Increasing media coverage has drawn attention to the reality that the $8000 first-time homebuyer tax credit will expire November 30, but that prospective purchasers need to act quickly to assure that they will qualify for the credit. To receive the credit, purchasers must actually close the transaction before December 1.
Ways and Means Chairman Rangel (D-NY) has introduced legislation that would extend the benefit of the credit through 2010, but has limited eligibility for that extension to a limited group of potential purchasers. His bill (H.R. 3590) would make the credit available to individuals who have served in the military, Foreign Service or in the US intelligence community outside the US for 90 days or more during 2009. They must also be first-time purchasers.
NAR has sent a letter of support to the Chairman and has also urged him to include an extension of the first-time homebuyer credit when the full House considers that legislation. The House will likely require that any extension of the credit be “paid for.” Paying for an extension of the current credit is said to “cost” just less than $1 Billion per month of extension. NAR is working aggressively through its grassroots and also at the staff level to convince Congress to extend current law.
In the Senate, Senator Ben Cardin (D-MD) has sponsored S. 1678. It offers a straight extension of the credit for 6 months. Majority Leader Harry Reid (D-NV) is a cosponsor, as is Senator Johnny Isakson (R-GA), an early advocate for a tax credit. The Senate does not yet have a strategy for moving that bill, as all revenue measures must originate in the House.
View NAR’s Letter to Chairman Rangel >
In Depth: 2009 First-Time Home Buyer Tax Credit >
On September 18, 2009, the Department of Housing and Urban Development (HUD) posted, on its official website, expanded FAQs on the new RESPA rule, including information on completing the new GFE and HUD-1 which become mandatory on January 1, 2010. This most recent HUD release of RESPA FAQs is part of a series of releases during the summer and includes a helpful Table of Contents for all of the FAQs issued by HUD on the new rule.
HUD’s Expanded RESPA FAQs With Table of Contents >
As a follow up to a September 8, 2009, meeting with Federal Housing Administration (FHA) Commissioner David Stevens, NAR President Charles McMillan sent a letter to the Commissioner recommending enhancements to FHA appraisal policy. As FHA considers implementing components of the Home Valuation Code of Conduct (HVCC), NAR recommends that lenders be prohibited from using an appraisal report from any appraisal management company (AMC) where the lender or the lender’s affiliate maintains an ownership stake. Further, FHA should ensure that AMCs have appropriate quality control procedures in place. NAR also recommends implementing a mechanism for complaints similar to the Independent Valuation Protection Institute (IVPI) that was to be implemented along with the HVCC.
NAR also recommends eliminating the appraisal requirements for declining markets and aligning FHA appraisal requirements with those adopted by the GSEs. This will provide consistency across the real estate industry without causing harm to markets that are showing signs of improvement. Recommendations include eliminating the requirement for a second appraisal in certain markets and allowing appraisers to use comparable sales that are up to 12 months old in all markets, including declining markets.
NAR Letter to FHA Recommending Enhancements to Appraisal Rules >
The IRS has released IR-2009-083 reporting that about 1.4 million taxpayers have filed (or amended) their 2008 income tax returns claiming the $8000 first-time homebuyer tax credit. This is roughly consistent with NAR’s projections that about 1.8 million taxpayers will claim the credit. NAR also estimates that at least 355,000 of eligible sales would not have occurred without the credit.
The IRS release also reminds taxpayers of the importance of getting to closing before the December 1 expiration of the credit and publicizes a YouTube video it has prepared to help taxpayers understand the basics of the credit.
NAR continues its full court press to extend the credit into 2010. This intense campaign will have major grassroots components to secure an extension of the credit as soon as possible to avert a slowdown in the market.
NAR’s FHA and the First Time Homebuyer Tax Credit Flyer >
In Depth: 2009 First-Time Home Buyer Tax Credit >
The Department of Housing and Urban Development (HUD) has recently released three sets of new FAQs on the new RESPA rule published in November 2008. The latest additions were published on HUD’s website on September 3, 2009, after two previous releases in August. The FAQs are organized by subject, cover multiple topics ranging from questions concerning effective dates, to filling out the new GFE and HUD-1 forms. While some provisions of the final rule went into effect on January 16, 2009, the majority of the provisions, including mandatory use of the new GFE and HUD-1 forms, will go into effect on January 1, 2010.
HUD’s Expanded RESPA FAQs >
Charlottesville: The Charlottesville Area Association of REALTORS® has completed candidate interviews with all candidates running for office and in Charlottesville and Albemarle in City Council and Supervisor races. We are pleased to announce that the following candidates have received financial support from the REALTORS® Political Action Committee of Virginia (RPAC):
Charlottesville City Council Races
- CAAR has funded two candidates running for City Council – David Norris and Kristin Szakos
- We feel both of these candidates are high caliber individuals that will make excellent city councilors.
Albemarle County Board of Supervisors
- CAAR has agreed to provide funding support to Duane Snow in the Sam Miller District
- CAAR believes Mr. Snow’s long-time community presence and solid support of business makes him an ideal candidate for Supervisor.
- In the Rio District of Albemarle County, CAAR has endorsed challenger Rodney Thomas and provided him financial support.
- CAAR believes Mr. Thomas was the strongest candidate on two key issues: personal property rights and real estate taxes.
- Mr. Thomas’s is a life-long member of the community with a great history of service and involvement.
- Mr. Thomas is a strong supporter of small business.
CAAR has additional candidate interviews in Greene and Fluvanna scheduled in the next few weeks and will likely fund additional candidates. CAAR policy is to invite all official candidates for an office to be interviewed prior to making any funding decisions. Once this process has been completed, we will announce the candidates that will receive CAAR’s support.
Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, NAR says. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008. “The recovery is broad-based across many parts of the country,” says NAR Chief Economist Lawrence Yun. “Housing affordability has been at record highs this year with the added stimulus of the first-time buyer tax credit.” Watch and link to a video of Yun on the latest data.
National Mortgage News recently reported that, according to the National Association of Mortgage Brokers (NAMB), the Federal Housing Administration (FHA) will not implement the Home Valuation Code of Conduct (HVCC) for its mortgage insurance programs. According to the article, FHA Commissioner David H. Stevens met with a delegation from NAMB and discussed a variety of topics. After talking with HUD, NAR believes it is clear that FHA supports much of what the Code has accomplished. FHA is currently reviewing its appraisal policies and may adopt changes that take HVCC into account.
NAR’s HVCC Web page >
Federal Housing Administration >
National Mortgage News >