For additional information on any legislative issues, please contact Peter Stoller, RCE, GRAR Director of Communications & Government Affairs, via e-mail or at 585-341-2131.
Proposed Monroe County "Home Buyer/Renter Notification Act" (September 6, 2011)
The Democratic Caucus of the Monroe County Legislature introduced legislation that would require real estate agents to provide documentation referencing the public databases available to obtain information on the location of registered sex offenders to all prospective home buyers and renters. GRAR has been involved every step of the way and will continue to work with the legislative leaders to ensure that our profession is protected. While GRAR strongly supports efforts to increase educating the public of the resources available for the notification and location of registered sex offenders, we do not believe the real estate transaction is the appropriate mechanism to facilitate or fulfill the intent of this legislation. We will keep you updated on the activity of this issue. Click here to view the proposed law.
Real Estate Affects of a Government Shut-down (April 8, 2011)
While the true impact of a shutdown is unclear until it actually begins below is a synopsis of how federal housing programs will likely operate in the event of a shutdown. The Office of Management and Budget (OMB) requires each agency to have contingency plans in place and reportedly has instructed agencies to not provide specific information on impacted operations.
- Federal Housing Administration - FHA cannot offer endorsements for any new loans in the Single Family Program and cannot make commitments in the Multi-family Program in the event of a shutdown. FHA will maintain operational activities including paying claims and collecting premiums. Management & Marketing (M&M) Contractors managing the REO portfolio can continue to operate.
- VA Loan Guaranty Program - No impact.
- Internal Revenue Service (IRS) - The IRS cannot process federal income tax returns or issue refunds (but it can deposit tax payments). Consumers who were expecting to use their tax returns as part of the down payment for a home purchase will temporarily not have access to these refunds.
- Flood Insurance (NFIP) - No impact.
- Rural Housing Programs - For the US Department of Agriculture programs, essential personnel working during a shutdown do not include field office staff who typically issue conditional commitments, loan note guarantees, and modification approvals. Thus, lender will not receive approvals during the shutdown. If the lender has already received a conditional commitment from the Rural Development office, then the lender may proceed to close those loans during the shutdown. A conditional commitment, which is good for 90 days, is given to a lender once a USDA Underwriter approves the loan. If a commitment was already issued, the funds were already set aside and the lender may close the loan at its leisure. If Rural Development has not issued a conditional commitment, the lender must wait until funding legislation is enacted before closing a loan.
- Government Sponsored Enterprises - No impact on Fannie Mae, Freddie Mac, and their regulator, the Federal Housing Finance Agency.
- Treasury - No official word as of yet, but the Making Home Affordable program, including HAMP and HAFA, may not be affected as the program is funded through the Emergency Economic Stabilization Act which is mandatory spending not discretionary.
REMINDER: 2008 First-time Homebuyer Tax Credit Recipients (January 1, 2011)
As a reminder, if you have any clients who qualified for and received the 2008 First-Time Homebuyer Tax Credit of $7,500, they will need to begin repaying the "zero-interest loan" this year on their 2010 tax returns. Click here for more information.
GRAR makes 2010 Candidate Endorsements (October 22, 2010)
Earlier this month the IMF Trustees interviewed candidates running for office at the State level. The races the committee looked at were for New York State Senate & Assembly. Click here for a list of GRAR's endorsed slate of candidates who will best represent our philosophy to advance real property rights and promote a strong, healthy business environment for real estate professionals.
Energy Labels (Cap & Trade) & National 4% Transfer Tax (Health Care Reform) Myths (July 15, 2010)
In early 2010, two e-mail chains have circulated amongst REALTOR® members and other industry professionals and have generated a lot of confusion as a result. One with the subject, "Homeowners Listen Up!," made the claim that pending legislation in the Senate would require an energy license or label or retrofit for home sales...THIS IS FALSE. The other e-mail, with the subject "National Real Estate Transfer Tax," made the claim that the health care bill contains a 4.0 percent "transfer tax" on all home sales...THIS IS ALSO FALSE. Click here for the truth and clarification behind these claims.
Homebuyer Tax Credit (June 30, 2010)
After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance & Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is now September 30, 2010. There will be no gap between June 30 and when the President signed the bill into law on July 2nd.
Fannie Mae & Freddie Mac Release New HAFA Guidelines (June 16, 2010)
On June 1, 2010, Fannie Mae and Freddie Mac each released guidelines for implementing the Treasury Department's Home Affordable Foreclosure Alternatives Program (HAFA). These new guidelines apply instead of the HAFA guidelines for non-GSE mortgages. Servicers are required to implement these policies no later than August 1, 2010. While largely consistent with the HAFA guidelines for non-GSE mortgages, Fannie and Freddie have each made some important differences. Click here for details and links to more information.
Mandatory Carbon Monoxide Detector Law (Feb. 22, 2010)
Effective February 22, 2010, this law requires you to have a carbon monoxide detector within each dwelling unit or sleeping unit where a carbon monoxide source is located or garage is attached, regardless of the year built and regardless of whether or not the dwelling is up for sale. “Amanda’s Law” is an expansion of the 2002 law signed by then-Governor Pataki that required carbon monoxide detectors to be installed at the point of sale for existing or new construction dwellings; now ALL residential dwellings must have them similar to the smoke detector law. Click here for a one-page summary breif on this new law.
New Short Sales Program (Feb. 9, 2010)
NAR has issued a brochure to help members understand the new Home Affordable Foreclosure Avoidance Program (HAFA) that takes effect on or before April 5, 2010. The purpose of the program is to help homeowners, who are unable to retain their homes under the Home Affordable Modification Program (HAMP), avoid foreclosure through a short sale or a deed in lieu of foreclosure. HAFA includes uniform procedures, standards forms and deadlines. This program has the potential to revolutionize short sales, but its success will depend on the implementation by servicers and cooperation by investors and subordinate lien holders. Fannie Mae and Freddie Mac are tweaking the rules for their own programs.
FHA Regulatory Changes (Jan. 25, 2010)
On January 20, 2010, FHA announced major changes to ensure its long-term financial soundness. FHA is trying to balance three fundamental objectives: 1) financial soundness of the FHA insurance fund – ensuring that its capital ratio returns above 2 percent, 2) fulfilling its mission of serving borrowers not adequately served by the private sector and 3) facilitating the recovery of the housing industry and the over-all economy. Click here for a brief description of the changes and a table with the expected timeline of the announced changes.
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