Agenda Summary National Association of REALTORS® 2012 REALTORS® Conference The Peabody Orlando Orlando Ballroom L, Convention Level Friday, November 9, 2012 9 a.m. – 11:30 a.m.
Chair: Claire Williams Vice Chair: Kay Wirth Committee Liaison: Bob Kulich Committee Executive: Megan Booth
I. Call To Order NAR Ownership Disclosure & Conflict of Interest Policy
II. Approval of 2012 MidYear Meeting Minutes
III. Guest Speaker Charles Colter, FHA Michael Frueh, VA
IV. FHA Condo Policies
V. Legislative/Regulatory Updates A. FHA REO pilot program HUD has created the FHA Distressed Asset Stabilization Program to sell pools of defaulted mortgages that have exhausted all FHA foreclosure avoidance steps, and thus foreclosure is imminent. There are actually two programs. The Distressed Asset Stabilization Program (DASP), and a sub program called the Neighborhood Stabilization (NS) pools of notes. To qualify for the programs the loan must be: o At least six-months delinquent o The servicer has exhausted all steps in the FHA loss mitigation process o The servicer has initiated foreclosure proceedings, and o The borrower is not in bankruptcy.
Under the NS program (expected to be roughly 3,500 loans in four cities, none located in California): o Foreclosures are delayed for six months o Only 50 percent of the mortgages may be sold as REO properties o The remaining 50 percent must realize a “Neighborhood Stabilizing Outcome”:
Under the DASP, which is expected to have approximately 5,000 notes nationwide per quarter, the buyer must try to modify the mortgage and is unable to foreclose for six months.
B. Rural Housing definition/funding Under current law, The Department of Agriculture (USDA) must revise the list of communities eligible for RHS Section 502 loans based on 2010 census data. Without Congressional Action, nearly 900 communities in 48 states will be dropped from the program.
Unfortunately for small but growing communities, USDA will soon have to use a definition of eligibility not updated since 1974. Without Congressional action, access to the RHS Section 502 loans will be limited, thus impacting thousands of homeowners nationwide. Section 502 loans can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. These loans are funded by private lenders and insured by the RHS. The Section 502 Program is self-funded and budget neutral, meaning that broadening the population definition will not place additional financial burden on American taxpayers. In 2011, the RHS helped nearly 140,000 American families become homeowners.
C. VA Loans Mortgages guaranteed by the Department of Veterans Affairs reached their highest level since 1994 after rising by 50% in the most recent fiscal year.
Originations for VA loans have risen as interest rates have dropped, subprime lending has dried up and credit standards for conventional financing have tightened. For the fiscal year that ended Sept. 30, the department guaranteed almost 540,000 loans, up roughly 300% from five years ago, the New York Times reported on Thursday. About 338,000 of those loans were for refinancing.