Tips for Directors

Tips for Directors

• Know the bylaws and constitution.
• Inform yourself about the activities and operations of the organization. “The less you know the greater the risk you put yourself in”.
• Insist on receiving relevant information related to board decisions in advance and be prepared to participate in decision making.
• Review the minutes and ensure corrections are made. Insist the minutes record disclosure, dissent or refraining from voting.
• Be prepared to make decisions. Avoid being a rubber stamp.
• Ensure appropriate information reporting and other management systems are in place i.e. annual audit.
• Respect confidentiality.
• Avoid conflict of interest. If in doubt declare a conflict and don’t vote.
• Insist that the organization protect directors by indemnification and insurance.
• Monitor the financial health of the organization i.e. tax receipts to ensure value not inflated, against disbursements if there is a question of insolvency.
• Ensure committees report to Board and obtain approval for their actions.
• Keep personal notes at meetings.
• Keep a binder or file with all minutes and other documents together.
• Insist on written legal and other professional opinions where necessary.
• Ensure that the organization assesses the risk to the activities and minimizes, eliminates, reduces or avoids them.
• Resign if you feel affairs are not conducted in proper, responsible and legal manner in accordance with wishes of general membership.

Ten Tips for Homebuyers

Ten Tips for Homebuyers

• Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions and mortgage bankers make home loans; mortgage brokers process them. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.
• If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. A lender should be able to advise you on whether your credit history will prevent you from qualifying for a home loan.
• You will need a down payment. Down payment requirements vary depending on the type of loan. Many down payment assistance programs exist. These programs may loan or grant you the funds necessary for the down payment. Consult with a lender about programs available in your area.
• You will need funds for closing costs Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to:
  * Escrow fees charged by the company handling the transaction
  * Title policy issuance fees charged by the title insurance company
  * Mortgage insurance fees
  * Fire and homeowners insurance
  * County Recorder fees for recording your deed
  * Loan origination fees
• Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate they constitute the yield on your loan for the lender. Some lenders charge a higher interest rate to compensate for charging no points. It is important to comparison shop lenders to make sure your loan is at a competitive yield.
• Should you select a mortgage with a fixed rate or an adjustable rate? The answer to this question depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. If rates are high, an adjustable rate might be attractive since subsequent rate drops could reduce your monthly payments.
• Be aware of the two main types of loan categories.
  
  1. Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Some loans may require mortgage insurance.
  2. Government Loans. These include Federal Housing Administration (FHA) fixed and adjustable rate mortgage loans, and Veterans Administration (VA) fixed rate mortgage loan.
• If you are a low or moderate income homebuyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies, like the California Housing Finance Agency (CalHFA). Most lenders specializing in real estate mortgage loans are aware of these types of loan programs.
  
• Why might I have to pay mortgage insurance? Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Generally, conventional loans that require larger down payments do not require mortgage insurance. Mortgage insurance is always required on FHA mortgage loans.
• Many organizations offer home loan counseling to prospective homebuyers. These organizations provide classes for homebuyers to cover the steps to homeownership. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down payment, and other important pieces of information. Many first-time homebuyer programs require homebuyers to attend this type of class to be eligible for selected programs.

More information !!
Contact one of CalHFA's approved lenders.

Ten Tips for Online Investors

Ten Tips for Online Investors

When You Invest Online, Be Sure To:

1. Receive full disclosure, prior to opening your account, about the alternatives for buying and selling securities and how to obtain account information if you cannot access the firm's Web site.
2. Understand that most likely you are not linked directly to the market, and that the click of your mouse does not instantly execute the trade.
3. Receive information from the firm to substantiate any advertised claims concerning the ease and speed of online trading.
4. Receive information on the firm's Web site about significant outages, delays and other interruptions to securities trading and account access, and how to proceed under these circumstances.
5. Obtain information before trading about entering and canceling orders (market, limit and stop loss), and the details and risks of margin accounts (borrowing to buy stocks).
6. Determine whether you are receiving delayed or real-time stock quotes and when your account information was last updated.
7. Review the firm's privacy and Web site security policies and whether your name may be used for mailing lists or other promotional activities by the firm or any other party.
8. Receive clear information about commissions and fees and conditions that apply to any advertised commission.
9. Know how to, and if necessary, contact a customer service representative with your concerns and request prompt attention and fair consideration.
10. Contact your state securities agency to :
    

• verify the registration/licensing status and disciplinary history of the online brokerage firm;
  
• find out if the investment is permitted to be sold; and
  
• file a complaint, if necessary.

To more information, contact !!
Iowa Securities Bureau
340 Maple Street
Des Moines, IA 50319-0066
515-281-4441 or 800-351-4665
iowasec@iid.state.ia.us