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Appraisal - IRS

HUD Clarifies FHA Mortgage Insurance Requirements on 15 Year Loans

Energy Efficiency and Climate Change

NAR Comments on Proposed Energy Labeling Program for Commercial Buildings

National Flood Insurance Program

Congress Extends Flood Insurance Until Nov. 18

Appraisal - IRS

HUD Clarifies FHA Mortgage Insurance Requirements on 15 Year Loans

This week the US Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2011-35 confirming that annual mortgage insurance premiums are not charged for Federal Housing Administration (FHA) mortgages with 1) amortization terms of 15 years or less, and 2) a loan-to-value ratio at or below 78 percent at the time of origination. This is effective for mortgages with case numbers assigned after April 18, 2011. There are no changes to the upfront premium.

Jerome Nagy, 202-383-1233
Megan Booth, 202-383-1222

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Energy Efficiency and Climate Change

NAR Comments on Proposed Energy Labeling Program for Commercial Buildings

The U.S. Department of Energy requested information on a proposal to develop a voluntary energy scoring program for commercial buildings. This proposed energy rating program would allow building owners, managers, investors and tenants to obtain a rating on how efficiently their building uses energy and would provide information on how the building could improve its energy efficiency.

NAR’s comments on this program mirror concerns with a recently developed residential energy performance score – these kind of scoring programs stigmatize older, less efficient existing buildings in the real estate marketplace, thereby reducing property values. Building energy rating systems will not lead to reductions in energy use. The most effective way to enhance energy efficiency in buildings is to provide the financial resources and market incentives that educate all building owners—not just those in the process of purchasing properties—about the benefits of making needed energy improvements.

DOE is in the beginning of the data collection phase for this program and has not proposed a timeframe for introduction and impementation.

Russell Riggs, 202-383-1259
Austin Perez, 202-383-1046

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National Flood Insurance Program

Congress Extends Flood Insurance until Nov. 18

On Oct. 4, 2011, Congress extended National Flood Insurance Program (NFIP) authority as part of a broader stopgap government funding measure, the Continuing Appropriations Act (H.R. 2608). This latest extension will run through November 18, 2011. NAR is urging Congress to use the additional time to complete work on a 5-year NFIP re-authorization bill (H.R. 1309) to provide certainty and avoid further disruption to real estate markets.

Austin Perez, aperez@realtors.org, 202-383-1046
Daniel Blair, dblair@realtors.org, 202-383-1089
Russell Riggs, rriggs@realtors.org, 202-383-1259

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