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During the National Association of REALTORS® 2012 Midyear Meetings on May 14-19, REALTORS® met with Members of Congress and urged action on NAR’s priority issues, including the National Flood Insurance Program (NFIP). SILVAR is happy to learn that the U.S. Senate today passed a 60-day extension of the NFIP, avoiding a lapse in the program which was set to expire on May 31. (The U.S. House of Representatives voted on a separate measure, H.R. 5740, to extend the NFIP for 30-days last week.) A lapse would have affected thousands of real estate closings across the nation.
While this extension is a positive development and will ensure program continuity, it is not the long-term solution that NAR has been advocating. NAR is firmly committed to working with our congressional allies on passing a five-year National Flood Insurance Program reauthorization and reform bill. The bill, H.R.1309 – the Flood Insurance Reform Act of 2011, passed the House of Representatives and is awaiting action in the Senate.
The current program will be extended for 60 days to allow additional time for the Senate to take up and pass the Flood Insurance Reform Act of 2011. While NAR expects the bill to be passed, it remained an unfinished item at press time.
NAR thanks members who pushed their Senators to take up H.R.1309. Their efforts helped move NAR very close to its goal. SILVAR members were among the 13,000 REALTORS® at the State Capitol who urged legislators to pass the extension.
SILVAR’s delegation of REALTORS® joined an estimated 15,000 REALTORS® who converged on the grounds of the Washington Monument yesterday to make their voices heard on behalf of homeowners, real estate investors, and those who aspire to homeownership.
At the “Rally to Protect the American Dream,” REALTORS® from every state in the country joined invited members of Congress to demonstrate their commitment to preserving access to homeownership and robust real estate investment.
This week SILVAR members joined their fellow REALTORS® from across the nation and convened in our nation’s capital for the National Association of REALTORS® Midyear Business Meetings and visits with members of Congress, including U.S. Representatives Anna Eshoo and Mike Honda during the meetings.
The SILVAR delegation included SILVAR President Suzanne Yost, President-Elect Carolyn Miller, NAR Directors Jeff Barnett, Jim Hamilton, John Tripp, C.A.R. Directors Leannah Hunt, Susan Tilling, Federal Political Coordinator and SILVAR PAC Trustee Carole Feldstein and Joanne Fraser.
Below are the issues that were brought to the attention of our legislators.
REO Bulk Sale Initiative
FHFA (Federal Housing Finance Agency) has announced a pilot program to bulk sale 484 properties in Riverside/San Bernardino/Los Angeles counties, though no date has been set for these sales. Nineteen members of California’s Congressional Delegation have signed on to a letter to Acting Director Edward DeMarco stating their opposition to a proposed bulk sale pilot program for Fannie Mae REOs. Many members of Congress on both sides of the aisle have been frustrated with how Edward DeMarco has utilized the GSEs in addressing their distressed properties and as a tool to address the housing market.
REALTORS® informed members of Congress that bulk sales of Fannie Mae and Freddie Mac properties will cost the tax payers money because they will be sold for less than what they could receive if these properties were sold individually.
Preserve the Mission and Purpose of the FHA Program
The House Financial Services Committee has passed H.R. 4264, the “FHA Emergency Fiscal Solvency Act of 2012,” that will provide FHA (Federal Housing Administration) with additional tools to mitigate risk without overburdening consumers. Several members of Congress have written to the U.S. Department of Housing and Urban Development (HUD) to express concern over FHA’s condominium policies that make it very difficult to purchase a condo with FHA financing.
REALTORS® asked members of Congress to Support H.R. 4264, the “FHA Emergency Fiscal Solvency Act of 2012,” as it was passed out of committee. The bill seeks to balance the need to improve the fiscal solvency of the FHA fund with costs and availability to consumers. Members of Congress were also asked to submit comments to HUD opposing the condominium regulations, and expressed concern that qualified homebuyers are being shut out of often the most affordable homeownership option available.
Protect Homeownership Tax Benefits
H.R. 4202, which has been introduced in the House of Representatives, would extend the mortgage cancellation relief for two more years, through December 31, 2014. H.R. 4336, a similar bill, which would extend it for one year. The Senate as introduced S. 2250, which also extends the mortgage cancellation relief for two years. REALTORS® urged that more time is needed to restore equilibrium in the market. More than 20 percent of all homeowners currently owe more on their mortgages than the current fair market value of their homes. Members of Congress were asked to co-sponsor H.R. 4336 or H.R. 4202.
Reauthorize the National Flood Insurance Program (NFIP)
In July 2011, the House of Representatives voted 406-22 to approve a five-year reauthorization of NFIP, H.R. 1309. The Senate Banking Committee has since unanimously reported a similar bill, S. 1940, which continues to await full Senate consideration. Forty-one senators recently wrote their leadership urging them to bring up such a measure for debate. REALTORS® thanked members of Congress for voting for H.R. 1309, and urged the Senate to pass a five-year flood insurance reauthorization bill before the current temporary extension of the flood bill expires on May 31.
Secure the Future of Homeownership
During the first session of the 112th Congress, the House Financial Services and Senate Banking Committees held numerous hearings on the housing market, primarily focusing on foreclosure/loss mitigation and the state of the nation’s housing. Year-to-date, the House Financial Services Committee has not held any hearings on GSE reform, appraisals, short sales or QRM/QM. The Senate Banking, Housing and Urban Affairs Committee held only one two- part hearing on the state of the nation’s housing market. NAR expects that with a renewed focus by the Administration and Congress on housing concerns, additional hearings on all three issues will be initiated and that NAR will be a primary participant.
REALTORS® asked that reforms of the secondary mortgage market be comprehensive, and the federal government must have a continued key role in the secondary mortgage market in order to ensure that there is capital for mortgage lending in all mortgage markets under all market conditions. REALTORS® asked for a hearing on H.R. 1498 or S. 2120. This legislation requires services to decide whether to approve a short sale within a specified time frame of completion of the short sale request. REALTORS® also seek increased educational standards for appraisers, and support state regulation of all appraisers, regardless of their source.
Bolster Commercial Real Estate Lending
Representatives Ed Royce (R-CA) and Carolyn McCarthy (D-NY) introduced H.R. 1418, the Small Business Lending Enhancement Act of 2011, to increase the member business lending cap from 12.25 percent to 27.5 percent of total assets for well-capitalized credit unions. The Senate has introduced S. 2231 as a companion bill. In June 2011, the House Financial Services Committee voted to pass H.R. 940, the United States Covered Bond Act of 2011. This legislation facilitates the creation of a U.S. covered bond market, which would provide an additional source of commercial real estate lending. The Senate has introduced S. 1835 as a companion bill.
REALTORS® asked that Congress pass H.R. 1418 and S. 2231. Credit unions can fill in the commercial real estate lending gap and help get capital to the struggling small businesses that occupy commercial space. They also seek passage of H.R. 940 and S. 1835 to create a U.S. covered bond market, which would complement the fragile commercial mortgage-backed securities (CMBS) market by providing an additional new source of capital for the commercial real estate industry.
How many men does it take to put a lace curtain? “Never enough!” according to (left to right) Bob Conway, Dave Barca, Doss Welsh and Peter Kitch. In the end, the men just couldn’t figure it out without the help of the homeowner and the women RSVP volunteers!
For more than a decade REALTORS® and affiliates from SILVAR have assisted seniors and the homebound with household tasks, through SILVAR’s REALTOR® Service Volunteer Program (RSVP). Washing windows, installing smoke detector batteries, flipping mattresses, light vacuuming, dusting, replacing light bulbs, changing furnace filters and trimming bushes can mean a lot of work, especially when agents have to take time from their busy schedules. Yet each year, the RSVP volunteers all say they take away more than what they give from this experience.
“I’ve been pretty lucky so far, so I felt I needed to do something to give back to the community,” Jeffrey Dean explained why he decided to volunteer for RSVP for the first time this year.
Longtime RSVP volunteer and Cupertino/Sunnyvale District’s RSVP chair Sue Bose said, “I believe when people grow old, many are afraid or shy to ask for help, even from their children, who live close by. The small tasks we do for them helps keep them safe and comfortable, and enables them to live a better and longer life.”
The seniors are always grateful for the help they receive from the volunteers.”It’s so very kind of you to help us,” said an 82-year-old Los Altos man and his 83-year-old wife to the team of Beth Tompkins, Joe Velasco, Michael Bleier and Christine Moore. They washed the couple’s outside screens and windows.
“We hate to admit that we’re getting old and can no longer do all this work,” said the husband.
“There’s no way I can do all this work by myself,” exclaimed an 83-year-old Los Gatos resident, as the team of C.T. Harris, Ryan Iwanaga and Wendy Lannon Potts flipped her mattress, placed bricks under her bed in order to elevate it, repaired a set of window blinds, replaced her smoke detector batteries and furnace filter, which was loacted in a dark cellar.
Longtime RSVP volunteers Rick White, Sherry Hagen and Scott Holt helped a 76-year-old woman and her 80-year-old husband by washing screens and windows and trimming bushes. The wife, who was in a wheelchair, recently had a stroke and then fell and broke her hip. They have no children.
“It’s frustrating not being able to do things and we guessed it was time to break down and ask for help,” she said. “My husband tries to do everything and he’s running himself down.”
An elderly Menlo Park homeowner, who is single and lives alone with no family nearby, called the volunteers “my angels.” “You are an answer to my prayers, a gift from heaven. I am so overwhelmed,” she told the team of David Barca, Mandy Safka, Kathy Hearn Bosse and Jim Taggart. They washed her curtains, screens and windows, fixed her front porch and installed new smoke detector batteries in her home. They were later joined by Bob Conway, Doss Welsh and Peter Kitch.
“I wish we could do more for them. I wish we could help even more seniors,” said Barca. “You learn so much through conversations with them, and, you end up getting attached to them, as well.
Barca initiated RSVP with other REALTORS® in 2001. The program was launched by SILVAR as an official community outreach project in 2002, and has expanded to include volunteers from the San Mateo County Association of REALTORS®, the Fresno Association of REALTORS®, Santa Clara County Association of REALTORS® and Santa Cruz County Association of REALTORS®. Barca hopes to expand RSVP to all AORs in the state.
SILVAR RSVP Chair Eileen Giorgi thanked this year’s volunteers and chairs for their fine work this year. SILVAR’s 2012 RSVP district chairs include Sue Bose (Cupertino/Sunnyvale), Mary Kay Groth (Los Gatos/Saratoga District), David Kim and Suzanne O’Brien (Los Altos/Mountain View), Jeff Beltramo (Palo Alto District), and Barca (Menlo Park/Atherton).
“We really receive more than we give,” said Giorgi. “Thank you to all our volunteers and chairs who gave up their time this week to give back to the community. We all realize how important this program is to our seniors.”
On April 17, the Federal Housing Finance Agency (FHFA) announced a new directive as part of FHFA’s continued servicing alignment initiative that directs Fannie Mae and Freddie Mac to align their guidelines for servicing delinquent mortgages they own or guarantee.
The new directive requires that servicers of Fannie and Freddie loans:
• Review and respond to borrower requests for short sales within 30 days after receipt of a short sale offer and a complete borrower request.
• If the review is still under way after 30 days, give the borrower weekly status updates. (This allows more time where necessary, such as where subordinate lenders and/or mortgage insurance is involved.)
• Advise the borrower of the final decision within 60 days after receipt of a short sale offer and a complete borrower request.
The new timelines apply both to HAFA loans and to other short sales approved by Fannie Mae and Freddie Mac. Additional enhancements are planned by the end of 2012 addressing borrower eligibility, simplifying documentation, valuing property, payments to subordinate lien holders, and mortgage insurance.
REALTOR® officials at the national, state and local level applaud the move by FHFA to streamline the short sale process. Faster response times will help thousands of distressed homeowners, according to Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
“Short sale transactions are more complicated than regular transactions and they have taken so much time that many prospective buyers have walked away from short sales,” said Yost. “The FHFA’s move to streamline the short sale process is a critical step toward a full housing market recovery.”
REALTORS® applaud the recent move by California Congressional members opposing the implementation of REO sales in California. Implementing the Federal Housing Finance Agency (FHFA)’s “REO Initiative” pilot program in California would negatively impact the state’s housing market and increase losses to taxpayers and the GSEs, according to California’s REALTORS® and legislators.
Congressman Gary Miller (R-Brea), along with 18 other members of California’s congressional delegation, issued a letter last week to Edward J. DeMarco, acting director of the Federal Housing Finance Agency (FHFA), urging DeMarco to refrain from implementing the agency’s “REO Initiative” pilot program in California because it would negatively impact California’s housing market and raise costs for taxpayers. The REO Initiative pilot program calls for the sale of more than 600 Fannie Mae-owned foreclosed homes in Los Angeles and Riverside counties to institutional investors.
REALTORS® believe the pilot program is not beneficial to the California market because housing inventory is extremely low and demand is high. Home buyers in most of California’s markets are experiencing multiple offers, even for distressed and foreclosed properties. According to data from the California Association of REALTORS®, sales of bank-owned homes are closing in an average of less than 60 days – and often above the list price – without government intervention.
“We commend the California congressional delegation’s letter to Mr. DeMarco,” said LeFrancis Arnold, C.A.R. president. “Carrying out this plan in California would potentially further delay a housing recovery and, ultimately, result in greater losses for the taxpayer.”
The latest National Association of REALTORS® report on second homes indicates investment home purchases represented nearly one-third of all existing-home sales last year. NAR says this robust investment activity underscores the importance of limiting the government’s use of real estate owned (REO) bulk sales. The 2012 NAR Investment and Vacation Home Survey shows investment-home sales surged an extraordinary 64.5 percent to 1.23 million last year from 749,000 in 2010.
“Silicon Valley is experiencing a high demand for homes, resulting in multiple offers due to the very low inventory,” said Silicon Valley Association of REALTORS® President Suzanne Yost. “We believe policymakers and lenders should instead focus on expanding the availability of financing for qualified home buyers and investors and intensify pre-foreclosure efforts to keep families in their homes.”
The 19 California Congressional members who backed the letter include Gary Miller, Jerry Lewis, Ken Calvert, Jeff Denham, Elton Gallegly, Dana Rohrabacher, Buck McKeon, Duncan Hunter, Brian Bilbray, Mary Bono Mack, Susan Davis, Brad Sherman, Joe Baca, Grace Napolitano, Judy Chu, Jim Costa, Adam Schiff, Barbara Lee, and Howard Berman.
Legislative Day is the day when REALTORS® from all over California travel to Sacramento and meet with their elected officials to discuss critical legislation that can affect REALTORS®, homeowners and private property rights. This year Legislative Day is on Wednesday, May 2.
Once REALTORS® arrive in Sacramento they will receive a special briefing from California Association of REALTORS® leadership and honorable guests, including California Governor Jerry Brown, who has confirmed that he will be speaking at the Morning Briefing.
A luncheon will follow the briefing. Dr. Tony Quinn, co-editor of California Target Book and non- partisan analyst of California’s legislative and congressional elections, will be the guest speaker at the luncheon with members of the Silicon Valley Association of REALTORS®. Dr. Quinn has 40 years experience with California state government. Currently, he is engaged in writing and elections analysis. During his career he has headed several public relations firms, directed the Office of Economic Research in the California Department of Commerce, served as Chief Consultant for Elections and Reapportionment and Policy Director of the Assembly Republican Caucus. He also served as a member of California Fair Political Practices Commission and assistant to the California Attorney General.
After lunch Silicon Valley REALTORS® will meet with their legislators, including Senators Elaine Alquist, Sam Blakeslee and Joe Simitian, and Assembly members Jim Beall, Paul Fong, and Rich Gordon. At these meetings REALTORS® will have the opportunity to discuss important real estate issues, such as private property rights, legal reforms and housing opportunity policies.
California REALTORS® are encouraged to attend Legislative Day. REALTORS® make up one of the largest groups that hit Sacramento every year.
The Silicon Valley Association of REALTORS® joins the nation in observing Fair Housing Month in April. This year marks the 44th anniversary of the 1968 landmark Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status or handicap.
“REALTORS® play a vital role in ensuring fair housing for all and strive every day to make home ownership accessible to everyone,” said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
“REALTORS® are on the ‘front lines,’ working with buyers and sellers to see that they enjoy the benefits of a housing market free from discrimination.”
Members of the Silicon Valley Association of REALTORS® abide by a Code of Ethics that provides under Article 10 that REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin and shall not be a party to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status or national origin.
The home seller, the prospective home buyer, and the real estate professional all have rights and responsibilities under the law. Home sellers and landlords have a responsibility and a requirement under the law not to discriminate in the sale, rental and financing of property on the basis of race, color, religion, sex, handicap, familial status, or national origin. They cannot instruct the licensed broker or salesperson acting as their agent to convey any limitations in the sale or rental because the real estate professional is also bound by law not to discriminate.
Buyers and renters have the right to expect that housing will be available without discrimination. This includes the right to expect:
• housing in their price range made available without discrimination
• equal professional service
• the opportunity to consider a broad range of housing choices
• no discriminatory limitations on communities or locations of housing
• no discrimination in the financing, appraising, or insuring of housing
• reasonable accommodations in rules, practices and procedures for persons with disabilities
• non-discriminatory terms and conditions for the sale, rental, financing, or insuring of a dwelling
• freedom from harassment or intimidation for exercising their fair housing rights.
If you feel you have experienced discrimination in the rental, sale, financing or insuring of a property, you may file a complaint with the Department of Fair Employment and Housing (DFEH). Complaints must be filed within one year of the alleged discrimination. Visit http://www.dfeh.ca.gov for more information.
The 13th Annual Silicon Valley REALTORS® Charitable Foundation Golf Tournament will be held on Monday, Sept. 17 at the Los Altos Golf & Country Club, 1560 Country Club Drive, Los Altos. Early bird reservations at a price of $225 are now available for SILVAR members until April 15.
Regular cost per person is $275, which includes green fees, golf cart, lunch, and award ceremony reception. Registration starts at 11 a.m., with a Shotgun Start at 12 p.m. (Scramble Format). A no-host cocktail reception will be held at 5 p.m.
The Silicon Valley REALTORS® Charitable Foundation Golf Tournament is a wonderful opportunity for members of the Silicon Valley Association of REALTORS® (SILVAR) to help their communities while enjoying a spectacular day of golf. Proceeds from the annual event go to the Silicon Valley REALTORS® Charitable Foundation, which makes grants available to organizations that help youth, disadvantaged individuals and low-income families and seniors in the communities where SILVAR members live and work. The golf tournament proceeds also fund the Charitable Foundation’s annual Scholarship Program, which awards a $1,000 scholarship grant to each of 18 graduating seniors selected from public high schools in Silicon Valley.
Members may now register online at http://ims.silvar.org/. For sponsorship opportunities or more information, contact SILVAR Development Director Kelly Dadsetan at (408) 200-0117, or email kdadsetan@silvar.org.
California homeowners need to beware of phone, mail or personal solicitations from scam artists offering assistance related to the recent national mortgage settlement. The California Attorney General’s office has issued a warning about this latest scam and REALTORS® are passing on the warning to their clients.
The national mortgage settlement reached last month by 49 state attorneys general and the federal government with five of the largest loan servicers – Bank of America/Countrywide, JPMorgan Chase/Washington Mutual, GMAC Mortgage/Ally Financial, Citibank/CitiMortgage and Wells Fargo/Wachovia provides as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. The agreement settles state and federal findings that the country’s five largest loan servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct. The settlement provides benefits to borrowers whose loans are owned by these banks and to many of the borrowers whose loans they service.
Third parties claiming to offer homeowners access to funds under the national mortgage settlement are likely running a scam. Homeowners receiving such solicitations should not provide any personal or financial information and should report the solicitation to the California Department of Justice or file a complained online at http://ag.ca.gov/contact/complaint_form.php?cmplt=CL.
“Scam artists are preying on the vulnerability of desperate homeowners. Their goal is to make a quick profit through fees for services they claim they can do,” said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
Californians seeking relief under the state’s $18 billion mortgage settlement are advised to follow these tips to avoid falling prey to such scams:
- Be skeptical of third party phone solicitations. Only your bank/loan servicer can assist you with regard to the recent national mortgage settlement.
- Do not give your personal financial information to a solicitor such as your bank account number, social security number or even the name of your loan servicer. Your bank will already have this information.
- Never pay an up-front fee for mortgage-related services. It is against California law and should be reported to the California Department of Justice.
If you think you may be eligible for relief under the national mortgage settlement, call your bank directly. For additional information regarding the mortgage settlement, please visit: http://oag.ca.gov/nationalmortgagesettlement and http://oag.ca.gov/nationalmortgagesettlement/faqs
For free, trustworthy advice, homeowners may also call a HUD approved counselor at (888) 995-4673, or call Keep Your Home CA at (888) 954-5337.
Silicon Valley Association of REALTORS® says ... 