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In This Issue:
 REALTOR® Insider: D.C. News and Events
Business Report
Housing Report
| | REALTOR® Insider: D.C. News and Events
| | | Treasury Department Announces Program to Streamline Short Sales | | On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is component of the Home Affordable Modification Program (HAMP). NAR has been urging the Obama Administration to take action to address the many problems with short sales. HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure of a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions in the coming weeks. Program features include: pre-approving sales terms before listing the property, prohibiting servicers from requiring reductions in real estate commissions that do not exceed 6 percent, paying incentives, releasing borrowers from future liability for the unpaid portion of the first mortgage debt, and imposing deadlines at each stage. 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.NAR's short sales website with information on the HAFA program, including a link to the forms and guidelines > Contacts: Jeff Lischer, 202-383-1117 Contacts: Tony Hutchinson, 202-383-1120 | | | | Business Report
| | | House Financial Services Committee Approves Bill Creating a Federal Insurance Office (FIO) | | On December 2, 2009, the House Financial Services Committee approved by voice vote H.R. 2609, The Federal Insurance Office Act. Introduced by Representatives Paul Kanjorski (DPA) and Judy Biggert (R-IL), the bill creates a Federal Insurance Office (FIO). The Office would gather data, monitor the industry for regulatory gaps that could create systemic risk and negotiate international insurance agreements. The bill does not create an optional federal charter for insurance or give the FIO regulatory authority over the business of insurance. Regulatory oversight for insurance remains with state insurance commissioners. Both the National Association of Insurance Commissioners (NAIC) and the Independent Insurance Agents and Brokers of America (IIABA) were involved in negotiations over the bill approved. In their press releases following approval, the NAIC indicated its "support" for the measure while the IIABA "applauded" the Committee for its action. The bill is expected to reach the House floor for debate by Wednesday, December 9, 2009. A companion bill has not been introduced in the Senate, where progress on financial services regulatory reform legislation has not yet begun in earnest. NAR policy opposes efforts to transfer regulatory authority over property casualty insurance lines from the states to the federal government. Since the bill included language which specifies that the FIO has no regulatory authority over the business of insurance, the bill is not at odds with NAR's policy. Contacts: Marcia Salkin, 202-383-1092 Contacts: Ken Wingert, 202-383-1196 Contacts: Scott Rinn, 202-383-7508 | | | | | HUD Releases Schedule of "Live Online" RESPA Presentations | On December 3, 2009, the Department of Housing and Urban Development (HUD) announced a scheduled series of "live online" presentations on the new RESPA rule. The dates and times for the upcoming HUD presentations are December 7h at 11:00 a.m.; December 10th at 2:00 p.m.; December 11th at 11:00 a.m. and December 16th at 1:00 p.m. (all times EST). HUD also announced that it will post a prerecorded version of the presentation on its website in the near future. In addition, HUD's RESPA website has added new "fillable" versions of the new Good Faith Estimate and HUD-1 forms. HUD press release on live RESPA presentations >
HUD's fillable GFE & HUD-1 > Contacts: Scott Rinn, 202-383-7508 Contacts: Marcia Salkin, 202-383-1092 Contacts: Kenneth Trepeta, 202-383-1294 | | | | Housing Report
| | | FHA Takes Action Against Lend America | On November 30, 2009, the Federal Housing Administration (FHA) withdrew approval of Ideal Mortgage Bankers, doing business as Lend America and Lending Key. This action prevents Ideal from originating new FHA-insured mortgages. The lender was fined $512,500 and is also prohibited from issuing Government National Mortgage Association (Ginnie Mae) securities. FHA Commissioner David H. Stevens said "We have no tolerance for lenders who abuse their FHA-approval. "The evidence in this case points to a disturbing pattern of senior officials and underwriters, either not knowing what they were doing, or not caring. Therefore, Ideal has been immediately withdrawn from participating in the FHA-insured mortgage program." HUD Press Release on Ideal Mortgage Bankers >
FAQs for Consumers > Contacts: Jerome Nagy, 202-383-1233 Contacts: Megan Booth, 202-383-1222 | | | | | NAR President Vicki Cox Golder Testifies on FHA | | The House Financial Services Committee last week held a hearing on FHA's FY09 audit, which showed FHA's capital reserves following below the Congressionally mandated level of 2%. In her testimony, Golder talked about the importance of FHA as a critical part of the American housing fabric and a much needed program for our housing and economic recovery. FHA's Audit showed that while the reserve fund has fallen in value, it is mostly due to reductions and house prices and much less to do with the quality of FHA loans or underwriting. In fact the audit showed that if FHA did nothing, the reserves should climb above 2% in several years. However, FHA is planning some changes to assure the fiscal solvency of the Fund. These are still in development but may include changes to the premiums, possible FICO score floors, and reduction of seller contributions. NAR continues to work with HUD and urges that any changes be necessary to ensuring the financing viability of FHA and have the least impact on FHA borrowers - who have few other options for home mortgage financing. Read NAR President's Testimony > Contacts: Jerome Nagy, 202-383-1233 Contacts: Megan Booth, 202-383-1222 | | | | | | _Monday, December 7, 2009 | | |
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