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Last week, the California State Legislature passed a Conference Report that was a key element of the California Attorney General’s package of bills making up a “Homeowners Bill of Rights.”
The legislation is intended to codify the national negotiated settlement between the state’s Attorney General and major banks. The California Association of REALTORS® (C.A.R.) had opposed the legislation because it felt, while well-meaning, the legislation would encourage the filing of frivolous lawsuits that would delay the foreclosure process and further discourage lending.
While C.A.R. is disappointed in the final outcome, the bill passed by lawmakers is a much improved version of the package of bills initially sponsored by the Attorney General. The original bill would have halted all foreclosures, drying up both REO inventory and even short sales.
“The good news is what has passed is an improved version of the package of bills initially sponsored by the Attorney General. During Legislative Day in May, REALTORS® from across the state traveled to Sacramento and spoke with their legislators against these complicated and harmful provisions. The Conference Committee ultimately did not include them in the final report,” said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
The Silicon Valley Association of REALTORS® (SILVAR) praises Congress for finally passing one of the real estate industry’s key legislative priorities, a 5-year reauthorization of the National Flood Insurance Program (NFIP), also known as the “Biggers-Waters Flood Insurance Reform and Modernization Act of 2012.” President Barack Obama is expected to sign it into law.
According to the National Association of REALTORS®, the 5-year reauthorization will bring certainty to real estate transactions in more than 21,000 communities nationwide where flood insurance is required for a mortgage. The bill ensures the program will continue long-term for more than 5.6 million business- and home owners who rely on it.
The passage of the flood insurance bill is the culmination of a successful multi-year REALTOR® campaign and a final push at the National Association of REALTORS® (NAR) Midyear Legislative Meetings & Trade Expo in May 2012. During their meetings SILVAR members joined thousands of REALTORS® nationwide and met with their members of Congress in Washington, D.C. and urged action on the National Flood Insurance Program (NFIP) and several other priority issues.
Since 2008, Congress had been extending the NFIP a few months at a time. Twice this led to shutdowns, including one that stalled more than 40,000 home sales in June 2010 alone. The NFIP will be in effect until Sept. 30, 2017.
The NFIP has averted $16 billion in losses by strengthening millions of properties against floods. Without NFIP, there would be more uninsured and unmitigated properties, taxpayers would still be “on the hook” for disaster assistance to these properties, and there would be no premiums to pay down any remaining loan balance or collect interest.
Silicon Valley Association of REALTORS® says ... 