Meeting Notes – Real Estate Finance CommitteeHyatt Grand Champions Hotel Indian Wells Ballroom, Joshua Tree Room Indian Wells, CA Thursday, January 24, 2008 9:00 am – 11:30 amPlease Note: Only the C.A.R. Board of Directors may take action on behalf of the California Association of REALTORS®; not individual committees. The Summary of Action Items for the Board of Directors may be found at: http://www.car.org/index.php?id=MzgyNDc.The archive section for each committee, including meeting materials for each committee, may be found at https://www.car.org/index.php?id=MjMy. Set out below is a summary of Real Estate Finance Committee activity, including the additional action on those items (if any) by other C.A.R. bodies.
CALL TO ORDER The Chair convened the meeting of the Real Estate Finance Committee at 9:00 AM.
ACTION ITEM – FHA Risk Based Pricing
A motion was made and seconded:
That C.A.R., in conjunction with NAR, modify its existing policy on risk-based pricing for the FHA mortgage insurance programs so it: --Does not disadvantage the market FHA was designed to serve, --Does not rely solely on FICO scores but considers compensating factors; including, but not limited to rental, cellular phone, utility, insurance premiums and medical payment history, --Does not mandate a specific down payment for purchase borrowers, but instead adjust pricing based on down payment and loan-to-valueratio, and --Does not use risk based pricing models to qualify borrowers. Real Estate Finance Committee: Approved Federal Issues Committee: Approved Executive Committee: Approved Board of Directors: Approved
ACTION ITEM - Preservation of Affordable Housing
A motion was made and seconded:
That C.A.R., in conjunction with NAR, support the development and preservation of affordable housing through the creation of a National Affordable Housing Trust Fund that does not take money away from other federal, state and local housing programs; and oppose any Trust Fund whose sources of funding negatively impact housing prices, transaction fees or loan costs.
Real Estate Finance Committee: Approved Federal Issues Committee: Approved Executive Committee: Approved Board of Directors: Approved
ACTION ITEM- Federal Subsidies
A motion was made and seconded:
That C.A.R., in conjunction with NAR, accept the end of federal subsidies for non-primary residences that were built pre-Flood Insurance Rate Maps (FIRM) and are required to have flood insurance; but, the program must provide comprehensive coverage for second homes, vacation homes and rental properties.
Real Estate Finance Committee: Approved Federal Issues Committee: Approved Executive Committee: Approved Board of Directors: Approved
ACTION ITEM - National Flood Insurance Program
A motion was made and seconded:
That C.A.R., in conjunction with NAR, support allowing the National Flood Insurance program to offer coverage for wind.
Real Estate Finance Committee: Approved Federal Issues Committee: Approved Executive Committee: Approved Board of Directors: Approved
ACTION ITEM - Subprime and Mortgage Reform
A motion was made and seconded:
That C.A.R., in conjunction with NAR, increase the REALTORS® presence on Capitol Hill while congress is debating the issue of subprime and mortgage reform. This would include utilizing NAR’s and C.A.R.’s existing policy to advocate for or against individual provisions within subprime and mortgage reform bills.
Real Estate Finance Committee: Approved Federal Issues Committee: Approved Executive Committee: Approved Board of Directors: Approved
