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 In This Issue Business Report NAR Joins Senators to Introduce the Small Business Health Options Program NAR Meets With HUD on Home Warranty Marketing Agreements Conventional Residential Lending Report NAR Comments on the Federal Reserve Board's Proposed HOEPA Rule NAR Raises Concerns about Fannie and Freddie Policies Environment Report EPA To Publish Lead Paint Renovation Rules Federal Tax Report Quick Action on a Home Buyer Tax Credit Housing Report Senate Passes Second Housing Stimulus Measure Business Report  NAR Joins Senators to Introduce the Small Business Health Options Program On March 2, 2009, The National Association of REALTORS® joined Senators Richard Durbin (D-Ill.), Blanche Lincoln (D-Ark.), Olympia Snowe (R-Maine) and Norm Coleman (R-Minn.) as they introduced S. 2795, the Small Business Health Options Program (SHOP). President-elect Charles McMillan spoke at the press conference where the legislation was introduced to offer NAR's support. As proposed, SHOP would offer tax incentives to encourage states to reform group insurance markets and make health insurance premiums for small businesses and the self-employed more affordable. It would also develop a nationwide insurance small business purchasing pool that would still be subject to state insurance regulation to protect those who choose to participate. NAR research indicates that one in four of NAR members do not have health care insurance, and for most REALTORS® the reason is cost. NAR supports the program as a solid first step toward reforming the U.S. health care market for small businesses and independent contractors such as REALTORS®. Small Business Health Options Program (SHOP) Overview Marcia Salkin 202-383-1092, Jamie Gregory 202-383-1027, Scott Rinn 202-383-7508 back to top NAR Meets With HUD on Home Warranty Marketing Agreements On April 3, 2008, NAR and National Home Service Contract Association (NHSCA) representatives met with Gary Cunningham, Deputy Assistant Secretary of HUD for Regulatory Affairs and his senior staff to discuss home warranty marketing agreements. The issue arose when HUD issued an unofficial staff interpretation in February 2008 stating that payments by home warranty companies to real estate brokers and agents under terms of "marketing agreements" appear to violate RESPA. Attendees explained to HUD officials why their limited letter ignored key elements that make such payments bona fide compensation for actual services rendered in the sale of home warranty products. HUD was asked to provide clarification on this issue in light of the unofficial staff interpretation by either withdrawing the letter or issuing guidance in some form that will acknowledge the validity of such marketing agreements under RESPA. HUD staff agreed to study additional information on this issue and NAR will follow-up to ensure that HUD has a full understanding of the nature of the bona fide services rendered by real estate brokers and agents. Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092 back to top Conventional Residential Lending Report NAR Comments on the Federal Reserve Board's Proposed HOEPA Rule On April 7, 2008, NAR President Dick Gaylord submitted NAR's comments on the Federal Reserve Board's HOEPA rule designed to protect consumers from unfair, abusive, or deceptive lending and servicing practices in the mortgage market. NAR's letter:
The Fed's proposed HOEPA rule Marcia Salkin 202-383-1092, Jeff Lischer 202-383-1117 back to top NAR Raises Concerns about Fannie and Freddie Policies On April 11, 2008, NAR President Dick Gaylord wrote letters to Fannie Mae CEO Dan Mudd and Freddie Mac CEO Dick Syron to raise serious concerns about a range of Fannie and Freddie policies that, taken as a whole, are hurting the entire national economy, not just the housing and mortgage markets. Realtors think there has been an overreaction by the GSEs and others in the housing finance industry that, even in the short term and certainly in the long term, will cause harm to the organizations involved by delaying recovery of the housing and mortgage markets. Many small individual policy decisions designed to keep the enterprises financially sound, when layered one upon another, have created major impediments to healthy mortgage and housing markets. The letters address three main areas of concern:
NAR's letter to Freddie Mac Jeff Lischer 202-383-1117, Marcia Salkin 202-383-1092 back to top Environment Report EPA To Publish Lead Paint Renovation Rules The Environmental Protection Agency has said it will publish the long-awaited final lead-based paint renovation regulations in the Federal Register the week of April 13, 2008. These final regulations will govern lead-based paint renovation, repair and painting activities in single and multi-family housing constructed prior to 1978. NAR staff has obtained a pre-publication copy of these rules and are closely analyzing all the provisions to ascertain how they might impact Realtors and property managers. Russell Riggs 202-383-1259, Megan Booth 202-383-1222 back to top Federal Tax Report Quick Action on a Home Buyer Tax Credit When Congress returned March 31 from its Easter break, they immediately got to work on a package intended to shore up the sagging housing market. In the Senate, a bill went directly to the floor, without committee consideration. In the House, the Ways and Means Committee has crafted a package of tax incentives, as well. The Senate 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. The Ways and Means package (H.R. 5720) 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. 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 Senate Passes Second Housing Stimulus Measure By a vote of 84-12, the Senate last week passed a bill (H.R. 3221) that includes both FHA and tax measures and authorizes new spending to address the housing crisis. The bill includes a $7000 tax credit for homeowners who purchase homes at or near foreclosure; FHA modernization legislation that would raise the FHA loan limits to $550,000 (upon expiration of the temporary economic stimulus limits), streamline condominium purchases with FHA, and increase the downpayment for FHA loans to 3.5% (from 3%); and a provision to provide expanded mortgage revenue bond authority to refinance subprime mortgages. The House has prepared a different tax package (H.R. 5720) that includes a $7500 tax credit for first time homebuyers to buy any home (not just foreclosed homes), the same provision on mortgage revenue bonds as the Senate, increases funding allocations for the Low Income Housing Tax Credit program, and modifies FIRPTA reporting requirements to prevent identity theft. The House is also expected to offer a much expanded housing package. It is expected to include FHA reform as well as an expanded program to allow FHA to work with lenders to write down and refinance subprime mortgages. Both bills have received much attention. Both include some controversial provisions. NAR continues to work with staff in both the House and Senate on the details of the packages. Megan Booth 202-383-1222, Linda Goold 202-383-1083 back to top Go to archived weekly reports >> Last Updated: 04/14/2008 Bira de Aquino |
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