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In This Issue
FHA Programs (Federal Housing Administration)
FHA Extends Anti-Flipping Waiver through 2012
Government - Sponsored Enterprises
Housing Taxed to Pay-for Extension of Existing Tax, Medicare, and Unemployment Benefits
FHA Programs (Federal Housing Administration)
FHA Extends Anti-Flipping Waiver through 2012
The Federal Housing Administration (FHA) announced that it will extend the temporary waiver of the anti-flipping regulations through December 31, 2012. This is part of FHA’s effort to help stabilize home values and improve conditions in communities experiencing high foreclosure activity. Terms of the existing waiver will remain in place. All other terms of the existing Waiver will remain the same, including conditions to prevent the predatory practice of property flipping, in which properties are quickly resold at inflated prices to unsuspecting borrowers. Compliance with the anti-flipping waiver requires that 1) all transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction; 2) in cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the lender must meet specific conditions and document the justification for the increase in value; and 3) the waiver does not apply to the Home Equity Conversion Mortgages (HECMs). In 2010, FHA temporarily waived this regulation through January 31, 2011, and later extended that waiver through the remainder of 2011.
Megan Booth, 202-383-1222
Jerome Nagy, 202-383-1233
Government - Sponsored Enterprises
Housing Taxed to Pay-for Extension of Existing Tax, Medicare, and Unemployment Benefits
The President signed into law legislation that will extend the payroll tax, maintain Medicare payments, and unemployment benefits on the back of the housing sector. Despite NAR's strong opposition to the diversion of housing resources to pay for non-housing uses, increases in Guarantee Fees on Fannie/Freddie mortgages and premium charges for FHA loans are being used to pay for the extensions. These increases will translate into additional costs for housing consumer and will divert fees needed to minimize the loss exposure of the government-sponsored enterprises, investors, and ultimately, the taxpayer. Read the letter NAR sent to Senate Majority Leader, Harry Reid (D-NV).
Tony Hutchinson, 202-383-1120
Jerome Nagy, 202-383-1233
Megan Booth, 202-383-1222