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 In This Issue Conventional Residential Lending Report President-Elect Charles McMillan Meets with Fannie Mae and Freddie Mac Federal Tax Report Full House to Vote on Tax Credit Proposal Housing Report House Committee Passes Foreclosure Rescue Bill VA Reform Moving Forward Conventional Residential Lending Report  President-Elect Charles McMillan Meets with Fannie Mae and Freddie Mac On April 30, 2008, NAR President-Elect Charles McMillan met separately with Fannie Mae President and Chief Executive Officer Dan Mudd and Freddie Mac Executive Vice President and Chief Business Officer Patti Cook. The meetings gave NAR an opportunity to discuss in person its concerns about Fannie Mae and Freddie Mac policies raised in letters sent on April 11 from NAR President Dick Gaylord to Fannie and Freddie. The letters and the follow-up meetings addressed three main areas of concern:
NAR's Letter to Freddie Mac Jeff Lischer 202-383-1117, Marcia Salkin 202-383-1092 back to top Federal Tax Report Full House to Vote on Tax Credit Proposal The full House will vote during the week of May 5 on a package (H.R. 5720) of housing tax relief provisions. This tax package passed the Ways and Means Committee on a vote of 35 - 5 in early April. Prominent among the relief provisions a tax credit for first-time homebuyers. The House will vote on a proposal that creates a $7500 tax credit that would be taken in full on the tax return for the year of purchase. Any principal residence would be eligible for the tax credit, but only first-time homebuyers with incomes of $70,000 ($140,000 on a joint tax return) would be eligible for the credit. NAR data show that more than 95% of first-time homebuyers fall within that income level. The Ways and Means tax credit would be available between April 8, 2008 and April 1, 2009. By contrast, the Senate-passed legislation (H.R. 3221) would create a temporary tax credit for individuals who purchased a principal residence between April 1, 2008 and April 1, 2009. The credit amount would be $7000, to be taken in two increments ($3500 each) over two years. The Senate version of the tax credit would be available to any buyer but would apply only to purchases of foreclosed properties that would be used as a principal residence. The Administration has criticized this approach as distorting markets and prices. A side by side chart comparing the House and Senate tax provisions is available. View a side by side chart comparing the House and Senate tax provisions Linda Goold 202-383-1083, Helen Devlin 202-383-7559 back to top Housing Report House Committee Passes Foreclosure Rescue Bill The House Financial Services Committee last week favorably reported out H.R. 5830 by a bipartisan vote of 46-21. The "FHA Housing and Homeowner Retention Act", sponsored by Rep. Frank (D-MA), would allow FHA to insure certain mortgages for homeowners in trouble. Under the proposal, mortgage servicers would substantially write down the principal of the mortgage to level the homeowner could repay. In return, FHA would insure the new mortgage. Homeowners would share any future appreciation with the government. This bill is expected to be on the House Floor this week as part of a Housing Stimulus package that is expected to also include FHA reform, GSE reform, and a tax credit for homebuyers. Megan Booth 202-383-1222 back to top VA Reform Moving Forward The House Veterans Affairs Committee has favorably reported H.R. 4884, the "Helping Our Veterans to Keep Their Homes Act of 2008". This bill, sponsored by Rep. Filner (D-CA), will reform the VA loan program so that it is able to adequately serve the many deserving veterans who could use its benefits. The bill does 3 major things:
Megan Booth 202-383-1222, Jerome Nagy 202-383-1233 back to top Go to archived weekly reports >> Last Updated: 05/02/2008 Bira de Aquino |
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