NAR Newsletter
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May 2007 |
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Realities is a monthly E-newsletter created especially for industry thought leaders and specialists by the National Association of REALTORS®. Write to us with your feedback and suggestions for future stories. To unsubscribe, click here. |
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NAR Comments on Proposed Subprime Mortgage Lending Statement
NAR strongly supports the continued work of the federal banking agencies and the National Credit Union Administration to fight abusive lending practices and promote consumer education. In some cases, NAR recommends even higher standards, and in others, recommends giving lenders more flexibility in determining whether applicants can afford to meet their obligations under their loans.
read more>>.
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Housing Affordability
Two current issues in housing affordability are FHA reform and GSE reform. The Expanding the American Homeownership Act, known as FHA Reform or Modernization, was introduced in the 109th Congress in 2006. The House Financial Services Committee passed the legislation on May 3. When enacted, the bill will enable FHA to reach more prospective borrowers and allow millions more low- and moderate-income families to achieve the American dream of homeownership.
Government-sponsored enterprise (GSE) reform was approved by the House Financial Services Committee in March 2007, and is expected to pass on the floor on May 17. The bill, long-supported by NAR, would overhaul the regulatory structure for the nation’s housing finance GSEs that include Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The GSEs buy mortgages and sell them as securities to investors, thus making more money available to homebuyers. |
REALTORS® Commend House Panel's Approval of GSE Reform
H.R. 1427, the Federal Housing Finance Reform Act of 2007, focuses on safety and soundness regulation of government-sponsored enterprises (GSEs) while preserving Fannie Mae’s and Freddie Mac’s ability to accomplish their key housing mission, a long-standing concern of NAR. Full House approval is expected on May 17.
read more>>.
Passage of FHA Reform Bill Would Help Homeowners and Homebuyers
NAR has supported FHA modernization legislation in H.R. 1852, the Expanding American Homeownership Act of 2007, that would increase loan limits, eliminate the statutory 3 percent minimum cash down payment, and allow FHA flexibility to provide risk-based pricing. NAR also supports the continued availability of FHA loss mitigation programs. The House Financial Services Committee reported out the bill on May 3.
read more>>.
Reformed FHA Would Provide Viable Mortgage Alternative
The Federal Housing Administration must change to reflect consumer needs and demands, and provide many borrowers with a safer alternative to riskier mortgage products that are on the market today, according to the National Association of REALTORS®.
read more>>.
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 There won't be a minimum 3 percent down payment which means you need less cash at closing.
The FHA loan amounts can be higher which means more homes would qualify.
Condos will be more easily insured with an FHA loan.
You don’t have to have perfect credit.
More seniors will be able to get reverse mortgages.
Source: “What does FHA reform mean to you, the buyer?”, Federal Housing Authority, 2007
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IRS Kicks Homeowners While They Are Down
Washington Post, May 5, 2007
For homeowners who are seriously delinquent on their mortgages and hoping for relief, the Internal Revenue Service has bad news: If your lender agrees to modify your loan and forgive any of your debt, you could owe federal income tax on the amount forgiven.
read more>>.
As Market Cools, Homebuyers Seek a Way Out
Wall Street Journal, May 4, 2007
In the latest fallout from the housing market's decline, disputes are breaking out between builders and buyers who signed contracts for new homes and condos when the market was hot -- and now want to get out of them.
read more>>.
Parents Selling Homes When Kids Go to College
USA Today, May 4, 2007
In towns where highly rated public schools are supported by even higher property taxes, many parents faced with college bills are selling the empty nest while it's still warm.
read more>>.
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© Copyright NATIONAL ASSOCIATION of REALTORS®
Headquarters: 430 North Michigan Avenue, Chicago, IL 60611
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020
1-800-874-6500
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