 |
| HUD’s Proposed RESPA Regulation Published in Federal Register |
| On Friday March 14, 2008 the Federal Register published HUD’s long-awaited proposed regulation on the Real Estate Settlement Procedure Act. The 94-page proposed regulation includes, among other things, a mandatory four-page Good Faith Estimate (GFE) and a modified HUD-1/1A, a required “closing script” that must be read orally at settlement, enhanced disclosures and new rules concerning volume discounts, average cost pricing and “required use.” There will be a 60-day public comment period which expires on May 13, 2008. NAR will study the proposal and file formal comments with the Department of Housing and Urban Development.
Federal Register >
|
|
|
|
| HUD Publishes Unofficial Staff Interpretation on “Marketing/Administrative Services Agreements Used by Real Estate Agents. |
| The Department of Housing and Urban Development’s Fort Worth Field Office published, on February 21, 2008, an unofficial staff interpretation letter on “marketing/administrative services agreements” between some real estate agents and brokers and home warranty companies (HWC). The arrangement calls for the real estate agent/broker to perform certain marketing services for a HWC in return for a fee that would be paid only when a consumer purchases the HWC product. The letter concludes that “it appears likely that the … arrangement constitutes a violation of Section 8 of RESPA.” Stating that the specific marketing services were not described in the request for guidance, the HUD letter went on to state that ” … it would be difficult for real estate agents and brokers to establish that the services they provide in connection with a homeowner warranty merit additional compensation that is in accordance with Section 8 and HUD regulations.” NAR and other trade groups are meeting to discuss the implications of the letter and expect to have further discussions with HUD on the matter.
Unofficial interpretations are issued by HUD in response to requests for interpretation of matters “not adequately covered … by an official interpretation…. Such interpretations provide no protection under … RESPA.” 24 CFR Sec. 3500.4(b).
HUD Unofficial Staff Interpretation Letter – Feb. 21, 2008 >
|
|
|
|
Conventional Residential Lending Report
|
|
| Fannie Mae and Freddie Mac Announce Requirements for Jumbo Conforming Mortgages |
| Fannie Mae and Freddie Mac (the government sponsored enterprises or GSEs) have each announced special requirements for the origination, underwriting, delivery, and servicing of jumbo conforming mortgages loans (loans above $417,000 up to $729,750). Both Fannie and Freddie are taking a conservative underwriting approach to the new jumbo conforming mortgages. Under Fannie’s requirements, the maximum loan-to-value ratio (LTV) is 90 percent for fixed rate mortgages (FRMs) and 80 percent for adjustable rate mortgages (ARMs). The minimum FICO score for a primary residence purchase loan is 700 for loans with LTVs of more than 80 percent and 660 for LTVs of 80 percent or less. Under Freddie’s requirements, the maximum LTV is 90 percent for both FRMs and ARMs. The minimum FICO score for a primary residence purchase loan is 700 for LTVs of more than 75 percent and 660 for LTVs of 75 percent or less. Both GSEs limit jumbo conforming mortgages to one-unit attached or detached dwellings (including condos but excluding manufactured homes). There are many other requirements that apply to these newly eligible jumbo conforming mortgages.
NAR summary of the highlights of the new requirements >
Fannie Mae Announcement 08-05, Temporary Increase to Our Conventional Loan Limits (March 6, 2008) >
Fannie Mae Chart of the New Requirements for Jumbo Conforming Loans >
Freddie Mac’s Update on Purchases of Conforming Jumbo Mortgages (March 12, 2008) >
|
|
|
|
Diversity and Fair Housing Report
|
|
Federal Tax Report
|
|
Housing Report
|
|
| Legislation Introduced to Include VA loans in the Economic Stimulus Increases |
| Following NAR lobbying efforts, several bills were introduced this week to amend the Economic Stimulus Act of 2008 and include VA home loan guarantee loans in the loan limits increases provided to FHA and Freddie Mac and Fannie Mae. VA loans were inadvertently left out of the stimulus package, and therefore the loan limit for va loans remains at $417,000. Legislation introduced by Reps. Capito and Buyer (HR 5566 and HR 5561 respectively) and Senator Akaka (S. 2768) were referred to the Veterans Affairs Committees in each chamber. NAR will be working to assure our nation’s veterans receive the same benefits from the Economic Stimulus bill as other citizens
View the testimony >
|
|
This entry was posted by admin on March 17, 2008 at 2:33 pm under Uncategorized.
You can leave a response, or trackback from your own site. Follow any responses to this entry through the RSS 2.0 feed.
kevin says:
How long will it take for the bill to get pass raising the va loan limit?
[Reply]
March 26, 2008, 12:03 pmdaniel says:
@ Kevin: This is a priority of NAR’s for 2008 & we hope to see action taken very soon.
Thanks for the question.
[Reply]
March 26, 2008, 3:16 pmkevin says:
Thanks. Do you think the bill might clear by the end of April?
I live in DC and I’m trying buy a house and the only thing holding me back from closing is this bill.
[Reply]
March 27, 2008, 12:33 pm