LOANS AND
APPRAISALS

What factors will affect loans next year, and why?

Brandon Brotsky: We have more changes with RESPA and TILA going into effect on Aug 1st 2015. We’ve seen a major impact on lending with similar changes since the meltdown. We have gotten ahead of the documentation changes that will be required and prepared our workflow and systems accordingly.

Carlos Garcia, Keyes Realty: Our unemployment has declined 6 percent, we have numerous constructions going up, 150 projects. The county is also fixing the infrastructure. New people are coming in and we have an increase in the hospitality industry as well. We have major hotels, we have convention centers going on here, so things are booming. Downtown is building a world center now, so we have a lot of increases in those areas that were declining before. It’s going to stay stable at least for the next three years.
What other lending changes should agents expect next year?

Brandon Brotsky: The RESPA and TILA changes are the biggest. There is a chance that FHA reduces mortgage insurance premiums so we are all keeping our fingers crossed for that.

What do you see happening with interest rates in 2015? Will low interest rates continue to drive the market, even if they increase by a small percentage next year?

Jill Hertzberg, The Jills, Coldwell Banker: Interest rates will go up. When I bought my first house in the 1970s, I think my interest rate was 17 percent. Right now people have been used to extremely low interest rates, which of course just builds the economy. It may go up 1 or 2 percent. And it’s still going to be below 7 or 8 right now. When you get a credit card, your interest rates are even higher than that. I think that we’re okay, but I do think there will be some kind of change.

There are a lot of things that are outside of our control as far as being a real estate market. Assuming that all things stay stable, I think that we’re in a good position and the market is pretty healthy. I think one of the best things you can do in the market is diversify. Miami Beach is diverse. We have people from all over the world, and we have all different pricing ranges in town, from low to very very high, or a degree in the luxury market.

Brandon Brotsky: I think 2015 will be a reflection of 2014 when it comes to interest rates, and yes, this will continue to entice first time home buyers to jump in and investors to borrow cheap.