| NAR NEWS |
Lawrence Yun Named Among Top Forecasters |
| USA Today has ranked NAR Chief Economist Lawrence Yun fifth among the top 10 economic forecasters in its annual list recognizing accuracy in forecasting. USA Today enlisted the help of the Federal Reserve Bank of Atlanta to determine the most accurate forecasters among the economists surveyed in the newspaper’s quarterly survey on the U.S. economy. The economists, whose identities were unknown to those gathering the data, received four scores, one for each quarterly survey, and were ranked on the average of those four scores. “This recognition contributes greatly to NAR’s reputation as the leading innovator in housing-related research,” says NAR CEO Dale Stinton. |
Higher Loan Limits Point to a Rosier Forecast |
| The housing market will get some relief this year, as higher conforming and FHA loan limits start to have an impact on buyers, NAR says in its latest forecast. Existing-home sales are expected to rise to a 5.7-million unit pace in the second half versus a 4.9-million unit pace in the first half. The Northeast is expected to be first region to show signs of stabilizing. |
| ISSUE UPDATES |
Call For Action: Permanent Loan Hike Needed |
| Higher FHA loan limits, passed as part of the 2008 National Economic Stimulus package, are set to expire at the end of the year. AEs: Now is the time for your members to contact their members of Congress in support of FHA reform legislation that includes realistic and permanent increases in the loan limits. Your members can respond to NAR’s Call for Action on FHA reform at the REALTOR® Action Center. |
Fannie, Freddie Set Jumbo Conforming Loan Requirements |
| Special requirements are in place for the origination, underwriting, delivery, and servicing of jumbo conforming mortgages (loans above $417,000 and up to $729,750), Fannie Mae and Freddie Mac have announced. In a conservative approach, Fannie has set the maximum loan-to-value ratio at 90 percent for fixed-rate mortgages and 80 percent for ARMs, with a minimum FICO score of 700 for loans with LTVs of more than 80 percent and 660 for LTVs of 80 percent or less. The Freddie maximum LTV is 90 percent for fixed- and adjustable-rate loans, with minimum FICO score of 700 for LTVs of more than 75 percent and 660 for LTVs of 75 percent or less. |
Bill Includes VA loans in the Economic Stimulus Increases |
| NAR-backed bills have been introduced to amend the National Economic Stimulus Act of 2008 to include VA loans in the loan limits increases that were provided to FHA and Freddie Mac and Fannie Mae. VA loan limits are currently set at $417,000. NAR has testified in support of the increase. |
Proposed RESPA Regulation Published |
| HUD on March 14 published long-awaited proposed regulations on the Real Estate Settlement Procedures Act. The rules include a mandatory four-page Good Faith Estimate (GFE) and a modified HUD-1/1A; a required “closing script” to be read orally at settlement; enhanced disclosures; and new rules concerning volume discounts, average cost pricing, and “required use.” The rules have a 60-day public comment period expiring on May 13. NAR will be filing comments. |
