First Ever Doug Mayo Memorial Golf Invitational Set for June 27
Mark your calendars now for the first ever Doug Mayo Memorial Golf Invitational, which will be played at Copper Creek in Pleasant Hill on June 27. All proceeds will benefit the Doug Mayo Scholarship within the HBAI Educational Corporation, which provides scholarships to students entering the trades. It’s in the early stages, but promises to be an event you won’t want to miss!
Financing Rules Change Tomorrow – Make Sure You Get Paid in Time
Can you say regulatory overreach? It’s going to be a different financing world beginning tomorrow. It is more important than ever to make sure a lender understands what type of documentation is required for a loan to satisfy the “Ability to Repay” guidelines of Dodd/Frank’s Qualified Mortgage rules. Lenders who work primarily with Freddie Mac, Fannie Mae, HUD, VA, Rural Development and local/state down payment assistance programs are moving forward with a “business as usual” approach but understand the documentation requirements have increase dramatically in the loan approval process as of 1/10/13.
To protect a seller’s interest, builder and agent reputation and do all you can to insure the lender is bringing knowledge to the table, it is important to inspect a pre-approval letter by asking some basic questions of the borrower/buyer AND lender.
- How did the buyer meet the lender? If the lender has completed a refinance for the borrower in the past, there is a chance it may have been a stream line refinance or other type of program that required minimal documentation. Not the case when doing a purchase transaction. Or perhaps the loan officer was primarily doing refinances over the last few years and is not fully comfortable with the purchase process.
- Did the buyer/borrower provide (at minimum) 2 years of tax returns and W2’s, one month of paystubs, 2 months of asset statements to the loan officer.
- Did the loan officer go over these forms in detail with the borrower ( even line by line review of the asset statements and paystub analysis)
- Is the buyer/borrower using part time income, dividends/interest, commission, self-employment , seasonal income or any other unique income source to qualify?
- If the answer to #4 is yes, has the file been to an underwriter for a full review?
If you don’t feel comfortable with how the borrower/buyer or loan officer respond to these simple questions, it is time to get a lender you trust and has purchase experience involved with the transaction.
Need Some Health Insurance?
The HBAI Executive Committee will be discussing a new proposal for group health care at it’sJanuary 21 meeting. The group can be as small as one, so this has the potential to be a fantastic opportunity to add significant value to your membership. Stay tuned, it won’t take long to launch it. Basically it’s through Cooportunity Health. Here’s an executive summary of where we are today:
Affordable Care Act-What does it mean to an Individual American
ACA was signed into law on March 23, 2010 and set forth a number changes to America’s healthcare system. The law has provided implementation overload as its 2,700 pages of legislation has produced over 25,000 pages of regulations. For the average American general confusion has been the norm. In this short article we hope to provide you the member of ” ” a little clarity on requirements and changes you will see in your healthcare and insurance coverage’s.
Beginning in 2014 the ACA places a requirement on all American’s to carry health insurance. If you do not have employer provided coverage you are required as an individual to have health insurance or face a penalty at tax filing time. On August 27, 2013, the Internal Revenue Service (IRS) issued a final rule for the individual mandate provision of the Patient Protection and Affordable Care Act (PPACA).
The individual mandate requires most individuals to have minimum essential coverage in 2014 or pay a penalty. The penalty is called a shared responsibility payment. Some individuals may qualify for an exemption from the mandate so they will not be required to have coverage or pay a penalty. An individual seeking an exemption may do so in advance through an application submitted to the Exchange/Marketplace or after the fact with the IRS through the tax filing process. An applicant can apply for multiple exemptions simultaneously.
You are considered to have minimum essential coverage for any month in which you are enrolled in one of the following types of coverage for at least one day.
- An employer-sponsored group health plan offered in a state, which is defined as the 50 states plus the District of Columbia.
- An individual health insurance policy offered in the individual market in a state.
- A government plan such as Medicare, Medicaid, Children’s Health Insurance Program (CHIP), TRICARE (a U.S. Department of Defense Military Health System) or veterans coverage
- Insured student health coverage
- Self-insured student health coverage
- Medicare Advantage plan
- State high risk pool coverage
- Coverage for non-U.S. citizens provided by another country
- Refugee medical assistance provided by the Administration for Children and Families
- Coverage for AmeriCorp volunteers
Who is Exempt from Paying the Penalty?
- Individuals who cannot afford coverage
- Taxpayers with income below the tax filing threshold.
- Individuals who qualify for a hardship exemption
- Individuals who have a gap in minimum essential coverage of less than three consecutive months in a calendar year, with the continuous period beginning no earlier than January 1, 2014
- Members of religious groups that object to coverage on religious principles
- Members of health care sharing ministries
- Individuals in prison
- Individuals who are not U.S. citizens and not lawfully present in the United States as defined by Health and Human Services
- U.S. citizens residing in a foreign country who meet certain IRS tests
- Individuals who are not members of a federally recognized Native American tribe, but who are eligible for services from the federal Indian Health Service
The first penalties will be due when individuals file their 2014 tax returns in 2015. A penalty is the greater of either a specified dollar amount or percentage of income. The annual penalties for 2014 through 2016 are noted below. Beginning in 2017, penalties will increase based on the cost of living.
- 2014: Greater of $95 per adult and $47.50 per child under age 18, maximum of $285 per family, or 1% of income over the tax-filing threshold
- 2015: Greater of $325 per adult and $162.50 per child under age 18, maximum of $975 per family, or 2% over the tax-filing threshold
- 2016: Greater of $695 per adult and $347.50 per child under age 18, maximum of $2,085 per family, or 2.5% over the tax-filing threshold
If the penalty applies for less than a full calendar year, the penalty will be 1/12 of the annual amount per month without coverage. Starting January 1, 2014 you will have the opportunity to purchase health insurance under “guaranteed issue” requirements which ensure that health insurance issuers offer group and individual market policies to any eligible individual in a state, regardless of health status. Prohibition on charging consumers a higher premium based on health status or gender. The ACA requires elimination of annual and lifetime coverage limits, prohibition on coverage limitations or exclusions based on pre-existing conditions.
The law provides an opportunity for individuals to purchase health insurance during an initial open enrollment for individuals and family that will run from October 1, 2013 through March 31, 2014 for the 2014 plan year. However, you will also have opportunities to buy coverage 60 days after a “qualifying event”, such as marriage, birth or the loss of minimum essential coverage. If you currently have coverage it may not be affected by the changes under the ACA until either your renewal date in 2014 or if and when your plan may lose grandfather status.
You will have an opportunity to shop health insurance directly with the insurance carrier just as you have in the past. In addition the ACA sets up new health insurance marketplaces which will provide you another location to purchase your health insurance coverage. If you should have income at or below 400% of the Federal Poverty Level you may be entitled to a federal tax subsidy to assist you in purchasing health insurance. These subsidies will vary based on income, age and family composition. If you wish to access these subsidies you must purchase your coverage through the Marketplace. In Iowa we will have two insurance carriers selling individual plans statewide in the Marketplace, Coventry and Co-Opportunity.
With so many questions you may be asking yourself – where do I begin? What do I need to know? The best answer is to contact us at Associations Marketing Group, Inc. at 800-798-6772. AMGI’s President Jesse Patton is considered one the states leading experts in regards to the Affordable Care Act. AMGI can assist you in clarifying some of the confusion around the ACA. Certified to assist you on the subsidies and programs through the Marketplace we can also advise if it is better for you to purchase coverage directly from the insurance carrier. Don’t worry about these provisions in the ACA just call AMGI!
Make a Note of Our New Address
Home Builders Association of Iowa
400 East Court Avenue
Des Moines, IA 50309