February 18, 2001
The following is taken from H.B. Wilkinson Title Company's "HBW Title News" publication, Issue 3, Winter 2001.
IRS Reporting Regulations Delayed
On January 2, 2001, IRS regulations were to go into effect, requiring the reporting of all payments made to attorneys or law firms in connection with real estate transactions on Form 1099-MISC.
All money paid to an attorney as the payee, or simply delivered to an attorney as the payee were going to have to be reported, and then "explained" by the attorney or law firm in case of an IRS audit. This would have place a huge reporting obligation on the title companies.
On December 26, 2000 the IRS issued Notice 2001-7, which indefinitely delays the implementation of the Section 6045(f) regulations until "the first calendar year that begins at least two months after the date of the publication of the final regulations in the Federal Register."
Loan Originations on the rise for 2001
Originations were over $1.4 trillion in 1998 and about $1 trillion in 2000. In 2001, Freddie Mac economists see originations near $1.5 trillion if the expected moves by the Fed do indeed take place. "Even if they do not, originations will be close to the record set in 1998," predicts Frank Nothaft, Freddie Mae deputy chief economist.
(Source: Freddie Mac)
Commercial Construction
Our Whiteside County offices are happy to announce the completion of two major commercial construction escrows. Culvers restaurant is located on Route 40 in Rock Falls. The Fulton Family Health Clinic is located on Route 84 in Fulton.
In Carroll County, they are pleased to announce that construction is complete at the McDonalds and the Amoco, Savanna Station. They are located where highway 84 and 64 intersect in Savanna.
JoDaviess County reports two new constructions are nearing completion. The Country Inn & Suites located at 11383 on US Route 20 and Victorian Pines Inn located off US Route 20 at 11334 Oldenburg Lane.
We would like to welcome these wonderful new additions to our communities.
Housing Outlook
National Association of Realtors
| 2000 | 2001 | |
| Existing Home Sales (thousands) | 5,036 | 5,012 |
| New Home Starts (thousands) | 882 | 833 |
| Housing Starts (thousands) | 1,597 | 1,566 |
| 30-Yr. Mortgage Rates | 8.1 | 7.8 |
| Existing-Home Prices (percent change) | 4.3 | 4.7 |
| New-Home Prices (percent change) | 3.7 | 5.0 |
(From: Illinois Realtor Publication)
"Go the extra mile. It's never crowded" - Executive Speedwriter
