Equal Opportunity - Cultural Diversity Committee
Rooms 306/307
Convention Center
Sacramento , California
1:10 PM - 2:50 PM
Presiding:
Raymond Rodriguez, Chair
Betty Moore, Vice Chair
Pam Winterbauer, Vice Chair
Steve White, Executive Committee
Liaison
Staff
Coordinators:
Carmen Petrinca, Membership Development
Manager
Jeff Keller, Public Policy
Analyst
I. Call to Order/Introductions -
Raymond
Rodriguez
II.
Legal Update - Gov Hutchinson, Assistant
General Counsel/Staff VP
III. Political Update - Jeff Keller
REPORT/DISCUSSION ITEMS
A. Housing
Stimulus
In April, the Senate passed a housing stimulus
package, H.R. 3221, the "American Housing Rescue and Foreclosure Prevention
Act of 2008". The intent of the package is to help homeowners avoid
foreclosure. In actuality, the bill passed by the Senate would do
little to help individuals avoid foreclosure. The final bill was full
of tax incentives directed towards lenders and homebuilders, along with FHA
reform that would severely cut the current higher loan limits implemented
under the first stimulus package, from $729,750 to $550,000. The
Senate bill includes:
-
Modernization of the FHA loan program and a permanent increase in the loan
limit rate to $550,000;
- Would allow
homeowners to claim a standard property tax deduction of $500 for single
filers and $1000 for married filers;
- A one-year/one-time
$7,000 tax credit (to be claimed over two-years) for homebuyers who
purchase a home in foreclosure;
- $4 billion in funds
to help states and local governments purchase abandoned
properties;
- Modifications to
mortgage bonds to allow them to be used to refinance qualified subprime
loans, up to $10 billion worth;
-
A
carryback tax provision that allows companies (including home builders) to
apply losses in 2008 and 2009 to taxes paid in the previous four years and
receive some of those paid taxes back (estimated cost of $25 billion
through 2010).
The House has amended the Senate housing stimulus
package with their owner version. The House version
includes:
- A permanent extension of the temporary
increase in the GSE and FHA loan limits from the first stimulus package
(729,750),
- A first-time homebuyer tax credit on principle residence of 10% of the purchase price, up to $7,500. Income limitations apply and the capped amount is reduced when an individual makes over $70,000 AGI or a joint filer makes over $140,000 AGI,
- Creates a standard deduction of $350 for individual or $700 for joint filer for property taxes,
- A FIRPTA fix,
- An increase in the VA loan limit for high-cost areas, and
-
Expanding FHA so it may purchase and insure troubled mortgages from
lenders.
On May 20, 2008 the Senate Banking, Housing, &
Urban Affairs committee marked up the "Federal Housing Finance Regulatory
Reform Act of 2008". Including in this bill was GSE Reform with
conforming loan limits increased to $550,000, FHA Reform, and the expansion
of FHA so it may purchase and insure troubled mortgages from lenders.
The tax provisions from the original Senate version of H.R. 3221 are
expected to be added before the bill reaches a full vote on the Senate
floor. The Senate hopes to have this passed before the August recess
and then there would likely be a conference committee formed to hammer out
the details between the House and Senate
versions.
B. Craigslist:
A three-judge panel for the 7th Circuit U.S. Court of
Appeals ruled in favor of Craigslist in a case involving violations of the
fair housing laws.
A Chicago Lawyers' Committee for Civil Rights had filed a lawsuit against
Craigslist because ads posted on the site were in violation of fair housing
laws. The ads had discriminatory language, such as "No Minorities",
"No Children", and "Clean, Godly Christian Male".
The lawyers argued that Craigslist was responsible for these posts under
the U.S. Communications Decency Act of 1996. Craigslist had argued
that they were not covered by the Act as the violation came from a third
party.
Craigslist had been found not liable in a previous case and the appeal
court affirmed that stance. They ruled that Craigslist was not liable
because they do not induce anyone"to post any particular listing or express
a preference for discrimination" and that you cannot sue the
"messenger".
C. Foreclosure Assistance: The Institute for Foreclosure Legal
Assistance, a project of the Center for Responsible Lending, has recently
announced that it has awarded $6.5 million in grants to 27 legal assistance
offices in 19 states, including California. The grants are the first
step in a multi-year program to bolster groups nationwide that are
assisting borrowers who face foreclosure.
The grants will be used to help local assistance groups hire attorneys
specializing in foreclosure prevention. The mission of the Institute
is "to help meet a desperate, growing need for quality legal assistance for
families who are victims of a hoax or crisis created by reckless subprime
lenders."
D. Mortgage Investigations: Federal agencies are intensifying
criminal investigations of the mortgage industry and focusing on whether
some lenders turned a blind eye to inflated income figures provided by
borrowers. The FBI and IRS have formed a task force to examine
mortgages that were made with little or no proof of the earnings or assets
of a borrower.
The task force has stepped up their investigation
in recent months as the financial industry announced billions of dollars in
additional write-downs.
IV. Loan Products for Consumers - Leah
Pears, CalHFA Leads Program & Outreach Manager
V. REALTOR® Panel: Working With Diverse Clients on
Short Sales & Foreclosures - Pam Winterbauer
Panelist: Veronica Arreola
VI. Other Business - Raymond Rodriguez
A. NAR Update - John
Wong, NAR Representative
VII.
Adjournment - Raymond Rodriguez
