FRONT LINES: Washington Report

RPAC smashes fair-share record
U.S. lawmakers recognized for championing homeownership
The 108th Congress honorees:
Conforming loan limit up
Bigger VA loans enacted
Fannie exec changes won’t impact loan availability

 RPAC smashes fair-share record

The REALTORS® Political Action Committee shattered participation records in 2004, with all 50 state associations of REALTORS® and the territorial associations of the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands reaching their annual RPAC fair share goal for the first time.

“More members than ever made a personal commitment to support RPAC, which serves as the industry’s strong voice for change and progress,” says 2004 RPAC Fundraising Chair Richard Gaylord, CIPS, CRB.

Some 400,000 REALTORS®, or more than 36 percent of NAR’s 1.1 million members, contributed. The final tally: about $5.4 million.

NAR’s drive to keep big banks out of real estate helped fuel record giving, says NAR President Al Mansell.

“REALTORS® are proud to support several candidates who share our views on that crucial issue and support our other legislative priorities such as private property rights,” says Mansell. NAR’s 2005 priorities include expanding affordable homeownership opportunities and lowering health insurance premiums through association health plans.

The PAC saw record success on the disbursement side, contributing $13 million during the 2003–2004 election cycle. Of 439 U.S. House and Senate candidates NAR supported, 426 won their race, for a 97 percent success rate.

“RPAC’s record of success demonstrates that REALTORS® are among the most politically active citizens in the country,” says Mansell. “By helping to elect members of the REALTOR® party to Congress, we’re working to ensure that our members continue competing in a sound, community-first business environment.”

 U.S. lawmakers recognized for championing homeownership

NAR is honoring 16 members of the 108th U.S. Congress with its Legislative Leadership Award. The tribute, given every two years, recognizes outstanding leadership in supporting legislation to help households achieve homeownership.

“The awards are our way of thanking the lawmakers who went above and beyond the call of duty in their service to buyers, sellers, and the housing industry,” says NAR President Al Mansell. “These legislators have consistently provided strong leadership on key housing issues by working to keep banks out of real estate, expand federal homeownership programs for veterans, and support an affordable housing tax credit, among other crucial issues for our members.”

The 108th Congress honorees:

Senate—Wayne Allard, R-Colo.; Jon Corzine, D-N.J.; and Richard Shelby, R-Ala.
House—Judy Biggert, R-Ill.; Ken Calvert, R-Calif.; Barney Frank, D-Mass.; Katherine Harris, R-Fla.; Rubén Hinojosa, D-Texas; Darlene Hooley, D-Ore.; Ernest Istook Jr., R-Okla.; Paul Kanjorski, D-Pa.; Bob Ney, R-Ohio; Anne Northup, R-Ky.; Brad Sherman, D-Calif.; Christopher Smith, R-N.J.; and Fred Upton, R-Mich.

 Conforming loan limit up

Fannie Mae and Freddie Mac increased the conforming loan limit 8.5 percent on single-family properties from $333,700 to $359,650, effective Jan. 1. Loan limits were also increased on other property types—two-family properties: $460,400 (up from $427,150); three-family properties: $556,500 (up from $516,300); and four-family properties: $691,600 (up from $641,650).

 Bigger VA loans enacted

The U.S. Department of Veterans Affairs will guarantee home loans up to 25 percent of the Fannie Mae and Freddie Mac conforming loan limit, up from a set $60,000 loan guaranty limit, under legislation President George W. Bush signed into law in December.

The increase, enacted in the Veterans Benefits Improvements Act of 2004, is effective immediately. With the new percentage-based loan limits, Congress no longer needs to reset loan limits periodically to keep up with appreciating values, NAR analysts say.

At 25 percent of the conforming loan limit, the maximum VA guaranty in 2005 is $89,912, allowing borrowers to purchase homes valued up to $359,650.

 Fannie exec changes won’t impact loan availability

The resignation of Franklin Raines, chairman and CEO of Fannie Mae, in late December won’t materially affect the mortgage market, NAR analysts say. Raines resigned after the U.S. Securities and Exchange Commission said some company accounting practices failed to follow Federal Accounting Standards Board practices. Chief Financial Officer J. Timothy Howard also resigned. Board member Stephen Ashley will become the non-executive chairman, Vice Chairman and COO Daniel Mudd will serve as interim CEO, and Executive Vice President Robert Levin will serve as interim CFO.