 |
In This Issue:
 Business Report
Conventional Residential Lending Report
Federal Tax Report
Housing Report
| | Business Report
| | | HUD Releases Additional RESPA FAQs Along With New Table of Contents | | On September 18, 2009, the Department of Housing and Urban Development (HUD) posted, on its official website, expanded FAQs on the new RESPA rule, including information on completing the new GFE and HUD-1 which become mandatory on January 1, 2010. This most recent HUD release of RESPA FAQs is part of a series of releases during the summer and includes a helpful Table of Contents for all of the FAQs issued by HUD on the new rule. HUD's Expanded RESPA FAQs With Table of Contents > Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294 | | | | | Long Awaited Senate Finance Health Bill Released and Markup Begun | | Following up on his earlier promise to begin consideration of a health reform measure in his committee in late September, Senate Finance Committee Chairman Max Baucus (D-MT) released the conceptual language of his health reform measure on September 15, 2009. On Tuesday, September 22nd, the Senate Finance Committee began its mark up of the measure by beginning to work its way through the more than 500 amendments filed by members of the Committee- a process that at times proved contentious and at other times productive. The Committee continued to work through Friday morning, the 25th, recessing at noon for the Jewish holiday with plans to reconvene on Tuesday, September 29th. It is unclear how long it may take the Committee to finish its deliberations. In the meantime, the House is expected to begin merging the three versions of HR 3200 over the next week and to bring the bill to the floor in early to mid October. While some have proposed using revenue that could be generated by capping tax deductions including the mortgage interest deduction to pay for health reform, both the House and Senate Finance Chairman Baucus have not proposed such a limitation to date. Before the Senate Finance began markup, NAR and its lobbyists delivered a strong to the Committee reminding them that the fragile housing market cannot sustain any negative legislation. Given the very fluid nature of the debate and the need to merge a number of bills into one bill before any serious discussions of a final bill can begin, NAR has not taken a position on any of the health reform bills at this time. President's Remarks >
Chairman Baucus' Proposal > Contacts: Marcia Salkin, 202-383-1092 Contacts: Ken Wingert, 202-383-1196 Contacts: Scott Rinn, 202-383-7508
| | | | | FCC Proposes New Net Neutrality Rules | | On September 21, Federal Communications Commission (FCC) chairman Julius Genachowski proposed turning six net neutrality principles into rules to protect consumers online and ensure a competitively neutral internet. Genachowski proposed combining the FCC's existing four broadband policy principles with two new principles that address nondiscrimination and transparency. The principles would apply to all broadband providers including wireless. The FCC will launch a rulemaking proceeding on this proposal in October. NAR supports network neurtrality in order to ensure that real estate professionals maintain open access to broadband which is an increasingly important tool for REALTORS® View the FCC Press Release > Contacts: Melanie Wyne, 202-383-1234 Contacts: Ken Wingert, 202-383-1196 Contacts: 202-383-7508
| | | | Conventional Residential Lending Report
| | | Federal Reserve Board Extends Period for Purchasing Fannie Mae/Freddie Mac MBSs and Debt | | On September 23, 2009, the Federal Reserve Board announced that economic activity is picking up, noting that there is increased activity in the housing sector. The Fed reaffirmed its ongoing program to purchase a total of $1.25 trillion of Fannie Mae and Freddie Mac mortgage-backed securities and up to $200 billion of their debt. However, in recognition of the improving economic conditions and to promote return of private investment to these markets, the Fed has decided to spread its purchases over an additional three months, through the end of March 2010. Previously, the Fed had planned to complete these purchases by the end of 2009. Federal Reserve Press Release (September 23, 2009) > Contacts: Jeff Lischer, 202-383-1117 Contacts: Tony Hutchinson, 202-383-1120 | | | | Federal Tax Report
| | | Mortgage Interest Deduction Limits Not Included in Health Care Legislation — So Far | | The proposal in the Administration's FY 2010 budget to limit itemized deductions, including the mortgage interest deduction (MID), for upper income taxpayers has found no champions in either the House or the Senate. The Administration had proposed using the revenue from these limits to "pay for" health reforms. The House version of reform (H.R. 3200) did not include any changes to these limits. Similarly, Chairman Max Baucus (D-MT) of the Senate Finance Committee has held the line during Committee deliberations. Thus, to date, while some Senators proposed amendments that would be "paid for" with the MID revenues, the limitations have not been added to the Senate proposal. Before the Senate Finance began markup of its health reform, NAR and its lobbyists delivered a strong letter to the Committee reminding them that the fragile housing market cannot sustain any negative legislation. When the full Senate begins its efforts, NAR lobbyists will aggressively convey that message to all Senators. View NAR's Letter to the Senate Finance Committee > Contacts: Linda Goold, 202-383-1083 Contacts: Samuel Whitfield, 202-383-1131 | | | | | Tax Credit Extension Draws Increasing Attention | | Increasing media coverage has drawn attention to the reality that the $8000 first-time homebuyer tax credit will expire November 30, but that prospective purchasers need to act quickly to assure that they will qualify for the credit. To receive the credit, purchasers must actually close the transaction before December 1. Ways and Means Chairman Rangel (D-NY) has introduced legislation that would extend the benefit of the credit through 2010, but has limited eligibility for that extension to a limited group of potential purchasers. His bill (H.R. 3590) would make the credit available to individuals who have served in the military, Foreign Service or in the US intelligence community outside the US for 90 days or more during 2009. They must also be first-time purchasers. NAR has sent a letter of support to the Chairman and has also urged him to include an extension of the first-time homebuyer credit when the full House considers that legislation. The House will likely require that any extension of the credit be "paid for." Paying for an extension of the current credit is said to "cost" just less than $1 Billion per month of extension. NAR is working aggressively through its grassroots and also at the staff level to convince Congress to extend current law. In the Senate, Senator Ben Cardin (D-MD) has sponsored S. 1678. It offers a straight extension of the credit for 6 months. Majority Leader Harry Reid (D-NV) is a cosponsor, as is Senator Johnny Isakson (R-GA), an early advocate for a tax credit. The Senate does not yet have a strategy for moving that bill, as all revenue measures must originate in the House. View NAR's Letter to Chairman Rangel >
In Depth: 2009 First-Time Home Buyer Tax Credit > Contacts: Linda Goold, 202-383-1083 Contacts: Megan Booth, 202-383-1222 Contacts: Jerome Nagy, 202-383-1294 | | | | Housing Report
| | | | | FHA Announces Term and Interest Rate Requirements for Loan Modifications | | On September 23, 2009, the Federal Housing Administration (FHA) announced an update to the conditions under which FHA will pay loss mitigation claims for loan modifications. After reviewing its portfolio, FHA found that recent insured loan modifications resulted in higher payments to the borrower. The higher payment was the result of not lowering the interest rate to the current market rate and/or not extending the term to the maximum of thirty years. Generally, the loan modifications simply capitalized the past due amounts and allowable charges and did not extend the term of the loan. FHA is updating its term and interest rate requirements for loan modifications to provide for a reduction in the mortgage payment whenever possible and help more mortgagors avoid re-default. In cases where the current note rate is 50 basis points or more over the current market rate the lender: 1) shall reduce the loan modification note rate to the current Market Rate, which is defined as no more than 50 basis points greater than the most recent Freddie Mac Weekly Primary Mortgage Market Survey Rate for 30-year fixed-rate conforming mortgages, and 2) the lender must re-amortize the total unpaid amount due over a 360 month period from the due date of the first installment required under the modified mortgage. Lenders are cautioned that loan modifications not meeting FHA's requirements, including the term and interest rate requirements mentioned in this Mortgagee Letter, will not be considered as valid loss mitigation actions. Mortgagee Letter 2009-35: Loan Modifications: FHA Loss Mitigation Incentives — Update > Contacts: Jerome Nagy, 202-383-1233 Contacts: Megan Booth, 202-383-1222 | | | | | | | | Monday, September 28, 2009 | | |
Posts
