FHA Reform Awaiting Senate Action

NAR reported on August 2 that the House passed a stand-alone bill to increase FHA's annual premiums. FHA needs to increase premiums to restore their capital reserves fund that had fallen to .55% from the required 2%. However, NAR supports the full package of reforms included in H.R. 5072, the "FHA Reform Act of 2010", which passed the House earlier this month by a vote of 406-4. HR 5072 allows FHA to increase annual premiums, which in turn will allow them to decrease the upfront premium. The bill also includes significant lender enforcement, and increases FHA's ability to get rid of bad actors. HR 5072 is awaiting action in the Senate.

NAR Testifies Before Congress on Commercial Real Estate Liquidity Crisis

On July 29, 2010, the U.S. House Financial Services Committee held a hearing on "Alternatives for Promoting Liquidity in Commercial Real Estate Markets, Supporting Small Businesses and Increasing Job Growth." Jim Helsel, 2010 NAR Treasurer and President of Helsel Incorporated REALTORS®, testified on behalf of NAR. In his testimony, Mr. Helsel stressed the importance of a sound commercial and multifamily real estate sector as the linchpin of our nation's economic recovery. Additionally, he told the committee that lack of liquidity remains a significant challenge for the commercial real estate industry.

Mr. Helsel also commended the panel for passage in June of H.R. 5297, the Small Business Lending Act of 2010 (Rep. Frank, D-MA), which ensures community banks have both the incentive and capacity to increase total loans to small businesses. Moreover, he stressed the importance of raising Small Business Administration (SBA) loan limits and allowing SBA 504 loans to be used to refinance performing property, which can help ease the liquidity crisis in the commercial real estate sector. Finally, as another credit avenue, Mr. Helsel asked members of the committee to consider H.R. 3380, Promoting Lending to America's Small Businesses Act of 2009 (Reps. Kanjorski (D-PA) and Royce (R-CA)), which would raise the credit union member business lending cap from 12.25 percent to 25 percent of total assets.

Congress Restores Funding for Rural Housing

Last week Congress finally passed legislation to restore funding to the 502 single-family rural housing program. NAR reports that it had been pushing this bill, and thousands of REALTORS® had responded to Calls-for -Action to get this done! Senator Michael Bennet (CO) and Reps. Kanjorski (PA) and Capito (WV) championed this issue, that has been working its way through Congress March. The legislation will increase the guarantee fee for borrowers (but still allow it to be financed), which will make the program self-sufficient. The legislation also increases the commitment authority so Rural Housing Service can formally guarantee loans (they had been providing conditional commitments). We anticipate a notice from Rural Housing shortly after the President signs the bill.

NAR Testifies Before Congress on Commercial Real Estate Liquidity Crisis

On July 29, 2010, the U.S. House Financial Services Committee held a hearing on "Alternatives for Promoting Liquidity in Commercial Real Estate Markets, Supporting Small Businesses and Increasing Job Growth." Jim Helsel, 2010 NAR Treasurer and President of Helsel Incorporated REALTORS®, testified on behalf of NAR. In his testimony, Mr. Helsel stressed the importance of a sound commercial and multifamily real estate sector as the linchpin of our nation's economic recovery. Additionally, he told the committee that lack of liquidity remains a significant challenge for the commercial real estate industry.

Mr. Helsel also commended the panel for passage in June of H.R. 5297, the Small Business Lending Act of 2010 (Rep. Frank, D-MA), which ensures community banks have both the incentive and capacity to increase total loans to small businesses. Moreover, he stressed the importance of raising Small Business Administration (SBA) loan limits and allowing SBA 504 loans to be used to refinance performing property, which can help ease the liquidity crisis in the commercial real estate sector. Finally, as another credit avenue, Mr. Helsel asked members of the committee to consider H.R. 3380, Promoting Lending to America's Small Businesses Act of 2009 (Reps. Kanjorski (D-PA) and Royce (R-CA)), which would raise the credit union member business lending cap from 12.25 percent to 25 percent of total assets.
(source: National Association of REALTORS®)