Cap & Trade Bill
The U.S. House of Representatives approved H.R. 2454, the Cap & Trade Bill also known as the American Clean Energy and Security Act by Reps. Waxman (D-CA) and Markey (D-MA). The bill, re-numbered H.R. 2998, includes NAR-supported provisions which were championed by Rep. Perlmutter (D-CO) that exempt existing homes and buildings from the bill's energy labeling program - Cap & Trade Bill (American Clean Energy and Security Act)
Two e-mail chains have circulated among members and are generating a lot of confusion in the REALTOR® ranks. Both are wrong, read more here: Myths Revealed - pdf
Since the House of Representative approved H.R. 2454, the American Clean Energy and Security Act, there have been many reports about the bill and NAR's position that are based on incomplete information. Here are the facts: Claims vs. Facts - pdf
The U.S. House of Representatives approved H.R. 2454, the American Clean Energy and Security Act. The bill, re‐numbered H.R. 2998, includes NAR‐supported provisions that exempt existing homes and buildings from the bill's provisions to build upon an existing Energy Star energy labeling program. Overall, REALTORS® succeeded in making a number of positive changes to the bill. Read more here: NAR Legislative Analysis of the American Clean Energy and Security Act - pdf
What is the fundamental issue? What does this mean to REALTORS®? NAR addresses these questions here: What It Means To You
FHA Reform Act
The Basics: Federal Housing Administration (FHA)
NAR is a strong supporter of the single- and multi-family programs administered by the Federal Housing Administration (FHA). The FHA single-family mortgage program has played an important and vital role in the mortgage marketplace. The FHA program has a public purpose obligation to provide mortgage insurance to American families who choose FHA to meet their homeownership needs. Increasing the capacity of FHA will insure it is a viable product for homebuyers and expands the pool of available safe and affordable loan products.
First, the reason for the legislation is that FHA has fallen below the mandated 2.0% capital reserve ratio. Of all the options that were considered to get FHA back above the Congressionally mandated threshold, the proposals in H.R. 5072 are the least onerous. The legislation will allow FHA to increase the annual premium from the current .55 to .85. Once that has happened, it is FHA's intention to lower the upfront premium from the current 2.25 to 1.00. The upfront premium can be financed, but it also means that the purchaser must qualify for a mortgage that is 2.25 higher. The change will make it easier for some purchasers to qualify.
The other point to consider is that there is a strong push on Capitol Hill to increase the down payment requirement from the current 3.5% to 5.0%. The housing industry has been able to defeat those efforts, but if this bill fails to pass it will be harder to stop those efforts in the future. Below are two letters that NAR delivered to the House before the vote.
August 5, 2010 - From David Stevens, Assistant Secretary of Housing: Over the past week, Congress has taken quick action and passed H.R. 5981. The bill gives FHA the authority to adjust its annual mortgage insurance premium, yielding approximately $300 million per month in value to the FHA Mutual Mortgage Insurance Fund at a time when its reserves are perilously low. Read more here.
The 1.1 million members of the National Association of REALTORS®, representing American consumers in the real estate transaction, urge Congress to support H.R. 5072, the FHA Reform Act of 2010 - NAR's Letter to Congress - pdf
The National Association of REALTORS®, the Mortgage Bankers Association, and the National Association of Home Builders strongly oppose amendments to H.R. 5072, the FHA Reform Act, which would increase FHA’s downpayment requirement, decrease FHA’s loan limits, or otherwise limit FHA’s ability to insure loans - as expressed in their Letter to House Leadership on H.R. 5072 amendments - pdf
Flood Insurance
NAR is pleased to report that Congress has unanimously approved a one-year extension, until Sept. 30, 2011 for the National Flood Insurance Program (NFIP). A long-term extension has been a top legislative priority for NAR. Earlier in 2010 the NFIP lapsed, causing major disruptions for REALTORS®, and with the Sept. 30, 2010 deadline fast approaching NAR redoubled its efforts to extend the program. Read more here - 9-27-10
On July 2nd, 2010, President Obama signed HR 5569, the "National Flood Insurance Program Extension Act of 2010," into law. The law retroactively reauthorizes the Federal Emergency Management Agency (FEMA) to enter into new contracts for flood insurance under the National Flood Insurance Program (NFIP) through Sept. 30, 2010. Read more here.
NAR worked closely with congressional leaders on both sides of the aisle to enact two important pieces of legislation - Home Buyers Get Flood Insurance and Tax Credit Closing Extensions Without Lapse
National Association of REALTORS® backed a Call for Action for the National Flood Insurance Program expired and the Rural Housing Program: NAR Call For Action
When Congress left town without reauthorizing the National Flood Insurance Program (NFIP) and the Section 502 Rural Housing programs, the REALTOR® Party responded.
Insurers have responded to the costs of recent natural disasters by raising premiums or declining to write policies in disaster prone areas. Without a greater government role in property insurance, many homeowners and potential home buyers may not be able to obtain insurance coverage. As a result, NAR follows the latest news on Natural Disaster / Flood Insurance
Flood Plains Maps
Statement of the National Association of REALTORS®, Submitted To The House Financial Services Committee Housing and Community Opportunity Subcommittee On The Floodplain Maps and the National Flood Insurance Program
The 2010 Homeland Security Appropriations bill includes $220 million to continue FEMA's effort to update and modernize the floodplain maps: Map Modernization Program
Insurers have responded to the costs of recent natural disasters by raising premiums or declining to write policies in disaster prone areas. Without a greater government role in property insurance, many homeowners and potential home buyers may not be able to obtain insurance coverage. As a result, NAR follows the latest news on Natural Disaster / Flood Insurance
Home Buyer Tax Credit
Just a reminder that although the Homebuyer Tax Credit Extension & Expansion expired on April 30th [UPDATE on Extension], there is still time to act on the many advantages this bill provides for members of the military and certain other federal employees.
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Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
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In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer’s principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.
Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Click here for details - irs.gov.
Although the Homebuyer Tax Credit Extension & Expansion expired on April 30th 2010, there is still time to act on the many advantages this bill provides for members of the military and certain other federal employees: Veterans Home buyer Tax Credit
After weeks of negotiation, Congress passed H.R. 3548 which includes an extension and expansion of the current home buyer tax credit as an important step in ensuring a real estate and economic recovery.
The Senate vote was 98-0, with Senators Robert Byrd (D-WV) and Claire McCaskill (D-MO) not voting. The house vote was 403-12. President Obama signed the bill into law on November 6.
The bill extends the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.
Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.
Detailed information about provisions in the tax credit legislation is available on Realtor.org or you can read the entire text of the home buyer tax credit section in H.R. 3548.
NAR economists estimate that the current tax credit has contributed approximately $22 billion to the general economy, and approximately 2 million people will take advantage of the tax credit this year.
The NAR Call For Action was a huge success, shattering previous nationwide response rates. 13,650 Texas REALTORS® responded to the Call For Action. That’s a 16.6% response rate which trailed the national response rate of 18.2%.
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers. Here is more information on the 2009 First-Time Home Buyer Tax Credit.
You’ve decided to purchase a home and take advantage of the new tax credit. Here is how you get the Extended Home Buyer Tax Credit.
Review the changes enacted by the Home Buyer Tax Credit in this Tax Credit Comparison Chart - pdf
HVCC
Home Valuation Code of Conduct
You may have gotten additional questions from your Member of Congress about the Home Valuation Code of Conduct (HVCC) issue. NAR has developed a new FAQ on HVCC and you may find it helpful in answering some of those questions. You can find that along with other HVCC information on REALTOR.org. If you have questions, feel free to contact Jery Nagy at
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The chief legal officers of thirteen states, including Texas, write to Congress to express support for H.R. 3044 - Chief Legal Officers Support H.R.3044 - 11-24-09
A coalition of mortgage brokers and appraisers, visited the offices of New York State Attorney General Andrew Cuomo to hand deliver petitions containing 120,000-plus signatures of both mortgage industry professionals and consumers who believe that the Home Valuation Code of Conduct (HVCC) has been detrimental to the home buying process and should be ceased immediately. Read more here. - 11-19-10
The Home Valuation Code of Conduct (HVCC) establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. NAR provides details and updates here: Home Valuation Code of Conduct (HVCC)
Texas Attorney General Greg Abbott demonstrates his support for H.R.3044 in this Letter to all States Attorneys General - pdf
H.R.3044
Title: To impose an 18-month moratorium on the Home Valuation Code of Conduct.
Sponsor: Rep Childers, Travis [MS-1] (introduced 6/25/2009)
COSPONSORS (46), ALPHABETICAL [followed by Cosponsors withdrawn]:
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Rep Bachmann, Michele [MN-6] - 7/9/2009 |
Rep Bartlett, Roscoe G. [MD-6] - 7/27/2009 |
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Rep Bilbray, Brian P. [CA-50] - 7/22/2009 |
Rep Capito, Shelley Moore [WV-2] - 7/22/2009 |
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Rep Cassidy, Bill [LA-6] - 7/9/2009 |
Rep Coble, Howard [NC-6] - 7/20/2009 |
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Rep Courtney, Joe [CT-2] - 7/27/2009 |
Rep Culberson, John Abney [TX-7] - 7/27/2009 |
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Rep Davis, Lincoln [TN-4] - 7/10/2009 |
Rep DeFazio, Peter A. [OR-4] - 7/22/2009 |
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Rep Driehaus, Steve [OH-1] - 7/15/2009 |
Rep Duncan, John J., Jr. [TN-2] - 7/20/2009 |
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Rep Gallegly, Elton [CA-24] - 7/9/2009 |
Rep Gerlach, Jim [PA-6] - 7/10/2009 |
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Rep Green, Al [TX-9] - 7/27/2009 |
Rep Green, Gene [TX-29] - 7/10/2009 |
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Rep Guthrie, Brett [KY-2] - 7/9/2009 |
Rep Herger, Wally [CA-2] - 7/15/2009 |
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Rep Jackson-Lee, Sheila [TX-18] - 7/9/2009 |
Rep Jenkins, Lynn [KS-2] - 7/20/2009 |
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Rep Jones, Walter B., Jr. [NC-3] - 7/9/2009 |
Rep Kratovil, Frank, Jr. [MD-1] - 7/20/2009 |
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Rep Lummis, Cynthia M. [WY] - 7/9/2009 |
Rep Manzullo, Donald A. [IL-16] - 7/9/2009 |
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Rep Marchant, Kenny [TX-24] - 7/20/2009 |
Rep McCarthy, Kevin [CA-22] - 7/10/2009 |
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Rep McClintock, Tom [CA-4] - 7/27/2009 |
Rep McHenry, Patrick T. [NC-10] - 7/15/2009 |
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Rep McIntyre, Mike [NC-7] - 7/22/2009 |
Rep Michaud, Michael H. [ME-2] - 7/9/2009 |
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Rep Miller, Gary G. [CA-42] - 6/25/2009 |
Rep Minnick, Walter [ID-1] - 7/9/2009 |
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Rep Moran, Jerry [KS-1] - 7/22/2009 |
Rep Neugebauer, Randy [TX-19] - 7/20/2009 |
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Rep Paul, Ron [TX-14] - 7/9/2009 |
Rep Poe, Ted [TX-2] - 7/20/2009 |
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Rep Posey, Bill [FL-15] - 7/9/2009 |
Rep Rooney, Thomas J. [FL-16] - 7/10/2009 |
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Rep Schmidt, Jean [OH-2] - 7/27/2009 |
Rep Shuler, Heath [NC-11] - 7/9/2009 |
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Rep Simpson, Michael K. [ID-2] - 7/27/2009 |
Rep Smith, Lamar [TX-21] - 7/27/2009 |
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Rep Thompson, Mike [CA-1] - 7/20/2009 |
Rep Wilson, Joe [SC-2] - 7/27/2009 |
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Rep Young, C.W. Bill [FL-10] - 7/22/2009 |
Rep Young, Don [AK] - 7/22/2009 |
Cosponsors (46)
Latest Major Action: 6/25/2009 Referred to House committee. Status: Referred to the House Committee on Financial Services.
NAR praises the FHFA's recent guidance on HVCC as a good first step.
WASHINGTON (July 23, 2009) – The following is a statement by National Association of REALTORS® President Charles McMillan:
“NAR and our 1.2 million members are pleased that the Federal Housing Finance Agency has instructed Fannie Mae and Freddie Mac to take action to clarify confusion over the new Home Valuation Code of Conduct for home appraisers implemented this past May.
“Our members were experiencing delayed and lost sales because of poor appraisals conducted often by inexperienced appraisers who were not familiar with the area. The ramifications were so great to our members and to the housing industry that I personally met with the New York Attorney General’s office and with the head of the FHFA to share our concerns.
“In those meetings I shared an NAR survey that found 76 percent of our members, representing both buyers and sellers, had experienced an increase in appraisal time since the new HVCC rules were enacted. Similarly, 71 percent of REALTORS® noted an increase in the use of appraisers who were not from the local area. These factors often adversely affected the sale or the sales process, which occasionally resulted in the loss of a sale or a homeowner’s inability to refinance into today’s lower rates. I expressed our serious concern in the meetings.
“We took this information, and our concerns, to those organizations responsible for the changes and we are pleased that they listened. Today Fannie Mae and Freddie Mac issued clear guidance on two very important points that we raised in our meetings. First, the guidance states that lenders should use appraisers who have clear experience in the geographic area. Second, it clarifies that appraisers are not prohibited from talking to real estate agents.
“NAR has asked Congress and the FHFA to immediately implement an 18-month moratorium on the new HVCC rules to further address unintended consequences of this new rule. We will continue to push for this, but are pleased that this first step was taken today.”
The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
SAFE Act
The SAFE Mortgage Licensing Act is designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators - SAFE Act - HUD
The SAFE Act sets forth procedures, requirements, education, testing, and standards including mandatory registration and state licensing of mortgage loan originators through the creation of a Nationwide Mortgage Licensing System and Registry (NMLSR). SAFE Act - NAR
At TAR's urging, the chief regulator over the SAFE Act in Texas has taken significant steps to allow Texas property owners to continue to seller finance up to five transactions in a 12-month period. Read more here: SAFE Act - TAR
The commissioner of the Texas Department of Savings and Mortgage Lending, has delayed the implementation of the SAFE Act requirement for licensure in seller-financed transactions in Texas until August 31. That means that a Texas seller can continue to finance up to five transactions in a consecutive 12-month period - SAFE Act Delayed in Texas - 6-21-10
TAR explores the facts and fallacies of the SAFE Act in this SAFE Act Myth Buster - pdf
Wall Street Reform Act
Members and staffs of the House Financial Services Committee and the Senate Banking Committee worked to ensure that Wall Street Reform legislation did not adversely affect REALTORS®. Please read this summary of the issues of particular interest to REALTORS® - Wall Street Reform Act
