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 In This Issue Realtor Insider DC News and Events Report Maximum LTV for Obama Administration's Refi Program Increases to 125 Percent Revised TILA Disclosure Requirements Take Effect on July 30, 2009 Business Report SBA's 504 Loan Program to Allow Refinancing of Existing Debt for Expansion Projects NAR Presents RESPA Webinar on Busby Case Health Reform Legislative Timelines Slip/NAR Leadership Meets with Administration Health Reform Staffs Federal Tax Report Congress Unlikely to Consider Tax Measures, Including Tax Credit, Until October Silence Persists Revenue Sources for Health Reform Housing Report NAR Meets with NY Attorney General's Office and FHFA to Discuss HVCC Realtor Insider DC News and Events Report  Maximum LTV for Obama Administration's Refi Program Increases to 125 Percent On July 1, 2009, Federal House Finance Agency (FHFA) Director James Lockhart joined Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan in announcing a major expansion of the Obama Administration's Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans. The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements. This significantly expands eligibility for the program which allows borrowers to lock in today's lower rates or move into a fixed rate product. Higher fees will apply to loans with LTVs above 105 percent, but the program includes lower fees for borrowers who opt for a 20-year or 25-year term, to build equity faster and reduce interest payments over the life of the loan. The easiest way for borrowers to find out if they have a Fannie Mae or Freddie Mac loan is to go to www.MakingHomeAffordable.gov and click on "loan look up." FHFA Announcement (with Refinancing Example) Fannie Mae Announcement 09-23 Fannie Mae FAQs Freddie Mac Press Release Jeff Lischer 202-383-1117, Tony Hutchinson 202-383-1120 back to top Revised TILA Disclosure Requirements Take Effect on July 30, 2009 Lenders are subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Reg Z). The new requirements apply to loan applications filed on or after July 30, 2009 (about two months earlier than originally planned). The new rules are complex and compliance will be a challenge for lenders. REALTORS® will want to learn the basics so they can advise clients of potential delays and the new procedures. Here are key highlights of the changes:
Wells Fargo Website with Its Advice on the New TILA Requirements Mortgage Bankers Association Summary of New Requirements NAR Video: Closings Face TILA Disclosure Changes Jeff Lischer 202-383-1117, Tony Hutchinson 202-383-1120 back to top Business Report SBA's 504 Loan Program to Allow Refinancing of Existing Debt for Expansion Projects On June 23, 2009, the Small Business Administration published in the Federal Register an interim final rule with request for comments that allows for new, permanent financing under the SBA's 504 Loan Program. The rule allows eligible borrowers to refinance a limited amount of existing debt. The rule is designed to improve business cash flow, and proceeds can be used to purchase business real estate, fixed assets and to expand current development projects. Comments are due by July 23, 2009. SBA 504 loan program interim final rule SBA 504 loan program Press Release Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092, Russell Riggs 202-383-1259 back to top NAR Presents RESPA Webinar on Busby Case On June 23, 2009, NAR hosted a RESPA webinar on the recently decided Busby case, featuring nationally recognized RESPA expert, Phil Schulman, Esq. Mr. Schulman discussed the court's ruling and how it will affect NAR members. On April 20, 2009 the United States 11th Circuit District Court for the Northern District of Alabama, Southern Division, filed a memorandum opinion in Busby v. JRHBW Realty, Inc. d/b/a Realty South. The court concluded that a $149 Administrative Brokerage Fee charged by Realty South violated Section 8(b) of RESPA. Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092, Kenneth Trepeta 202-383-1294 back to top Health Reform Legislative Timelines Slip/NAR Leadership Meets with Administration Health Reform Staffs While Congressional health reform hearings, markups and closed door discussions continue on a daily basis, the aggressive timelines set out in May by the Senate and House committees at the center of the health reform debate have slid. Each of the five committees with jurisdiction over health reform failed to meet the self-imposed deadlines for completing consideration of health bills prior to the July recess. In the House, a joint committee bill has been introduced but not yet marked up. In the Senate, the Health, Education, Labor and Pension Committee began markup in mid-June but has yet to consider a number of contentions issues such as whether to include an employer mandate that would require employers to offer, and contribute to, health insurance plans for employees. The Senate Finance Committee, meanwhile, has yet to release a bill as members continue to meet to in an effort to hammer out a bipartisan proposal. As a result, July promises to be a busy month if the next self-imposed deadline of moving bills through final consideration prior to the August recess is to be met. In addition to ongoing NAR staff meetings with Congressional leaders and staffs, Ronald Phipps, NAR's First Vice President, also met with key policy staff in both the White House Office of Health Reform and the Department of Health and Human Services on July 1st. In his meetings, Mr. Phipps explained the health coverage challenges that real estate professionals face, how the various reform proposals being debated would affect NAR's members and the need for careful consideration of the unique needs of the self-employed in any reform plan. NAR continues to work with Congress and the Administration to make sure the needs of Realtors are met in a final proposal, but has not taken a formal position at this time on any of the bills being considered. Visit www.realtor.org/healthreform Marcia Salkin 202-383-1092, Ken Wingert 202-383-1196, Scott Rinn 202-383-7508 back to top Federal Tax Report Congress Unlikely to Consider Tax Measures, Including Tax Credit, Until October The health reform efforts in both the House and Senate will completely dominate the agenda in both tax-writing committees throughout July. Accordingly, their leaders have announced that they will not take up expiring provisions, including the first-time homebuyer tax credit, until they have disposed of the health reform legislation. Thus, extension and possible expansion of the $8000 tax credit are unlikely to be considered until about October. NAR encourages its members to complete pending transactions as soon as possible because of the potential for uncertainty as the December 1 expiration date approaches. NAR's FHA and the First Time Homebuyer Tax Credit Flyer In Depth: 2009 First-Time Home Buyer Tax Credit Linda Goold 202-383-1083, Megan Booth 202-383-1222, Jerome Nagy 202-383-1294 back to top Silence Persists Revenue Sources for Health Reform During the July 4th break, Chairman Kennedy (D-MA) and Senator Dodd (D-CT) released a less expansive version of their health care reform proposal. Like all other House and Senate versions of the reform efforts, this draft provides no clues that would suggest what new, non-health-related revenues the Committees will seek. All discussions concerning new revenues continue to focus solely on trimming health-related tax benefits or imposing new "fees" on some employers who do not provide health insurance. Chairman Baucus (D-MT), whose committee has jurisdiction over all taxation matters, has not yet responded to the Kennedy-Dodd concept. Linda Goold 202-383-1083 back to top Housing Report NAR Meets with NY Attorney General's Office and FHFA to Discuss HVCC NAR President Charles McMillan participated in meetings in Washington and New York to raise NAR's concerns about the impact of the Home Valuation Code of Conduct (HVCC) on the housing market. On June 29, 2009, Mr. McMillan met with New York State Attorney General Andrew Cuomo's staff. Mr. McMillan met with Federal Housing Finance Agency (FHFA) Director James Lockhart and Fannie Mae CEO Mike Williams on June 30, 2009. FHFA, the Attorney General's staff and Fannie Mae are all receptive to the need for better education on and increased communication about the HVCC's impact on the appraisal process. One possibility is a joint effort with the NAR, the GSEs, the Appraisal Institute, and FHFA to issue a document similar to NAR's myths and facts HVCC flyer. FHFA Director Lockhart indicated he will consider issuing a press release clarifying issues raised by the HVCC and its implementation. Fannie Mae and Freddie Mac are considering issuing more "frequently asked questions" guidance on HVCC. Visit www.realtor.org/hvcc Jerome Nagy 202-383-1233 back to top Go to archived weekly reports >> Last Updated: 09/01/2009 Bira de Aquino |
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