(The NC REALTORS® Government Affairs Update is published weekly during the legislative session by the NC Association of REALTORS®, Inc.as a service to its membership. This report is sent via email to REALTORS® across North Carolina. If you have any questions, please call the association's Government Affairs Department at 919-856-9155.)

NAR Mid-Year Meetings A Success
REALTORS® from across the country (180 from North Carolina) converged on Washington, DC last week to attend the National Association of REALTORS® Mid-Year Legislative Meetings. These meetings provided a great opportunity for REALTORS® to walk the halls of Congress and ensure that Members of Congress hear first-hand accounts of the current issues facing REALTORS® and the real estate industry. This year’s trip was especially important in light of current economic conditions and all of the pressing issues associated with stimulating our industry and the economy as a whole.

North Carolina REALTORS® attended two days of Capitol Hill visits in which we thanked lawmakers for passing legislation that will permanently keep national banks out of the real estate brokerage business.  And we reinforced the intense need for comprehensive healthcare legislation that includes a provision for association health plans. In addition, lawmakers were asked to continue seeking reforms that will ensure the solvency of government sponsored entities like Fannie Mae and Freddie Mac. Members of Congress were also encouraged to vote against a provision in the comprehensive energy reform legislation that would mandate expensive and burdensome energy labeling for existing homes.

As the 111th Congress moves forward with the business of legislating, REALTORS® can be confident in knowing that their messages were well-received by Members of Congress from both sides of the aisle. Furthermore, the National Association of REALTORS® in conjunction with the North Carolina Association of REALTORS® and local associations will continue to work closely with Congress to ensure that the real estate market is the driving force behind our nation’s economic recovery.

Texting and Driving
A bill that will ban motorists from driving and texting was approved by the Senate Judiciary II Committee this week. HB 9 (No Texting While Driving), introduced by Reps. Garland Pierce (D-Scotland), Pricey Harrison (D-Guilford) and Larry Hall (D-Durham), would fine motorists who are caught sending a text message on their cell phone while driving $100 plus court costs. A school bus driver could face a misdemeanor punishable by at least a $100 fine.  Ten states and the District of Columbia currently have a text messaging ban for all drivers, according to the national Governors Highway Safety Association, which represents state highway safety agencies. The bill would make exceptions for emergency responders, as well as people who use voice-activated technology or access global navigation systems.

House Budget
The Senate passed their budget and introduced a finance package which includes some significant changes to our state tax structure and would raise over $1.2 billion over the next two fiscal years. Now the House is working on their budget and seems to be going in a different direction.  Rep. Mickey Michaux (D-Durham), chairman of the Committee on House Appropriations, has indicated that the House will not be raising taxes to help pay for their budget. The Appropriations Subcommittee leaders have received their spending targets for the coming fiscal year and the total plan should cost approximately $17.6 billion.  This is at least $2 billion less than the Senate budget approved last month.  Rep. Michaux is warning people that tax increases may still be needed, but are not being considered at this time.

Obama Administration Announces Financial Incentives and Uniform Process for Short Sales
On May 14, 2009, the Obama Administration announced its Foreclosure Alternatives Program (FAP) providing incentives and uniform procedures for short sales and deeds-in-lieu of foreclosure under the Making Home Affordable Program. NAR had urged the Treasury Department, the Federal Housing Finance Agency, Fannie Mae, and Freddie Mac to take action to improve the short sales process, urging transparent and uniform procedures.

Eligible borrowers are those who meet minimum requirements under the Home Affordable Modification Program but do not qualify for a modification or do not maintain payments under a modified loan. Under FAP, servicers, borrowers (homeowners losing their homes), and second lien holders may qualify for incentive payments. Other program features include standardized documentation, valuation based on either appraisals or broker price opinions (BPOs), timelines, and limits on commission reductions. The program terminates at the end of 2012.

The Administration also released a Making Home Affordable Progress Report. More than 75 percent of all loans in the nation are covered by the 14 servicers that to date have agreed to participate.

• NAR Press Release
• NAR Summary of the Foreclosure Alternatives Program
• Treasury-HUD Press Release
• FAP Fact Sheet
• Making Home Affordable Progress Report (May 14, 2009)

HUD: Homebuyer Tax Credit Loans Still on Track
News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.

"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.

Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.

The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.

When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.

Read More: Buyer Tax Credit Loan Guidance Coming Soon   

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May 15, 2009

North Carolina Association of REALTORS®, Inc.
 421 Fayetteville Street, Ste. 1109
Raleigh, NC 27601
919.856.9155
ncar@ncrealtors.org