Feds to Eminent Domain Abusers: Drop Dead

In a welcome move, the Federal Housing Finance Agency (FHFA) released a statement yesterday affirming what we already know: Using eminent domain to seize "underwater" mortgages ("underwater" is used loosely here; more below) is an outrageous and inappropriate use of the government's power to seize private property.

The FHFA has threatened to sue local municipalities and private investors who look to eminent domain to grab mortgages, sell them back to homeowners at a reduced rate and run away with spectacular profits. This use of eminent domain would in all likelihood dry up most housing finance in the future. Now that the FHFA is backing away from eminent domain, mortgages backed by Fannie Mae or Freddie Mac in those cities - including Richmond., Calif. and El Monte, Calif. - threatening to use eminent domain may be at further risk.

Really? We are having enough trouble already with the PATH Act, federal legislation impacting Fannie Mae and Freddie Mac. Just when the housing market is starting to improve - and the economy along with it - it is remarkably unwise to scare away funding for those families who are qualified to purchase a home. Both the PATH Act and the improper use of eminent domain risk driving the housing market right back down. For this reason we applaud the FHFA's action and we only hope that Congress will also show its support of the housing recovery by voting down the flawed PATH Act.

And what does "underwater" mean? We've seen elsewhere that the proposal to use eminent domain to seize mortgages has poorly defined criteria, or criteria that enables those investors to cherry pick the loans they like the best. Richmond, El Monte and other cities take note. If it looks like the deal is too good to be true, it's because it is.

It's Summertime! REALTOR farming tool to help save water over the long, hot summer

It's summertime, and that can only mean a few things:

Long vacations on the beach. However, if you're reading this blog post then, like us, you are working this summer.
Peak homebuying season. Even with low inventory of homes for sale, buyers and sellers are still coming together.
Saving water. The long, hot summer may mean hours at the pool but it also means wildfires, high energy use for air conditioning and the need to save water in our dry region.

Check out this simple flyer for you to use when working your farming and marketing your REALTOR® business. Available for free in English and Spanish, this flyer outlines great tips for your clients and prospects to save water, keep costs down and enjoy summer.

The water conservation flyer is available to you thanks to our friends at the South Bay Environmental Services Center. Use it early and often! Be sure to check out the SBESC website for more great tips on energy conservation and saving money in your home or your new listing.

ALERT! REALTORS tell Congress to Do No Harm on Tax Reform

The National Association of REALTORS® is asking its members to let their senators know that real estate tax provisions are critical to the economy and should remain high on lawmakers' priority list as they take a blank slate approach to tax reform.

NAR's Call for Action is emphasizing the need for any tax legislation to do no harm to the economy by retaining the deductions for mortgage interest and property taxes, the capital gains exclusion on proceeds from the sale of a principal residence, and extension of mortgage cancellation relief. Also emphasized are deprecation rules and the continued tax-deferred treatment of 1031 exchanges.

Under the blank-slate approach to tax reform announced by the leadership of the Senate Finance Committee recently, senators are asked to start from scratch and identify the provisions they want to keep in the Tax Code.

Take action at the REALTOR® Action Center.

Share with your fellow colleagues a short video in which NAR Government Affairs staffers talk about the Call For Action and the blank-slate approach.

Wanted: Champions of Home! Nominate a Calif REALTOR who changed someone's life for the better

What is a Champion of Home?

A Champion of Home makes as many phone calls as it takes, for as many years as it takes, to ensure sample stories to learn more about what makes a Champion of Home.

a client keeps their home. It's a REALTOR® who cuts through endless red tape, jumps through hundreds of hoops, and spends as many working hours as needed to help their client get the best possible price on their home. It’s someone who fights for their clients, even when it’s hard, because it’s the right thing to do. A Champion of Home is a California REALTOR® who changes clients' lives for the better, who raises the standards for others, leads by example, and possesses unimpeachable ethics. Read our

Champions of Home should be recognized for all they do, so we've created the brand new Champions of Home Awards to do just that. Now exceptional REALTORS® can be nominated for this new prestigious award and truly be acknowledged for the service they provide to their industry.

Recipient(s) of the prestigious Champions of Home Award will be honored during CALIFORNIA REALTOR® EXPO 2013 in October. We’ll be sharing the amazing stories of our Champions of Home with a video snapshot shown at the award presentation, and a feature article in California Real Estate magazine.

The California Association of REALTORS® is now accepting nominations for our first annual Champions of Home Awards. Click here for full eligibility criteria. Brokers, colleagues, local associations, or even clients may nominate a member of C.A.R., but members may not nominate themselves. To nominate someone for this award, simply complete a nomination form and return to C.A.R. by July 15, 2013.

Still have questions? See Award FAQs

California REALTOR Alert! Call your State Senator TODAY and ask them to vote NO on the Recording Tax

C.A.R. is OPPOSING SB 391 (DeSaulnier) which imposes a recording TAX to generate funds for affordable housing programs. SB 391 creates a $75 per document recording TAX to fund the affordable housing trust. C.A.R. is opposing this measure because it unfairly adds to the cost of recording real estate documents.

 If you are a California REALTOR®, check your email for an important message on how to call your Senator right away!

C.A.R. is an aggressive advocate for affordable housing, but believes it is bad policy to fund affordable housing at the expense of homeowners who need to record real estate documents. The real issue is that this TAX is imposed only on real estate document recordings. Affordable housing programs should be funded by the broadest base possible of California's citizens.

C.A.R. opposed the bill’s predecessor, SB 1220, last year until the bill was amended to exempt recordings that were part of a sales transaction. Afterward, C.A.R. supported the measure, but it was defeated. Don't be misled by allegations that C.A.R. "changed its position" on SB 391. C.A.R.'s Board of Directors considered SB 391 for the first time in May of this year; prior to that, C.A.R. did not take a position on SB 391. The sponsors were advised of this process well before the bill was introduced. In May, the Board of Directors voted to oppose SB 391.

C.A.R. is opposing SB 391 because:

• SB 391 unfairly targets property owners who need to record real estate documents to pay for affordable housing programs. Affordable housing is an issue of broad social concern. While there may be a need for affordable housing funds, it is unfair to require only those individuals recording real estate documents to be the sources of that funding. 
• SB 391 is a recording TAX. While it may not apply to sale transactions, it still applies anytime a homeowner needs to record a document (e.g., refinancing, transferring into or out of a trust, liens, quit claim deeds, etc.). 
• SB 391 provides no guidelines; it doesn’t prioritize affordable housing needs and requires little oversight. There is nothing in the bill that specifies how funds should be awarded and it provides little oversight as to the best uses of the funds. While it contains an audit requirement, that requirement doesn’t even kick in until the end of the program’s second year, when $1 billion could have already been distributed. And, it’s “geographic” approach to distributing the funds doesn’t ensure the neediest Californians benefit from the program. 
•  While C.A.R. aggressively supports the creation of homeownership opportunities, SB 391 is clearly not the way to achieve that goal.