Financial Services/Fair Credit Reporting Act Issues
The list below features current and past financial/credit issues monitored by our legislative and regulatory policy staff.
If you have any questions about the topics listed below, please contact Jeff Lischer at 202-383-1117, or Tony Hutchinson at 202-383-1120.
Short Sales
Due to current economic conditions, the number of short sale properties on the market is rising. The increasing number of short sales on the market presents challenges for REALTORS®.
Revised Truth in Lending Requirements
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).
NAR's Foreclosure Prevention and Response Program
As a part of its Right Tools, Right Now program, on March 1, 2009, NAR introduces the Foreclosure Prevention and Response (FPR) Program to aid REALTORS®, their clients, and the nation’s communities in facing the challenges of the current market.
Making Home Affordable Program
On February 18, 2009, President Obama announced his Making Home Affordable Program, designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages.
Government Sponsored Enterprises (GSEs)
On September 7, 2008, Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs) into conservatorship. FHFA explained it took this action “to help restore confidence in Fannie Mae and Freddie Mac, enhance their capacity to fulfill their [housing] mission, and mitigate the systemic risk that has contributed directly to the instability in the current market.” Now under debate is the future structure of Fannie Mae and Freddie Mac.
GSEs Conservatorship>
NAR's GSEs Principles>
Banking and Commerce
Banking is financial in nature. Real estate is commercial. Throughout the years Congress has defended its Depression-era policy that the two should not be mixed. On March 11, 2009, President Obama signed into law the FY2009 Omnibus Appropriations Act that permanently prohibits banks from entering the real estate brokerage and management businesses.
In December 2005, the OCC issued three rulings expanding the authority of national banks to engage in real estate development and ownership. Banks have a cheap source of capital, thanks to Federal deposit insurance. This gives them an unfair advantage over REALTORS® and others involved in real estate development.
ILCs are a special type of state-chartered, federally insured bank that has most of the powers of other banks except they may not accept checking accounts or other "demand deposits."NAR, bank trade associations, and many others have voiced concerns with the FDIC and with Congress about mixing banking and commerce in this way. NAR supports legislation to close this loophole.
Mortgage Reform
Abusive and predatory lending practices are a serious problem for our nation's communities. Because of abuses in the subprime market, families are losing their homes and savings, foreclosure rates are higher, and some neighborhoods face increased vacancy rates. Empty neighborhoods, or those where the majority of houses are for sale, can be perceived as blighted. This leads to declining prices and inevitably devastates the strength and stability of those communities and the families who live there.
The Fair Credit Reporting Act & Your Credit History
Know What's in Your Credit Report
The Fair and Accurate Credit Transactions Act of 2003 (FACT Act)
Rules for Disposing of Consumer Report Information
