NAR Update
| ISSUE UPDATES |
House to Vote on Tax Credit Proposal |
| House lawmakers are slated to vote this week on a housing tax relief package that includes a one-year $7,500 tax credit for the purchase of a principal residence by first-time homebuyers whose income doesn’t exceed $70,000 ($140,000 on a joint tax return). The Senate version of the credit is limited to $7,000 and is available to any buyer of a principal residence, but it would be restricted to purchases of foreclosed properties. A side-by-side look at the two approaches is online. |
House Committee Passes Foreclosure Bill |
| The House Financial Services Committee last week approved the FHA Housing and Homeowner Retention Act, which would encourage servicers to write down the principal of a troubled mortgage by substantial amounts. The bill would permit FHA to insure the revised mortgage in exchange for the homeowners sharing a portion of furture appreciation with the government. The bill is expected to be on the House floor this week as part of a Housing Stimulus package. |
| NAR: Make Loan Limit Hikes Permanent |
| Congress should support the Homeowner Opportunity Act, H.R. 5958, introduced by Reps. Jerry McNerney, D-Calif., and Gary Miller, R-Calif., to make the FHA and conforming loan limit increases permanent as part of the 2008 Housing Stimulus bill. Permanent increases will “achieve an immediate increase in liquidity” in mortgage markets, NAR President Dick Gaylord says in a letter to House members this week. The stimulus bill could be considered in the House before the end of this week. “Increased liquidity should help drive down mortgage costs and create stability in the mortgage market.” |
Freddie Mac Eases Declining Markets Policy |
| In a softer approach for areas with falling home prices, Freddie Mac is allowing mortgage originations for 95 percent LTV given certain underwriting safeguards: 1) the mortgage is used for purchase or “no cash-out” refi, 2) it’s secured by a one-unit residence, and 3) its application receives an “Accept Risk Class” from Freddie’s automated underwriting software, Loan Prospector. Priort to the easing, Freddie restricted the LTV to less than 95 percent for originations in declining markets. Fannie Mae has announced easing its declining markets policy too. |
NAR NEWS |
Home Sales Soft But Projected to Rise |
| A flat pattern in home sales activity should continue for the next couple months before improving over the summer, NAR says. “Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas,” says NAR Chief Economist Lawrence Yun. “As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available.” NAR’s forward-looking Pending Home Sales Index in March edged down 1 percent to 83.0 from a downwardly revised level of 83.8 in February. |
President’s Podcast: Midyear Comes at Key Time |
| With Congress focused on the link between housing and the strength of the economy, REALTORS® coming to Washington next week for the 2008 Midyear Legislative Meetings &Trade Expo are poised to have an impact. Get a preview of next week’s meetings in NAR President Dick Gaylord’s podcast. |
Lance Armstrong, Lionel Richie Headline 2008 Conference |
| Opportunity will be heating up in Florida this fall as NAR convenes in Orlando for Destination Success–Full Speed Ahead, the 2008 REALTORS® Conference & Expo, Nov. 7-10. Some 25,000 REALTORS® are expected to attend and help NAR mark its 100th year. Among the speakers: Lance Armstrong, seven-time Tour de France winner and cancer survivor; Frans Johansson, author of The Medici Effect; David Meerman Scott, marketing vice president at News Edge Corp.; Daniel Pink, author of A Whole New Mind; and Alicia Irons Matheson and Austin Brock of the Disney Institute. Lionel Richie will perform in an exclusive REALTOR®-only concert. |
| Ergonomic Desks and Hydro Gutters: NAR Recognizes Kid Designs |
| NAR 2008 Regional Vice President Elizabeth Blakeslee handed out awards last week on behalf of NAR at the School-of-the-Future Competition in Washington. The awards, hosted by NAR and the Council of Educational Facility Planners International Foundation, recognize outstanding designs for healthy, sustainable, high-preformance schools submitted by teams of middle school students. The grand prize winner was Lyme-Old Lyme Middle School, Old Lyme, Conn., for a project incorporating ergonomic classroom furniture; hydro, solar and wind power; energy efficient appliances; compact flourescent light bulbs; transition windows to block harmful UV rays; and a hydro gutter system that provides electrical power as well as collects rain water for reuse.
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| LEGAL |
REALTOR® Arbitration Process Upheld |
| A trial court improperly knocked down an arbitration award arising from a hearing conducted by a REALTOR® association, the Superior Court of New Jersey, Appellate Division, ruled, reversing the trial court and ordering confirmation of the arbitration award. The trial court should have deferred to the procuring cause definitions found in NAR’s Code of Ethics and Arbitration Manual and applied by the association’s arbitrators in making the award, the court said. NAR filed an amicus curiae brief with the New Jersey Association of REALTORS® arguing for the confirmation of the association’s award. |
