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 Beth L. Peerce  Tuesday, November 8th, 2011  Dear Member,
Last month I informed you that Congress failed to extend the Fannie Mae, Freddie Mac, and FHA conforming loan limits and allowed them to expire Sept. 30. Since then, the Senate passed an amendment to an appropriation bill that would restore the $729,750 loan limits through December 2013. The Senate and House are now working out the differences between the Senate bill and the House bill, which the House passed earlier this year, but it did not reinstate the higher loan limits. If the House and Senate agree on a final bill, we will have a two-year extension to the conforming loan limits. C.A.R. is also working with the California Congressional Delegation to ensure this provision is included in the final bill.
C.A.R. and NAR are now working to get support for the extension in the House, but we need your help also. Please look for a Call for Action email from NAR asking you to call Sen. Dianne Feinstein and possibly other members of Congress. Please act now and urge your representative to extend the higher loan limits for GSEs and FHA. Well-qualified buyers don’t need another hurdle to access affordable mortgage financing.
Big changes on the way to help millions of distressed borrowers. Late October, the Federal Housing Finance Agency (FHFA) announced important changes to the Home Affordable Refinance Program (HARP) to help millions of underwater borrowers whose mortgages are backed by Fannie Mae and Freddie Mac. The changes will allow borrowers who are current on their mortgage payments to save an average of $2,500 a year by refinancing their mortgages, regardless of what their homes are worth. The revamped HARP Program will also streamline the refinancing process, eliminating certain types of appraisals and underwriting requirements, and reducing or eliminating fees that prevented homeowners from refinancing in the past.
The FHFA is working on details of the new rules, which should be finalized by Nov. 15. Banks may be able to start issuing refinanced loans by Dec. 1. We’ll continue to keep you updated on this issue.
Continue reading: C.A.R. Monthly Message from President Beth L. Peerce – November 2011
Beth L. Peerce Friday, October 28th, 2011
Dear Member,
In August, we had the pleasure of announcing C.A.R.’s brand-new 2011 consumer advertising campaign, “California REALTORS®. Champions of Home.” It’s been airing on cable, TV, radio, and online. Today, I’m thrilled to kick-off the campaign’s social media effort, C.A.R.’s first-ever Facebook contest, called “Stories of Home.” This contest features a new app [...]
Beth L. Peerce Monday, October 10th, 2011
October 10, 2011
Dear REALTORS®,
Important news on the housing policy front. Despite efforts by C.A.R. and NAR to fight for an extension of Fannie Mae, Freddie Mac, and FHA conforming loan limits, Congress failed to extend the $729,750 loan limits and allowed them to expire Sept. 30. This means the maximum loan amount that Fannie, Freddie, and FHA will buy or guarantee is $625,500, and anything above that amount will be non-conforming and will require a jumbo loan. These loans typically carry a higher mortgage interest rate and require a higher down payment, increasing the monthly payment, which will particularly be hard on middle-class buyers and sellers.
However, I’d like to applaud Rep. Gary Miller (R-Calif.) and Brad Sherman (D-Calif.) for jointly introducing a bill that would have made the current loan limits permanent, and Congressman John Campbell (R-Calif.), who introduced a bill that would have extended the current loan limits. And of course, California Senator Dianne Feinstein, who introduced a bill in the Senate that would have extended the conforming loan limits.
C.A.R. and NAR will continue to work with Congress to attempt to restore the higher limits as quickly as possible.
View the new loan limits.
Continue reading: C.A.R. Monthly Message from President Beth L. Peerce
Beth L. Peerce Friday, May 13th, 2011
Dear C.A.R. Member,
Greetings from Washington, D.C.! This week, your Leadership Team and I are in our nation’s capital, meeting with California’s congressional delegates and representatives from leading housing industry groups, including Fannie Mae and Freddie Mac, Federal Housing Finance Agency, and others.
This is a busy time of year in the legislative arena, on both the national front and in California. Last week, nearly 2,000 members of the REALTOR® Party of California were out in full force in Sacramento for the Association’s annual Legislative Day activities, which included a march to the Capitol. Many of you met face-to-face with your state legislators to discuss the issues that affect our industry — and your livelihood. I want to thank you for participating in Legislative Day because it’s more important than ever to make certain our interests are represented and that our voices are heard before elected officials craft legislation that impacts our industry.
For example, one impending issue that will significantly impact our industry is the future of Fannie Mae and Freddie Mac, the government sponsored enterprises (GSEs) that purchase or guarantee mortgage-backed securities on the secondary mortgage market. Congress has been debating changes to the GSEs. Proposals for “reform” include legislation to phase out and eventually eliminate Fannie and Freddie altogether. Elimination of the GSEs, which purchased or securitized two out of every three loans written in 2010, would have grave consequences for home buyers and sellers, the real estate market, and the economy as a whole. Almost overnight, financing would dry up. Interest rates would increase, and borrowers would be forced into the exotic loan products that helped create the current financial climate. These are scenarios the struggling housing market can ill afford now.
It’s important that REALTORS® understand the potential damaging effects of phasing out Fannie and Freddie. For more details about the GSEs and their importance to real estate housing finance.
Continue reading: C.A.R. Monthly Message May 2011
Beth L. Peerce Wednesday, March 9th, 2011
Dear REALTORS®,
As you may know, C.A.R. has been working on numerous efforts to address your concerns about the difficulty of working with short sales.
To that end, I want to give you advance notice of perhaps one of our most visible activities to date, and one that may be a first in C.A.R.’s 100-plus-year history.
Tomorrow, C.A.R. is placing an open letter advertisement in California’s seven largest daily newspapers, calling on lenders and industry regulators to streamline and improve the short sale process. C.A.R. is taking a leadership role in this effort by getting this letter published and pointing out lenders’ and servicers’ unworkable short sale processes. We’re also appealing to various constituencies, such as regulators, elected officials, nonprofits, business organizations, companies, and individuals to join us so that more families are able to arrange a short sale, rather than lose their homes.
In the letter, I write, “With the number of homeowners who owe more than their mortgage is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012. Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.”
Continue reading: C.A.R. Short Sale Update
Beth L. Peerce Tuesday, March 8th, 2011
Dear REALTORS®,
Over the past few months, I’ve been sharing with you the many things that C.A.R. has been doing to address your concerns related to short sale transactions. We recently conducted a survey to obtain information about members’ experiences working with lenders in distressed transactions. The results of the Short Sale Lender Satisfaction Survey were released just today, and I’d like to reveal some of the findings to you. (See the full results.)
- The survey found that fewer than three in five short sales close in California, which illustrates the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures.
- The most frequent problems REALTORS® cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays – problems that many of you probably have experienced firsthand.
Overall, the survey results show that the short sales system is clearly flawed and must be standardized and streamlined to reduce the inventory of foreclosures. I want you to know that C.A.R. has been working on many fronts to make this happen. It has appointed two distinct task forces just to help address this issue. In addition to conducting the Short Sale Lender Satisfaction Survey, another of the action items the task forces have undertaken is writing an open letter to consumers focusing the spotlight on short sales.
Continue reading: C.A.R. Monthly Message March 2011
Beth L. Peerce Tuesday, January 11th, 2011
Dear C.A.R. Member,
A new year, and with it, new beginnings and new opportunities. I’m looking forward to meeting the challenges that invariably present themselves as the new year gets underway.
One of the challenges I know many of you have been dealing with is working with short sale transactions, and I promised last month to keep you informed on C.A.R.’s efforts to address your concerns.
First, just last week I, and other C.A.R. officers, met with officials at Bank of America to ask for their commitment in streamlining and improving their short sale process. The bank has agreed to meet with our Distressed Properties task force in the very near future to discuss ways to ensure a smoother short sales process. We’ll also be meeting with the other major lenders over the next several weeks and will share any outcome with you.
Additionally, C.A.R. recently sent letters to officials at the U.S. Treasury Dept., Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency requesting immediate changes to the HAFA program and recommending solutions so the program can succeed. The letter attracted the attention of the banking trade American Banker, which ran an article last Thursday noting C.A.R.’s concerns about the dearth of HAFA short sale closures. The article is sure to be noticed by the lenders and servicers who greatly need to make immediate changes. Read the letter to industry regulators.
We will continue to remain vigilant in the area of short sales, so stay tuned for further updates.
Continue reading: C.A.R. Monthly Message January 2011
Beth L. Peerce Tuesday, December 14th, 2010
Dear C.A.R. Member,
It’s hard to believe this year is soon coming to a close. We’ve accomplished a lot over the past year, but we still have much to do in 2011.
For instance, we know we will have to defend changes to the mortgage interest deduction (MID). In late November, President Obama’s Deficit Reduction Commission released its preliminary recommendations, and one of the provisions called for dramatically limiting the MID. Since then, the commission failed to win enough votes to approve the recommendations. However, it is very likely that legislation will be introduced next year to curtail the MID. Few issues are more important to homeownership than the mortgage interest deduction, and while the housing market continues to recover, any change that reduces the ability of the market to heal is misguided and must be rejected.
I want to thank everyone who responded to NAR’s Call for Action and urged their member of Congress to preserve the MID. Last week, NAR issued a new Call for Action asking all REALTORS® to call their state senators and ask them to defend the MID. I urge you to contact Sens. Dianne Feinstein and Barbara Boxer to voice your concerns today about limiting the MID.
In my first message to you last month, I mentioned that one of my goals this year as C.A.R. President is to help you, the REALTOR®, earn a living. I know many of us have been having a very difficult time working with lenders on short sales. Please be assured that C.A.R. has been working on several fronts to help you more easily deal with short sales and distressed properties.
Continue reading: December Message from C.A.R. President Beth L. Peerce
Beth L. Peerce Wednesday, December 1st, 2010
Dear C.A.R. member:
I’m sure you have heard about the White House’s proposal for reducing the federal budget deficit and the proposed changes to the mortgage interest deduction included within it.
Few issues are more important to homeownership than the mortgage interest deduction (MID). As the housing market continues to recover from the worst financial crisis in recent history, any change that reduces the ability of the market to heal is misguided and must be rejected.
I want you to know that C.A.R. strongly opposes any changes that would modify or reduce the mortgage interest deduction. The deductibility of interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years.
The proposal from the Deficit Reduction Commission will negatively impact the housing market, further erode opportunities for homeownership across the country, and will contribute to further price declines and diminished equity for homeowners by as much as 15 percent.
C.A.R. and NAR will remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest and make certain that the real estate industry’s opposition to this proposal is heard and its far-reaching implications understood.
Continue reading: C.A.R. Opposes Proposed Changes to Mortgage Interest Deduction
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