Flood Insurance Extended Through March
Late March 2, President Obama signed into law H.R. 4691: the Temporary Extension Act of 2010, which has extended the authority for several programs including the National Flood Insurance Program (NFIP). NFIP's expiration date was February 28; H.R. 4691 changed the date to March 28, 2010.
Pending before the Senate is an amendment to separate legislation (H.R. 4213) which would extend the program through the end of the year. NAR will continue to push for the longer extension, to avoid compounding the market uncertainty and give Congress sufficient time to enact meaningful long-term reform.
NAR Launches REALTOR® Neighborhood Stabilization Project
On January 25, NAR President Vicki Cox Golder announced that NAR is launching the REALTOR® Neighborhood Stabilization Project. Central to the effort is a partnership with the National Community Stabilization Trust (NCST) to prepare state and local REALTOR® associations for active participation with local governments and other community organizations in designing and implementing strategies to help neighborhoods and communities recover from the ravages of the foreclosure crisis. Those communities are currently in the midst of using $6 billion in federal Neighborhood Stabilization Program (NSP) funding devoted to acquisition, rehab and resale of foreclosed properties in order to reclaim devastated neighborhoods.
Learn More About the REALTOR® Neighborhood Stabilization Project
REALTORS® Indicate Which Issues Are Most Important to Them in 2010
At the 2010 Policy Conference, NAR released a survey it conducted asking members whether they agreed or disagreed that each of 30 public policy issues should be a major focus for NAR in 2010. Find out which issues REALTORS® consider the most pressing for 2010.
2010 NAR Public Policy Agenda Survey Read Up on the Issues
FHA Announces Loan and Lender Changes
On January 20, FHA announced major changes to ensure its long-term financial soundness. FHA is trying to balance three fundamental objectives: 1) financial soundness of the FHA insurance fund – ensuring that its capital ratio returns above two percent, 2) fulfilling its mission of serving borrowers not adequately served by the private sector and 3) facilitating the recovery of the housing industry and the overall economy.
NAR has met with the commissioner on several occasions to discuss the state of the housing market and to underscore FHA’s invaluable role. By all accounts the new changes are a victory for home buyers. FHA has carefully balanced the need to make financial reforms with the need to keep FHA available to a large segment of consumers. This is evident by retaining the 3.5 percent minimum down payment requirement and allowing the upfront mortgage insurance premium to be financed.
NAR Files Comments in FCC Net Neutrality Rulemaking Proceeding
On Thursday, January 14, NAR filed a comment letter with the Federal Communications Commission (FCC) supporting its proposed rule to codify network neutrality principles. Net Neutrality aims to ensure that internet service providers do not block, degrade or discriminate against online content, services or applications that might compete with them. Because the business of real estate is increasingly conducted online, NAR supports network neutrality principles as a way to ensure that future innovations in the industry are not impeded.
Read NAR's Comments to the FCC
REALTORS® Can Help Raise Funds for Haiti
Looking for a way to help? Realogy is using its charitable foundation to raise funds for victims of the devastating earthquake that hit Haiti this week.The Realogy Charitable Foundation will distribute funds raised by employees, sales associates, and other REALTORS® directly to the American Red Cross International Response Fund.
2009 NAR Public Policy Accomplishments
Beyond just the extension and expansion of the Homebuyer Tax Credit, 2009 was an incredible year for NAR's public policy goals. With the help of the members of the REALTOR® party, NAR was able to stimulate, stabilize and strengthen real estate markets across the nation while also protecting the business interests of members. As we near the end of 2009, NAR has made significant progress on both the legislative and regulatory fronts. Read about these successes, which represent only a small portion of the activity conducted on behalf of REALTORS® in 2009. 2009 NAR Public Policy Accomplishments
Treasury Department Announces Program to Streamline Short Sales
On November 30, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on December 31, 2012.
See More Details HAMP Update—New Program Offers Borrowers Foreclosure Alternatives Supplemental Directive 09-09, Introduction of Home Affordable Foreclosure Alternatives—Short Sale and Deed-in-Lieu of Foreclosure
Senate Passes Health Reform Legislation
On December 24, 2009, the Senate approved its health reform bill by a vote of 60 to 39. The final vote came after six days of debate and involved a number of early morning/late night votes to avoid procedural delays initiated by those opposed to the bill. Efforts will now begin to reconcile the differences between the Senate and House bills. Any final bill will need to be ratified by both chambers before being sent to the President.
Read more about the Senate version of the bill Video: A look at the potential impact of health care reform on REALTORS® Congressional Budget Office Estimates for 2009 Health Reform Bills Health Reform Elements Comparison NAR Principles Vis-à-Vis Leading Health Reform Bills NAR's FAQ on Health Reform Latest Health Insurance Reform News
FHA Commissioner Announces End of Second Appraisal Requirement on FHA Loans
FHA Commissioner David Stevens announced that effective Monday, Nov. 16, FHA will no longer require a second appraisal on high-balance loans for properties in declining markets. “We did not find our previous policy to be particularly helpful and were very concerned about the additional burden on lenders and consumers,” Stevens said. He noted the policy change will bring industry alignment, streamline loan processing and reduce costs to consumers. He made the announcement during his appearance at the 2009 Annual REALTOR® Conference in San Diego. Stevens gave credit for the FHA decision to NAR President Charles McMillan and NAR.
More on Stevens' Appearance and Comments
Homebuyer Tax Credit Extended and Expanded
On November 6, President Obama signed the Unemployment Insurance Bill, which contains the Homebuyer Tax Credit extension and expansion. The United States House of Representatives, by a vote of 430-12, joined the Senate in passing the bill. Many parts of the bill take effect immediately. As of the signing of the legislation, the income limits increase to $125,000 adjusted gross income on a single return and $225,000 on a joint return. In addition, the so-called "move-up" credit is also in effect as of November 6. Thus, individuals who have used a home as a principal residence for five consecutive years of the past eight years will be eligible for a $6,500 refundable tax credit for purchases completed between November 6, 2009, and April 30, 2010. See more details on the the changes to the Homebuyer Tax Credit below.
Changes to the Homebuyer Tax Credit Law Frequently Asked Questions About the New Bill Listen to NAR President Charles McMillan's Podcast About the Bill Passing See How the House Voted In Depth: 2009/2010 Extended Homebuyer Tax Credit Watch the Entries in the Tax Credit REALTOR Party Video Contest
2009 REALTOR® Party Video Contest Winner Announced
Congratulations to David Weldon of the Southwest Riverside County Association of REALTORS® for his winning video, which explained how the Homebuyer Tax Credit got buyers off the fence and into the market.
See his video and videos from the runners-up.
Senate Works to Extend Raised FHA, Fannie and Freddie Loan Limits
The extension of FHA, Fannie and Freddie Loan Limits at the $729,750 level through December 31, 2010 was passed by the Senate and is now being sent to President Obama for his signature into law. Since the provision is part of the Continuing Resolution, which is necessary to keep the government operating, it is expected to be signed into law quickly. This was an important victory for market stability across the board.
The Impact of the Home Valuation Code of Conduct
This month, NAR conducted a survey of its members to gauge the impact the Home Valuation Code of Conduct (HVCC) is having on the real estate industry. A preliminary analysis released on July 6, 2009, indicated that the implementation of the HVCC appears to be having adverse impacts on the housing markets.
A more detailed analysis of the survey results confirms the early analysis. While 70 percent of appraisers report that turnaround times shortened after May 1, 2009, approximately 75 percent of REALTORS® who responded report an increase in the length of time it takes to get the appraisal report, which is causing delays or cancelling deals. This may correspond to an increase in the number of appraisal requests coming from appraisal management companies (AMCs). NAR's appraiser members report that 40 percent of appraisal requests come from AMCs after May 1, 2009, compared with only 13 percent prior to May 1. Both appraisers and REALTORS® say this is having a negative impact on the quality of appraisals while the cost of an appraisal for the consumer is increasing.
NAR recently applauded the Federal Housing Finance Agency for instructing Fannie Mae and Freddie Mac to take action to clarify confusion over HVCC. NEW: Updated Issue Brief on HVCC Read More About HVCC Listen to the President's Legislative Podcast on HVCC HVCC Research Commentary
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.
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