CaliforniaNAR Directors Issues Briefing Hilton New Orleans Riverside Hotel Grand Salon B, Section 9 & 12 Friday, November 10, 2006 8:30 AM– 9:30 SMPresiding: Ann Throckmorton, C.A.R. Federal Issues ChairStaff: Matt Roberts, Federal Governmental Affairs ManagerI. Welcome: Vince Malta, C.A.R. PresidentII. NAR Officer Election Reform Recommendations: Vince Malta(Please see attached )III. NAR Issues: Ann Throckmorton, C.A.R. Federal Issues Chair
A. Net Neutrality (H.R. 5252 – No Position
-Business Issues Committee Congress is currently considering legislation to amend the U.S. Telecommunications Act. Among the issues being debated is whether there is the need to codify the "net neutrality" principles that have guided the development of the Internet to date and, if so, how extensive or prescriptive those principles should be.NARwill address this issue and may take policy during these meetings. California’s NAR Directors may find the entire summary on this issue in the Business Issues Committee Agenda Summary (Please see attached ).
B.Natural Disaster Insurance (Support)
-Land Use, Property Rights and Environment Committee While Congress has held hearings on this issue during the 109th Session, they failed to vote on any of the proposed legislation. Congress is expected to revisit this issue in the 110thSession of Congress. NAR’s Land Use, Property Rights and Environment Committee is expected to devote a portion of their meeting time to discussing this issue. Discussions will include how this issue impacts multiple states and what should be included in final legislation.
C. Retirement Visas (No Position)
-BusinessIssues Committee There are a number of retired foreigners who cannot use their U.S. property on a full-time basis because of visa restrictions which require them to return to their home country. NAR’s Business Issues Committee will be discussing this issue and may take policy. Some NAR members have asked if a new Visa designation should be created for retired foreigners to allow them to remain in the U.S. for a greater part of the year or over a multi-year period (Please see attached ).
D. Expanding American Homeownership Act (H.R. 5121 & S. 3535– Support)
-Federal Housing Policy Committee Reps. Waters (D-CA), Miller (R-CA) and Tiberi (R-OH) have introduced H.R. 5121, the "Expanding American Homeownership Act of 2006". This bill would make six major changes to FHA:
It would eliminate the 3% downpayment requirement, thus allowing FHA to offer flexible downpayment terms; raise the cap on loan terms from 30 to 40 years; increase the FHA loan limits to 65% of the conforming loan limit (from 48%), bringing the current limit to $271,050, and in high costs areas to 100% of the conforming limit, which currently is $417,000; allow FHA to use risk-based pricing for their premiums; move the condominium loan program to the 203b fund, and eliminate the cap on reverse mortgages. This bill passed the House Financial Services Committee on May 24, 2006. In addition, four of the provisions (loan limits, downpayment, risk based pricing, and reverse mortgages) were included in the TTHUD Appropriations bill (HR 5576) that passed the House on June 14, 2006.
Senator JimTalent (R-MO) has introduced companion legislation in the Senate (S. 3535). NAR President Tom Stevens testified at a hearing in the Senate Banking, Housing Subcommittee on June 20, 2006. However, the Senate Appropriations Committee only included the reverse mortgage language in their Appropriations bill.
E. Data Security (No Position)
-Business Issues Committee NAR‘s Business Issues Committee will address the issue of proposed data security legislation and it’s impact on small businesses and existing state law.
F. Consumer Report Trigger Issue (No Position)
-Conventional Finance & Lending Committee Many real estate professionals have complained about the practice of credit bureaus selling lists of recent mortgage applicants to so-called "lead generators" that in turn compile the information and resell it to third parties. (A full summary of this issue may be found in the Conventional Finance & Lending Committee’s Agenda Summary).
G. 2007 Conforming Loan Limits
- The Office of Federal Housing Enterprise Oversight (OFHEO) is preparing to release the 2007 conforming loan limit for Fannie Mae and Freddie Mac. The current 2006 conforming loan limit is $417,000. The Federal Housing Finance Board’s year to year statistics show a small decrease of approximately 3% in the national median home price. This is of great concern to C.A.R. because California’s year to year median home prices have increased by approximately 2% to $553,050 for the month of September. There isthe real possibility that OFHEO, who is in charge of the safety and soundness of the GSEs, may choose to lower the conforming loan limit for 2007. This would lead to an increase in the cost of home buying in California.IV. New Business
