 |
|
| NATIONAL ASSOCIATION OF REALTORS® | Videos | Store | Library | Directories | Need Help? |
| Register | Login | My Account | NRDS |
 |
 In This Issue Business Report HUD's RESPA Reform Proposal Arrives on Capitol Hill on February 11th NAR Comments to FTC on Proposed Rule to Enhance the Accuracy and Integrity of Information Furnished to Credit Reporting Agencies under the FACT Act NAR Urges FCC to Prohibit Degrading of Specific Applications by Broadband Service Providers Net Neutrality Legislation Introduced in the House Conventional Residential Lending Report NAR Calls on OFHEO to Quickly Implement New Loan Limits for Fannie Mae and Freddie Mac REALTOR® Testifies on Foreclosure Rescue Scams Federal Tax Report IRS Explains Mortgage Relief Provision Housing Report NAR Calls on HUD to Quickly Implement New Loan Limits for FHA Project Lifeline: A New Initiative for Delinquent Borrowers NAR Calls for Enhancements to FHASecure Program Business Report  HUD's RESPA Reform Proposal Arrives on Capitol Hill on February 11th The Department of Housing and Urban Development (HUD) sent the long-awaited Real Estate Settlement Procedures Act (RESPA) reform proposal to Capitol Hill on Monday, February 11, 2008. Congress has 15 days to review the proposed regulation before public release, which will now occur after February 27th. Last week it was incorrectly reported that the RESPA regulation was sent to Congress on February 7th. The Office of Management and Budget (OMB) completed its review of the proposed regulation on Tuesday February 6, 2008 after an almost three month review. NAR will review and submit comments on the new RESPA regulation during the public comment period. Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092 back to top NAR Comments to FTC on Proposed Rule to Enhance the Accuracy and Integrity of Information Furnished to Credit Reporting Agencies under the FACT Act In a comment letter dated February 11, 2008, NAR Vice President, Joe Ventrone, wrote to support the FTC's proposed rule that would enhance the accuracy and integrity of information furnished to consumer reporting agencies (CRAs) under section 312 of the Fair and Accurate Credit Transaction Act (FACT Act). The letter explains the importance of creating credit reports that are based on accuracy and integrity so that mortgage credit is made available on terms that are accessible and appropriate for all eligible borrowers. The letter states that the final rule should take into account positive consumer payment history not typically considered, such as rent, utility, telephone and other regular payments and encourage furnishers to routinely report these sources of positive credit history. The letter also urges the adoption of provisions that require furnishers to streamline the process of correcting incorrect or incomplete information to ensure that borrowers receive the full amount of mortgage credit they deserve. Read NAR Comment Letter to FTC Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092 back to top NAR Urges FCC to Prohibit Degrading of Specific Applications by Broadband Service Providers In a comment letter dated February 13, 2008, NAR Vice President, Joe Ventrone, told the FCC that it must ensure that network management practices by broadband service providers do not create anti-competitive results. Realtors® increasingly rely on digital technologies to operate their businesses. The letter was in response to comments sought by the FCC on a petition for rulemaking to establish rules governing network management practices by broadband network operators. NAR described a number of digital technologies that are used by Realtors® including peer-to-peer networks, video marketing tools and web-based phone services. NAR urged the FCC to ensure, in line with the FCC's own policy statement, that all lawful technologies are available to NAR members over broadband networks without discrimination. The letter also warned that unless the FCC exercises proper regulatory authority on a case-by-case basis, additional overly broad or burdensome legislation may result. Read NAR Letter to FCC Melanie Wyne 202-383-1234, Jamie Gregory 202-383-1027, Scott Rinn 202-383-7508 back to top Net Neutrality Legislation Introduced in the House On February 13, Rep. Ed Markey (D-MA) and Rep. Chip Pickering (R-MS) introduced H.R. 5353 the Internet Freedom Preservation Act. Unlike past attempts at net neutrality legislation, this bill does not regulate internet service providers per se. Instead, it says it is U.S. policy to "guard against unreasonable discriminatory favoritism for, or degradation of, content by [broadband] network operators based upon its source, ownership, or destination on the Internet." The bill would also require the U.S. Federal Communications Commission to open a proceeding on broadband services and consumer rights. The FCC would be required to investigate whether broadband providers have adhered to its August 2005 policy that providers should refrain from blocking or interfering with Web content. The bill will be considered in the House Energy and Commerce committee although no hearings have been scheduled yet. NAR will continue to monitor the legislation as it progresses and weigh in when appropriate. Read NAR Comment Letter Melanie Wyne 202-383-1234, Jamie Gregory 202-383-1027, Scott Rinn 202-383-7508 back to top Conventional Residential Lending Report NAR Calls on OFHEO to Quickly Implement New Loan Limits for Fannie Mae and Freddie Mac On February 13, 2008, NAR President, Dick Gaylord sent a letter to the James B. Lockhart, III, Director, Office of Federal Housing Enterprise Oversight (OFHEO) to implement the higher conforming loan limits as mandated by Congress in the stimulus legislation. OFHEO previously stated that underwriting these new jumbo loans will require the government sponsored enterprises (GSE), Fannie Mae and Freddie Mac, to submit to the new product approval process based on geographic concentration of high risk markets associated with jumbo purchases; a process which could take up to three months. Congress' action to raise the conforming loan limit is meant to provide immediate relief to borrowers and alleviate downward pressure on already fragile housing markets. Any delay will prolong the nation's mortgage crisis and make recovery in the housing market more difficult. NAR Letter to OFHEO on Conforming Loan Limits Jeff Lischer 202-383-1117, Lynn King 202-383-1156 back to top REALTOR® Testifies on Foreclosure Rescue Scams On February 13, 2008, John W. Anderson, past NAR chair of the Federal Housing Policy Committee and Regulatory Issues Forum, testified before the Senate Special Committee on Aging at a hearing entitled, "Foreclosure Aftermath: Preying on Senior Homeowners." The hearing focused on foreclosure rescue scams, which generally involve a "consultant" who makes promises of stopping a sheriff's sale by catching-up mortgage payments in exchange for a "temporary" transfer of title. The "consultant" allows homeowner to remain in the home, paying rent, until the homeowner is able to repurchase the home. The "consultant" then uses his presumed ownership of the property to borrow against the equity built up in the home, all while the monthly payments on the original mortgage go unpaid. In almost every case where there is no legal intervention, the scammed homeowner loses the home to foreclosure and all the home equity than has built up over the years. Today, there are more than 87 million Americans over the age of 50. According to NAR research, 43 million American's aged 50 and over own their home and have been a homeowner for more than 20 years. The typical older boomer household has more than $100,000 in home equity. Yet, when describing their finical situation, almost half of older homeowners report concerns about their financial security. For those on a fixed income, a spike in just one monthly expense or an unexpected significant cost transforms older boomers into the most vulnerable population in the eyes of abusive lenders and foreclosure. Read NAR's Testimony Lynn King 202-383-1156, Jeff Lischer 202-383-1117 back to top Federal Tax Report IRS Explains Mortgage Relief Provision The IRS has released IR-2008-17 to alert taxpayers how to comply with the new mortgage cancellation tax relief provisions enacted at the end of last year. Borrowers who had some portion of their mortgage debt forgiven in 2007 should receive a Form 1099C from the lender identifying the amount of forgiven debt. The borrower/taxpayer will file a newly-created form to report to the IRS that the debt relief was for a qualified mortgage. The new form, Form 982, and instructions are available at the IRS website, www.irs.gov. The mortgage relief provision applies to debt forgiven in 2007, no matter when the mortgage was entered into. The most frequent circumstances in which there is a debt forgiveness is on foreclosure, short sale or mortgage workout or reformation agreed to with the lender. Read more Linda Goold 202-383-1083, Jeff Lischer 202-383-1117, Helen Devlin 202-383-7559 back to top Housing Report NAR Calls on HUD to Quickly Implement New Loan Limits for FHA On February 13, 2008, NAR President, Dick Gaylord sent a letter to the Alphonso Jackson, Secretary, US Department of Housing and Urban Development (HUD) to implement the higher loan limits for Federal Housing Administration (FHA) programs provided in the stimulus legislation as soon as possible to provide much needed liquidity to the real estate market. HUD has been using the current calculation methodology for many years and for all markets throughout the country. In fact, FHA just completed this process and published new mortgage limits for 2008 in high cost areas. Accordingly, it should be a simple and straight-forward process to update those limits in light of the increase in the maximum FHA mortgage amount from $362,750 to $729,750 and the change in the mortgage limit calculation from 95 percent to 125 percent of area median sales price. Additionally, the Secretary has the authority to increase loan limits by an additional $100,000. HUD must implement the new loan limits by March 14, 2008. NAR Letter to HUD on Loan Limits Megan Booth 202-383-1222, Jerome Nagy 202-383-1233 back to top Project Lifeline: A New Initiative for Delinquent Borrowers Treasury Secretary, Henry M. Paulson, Jr., announced the Project Lifeline initiative on February 12, 2008. Six participating banks that represent approximately 50 percent of the mortgage market will reach out to homeowners 90 days or more delinquent that may lead to a 30-day pause in the foreclosure process. This initiative is available to all borrowers 90 days delinquent, not just to subprime borrowers. Secretary Paulson encouraged all participants in the HOPE NOW Alliance to join the Project Lifeline initiative. The six participating banks are Bank of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual, and Wells Fargo. Secretary Paulson’s Statement on Project Lifeline Jeff Lischer 202-383-1117, Lynn King 202-383-1156, Jerome Nagy 202-383-1233 back to top NAR Calls for Enhancements to FHASecure Program NAR President Dick Gaylord sent a letter to US Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson on February 15, 2008, seeking enhancements to the FHASecure Program. Specifically, the Federal Housing Administration (FHA) should modify underwriting criteria in return for a lower loan-to-value ration thereby assuring the lenders share risk. Changes include:
NAR Letter Requesting Enhancements to FHASecure Megan Booth 202-383-1222, Jerome Nagy 202-383-1233 back to top Go to archived weekly reports >> Last Updated: 02/22/2008 Bira de Aquino |
  |
 Copyright NATIONAL ASSOCIATION OF REALTORS® Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087 DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 1-800-874-6500 Terms of Use | Privacy Policy | REALTOR.com | Contact NAR | Site Map |