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In This Issue:
 Business Report
Conventional Residential Lending Report
Environment Report
Federal Tax Report
Housing Report
| | Business Report
| | | FTC Extends Enforcement Date for "Red Flags" Rule to June 1, 2010 | At the request of Members of Congress, the FTC announced on October 30, 2009 that it will extend, to June 1, 2010, the date for "financial institutions" and "creditors" to comply with the FACT Act's identity theft red flags rule. Included in the definition of "creditor" is one who "arranges for credit" and NAR has argued that the usual activities of real estate agents do not typically include arranging for credit. The latest extension will allow FTC staff to finalize further guidance for "low risk entities" such as real estate agents. In addition, the FTC will create a special link on the FTC website for small businesses and low-risk entities to assist them in achieving compliance. FTC Extension Announcement >
FTC's Red Flags FAQs >
FTC's How-To-Guide for Business >
FTC Do-It-Yourself Template for Low-Risk Entities > Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Melanie Wyne, 202-383-1234 | | | | | Data Security Bills Clear Senate Judiciary Committee | On Thursday November 5, the Senate Judiciary Committee approved two federal data security bills, S. 1490 the Personal Data Privacy and Security Act (Leahy D-VT), and S. 139, the Data Breach Notification Act (Feinstein D-CA). S. 1490 requires data brokers and other companies to establish and implement data privacy and security programs. It also increases criminal penalties for identity theft involving electronic data and criminalizes intentional concealment of a security breach. Failure to disclose a breach could result in hefty fines. While S. 139 would require notification of individuals whose sensitive personal information is breached. The bill also provides infringing parties with a safe harbor if authorities determine there is no significant risk of harm. It is uncertain if or when the bills will move to the Senate floor for a vote by the full Senate. NAR submitted a letter expressing concern that certain portions of the bills may create unnecessary burdens for small businesses. (See link.) NAR will continue to work with the Senate to make necessary improvements to the bill. NAR's Letter to the Senate Judiciary Committee >
Visit our Page on Privacy and Data Security > Contacts: Melanie Wyne, 202-383-1234 Contacts: Ken Wingert, 202-383-1196 | | | | | House Health Reform Bill Scheduled For Saturday Vote | | The compromise health care reform legislation, released last week by the House majority leadership is scheduled for floor debate on Saturday, November 7, 2009. HR 3962, the Affordable Health Care for America Act, retains many of the features for small businesses and the self-employed that were included in the original House bill. These include (1) larger insurance risk pools, (2) group-like policy underwriting and rating rules for individual policies, and (3) individual and small employer tax credits for the purchase of health coverage. The bill includes new provisions approved by each of the three policy committees that first considered the original House bill, HR 3200. Among these changes is a much broader exclusion for small businesses than had first been proposed from a requirement that employers provide health insurance benefits to their workforce. The nonpartisan Congressional Budget Office (CBO) now estimates that 86 percent of small employers would not be required to provide health insurance coverage to its salaried employees. For those small employers who want to provide coverage, a small business tax credit is provided to eligible firms. A House Republican alternative health bill will be offered as an alternative to HR 3962 during the House debate on Saturday morning. A more modest bill, the Republican alternative does not make the same changes the House bill makes to insurance underwriting and rating rules, providing individuals with "group-like" access to coverage. The Senate leadership has yet to release a final merged version of its two health bills, S. 1679 and S. 1796. Multiple alternative bills have been submitted to the CBO for "scoring", i.e assessment of the final cost and impact of each alternative. In a letter sent to the full House and a statement submitted to the Senate Health, Education, Labor and Pension (HELP) Committee, NAR indicated it's support for the bill's underwriting and rating reforms but also indicated changes which are necessary to address the needs of the self-employed and small employer community. The text of each of the House and Senate bills, as well as copies of NAR's letter and statement and the reform debate, are available at www.realtor.org /healthreform. www.realtor.org/healthreform > Contacts: Marcia Salkin, 202-383-1092 Contacts: Ken Wingert, 202-383-1196 Contacts: Scott Rinn, 202-383-7508 | | | | Conventional Residential Lending Report
| | | Fannie Mae Announces Deed-For-Lease Program | | On November 5, 2009, Fannie Mae announced its new Deed-for-Lease Program (D4L) that allows eligible borrowers facing foreclosure (or their tenants) to stay in their primary residences. Under D4L, the borrower transfers ownership of the property to the lender through a deed-in-lieu of foreclosure and the borrower (or the tenant) signs a lease for up to 12 months. The program is designed for borrowers who don't qualify for other workout solutions, including modifications, or who do not meet their obligations under the modification. The purpose of the program is to minimize displacement of families and deterioration of neighborhoods that often occurs when homes are left vacant. The rent may not exceed 31 percent of the family's gross income. Fannie reserve the right to market the property during the lease term and may sell it to an investor subject to the lease. Fannie Mae Statement (including links to Announcement 09-33 and FAQs) > Contacts: Jeff Lischer, 202-383-1117 Contacts: Tony Hutchinson, 202-383-1120 | | | | | Fannie Mae Announces Electronic Appraisal Submission Update | In Announcement 09-14: Electronic Appraisal Reports, Enhancements to the Loan Delivery File Format, and Mortgage Fraud Reporting; Fannie Mae stated it will require the submission of electronic appraisal reports in XML format. In support of this announcement, Fannie Mae is updating the 2000-Character Loan Delivery File Format. Fannie Mae is advising lenders of the new data element that will be required to support electronic appraisal submissions. The Document File Identifier is a 10-digit alphanumeric data element that will be assigned by the Collateral Data Delivery (CDD) system. A unique identifier will be assigned at the time the electronic appraisal report data is successfully submitted to CDD, and will allow the lender to retrieve submission results and findings and make updates or corrections to the submitted appraisal data in CDD. Fannie Mae >
Collateral Data Deliver Information >
Announcement 09-14: Electronic Appraisal Reports, Enhancements to the Loan Delivery File Format, and Mortgage Fraud Reporting > Contacts: Jerome Nagy, 202-383-1233 | | | | Environment Report
| | | Flood Insurance Extended Till December | | Congress extended authority for the National Flood Insurance Program through Dec. 18, 2009 while House and Senate committees continue to work toward comprehensive program reform. Without an extension, property owners could not obtain a mortgage loan in more than 10,000 communities across the U.S. NAR will continue to work to extend the program until Congress takes up a long-term reauthorization and reform measure. 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 | | | | | Update on Home Energy Labeling Proposals | | The Senate Committee on the Environment and Public Works (EPW) approved climate change legislation (S. 1733) that does not include the real estate energy labeling opposed by NAR. Eleven of 12 Democrats — a majority of the panel's 19 members — voted to advance the bill without amendment and with no Republicans present. Republicans had requested full EPA economic impact analysis of the bill before participating in a markup. The EPW vote represents another in a long series of steps that are required before the full Senate may take up omnibus energy legislation. Several other committees have or are expected to produce bills which Majority Leader Harry Reid (D-NV) will then combine into one meausre and submit to EPA for several weeks of analysis. In addition, Sens. John Kerry (D-MA), Lindsey Graham (R-SC) and Joe Lieberman (I-CT) have outlined a set of principles and are working with other senators to develop a bipartisan compromise that moves legislation forward. NAR will continue to monitor Senate energy legislation and work to maintain the real estate exclusions in the House bill (H.R. 2454) from energy labeling or other programs that would directly impact the real estate sector. Meanwhile, Vice President Joe Biden recently announced a new "Recovery Through Retrofit" initiative that includes creation of "energy performance labels" and "national energy performance measures" for existing homes, despite the fact that the House Energy Bill (H.R. 2454) exempted those homes as well existing multi-family and commercial buildings from energy labeling under the bill. NAR President Charles McMillan wrote the White House and the heads of all Federal departments involved in the labeling initiative, requesting an immediate meeting to share our strong concerns about the stigmatizing effects of these labels on real estate at one of the most critical moments in the nation's economic recovery. President McMillan's letter is linked. Read President McMillan's Letter > Contacts: Austin Perez, 202-383-1046 Contacts: Russell Riggs, 202-383-1259 Contacts: Helen Devlin, 202-383-7559 | | | | Federal Tax Report
| | | President Signs Tax Credit Extension and Expansion | | On votes of 98- 0 and 403 - 12, the Senate and House have respectively passed legislation that includes an extension and expansion of the homebuyer tax credit. President Obama signed the legislation on Friday, November 6. Many parts of it 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 5 consecutive years of the past 8 years will be eligible for a $6500 refundable tax credit for purchases completed between November 6, 2009 and April 30, 2010. A summary of the new legislation is attached. Homebuyer Tax Credit Summary > Contacts: Linda Goold, 202-383-1083 Contacts: Samuel Whitfield, 202-383-1131 Contacts: Megan Booth, 202-383-1222 | | | | Housing Report
| | | The Appraisal Foundation Announces New Independent Board | On November 5, 2009, the Appraisal Foundation announced the creation of the Appraisal Practices Board. The new Board will be similar in structure and composition to the already existing independent boards, the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB). The purpose of this third board is to issue voluntary timely guidance to appraisers on emerging valuation issues that are occurring in the marketplace. Pul Welcome, Chairman of The Appraisal Foundation Board of Trustees "The Board of Trustees strongly believes that this is the best avenue for issuing voluntary guidance to appraisers. We believe that this is the right thing to do for the profession, that it is the right time to do it and that we are the right organization to undertake the task. The Appraisal Foundation >
NYS Attorney General Press Release >
FHFA Press Release > Contacts: Jerome Nagy, 202-383-1233 | | | | | | _Monday, November 9, 2009 | | |
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