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In This Issue
Commercial Real Estate Lending
NAR Supports Credit Union Lending Bill
Government - Sponsored Enterprises
NAR/ALTA Seek Freddie Short Sale Affidavit Changes
Government-Sponsored Enterprises Reform
NAR Testifies Before Congress that the Government Plays Valuable Role in Homeownership
Short Sales
Treasury Department Holds Short Sale Outreach Event for Real Estate Professionals
Commercial Real Estate Lending
NAR Supports Credit Union Lending Bill
On Wednesday, October 12, the U.S. House Financial Services Subcommittee on Financial Institutions and Consumer Credit held a hearing on credit union member business lending. NAR sent a letter in support of H.R. 1418, the Small Business Lending Enhancement Act of 2011 (Royce, R-CA), which would raise the cap on member business lending from 12.25% to 27.5% of total assets for well-capitalized credit unions. This would allow credit unions to fill in the commercial real estate financing gap, and help get capital to the struggling small businesses who occupy commercial buildings. NAR will continue to engage with Congress and other stakeholders to push for a raise of the business lending cap for credit unions.
Vijay Yadlapati, 202-383-1090
Government - Sponsored Enterprises
NAR/ALTA Seek Freddie Short Sale Affidavit Changes
On October 14, 2011, NAR and the American Land Title Association (ALTA) asked Freddie Mac to amend its short sale affidavit policies that are designed to prevent fraud by requiring the buyer, the seller, the real estate brokers, the escrow/closing agent, and any transaction facilitator to make various certifications. While NAR and ALTA support Freddie’s efforts to fight short sale fraud, our members have raised concerns about the policy and its implementation by servicers. We believe that certifications should be based on actual knowledge and should not impose liability on an innocent party for the false certification of another. Any liability should be limited to the loss attributable to the particular false certification, and the total liability should not exceed the amount of the deficiency. In addition, nothing in the affidavit should suggest that the real estate broker or agent or the closing agent are parties to the sales contract or that the affidavit overrides the listing agreement.
Jeff Lischer, 202-383-1117
Charles Dawson, 202-383-7522
Tony Hutchinson, 202-383-1120
Government-Sponsored Enterprises Reform
NAR Testifies Before Congress that the Government Plays Valuable Role in Homeownership
On Thursday, October 13, 2011, NAR 2011 President-Elect, Moe Veissi, outlined the Association's recommendations for housing finance reform before the House Financial Services Subcommittee on International Monetary Policy and Trade. During Mr. Veissi's testimony, he indicated that NAR supports H.R. 2413, the "Secondary Market Facility for Residential Mortgages Act of 2011", introduced by Reps. Gary Miller (R-CA) and Carolyn McCarthy (D-NY), because the legislation directly reflects NAR's recommendations. H.R. 2413 is comprehensive legislation that will provide for a continued federal government role in the secondary mortgage market in order to ensure (1) that there is a consistent flow of mortgage capital to all markets in all economic conditions, and (2) the existence of long-term, fixed-rate mortgage products (e.g. the 30-year fixed-rate mortgage).
Tony Hutchinson, 202-383-1120
Jeff Lischer, 202-383-1117
Charles Dawson, 202-383-7522
Short Sales
Treasury Department Holds Short Sale Outreach Event for Real Estate Professionals
On October 12, 2011, the Treasury Department, in collaboration with the National Association of REALTORS® and the Arizona Association of REALTORS®, held a Making Home Affordable “Help for Homeowners” outreach event in Phoenix, AZ and piloted a session for real estate agents wanting to learn more about the Treasury Department’s Home Affordable Foreclosure Alternatives (HAFA) program. NAR urged the Treasury Department to engage real estate professionals at Making Home Affordable community outreach events to increase participation in the HAFA program and expedite short sales transactions. In addition to informational sessions for real estate professionals wanting to learn more about the program, agents and brokers had the opportunity to work on solutions to difficult HAFA transactions with loan servicers face-to-face. NAR continues to collaborate with the Treasury Department on HAFA improvements and promoting the development of a streamlined short sale process beyond the expiration of the program scheduled for the end of 2012.
Charles Dawson, 202-383-7522
Jeff Lischer, 202-383-1117
Tony Hutchinson, 202-383-1120