Monday, August 31, 2009

FHA Clarifies Position on HVCC

National Mortgage News recently reported that, according to the National Association of Mortgage Brokers (NAMB), the Federal Housing Administration (FHA) will not implement the Home Valuation Code of Conduct (HVCC) for its mortgage insurance programs. According to the article, FHA Commissioner David H. Stevens met with a delegation from NAMB and discussed a variety of topics. After talking with HUD, NAR believes it is clear that FHA supports much of what the Code has accomplished. FHA is currently reviewing its appraisal policies and may adopt changes that take HVCC into account.

NAR's HVCC Web page >
Federal Housing Administration >

Wednesday, August 19, 2009

Green Building Code Effective This Month

The state's green building code, the first of its kind in the nation, took effect August 1, the California Building Standards Commission has announced. This new code standardizes practices for reducing the environmental impact of buildings in a variety of ways. It encourages the use of renewable, recyclable, and recycled material in the building process. It also encourages the reduction of a building’s potable water use by 20 percent, and it establishes a two tiered 15 or 30 percent energy savings above current levels for all buildings through a combination of more efficient appliances and windows, better insulation, and other performance enhancing measures.

Application of the code is currently voluntary. It was adopted last year as a step toward mandatory green building standards, which Gov. Arnold Schwarzenegger has called for by 2010.

For more info:
http://www.documents.dgs.ca.gov/bsc/2009/part11_2008_calgreen_code.pdf

Independent Contractor Withholding Not in California State Budget

The governor and legislative leaders reached agreement this week to bridge the $26.3 billion state budget gap, which was approved by both houses of the legislature on Friday. The agreement does NOT include the 3 percent independent contractor withholding proposal. C.A.R. aggressively opposed this over withholding scheme. The agreement includes about $15.5 billion in state budget cuts, as well as $1.2 billion in cuts to prisons, and another $4.7 billion in cuts to, and borrowing from, local governments.

Wednesday, August 12, 2009

Join Assemblymember Warren Furutani for Coffee and Conversation

Assemblymember Warren T. Furutani invites you to bring your ideas, questions and concerns about legislative issues over a cup of complimentary coffee!


Saturday, August 159:30 a.m. - 11 a.m.
Boys & Girls Club of the South Bay
1220 W. 256th Street
Harbor City/Harbor Gateway

Stop by for a cup of coffee!

For more information, or to RSVPplease call (562) 989-2919 or click here.

Monday, August 10, 2009

NAR Responds to FHFA Guidance on HVCC

On August 4, 2009, NAR President Charles McMillan sent a letter to Federal Housing Finance Agency (FHFA) Director James Lockhart addressing the agency's recent guidance on the Home Valuation Code of Conduct (HVCC). The Guidance states that HVCC should mitigate controversy by increasing protection for appraisers. In the letter, Mr. McMillan applauds FHFA for its efforts to address misinformation surround the Code but disagrees that the HVCC is appropriately dealing with the controversy surrounding the appraisal process.

NAR cites survey data that seems to indicate that the Code is creating negative unintended consequences. "According to a survey of our members, 76 percent of respondents said the length of time to obtain a completed appraisal report increased after May 1, 2009. More than one third of REALTORS® have lost at least one sale because of a delay in the appraisal process. At the same time, respondents who identified themselves as appraisers said their time frame to submit an appraisal report has decreased and half of these respondents say this impacts the quality of the appraisal report." At the same time, the cost to the consumer is increasing.

NAR Letter to FHFA on HVCC Clarification
FHFA Guidance on HVCC
NAR's HVCC Web Page

Thursday, August 6, 2009

Reg Z and You: Revised TILA Disclosure Requirements Take Effect on July 30, 2009

Lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Reg Z). The new requirements apply to loan applications filed on or after July 30, 2009 (about two months earlier than originally planned). The new rules are complex and compliance will be a challenge for lenders. REALTORS® will want to learn the basics so they can advise clients of potential delays and the new procedures. Here are key highlights of the changes:

* The new requirements apply to all mortgages secured by a borrower's home, including primary and second homes and refinancings. Investor loans continue to be exempt.
* Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.

  • The closing may not take place until expiration of a 7 day waiting period after the consumer receives the early disclosure.
  • Consumers may shorten or waive the 3-day and/or 7-day waiting periods for a "bona fide personal financial emergency," but only after receiving an accurate TILA disclosure. In the final rule's preamble, the Fed stated that it "believes waivers should not be used routinely to expedite consummation for reasons of convenience." The Fed decided not to insulate lenders from liaibility even where a consumer modifies or waives the waiting periods.
  • If the annual percentage rate (APR) changes by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan. The APR includes not only the interest rate on the loan but certain other costs related to settlement, so it will be important for any fees that affect the APR to be as accurate as possible, as early as possible, to minimize the need for a corrected TILA disclosure.
Federal Reserve Board Final Rule and Staff Commentary (Federal Register, May 19, 2009)

August Health Insurance Reform Under Review Over August Break

Despite pressure from Senate leadership and the White House to move a bill prior to recessing on August 7th, Finance Committee leaders, Chairman Max Baucus and Ranking Minority Member Charles Grassley, continued to work methodically with a bipartisan group of four other Senate Finance Committee members on efforts to create a compromise bill that could successfully make it's way through the Senate. Unless unforeseen developments occur, the group of six and committee staff will continue to work through the August recess with a committee markup planned for September.

NAR continues to meet with House and Senate offices and committee staff on the various components of the reform proposals. Staff continue to analyze the mammoth bills and consult with the members of NAR's Business Issues Committee and Federal Tax Policy Committee for specific policy input. NAR has not taken a position on any of the health reform bills at this time.

Concerned with the cost of the bill and provisions that would create an optional public insurance program, the committee's moderate Blue Dog members had earlier indicated their plans to oppose the bill unless amended to address their concerns. Changes sought included cutting the cost of the bill by $100 billion by restructuring the bill's tax credits for individuals, increasing the threshold for small businesses that would be exempted from the bill's employer mandate requirements and postponing any floor consideration of the bill until after the August recess.

Visit www.realtor.org/healthreform