News on Recording Tax and Recording Fees

FEDERAL CREDIT UNIONS MORTGAGE RECORDING TAX

This month, the New York State Department of Taxation and Finance reaffirmed its position on mortgage recording tax on mortgages issued by federal credit unions, stating that these mortgages are “NOT subject to the special additional tax imposed by Tax Law, section 253.1-a(a).”

This is despite a New York’s Court of Appeals decision reported on October 18, 2012, that mortgages issued by credit unions were subject to mortgage tax.

The Technical Memorandum TSB-M-12(1)R can be read in full at:

http://www.tax.ny.gov/pdf/memos/mortgage/m12_1r.pdf

This TSB-M explains that the recording of residential mortgages given to federal credit unions is subject to all mortgage recording taxes, except the special additional tax imposed by Tax Law, section 253.1-a(a).

 

INTEREST ON NY STATE TRANSFER TAX AND RECORDING TAX

The New York State Department of Taxation and Finance announced that there will be an interest on late payments and assessments of Mortgage Recording Tax and Real Estate Transfer Tax of 7.5% per annum, compounded daily, for the period of January 1st through March 31, 2013.  An interest rate of 2% per annum compounded daily will be paid on refunds of those taxes.

The notice can be read in full here:

http://www.tax.ny.gov/pay/all/int_curr.htm

 

INCREASE TO NASSAU COUNTY RECORDING CHARGES

 

The block index fee will increase from $75.00 to $150.00 for an instrument (deed, mortgage, financing statement filed under the UCC, mechanic’s lien, notice of pendency) submitted for recording or filing on or after Jan. 2, 2013.  Including the basic charge, the amount will increase from $115.00 to $190.00.  No change will be made to the $75 fee to record or file against each additional tax block.  The $5.00 per page recording fee will remain unchanged.

 

 

Uptick In RMMI May Indicate Future Increase In Reverses.

The RMMI is the Reverse Mortgage Market Index, a market indicator introduced in 2007 by NRMLA/RiskSpan to measure senior home equity.  In any given quarter, it can indicate potential Reverse Mortgage business.

The current levels of home equity owned by seniors rose in third quarter 2012 by 2.4%, the highest level since second quarter 2009.

An estimated $66 billion rise in the aggregate value of senior housing is the main contributing factor for this increase, helped by an $8 billion decline in mortgage debt held by seniors, resulting in a $74 billion increase in senior home equity.

Mick Jagger on Reverse Mortgages

On a light note for this Friday afternoon:

One day before appearing in the 12/12/12 concert at Madison Square Garden, Mick Jagger presented David Letterman’s Top Ten.

Here’s the complete list of the “Top Ten Things I, Mick Jagger, Have Learned After 50 Years in Rock ‘n’ Roll”:

10. “Nobody wants to hear anything from your new album.”

9. “Never take relationship advice from Phil Spector.”

8. “Before shouting ‘Hi Seattle!’ make sure you’re in Seattle.”

7. “You don’t earn a cent when someone does a song about having moves like Jagger.”

6. “Everybody you meet after you become famous is only interested in you as a person.”

5. “Song royalties are great, but even they can’t match the guaranteed cash flow of a reverse mortgage.”

4. “A good way to keep yourself entertained is to sign every 10th autograph ‘Doris Goldblatt.’”

3. “Be considerate of other hotel guests — trash your room by 10 p.m.”

2. “You can’t always get what you want — like a good joke on the top ten list.”

1. “You start out playing rock ‘n’ roll so you can have s*x and do drugs. But you end up doing drugs so you can still play rock ‘n’ roll and have s*x.”

HECM Loan Limits Remain Another Year

Mortgagee Letter 12-26 issued by HUD yesterday, December 6, 2012, extends the HECM reverse mortgage loan limit of $625,500 through December 31, 2013.

Click on the link below (twice)  to read the complete Mortgagee Letter:

12-26ml

 

 

What Is ALTA, and What Do They Do?

The American Land Title Association, founded in 1907, is a national trade association representing more than 4,000 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.

ALTA publishes an analysis every quarter, covering market share and volume of premiums generated.  Third quarter 2012 they reported a 22 percent ($581 million) increase in operating income from the third quarter of 2011, while loss expense was down 27 percent ($81 million) and operating expenses increased 23 percent ($532 million).

“Title insurance premium volume is highly dependent on real estate sales and mortgage-refinancing activity,” said Michelle Korsmo, ALTA’s chief executive officer. “The third quarter of 2012 continued to show improvement in our industry as it was the third consecutive quarter with an increase over the equivalent 2011 quarter.”

New York was one of the stated demonstrating a significant increase in volume($213.8 million, up 15.8 percent) as was Pennsylvania ($130 million, up 44.6       percent).