House Passes Climate Bill with Energy Labeling Exemption
The U.S. House of Representatives approved the American Clean Energy and Security Act by Reps. Waxman (D-CA) and Markey (D-MA). The bill includes NAR-supported provisions, championed by Rep. Perlmutter (D-CO), that exempt existing homes and buildings from the bill's energy labeling program.
NAR issued calls for action and made the climate bill a talking point for Capitol Hill visits during its recent Midyear meeting. Overall, REALTORS® succeeded in making a number of positive changes to the bill, including limiting the energy labeling provisions to new construction only. NAR will have additional opportunities to make further changes to address unresolved issues, such as the bill's building energy code targets.
Read More Details About the Bill Facts and Myths About the Climate Bill See NAR's Issue Summary on Climate Change
Fannie Mae Confirms Short Sales Commissions Policy and Establishes Appeals Process
In discussions between NAR and Fannie Mae, Fannie Mae has reconfirmed its short sale commission policy and established a process for REALTORS® to follow if issues arise. On February 24, 2009, Fannie Mae sent Announcement 09-03 to its servicers instructing them not to negotiate commissions on short sales below the amount negotiated by the listing agent, unless the commission exceeds six percent. The announcement reminded servicers that third-party approvals (i.e., private mortgage insurers) may be required and can affect commissions. In response to concerns raised by NAR that some servicers of Fannie Mae loans are unaware of this policy or believe it is not binding, Fannie Mae has established a process for NAR members when short sale commission issues arise.
Learn More About the Process More on Short Sales
Health Care Reform Moving Quickly
Health care reform will consume a great deal of the summer in Congress with proposals and legislative language now coming quickly after months of behind-the-scenes talks. NAR has been actively working with both House and Senate leaders to ensure that REALTORS’® interests are represented in a final health reform proposal. It is too early to say what position NAR will take on a final bill, but be on the lookout for a variety of resources from NAR to educate your members about the different aspects of the health care debate and how they fit in with NAR’s public policy.
NAR Calls on Veterans Affairs to Monetize Tax Credit
On June 4, 2009, NAR President Charles McMillan sent a letter to U.S. Department of Veterans Affairs (VA) Secretary Shinseki asking that Veterans Affairs create a program that will effectively monetize the first-time home buyer tax credit for veterans. NAR recommends that the proposed VA program be crafted in a similar fashion to the recently announced program for Federal Housing Administration (FHA) loans, which allows government entities and instrumentalities of government to provide a second mortgage.
NAR noted that VA generally offers mortgage products that require no down payment, but there are other uses for the tax credit. Veterans purchasing a home could use a second loan, backed by the tax credit, for closing costs, for interest rate buy downs or to make a down payment. Monetzing the tax credit for these purposes would reduce the costs of purchasing a home for our country's veterans.
NAR Letter to VA on First-Time Home Buyer Tax Credit
Bills Introduced to Extend, Expand Homebuyer Tax Credit
Several House members have introduced bills reflecting their support for the homebuyer tax credit and urging that it be expanded and extended. NAR is saluting their efforts but has not endorsed any particular approach. The bills have differing details, but, taken together, all would have beneficial effects on the housing market. NAR anticipates additional bills in the near future. The bills introduced so far:
H.R. 2562: Ron Kind (D-WI) and three bipartisan co-sponsors. The bill extends the tax credit through December 1, 2010, but limits the extension to individuals who served for three months or more in the military during 2009.
H.R. 2606: Eddie Bernice Johnson (D-TX). The bill expands the credit to all purchasers, not just first-time purchasers. The bill extends the credit through December 31, 2010. Her bill also eliminates the repayment feature that applies to the $7500 2008 tax credit. H.R. 2619: Kenny Marchant (R-TX). The bill makes the credit available to all purchasers and also extends the credit through June 30, 2010. The bill also provides a temporary $3000 tax credit that has the effect of refunding the closing costs associated with refinancing a mortgage, so long as the refinanced amount was no greater than the outstanding balance on the mortgage being refinanced.
Watch videos of REALTORS® at NAR's 2009 Midyear Meetings urging Congress to expand and extend the Home Buyer Tax Credit.
HUD Announces Guidance on FHA Loans for First-Time Home Buyer Tax Credit
Consumers across the country can now take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the $8,000 tax credit when purchasing a home. FHA will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger down payment above the FHA required 3.5 percent, cover closing costs or buy down their interest rate.
The details of the program were announced Friday in Mortgagee Letter 2009-15. Mortgage industry leaders have indicated that these types of loans as outlined in the HUD guidance may not be immediately available to consumers. Lenders will need some time to develop documentation for what will effectively be personal loans to the home buyer. However, 10 state housing finance agencies currently offer a product buyers can use that will essentially monetize the tax credit for down payment purposes. State associations are encouraged to work with their respective housing finance agency to implement similar programs.
NAR has supported monetization of the tax credit, which was part of an Obama administration housing stimulus plan enacted earlier in the year. NAR petitioned HUD to allow home buyers to use the $8,000 tax credit to help them cover down payment or closing costs to bring new home buyers to the market and stimulate home sales.
Highlights from NAR's 2009 Midyear Legislative Meetings
Did you miss NAR's 2009 Midyear Legislative Meetings and Expo? You can still see some of the highlights!
See the speakers at Tuesday's powerful Real Estate Summit, including Former Chairman of the Federal Reserve Board Alan Greenspan, Former Secretary of Labor Dr. Robert Reich and HUD Secretary Shaun Donovan.
Listen to Sheila Bair, FDIC chair, discuss the best way for REALTORS® to revive housing.
See what happened during Midyear on Facebook, Flickr, Twitter and YouTube.
Administration Announces New Making Home Affordable Details
Last week, Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan announced new details on the Making Home Affordable program. The Obama administration will encourage troubled borrowers who don't qualify for loan modifications or can't keep up payments on a modified loan to pursue a short sale or deed their property to their lender in order to avoid foreclosure.
Read the fact sheet. Learn More: Visit NAR's Making Home Affordable Program resources page.
NAR Responds to Mortgage Crisis
NAR has worked hard over the last year to restore the housing and mortgage markets. Learn more about our efforts!
NAR Actions to Restore Housing and Mortgage Markets
REALTOR® Concerns About Short Sales and NAR's Response
NAR President Discusses Latest Legislative Developments
In the April 21 edition of the President's Podcast, 2009 NAR President Charles McMillan sits down with 2009 NAR President-Elect Vicki Cox Golder to discuss the latest legislative developments and their impact on REALTORS®.
REALTORS® Support Mortgage Lending Reform
At a House Financial Services Committee hearing on Wednesday, April 23, NAR President Charles McMillan testified that reform to the mortgage lending system is needed to restore consumer confidence in the economy and the housing market. The recently introduced Mortgage Reform and Anti-Predatory Lending Act of 2009, H.R. 1728, contains many of the reforms NAR has been seeking, but McMillan cautioned against overregulation. NAR has sought to strike an appropriate balance between safeguarding consumers and making sure they have access to mortgages at a reasonable cost.
One concern is that the broad definition of mortgage originator that could overreach and encompass some of the everyday activities of REALTORS®, including providing advice to consumers to help them find fair and affordable mortgages. He also suggested that the inclusion of just 30-year fixed rate mortgages in the safe harbor provision is too narrow. In both instances, the legislation's rules could significantly hurt real estate professionals' ability to help navigate the consumer through the home buying process, as well as limit the traditional mortgage products available to the consumer during the home buying process. The HFSC is currently preparing to "mark-up" this legislation with the expectation that it will be voted on by the full House in early May. NAR is continuing to work with members of the HFSC to ensure that final language contains provisions that ensure the appropriate protections for consumers and does not unnecessarily restrict the marketplace.
Read Charles McMillan’s Full Testimony
Right Tools, Right Now
Effective immediately, NAR is launching the Right Tools Right Now initiative for our 1.2 million members. NAR is working to support you, our members right now during this challenging time.
This Association-wide program provides over 300 NAR publications, resources and services to you for FREE, at cost, or at significantly reduced pricing. Our goal is to make NAR’s robust roster of business-building tools available to you Right Now.
You’ll find hundreds of NAR products, resources and services offered for FREE, at cost, or at a significant discount. New offers will be made available in the weeks and months ahead, so be sure to check back often. Take advantage of these valuable tools – today!
The Credit Crisis Explained
Watch this short and informative video that explains what the credit crisis is and the larger impact it has on the financial markets and housing.
