 |
In This Issue:
 REALTOR® Insider: D.C. News and Events
Business Report
Environment Report
Housing Report
| | REALTOR® Insider: D.C. News and Events
| | | House Financial Services Committee passes H.R. 3126, the Consumer Financial Protection Agency Act | | On Thursday, October 22nd, H.R. 3126, the "Consumer Financial Protection Agency (CFPA) Act of 2009", passed the House Financial Services Committee (HFSC), 39-29. The bill, which is the cornerstone of the Obama Administration's financial regulatory reform plan, will remove the ability of the banking and lending regulatory agencies to write new consumer protection laws, and give oversight of several existing statutes, such as the Truth and Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), to the new agency. Many supporters of the agency argued that the financial regulatory agencies failed to adequately enforce protections for consumers while working to ensure safety and soundness of the financial institutions in their charge; therefore, this responsibility should be removed. One of the criticisms of the bill is that the language, though intended to focus only on consumer credit offered by financial institutions, was too broad and could potential encompass the business practices of other business sectors. The National Association of REALTORS® greatly appreciates the work of HFSC Chairman Frank and his staff to craft an exemption from the bill to ensure that the traditional practices of real estate professionals will not be subject to the authorities of the CFPA. The bill is now headed to the House floor and will be voted on in the next 2 to 3 weeks; however, there is no companion bill in the Senate. Therefore, NAR will continue to monitor this bill's progress through Congress and report when enactment is anticpated. Contacts: Tony Hutchinson, 202-383-1120 Contacts: Jeff Lischer, 202-383-1117 | | | | Business Report
| | | FCC Opens Net Neutrality Proceeding | On Thursday October 22, the Federal Communications Commission (FCC) began a process to propose new rules surrounding net neutrality. The draft rules make binding the four existing "Internet freedoms" that the FCC approved back in 2005: - Consumers are entitled to access the lawful Internet content of their choice
- Consumers are entitled to run applications and use services of their choice, subject to the needs of law enforcement
- Consumers are entitled to connect their choice of legal devices that do not harm the network
- Consumers are entitled to competition among network providers, application and service providers, and content providers.
They also add two new items to the list: nondiscrimination and transparency. - A provider of broadband Internet access service must treat lawful content, applications, and services in a nondiscriminatory manner
- A provider of broadband Internet access service must disclose such information concerning network management and other practices as is reasonably required for users and content, application, and service providers to enjoy the protections specified in this rulemaking.
NAR supports net neutrality in order to prevent broadband providers from implementing possibly discriminatory practices that could negatively impact real estate professionals' use of the Internet to market their services and will file comments that reflect this position. Contacts: Melanie Wyne, 202-383-1234 Contacts: Ken Wingert, 202-383-1196 Contacts: ;
| | | | | HUD Releases Additional FAQs with Focus on Reverse Mortgages | | On October 22, 2009, the Department of Housing and Urban Development (HUD) issued twelve new FAQs on reverse mortgages under the new RESPA rule. The new reverse mortgage FAQs are posted on HUD's website and appear in bold on pages 24-28. In addition, HUD issued FAQ #25 under "GFE General" on p. 9 and FAQ #1 under "GFE-Page2" on p.20 of HUD's accumulated FAQs. HUD's FAQs > Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294 | | | | | Senate Small Business Hearing Examines the Impact of Senate Health Bills on the Self-Employed and Small Businesses | | On Tuesday, October 20, 2009, the Senate Small Business Committee held a hearing entitled "Reform Done Right: Sensible Health Care Solutions for America's Small Businesses." The purpose of the hearing was to access the impact of the two Senate health reform bills on the nation's small business community. Witness at the hearing included Gene Sperling, counsel to Treasury Secretary Tim Geithner; Karen Mills, the Administration's SBA Administrator; and representatives of the small business community. While all agreed that both the Senate bills' exchange, underwriting and rating reform and tax credits will benefit the self-employed and small employers, the small firm representatives stressed the need to ensure that insurance options envisioned are affordable for the self-employed and small employers. Meanwhile, Senate leaders continue to work with the chairs of the Senate Finance Committee and the Senate Health, Education, Labor and Pension Committee to merge the committees' two health bills into one compromise measure. NAR submitted a statement for the record of the Small Business Committee and sent letters to Senate leaders, as well as all members of the Senate, outlining Realtor community's needs that must be addressed by any health reform measure enacted. A copy of NAR's letter and statement are available at www.realtor.org/h ealthreform. Visit the link below to view an archived webcast of the Small Business Committee's hearing. Visit www.realtor.org/healthreform >
Watch the Small Business Committee's Archived Webcast of the Hearing > Contacts: Marcia Salkin, 202-383-1092 Contacts: Ken Wingert, 202-383-1196 Contacts: Scott Rinn, 202-383-7508
| | | | | NAR Meets With HUD General Counsel on Home Warranty Contracts | | On October 22, 2009, NAR representatives met with HUD general counsel, Helen Kanovsky, to discuss resolution of questions pertaining to fees paid for marketing and sales services to real estate brokers and agents by home warranty companies. NAR requested HUD to provide further written guidance to clarify an unofficial staff interpretation letter, dated February 21, 2009, which has caused uncertainty among industry providers and consumers alike. HUD general counsel Kanovsky stated that HUD understood industry's position and the importance of issuing clarifying guidance. Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294 | | | | Environment Report
| | | Map Modernization Program Funded Through 2010 | | The FY 2010 Homeland Security Appropriations bill, which Congress passed this week, includes $220 million to continue FEMA's effort to update and modernize the floodplain maps. The President is expected to sign the legislation. This appropriations bill also includes funding for the National Flood Insurance Fund and the Pre-Disaster Mitigation Fund. NAR is supportive of the program to update the maps because many real estate transactions are dependent on the accuracy and timeliness of the information included on the maps. Visit NAR's Natural Disaster/Flood Insurance homepage > Contacts: Austin Perez, 202-383-1046 Contacts: Russell Riggs, 202-383-1259 Contacts: Helen Devlin, 202-383-7559 | | | | Housing Report
| | | FHA Announces Flood Zone Requirements for Appraisers | | The Federal Housing Administration released Mortgagee Letter 2009-37, which addresses appraiser and mortgagee responsibilities for FHA mortgages in flood zones. Appraisers are required to review the applicable FEMA Flood Insurance Rate Map (FIRM). If the property is in flood zone the appraiser is required to include a flood map with the appraisal report. The appraiser must also enter the FEMA zone designation on the report form and identify the map panel number and map date. The mortgagee letter notes that the final responsibility for determining if a property is located in a Special Flood Hazard Area (SFHA) rests with the originating lender. Mortgagee Letter 2009-37: Flood Zone Requirements and Responsibilities of FHA Mortgagees and Appraisers > Contacts: Jerome Nagy, 202-383-1233 Contacts: Chere LaRose-Senne, 312-329-8455 Contacts: Megan Booth, 202-383-1222
| | | | | FHA Announces Appraisal Performance Standards and Sanctions | | The Federal Housing Administration (FHA) released Mortgagee Letter 2009-41 on appraiser performance and sanctions. This is largely a reminder of administrative sanctions that FHA may take ranging from a Notice of Deficiency (lowest level sanction) to civil or criminal sanctions (most severe). Appraisers are reminded that they must conform to FHA appraisal requirements and USPAP. An appraisal review is always conducted by the underwriter and compliance monitoring reviews of appraisals are routinely conducted by FHA staff reviewers. Lenders are reminded that they are responsible, with the appraiser, for the quality and accuracy of the appraisal if the lender knew or should have known that there were problems with the appraisal. Mortgagee Letter 2009-41: Appraisal Performance Standards and Sanctions > Contacts: Jerome Nagy, 202-383-1233 Contacts: Chere LaRose-Senne, 312-329-8455 Contacts: Megan Booth, 202-383-1222
| | | | | FHA Announces Hope for Homeowners Comprehensive Guidance | | On October 20, 2009, the Federal Housing Administration (FHA) released ML 2009-43 providing comprehensive guidance on the Hope for Homeowners Program (H4H). The H4H program allows homeowners of single family, owner-occupied units to refinance into an affordable FHA-insured, 30 year, fixed-rate mortgage and is effective for all endorsements on or before September 30, 2011. Borrowers are eligible if they have not intentionally defaulted on a mortgage or other substantial debt in the last five years and if at least six full payments have been made on a delinquent mortgage. Borrowers must reside in the property securing the refinanced loan and may not have a net worth of more than $1,000,000. Borrowers in bankruptcy are not precluded from participating in the program. Any type of mortgage is eligible for refinancing under the H4H Program, however, the primary mortgage holder must agree to waive all prepayment and late fees, agree to accept proceeds of H4H mortgage as payment in full, and release any outstanding mortgage liens. The refinance must include an appraisal conducted by an appraiser on the FHA Appraiser Roster and must be conducted using FHA guidelines. The Upfront Mortgage Insurance Premium (UFMIP) is 2.00 percent of the loan amount and the annual premium is .75 percent. The maximum loan-to-value (LTV) ratio on the new H4H mortgage is 105 percent of the current appraised value (excluding UFMIP). For borrowers with a credit score below 500 the maximum LTV is 90 percent of the current appraised value. Mortgagee Letter 2009-43: Hope for Homeowners Program รข€“ Comprehensive Guidance >
ML 2009-43 Exhibit A >
ML 2009-43 Exhibit B >
ML 2009-43 Exhibit C >
ML 2009-43 Exhibit D > Contacts: Jerome Nagy, 202-383-1233 Contacts: Megan Booth, 202-383-1222 Contacts: ;
| | | | | HR 3126 Passes House Committee with HVCC Amendment | | On October 22, 2009, HR 3126, the "Consumer Financial Protection Act of 2009," passed the House Financial Services Committee with an amendment that will ultimately sunset the Home Valuation Code of Conduct (HVCC). The amendment was offered by Representative Gary Miller (D-CA). During the debate Mr. Miller and Capital Markets Subcommittee Chair, Paul Kanjorski (R-PA), agreed to work on the amendment language before floor consideration to include the appraisal language from HR 1728, the "Mortgage Reform and Anti-Predatory Lending Act." The amendment requires the new Consumer Financial Protection Agency to promulgate and appraisal independence rule within 60 days of enactment of HR 3126. Upon the effective date of the appraisal independence rule the HVCC will sunset. NAR has been active in calling for a moratorium to address the unintended consequences of HVCC and its implementation. In June, NAR reiterated calls for a moratorium on HVCC in a letter to New York Attorney General Cuomo and Federal Housing Finance Agency (FHFA) Director James Lockhart. NAR President Charles McMillan followed up the letter in meetings with the New York Attorney General's office, FHFA Director Lockhart, and Fannie Mae. NAR also supported HR 3044, which would impose an 18-month moratorium on HVCC. House Financial Services Committee >
Visit www.realtor.org/hvcc > Contacts: Jerome Nagy, 202-383-1233 Contacts: ; Contacts: ; | | | | | | _Monday, October 26, 2009 | | |
Posts
