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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
Caylyn Brown Monday, October 31st, 2011
Time is running out on the temporary extension of the National Flood Insurance Program (NFIP). After November 18, the NFIP will expire, if a longer term plan is not approved. The House has endorsed a five year plan which Congresswoman Matsui was very involved in and includes important updates for areas of Sacramento like [...]
Janelle Fallan Monday, October 17th, 2011
 The Sacramento Association of REALTORS® has renewed its partnership with the Sacramento Metropolitan Air Quality Management District (SMAQMD). SAR previously partnered with SMAQMD to distribute thousands of “Check Before You Burn” flyers to educate residents about approved burning days for wood stoves and fireplaces. This program was a great success in helping SMAQMD meet [...]
Caylyn Brown Thursday, October 13th, 2011
On October 6, 2011, the Senate Finance Committee held another in a series of hearings on tax reform, this time focusing on housing incentives. Five witnesses testified from a variety of perspectives, but they were unanimous on one point: Now is not the time to make any changes to the mortgage interest deduction (MID). [...]
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
Caylyn Brown Thursday, September 29th, 2011
On September 26, 2011, the Senate passed the Continuing Appropriations Act (H.R. 2608), which also includes a provision extending the National Flood Insurance Program (NFIP) until November 18, 2011. Next week, the House is expected to approve this extension and has ensured that there will be no lapse in NFIP authority in the interim. [...]
Dave Tanner Thursday, September 29th, 2011
 A new rule originally published by the Federal Trade Commission and now transferred to the Consumer Financial Protection Bureau became effective August 19, 2011. The rule applies to mortgage information being provided to consumers.
I imagine now many of you are thinking that you do not care because you do not do loans. Unfortunately the law is written so broadly that you may still be covered by its provisions.
If you just tell a consumer that mortgage rates are about 4% you are probably ok. If you tell them mortgage rates are about 4% with 20% down for 30 years you are probably subject to the rule. Likewise if you provide a consumer a lender rate sheet or leave rate sheets laying out at your open house, you must comply with the rule.
Not only does the new law require certain disclaimers be made to consumers, it also requires you to keep a copy of any notices or rate sheets you provide to consumers for at least two years. They need to be maintained within the broker’s record retention system so that they can be provided to regulators upon request.
If you are particularly industrious and want to read the entire 22 pages of the rule you can go to the Federal Register and search for 16 CFR Part 321.
NAR has published a two page Letter of the Law article which can be downloaded at www.realtor.org/letterlw.nsf/pages/0811maprule?opendocument&login&Print=Yes.
Continue reading: The New MAP Rule From the FTC
Caylyn Brown Thursday, September 15th, 2011
On September 8, 2011, the Senate Banking Committee unanimously approved the “Flood Insurance Reform and Modernization Act,” sending it to the full Senate for consideration. This is the Committee’s response to the NFIP reform bill H.R. 1309 passed by the House earlier this year. Similar to the House bill, this one would also provide [...]
Caylyn Brown Thursday, August 4th, 2011
The debt ceiling agreement signed into law on August 2, 2011 has no direct impact on real estate tax rules or spending provisions. No tax laws of any kind were changed, nor were any housing programs cut. The debt ceiling passed the House and Senate on strong bipartisan votes: 269-161 in the House and [...]
Caylyn Brown Monday, July 18th, 2011
In a major victory for REALTORS®, Governor Brown signed into law a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders [...]
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