instructions to inspectors, appraisers, or maintenance/repair people. ADRE Substantive Policy Statement No. 2005.04; A.A.C. R4-28-306(A). Richard (Rick) V. Mack, ESQ., Arizonan and founder of Mack Watson & Stratman. Mack has represented real estate and construction professionals for 24 years. He’s AV rated by Martindale-Hubbell, annually selected as a Southwest Super Lawyer, and nominated as a sustaining member of Arizona’s Finest Lawyers. Rick Mack at rmack@mackazlaw.com, or 602-778-9900.
For almost half a decade we have been predicting higher interest rates. “It’s not a matter of ‘if’ but ‘when’ rates will rise,” is what economists have been saying since the bottom of the recession. But instead we’ve experienced an extended term of unprecedented low interest rates. This environment has been very CHRIS MOZILO friendly to homeowners who have Vice President of QC & Compliance taken advantage of refinancing and Homeowners Financial Group home purchase opportunities.
Our conversations with sales offices across the Valley in the last few weeks were filled with stories of cautious buyers searching for homes but unwilling to commit to the purchase. The buzz word in the market now is incentives, and builders have begun a serious campaign to entice buyers to purchase a new home. Potential buyers are being offered thousands of dollars towards closing costs effectively lowering the amount of cash needed to close on the home. This type of incentive helps to mitigate the substantial price difference between a new home and a resale house. Others are offering large incentives towards upgrades, design center options and pools packages. The Realtor® community has also recognized that these large incentives help create buyer urgency to finalize a purchase decision. Furthermore, our August subdivision survey results identified 982 spec homes available at various stages of construction or completed. Increased marketing efforts and incentives on these homes will likely become more prevalent as we approach the end of the year. Realtors® will also focus on these inventory homes to increase their business opportunity. The storms have passed but competitive market clouds will remain for some time to come. Many builders will find success while others will struggle to gain market share. Location is key but price will ultimately prevail. For additional insight and market data call Greg Burger at 480-614-0211 or visit our website at www.RLBrownreports.com.
Zero Net Energy Homes
ED GORMAN Developer MODUS
The future of housing is here. MODUS combines Net Zero Energy and a modern design with a prime urban location. “MZ Lofts”, the first joint venture between local developer Ed Gorman of MODUS and San Diego Developer, Icon Properties is under construction at 7301 East Minnezona Avenue, in Scottsdale. Across from the W Hotel, this is prime gold standard real estate in Arizona, located in uber urban center of Old Town Scottsdale and its much sought after entertainment and shopping district.
What could be more enticing than $0 in annual energy costs, (Net Zero Energy) inside your home ... and your electric car parked in your modern “e- garage” environment. Prices start at $399,000 and are expected to sell out, Fall 2014. Each home features two bedrooms, 2.5 bathrooms, and a private two-car garage. A bridge connects the two buildings and provides an open air space between buildings. High-end finishes include Poggenpohl cabinets, Silestone countertops, Grohe fixtures and Bosch appliances. The future of housing MZ defines a new standard in multi-family living. Comprised of eight townhomes, MZ is designed to achieve Net Zero Energy certification. The open living spaces will be filled with abundant natural light, accented by high quality modern finishes, and enhanced by inviting outdoor areas. Balancing modern design with sustainability and lifestyle technologies, MZ continues the MODUS reputation for creating award-winning communities. Award-winning sustainability Headquartered in Phoenix, Arizona, MODUS is a premier developer of high-performance communities, providing sustainable Net Zero Energy homes with striking designs in a variety of price ranges. MODUS and its projects have won numerous awards for both design and sustainability. Its most recent project, The Galleries at Turney, was the first multi-family project in the U.S. to receive LEED for Homes certification. MODUS and The Galleries at
Interest Rate Outlook Turney have appeared in hundreds of publications and have been featured on local and national television. MODUS is taking it to the next level with MZ. Smart and high-tech MZ leverages the latest in sustainable building materials and technology to create homes that are energy efficient and enhance a homeowner’s lifestyle. MZ starts with a site specific, climate-focused design to maximize energy efficiency. Innovative building materials, Low-E windows, hybrid hot water heaters, Energy Star appliances, and low-flow plumbing fixtures further reduce energy and water requirements. Photovoltaic (PV) Solar panels produce the energy required to power the homes. MZ incorporates energy management systems and home automation technologies with mobile devices such as the iPhone and iPad. By monitoring and tracking real-time energy usage, residents will adjust lighting, appliances, heating and cooling from the palm of their hand. Energy costs are lowered. Carbon footprints are reduced. Lifestyle is enhanced. Design Modern MZ features clean, modern design that sets the standard for living in an urban environment. Materials and finishes are comparable in custom homes, but at a competitive price. MZ features high quality, durable finishes on the exterior, including synthetic stucco, masonry block, concrete and massive structural steel beams.
The Metro Phoenix Housing Market Today ... Partly Cloudy GREG BURGER RL Brown Reports We saw a decline in new housing activity in Maricopa County over the last 3 months for permits of new homes. New home closings were off 10% in August compared to last year. New home closing prices and resale prices have remained mostly unchanged. In August the median closing price of a new home in Maricopa County was $295,155 while the median resale price was $189,900.
A stubbornly unimpressive economy has prevented the Central Bank from raising the Fed Funds rate (interest rate set by the Fed for banks to lend to each other). Economic growth has consistently underperformed the Fed’s projections who has once again revised downward economic growth forecasts to below 3% through 2017.
Pinal County saw a decrease in permit activity of 56% in August compared to the same month last year while new home closings were off by 17%. The median price of a new home in August was $217,145 while the median resale price was $143,000.
What does this mean for mortgage rates? The Mortgage Bankers Association in their most recent forecast has provided their view in light of the end of the Fed’s bond purchase program (another tool used to stimulate the economy). They predict rates will stay below 5% and average 4.5% through the end of this year, then reach 5.0% in 2015. Historically speaking these projected rates are still very favorable to consumers looking to finance the purchase of a home.
PERMITS BY MONTH – RL BROWN REPORTS
Ed Gorman The many talents of Gorman are present in his most recent Net Zero Energy project. From an international high tech career, to real estate investor – Mr. Gorman transitions the best of both business practices by developing environments that add value to the future of smart and sustainable lifestyle choices. “We are committed to continuing to define urban living by combing prime locations with energy-saving technologies and modern design,” said Ed Gorman of MODUS. To reserve your MZ Loft Townhome, visit www.MZliving.com or www.MODUSdev.com, or call Ed Gorman of MODUS directly at (480) 695-5512.
Check-up for Builder’s Sales Division Compliance
Now is a great time to review and check up on builder’s compliance with onsite sales representatives, who are often not aware that they’re subject to the myriad of rules and regulations enforced by the Arizona Department of Real Estate (ADRE). Because the ADRE has the ultimate regulatory power – ordering that a noncompliant broker cease and desist its RICHARD V. MACK, ESQ sales activities – compliance is critical. It’s a daily task because Mack Watson & Stratman, PLC consequences could be impactful. Here are some of the areas where builder’s real estate sales representatives have risk: Policy and procedure manual All real estate brokerages in Arizona are required to have a written policy and procedure manual applicable to its operations. A.A.C. R4-28-1103. No time like training to review and ask new representatives to sign off on your policies. Advertising All advertisements must be accurate and cannot be misleading. Additionally, all advertisements must contain the name of the brokerage firm in a “clear and prominent manner.” A.A.C. R4-28-502(E). Websites The ADRE views websites as a form of advertisement. Therefore, the same rules apply. Critical here is that each page of the website must identify the brokerage firm. Social media Not surprisingly, technology is ahead of our legislature. Currently, there are no statutes or rules governing social media. However, the ADRE takes the position that the advertising
rules apply to social media. Concerns here are that the brokerage is often not identified and the Facebook post, tweet, (or whatever platform is used), is not reviewed and approved by the broker as required. Door signage A sign must be “affixed at the entrance to the brokers place of business” which is clearly visible and sets forth the name of the designated broker as well as the brokerage firm. A.R.S. § 32-2126(B). Fair Housing Federal law requires that brokers post Fair Housing posters and use the fair housing logo on certain transaction documents. Additionally, advertising must display sufficient diversity. Unlicensed assistants If the assistant is paid on a commission basis (i.e., compensation is based on the sale or lease of a property) then that person must be a real estate licensee. Additionally, an unlicensed assistant may not hold or host an open house, perform a walkthrough or inspection, answer questions relating to a transaction document or give instructions to inspectors, appraisers, or maintenance/repair people. ADRE Substantive Policy Statement No. 2005.04; A.A.C. R4-28-306(A). Richard (Rick) V. Mack, ESQ., Arizonan and founder of Mack Watson & Stratman. Mack has represented real estate and construction professionals for 24 years. He’s AV rated by Martindale-Hubbell, annually selected as a Southwest Super Lawyer, and nominated as a sustaining member of Arizona’s Finest Lawyers. Rick Mack at rmack@mackazlaw.com, or 602-778-9900.
For almost half a decade we have been predicting higher interest rates. “It’s not a matter of ‘if’ but ‘when’ rates will rise,” is what economists have been saying since the bottom of the recession. But instead we’ve experienced an extended term of unprecedented low interest rates. This environment has been very CHRIS MOZILO friendly to homeowners who have Vice President of QC & Compliance taken advantage of refinancing and Homeowners Financial Group home purchase opportunities.
Our conversations with sales offices across the Valley in the last few weeks were filled with stories of cautious buyers searching for homes but unwilling to commit to the purchase. The buzz word in the market now is incentives, and builders have begun a serious campaign to entice buyers to purchase a new home. Potential buyers are being offered thousands of dollars towards closing costs effectively lowering the amount of cash needed to close on the home. This type of incentive helps to mitigate the substantial price difference between a new home and a resale house. Others are offering large incentives towards upgrades, design center options and pools packages. The Realtor® community has also recognized that these large incentives help create buyer urgency to finalize a purchase decision. Furthermore, our August subdivision survey results identified 982 spec homes available at various stages of construction or completed. Increased marketing efforts and incentives on these homes will likely become more prevalent as we approach the end of the year. Realtors® will also focus on these inventory homes to increase their business opportunity. The storms have passed but competitive market clouds will remain for some time to come. Many builders will find success while others will struggle to gain market share. Location is key but price will ultimately prevail. For additional insight and market data call Greg Burger at 480-614-0211 or visit our website at www.RLBrownreports.com.
OCTOBER | NOVEMBER
2014
ArizonaHomebuilder You’re an Arizona Builder, We’re an Arizona Lender.
BILL ROGERS
“As an Arizona based lender we always welcome and
EXPERIENCE THE HFG DIFFERENCE
recognize the value of working with builders who are
with local and in-house Processing,
building Arizona communities. Working with other local
Underwriting & Funding. Call us
companies helps Arizona to build stronger communities.”
today to find out how we can help
-Bill Rogers, CEO of Homeowners Financial Group
you sell more homes and give your clients better service!
Founder & CEO of Homeowners Financial Group
Why do so many builders name HFG their preferred lender? “Homeowners Financial Group has been a great resource for many of our buyers who were turned down by other lenders.” Jason Pancamo, VP of Sales & Marketing
D.R. Horton
“Our buyers are always impressed and satisfied with the professionalism and overall service received by Homeowners Financial Group.” Mark & Julie Hancock, Founders
Camelot Homes
SERVICE LEVEL COMMITMENTS
PORTFOLIO SELECT PRODUCTS
• All Builder Files Receive Initial 30-Day Underwriting
• Expanded FHA and Conventional
• Extended Locks up to 12-Months
• Clean Slate Program
• Customized Marketing Support
• Construction Financing
Corporate Office | 16427 N. Scottsdale Rd. Suite #145 | Scottsdale, AZ 85254 | www.homeownersfg.com | 480.305.8550
All loan products and loan amounts may not be available in your area and are subject to credit and property approval pursuant to guidelines. Information is subject to change without prior notice. Other restrictions and limitations may apply. Homeowners Financial Group USA, LLC is licensed in AZ: Mortgage Bankers License No. BK 0906222, NMLS#93718; CA: Department of Business Oversight under the Finance Lenders Law License No. 603 F033; ID: Mortgage Broker/Lender License MBL-5879; NM: New Mexico Mortgage Loan Company License 03068; ND Money Broker License MB102538; OR Mortgage Lending License ML-5229 WA: Consumer Loan Company License CL-93718; MN: Residential Mortgage Originator License MN-MO-93718; MT: Mortgage Broker/Lender License 93718; NE: Mortgage Banker License NE93718 and registered in CO: Mortgage Company Registration.
Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net
CHECK-UP FOR COMPLIANCE DEVELOPER SPOTLIGHT PARTLY CLOUDY HOUSING MARKET FINANCE CORNER
Featured Developer