Real Estate Issues in Washington DC
2009 NAR Public Policy Achievements
Homebuyer Tax Credit Extended and Expanded
Congress recently passed legislation to:
~ Extend the First-Time Homebuyer Tax Credit through April 30, 2010
~ Expand the Homebuyer Tax Credit to apply to current homeowners who purchase a new or existing home between November 7, 2009 and April 30, 2010.
WCAR Summary
Homebuyer Tax Credit: The Basics (NAR)
Click on Save Now With the Homebuyer Tax Credit to order your FREE brochure from the National Association of REALTORS®. Available only to NAR members (log-in required).
Short Sales
The U.S. Treasury Department recently announced revised guidelines designed to simplify and streamline the process for executing short sales and deeds-in-lieu of foreclosure (DIL). The Home Affordable Foreclosure Alternative program (HAFA) applies to all loans not owned or guaranteed by Fannie Mae or Freddie Mac, which plan to issue their own versions of HAFA in the coming weeks.
HAFA officially goes into effect April 5, 2010, although servicers may implement the program prior to this date if certain requirements are met. This program is scheduled to sunset on December 31, 2012.
Several highlights of the HAFA program include:
~ Allow borrowers to receive pre-approved short sales terms, including the minimum acceptable net proceeds, before the property is listed
~ Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%)
~ Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed)
~ Establishes standard processes, documents, timeframes, and deadlines for short sales
~ Provides potential financial incentives:
* $1,500 for borrower relocation assistance
* $1,000 for servicers to cover administrative and processing costs
* Up to $1,000 for investors
Click on the links below for additional information.
The Basics: Short Sales
Home Affordable Foreclosure Alternative program (HAFA)
Short Sales and Foreclosure Resource Certification
Buyer Handout: Making an Offer on a Short Sale
Seller Handout: What to do when the Price Leaves you Short!
Making Home Affordable Program
New FHA Financing Guidelines for Condo Purchases
FHA recently adopted temporary policies governing the use of FHA financing for condominium purchases. These revised guidelines include:
~ Increasing the FHA concentration requirements to 50%
~ Requiring 50% of all units in a project be owner-occupied. Vacant and REO properties are not considered in this calculation
~ Reducing pre-sale requirements to 30%
The links below provide more detailed information.
Temporary Guidance for Condominium Policy (Mortgagee Letter 2009-46 A)
Condominium Approval Processes for Single Family Housing (Mortgage Letter 2009-46 B)
FAQs
Enforcement Restraint Promised for New RESPA Rules
HUD will implement a 120-day period of "restraint" on its enforcement of the new Real Estate Settlement Procedures Act (RESPA) rules scheduled to take effect Jan. 1, 2010. Consideration will be shown for FHA approved lenders acting in good faith to comply with the new mandatory Good Faith Estimate (GFE) and HUD-1, among other provisions. The new RESPA changes WILL NOT affect existing anti-kickback provisions of RESPA or their enforcement. Click on the links below for additional information.
Press Release (HUD)
RESPA Overview
FAQs
Additional topics of interest include:
Home Buyer Tax Credit
Government Sponsored Enterprises (GSEs)
Health Care Reform
Home Valuation Code of Conduct (HVCC)
Federal Housing Administration (FHA)
Property Rights, Land Use, and Environmental Issues
For a comprehensive list of federal issues currently being monitored by the National Association of REALTORS®, visit NAR’s Government Affairs webpage.
Contact David Pair, WCAR Governmental Affairs Director, via Email or phone (771-6845) for further information.