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 In This Issue Realtor Insider DC News and Events Report Freddie Mac Improves Its Mortgage Refinance Program New NAR Webpage on Short Sales Business Report SBA Will Offer Interest Free, Deferred Payment ARC Loans Beginning June 15, 2009 SBA Seeks Comments on ARC loans and Changes to 7a and 504 Loans Banking Agencies Issue Red Flag FAQs on Identity Theft Rules Environment Report NAR Testifies on Green Building Incentives versus Energy Labeling Federal Tax Report Senator Isakson Introduces Bill to Extend, Expand Homebuyer Tax Credit Realtor Insider DC News and Events Report  Freddie Mac Improves Its Mortgage Refinance Program On June 5, 2009, Freddie Mac announced the highlights of several improvements being developed for its Relief Refinance Mortgage product under the Obama Administration's Making Home Affordable Program. Once Freddie makes the changes effective, borrowers will be able to refinance a Freddie Mac mortgage with any lender affiliated with the company ("Open Access"), not just the current servicer ("Same Servicer"). Fannie Mae already allows refinancing with any Fannie-approved servicer. If borrowers with Freddie loans choose not to use their current servicer, the new mortgage must be fully underwritten and meet all Freddie Mac eligibility, underwriting, appraisal, and documentation requirements. Borrowers who chose to use their current servicer will have lower fees and in most cases will be able to avoid re-underwriting and a new appraisal. Freddie will allow borrowers to include more closing costs in both the "Same Servicer and "Open Access" Relief Refinance mortgages. The new amount will be the lower of 4 percent of the new mortgage amount or $5,000 (the current maximum is $2,500). Freddie is also in the process of updating pricing requirements, and more details are expected in a few weeks. Freddie Mac News Release Freddie Mac Preview of Expanded Eligibility for Relief Refinance Mortgages and Updated Pricing Requirements Jeff Lischer 202-383-1117, Tony Hutchinson 202-383-1120 back to top New NAR Webpage on Short Sales NAR has set up a webpage on short sales. REALTORS® who are new to short sales can learn the basics and watch webinars to increase their knowledge. The site includes information about NAR's advocacy efforts to improve the process, getting a short sale to closing, and informing buyers and sellers about the process. There is also information on the upcoming Obama Administration short sales program, which will be part of the Making Home Affordable Program. The Treasury Department is targeting the end of July for issuing guidance and uniform forms and for signing up servicers to participate in the new initiative. NAR’s Short Sales Page Jeff Lischer 202-383-1117, Tony Hutchinson 202-383-1120 back to top Business Report SBA Will Offer Interest Free, Deferred Payment ARC Loans Beginning June 15, 2009 The Small Business Administration (SBA) will begin guaranteeing America's Recovery Capital (ARC) loans beginning on June 15, 2009. ARC loans, up to $35,000, are interest free, deferred payment loans, targeted for viable small businesses suffering financial hardship. The loans are 100% guaranteed by the SBA. See links to the SBA's press release and frequently asked questions below. SBA ARC loans FAQs SBA ARC Loans Press Release Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092, Russell Riggs 202-383-1259 back to top SBA Seeks Comments on ARC loans and Changes to 7a and 504 Loans On June 8, 2009 the SBA published in the Federal Register a notice and request for comments regarding SBA 7a and 504 loans. On June 9, 2009, the SBA published in the Federal Register an interim final rule with request for comments regarding its Recovery Capital Loan Program (ARC). These SBA loan programs are designed to formalize and implement provisions of the American Recovery and Reinvestment Act of 2009, which was enacted on February 17, 2009 to, among other things, promote economic recovery by preserving and creating jobs and assisting those most affected by current economic conditions. NAR is reviewing the notices and the interim final rule to determine a response. Links to the Federal Register publications are below. Federal Register Notice, SBA temporary reduction/elimination of fees Federal Register Notice, SBA temporary increased guaranty percentage Federal Register interim final rule, SBA ARC loan program Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092, Russell Riggs 202-383-1259 back to top Banking Agencies Issue Red Flag FAQs on Identity Theft Rules On June 11, 2009, six federal banking agencies issued FAQs to help financial institutions and creditors comply with the "Red Flags and Address Discrepancy Rules" issued November 9, 2007. The FAQs are written primarily for financial institutions. Previously, on May 13, 2009, the Federal Trade Commission (FTC) announced the availability of a template to guide "low-risk entities", e.g. real estate agents, when establishing policies and procedures to comply with the "red flag" guidelines (Washington Report May 18, 2009). The FTC also recently announced that it was delaying mandatory compliance with red flag guidelines for low risk entities until August 1, 2009 (Washington Report May 4, 2009). The extension came in response to questions being raised by such low-risk entities about whether Congress wrote these provisions too broadly. Links to Red Flag announcements and guides can be found below. Banking agencies' FAQs FTC Template FTC How-To Gide for Business Melanie Wyne 202-383-1234, Scott Rinn 202-383-7508, Ken Wingert 202-383-1196 back to top Environment Report NAR Testifies on Green Building Incentives versus Energy Labeling At the direction of the Land Use, Property Rights and Environment Committee, NAR is continuing with efforts in opposition to provisions in House and Senate energy bills that are not consistent with NAR policy. This policy opposes government mandates particularly at the time of sale that impose undue burdens on property owners and managers. This week, NAR urged two House committees — Financial Services and Agriculture — to intervene and oppose a bill's provisions that establish energy labeling and national building codes. The bill, H.R. 2454 by Reps. Waxman (D-CA) and Markey (D-MA), was recently approved by the House energy committee and has been the subject of recent Realtor congressional visits and calls to action. In testimony before a Financial Services subcommittee, Dave Wluka, member of the Land Use Committee, offered NAR's support and assistance to develop another bill, H.R. 2336 by Rep. Perlmutter (D-CO), and turn it into a working substitute amendment to the Markey-Waxman labeling provisions. The Perlmutter bill would provide green building incentives that result in energy efficiency improvements to — rather than stigmatizing older housing with labels. House leaders want a vote on the Waxman-Markey legislation before July 4th. NAR will continue to seek every opportunity to raise concerns and educate members of Congress about the detrimental labeling and building code provisions. View NAR's testimony Austin Perez 202-383-1046, Megan Booth 202-383-1222, Russell Riggs 202-383-1259 back to top Federal Tax Report Senator Isakson Introduces Bill to Extend, Expand Homebuyer Tax Credit Senator Johnny Isakson (R-GA) and 9 cosponsors have introduced S. 1230, a bill that would increase the homebuyer tax credit to $15,000 and extend it to all purchasers. It would extend the credit past December 1, 2009 by making the new credit available on the date of enactment (whenever the bill might get signed) and for one year after the date of enactment. Unlike current law, the proposed expanded tax credit would not be refundable. As a result, existing state-level bridge loan downpayment programs would be less available because the purchaser/taxpayer will not know his/her tax liability at the time of purchase. It is not known when this legislation might be considered, as both tax-writing committees are working solely on health reform. In addition, the proposal has not yet been scored for revenue purposes. Housing and Urban Development Secretary has expressed concern about whether extending the credit to all purchasers would reduce the inventory of houses available for sale. He noted that in most cases a current owner must sell another home before purchasing a new one. NAR is pleased that so many legislators have shown interest in extending and/or expanding the credit. Linda Goold 202-383-1083, Megan Booth 202-383-1222, back to top Go to archived weekly reports >> Last Updated: 06/15/2009 Bira de Aquino |
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