8.15.08   CONGRESSMAN CHARLIE DENT MEETS WITH  LVAR GOVERNMENT AFFAIRS COMMITTEE       Shown above (from left to right): Steve Yost, Dent Federal Political Coordinator; Luis Campos, LVAR Government Affairs Committee Chair; Sue Seidel, LVAR President-Elect; Congressman Charlie Dent; Mark Molchany, LVAR President   The LVAR Government Affairs Committee (GAC) continues to maintain strong relationships with elected officials across the Lehigh Valley. This month’s GAC Roundtable Series featured Lehigh Valley Congressman Charlie Dent (R, PA-15). Congressman Dent had an in-depth discussion with the GAC regarding his position on the Housing and Economic Recovery Act recently signed into law. Congressman Dent, an avid supporter of real estate issues, explained that he reluctantly voted against the Housing bill because of his concern with providing Fannie Mae and Freddie Mac with an open line of credit from the federal government. Dent explained that he would never want to see Fannie and Freddie fail, however substantially more reform needs to change to justify the line of credit. Dent indicated he supported other important provisions of the bill, including the homebuyer tax credit, increased conforming loan limits for FHA and the GSEs, as well as the affordable housing trust fund. Congressman Dent also shared his insight on the high gas prices and the need for America to diversify its energy resources. Dent explained that the fundamental issue is that global demand for oil is outpacing supply, and we need to start exploring alternative sources of energy.       The Roundtable Series serve as a forum for elected officials to share with our members’ first-hand information on ongoing economic development and revitalization projects, local politics, and other real estate related matters. The meetings also serve as an opportunity for REALTORS® to show elected officials that we are organized and interested in the being a part of the public policy making process. 8.15.08   Register and Get Out the Vote     LVAR encourages REALTORS® to register to vote. If you are a first time voter, have recently moved or changed your name, you may need to register or re-register to vote. The deadline to register is Monday, October 6. Along with casting a vote for president in the General Election on Tuesday, Nov. 4, there are several local and state elections across the commonwealth. In the Lehigh Valley, all of our State Representatives are up for election, including an open seat in the 187th Legislative District (Upper Macungie / North Whitehall area). There are also races for attorney general, auditor general and state treasurer. LVAR will be posting information about these candidates on our website soon. In the meantime, you can register to vote (or verify that you are registered) by clicking here.   8.04.08 Housing Stimulus Bill Becomes Law H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions: GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008). View 2009 FHA and GSE loan limit estimates (PDF) FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008). View 2009 FHA and GSE loan limit estimates (PDF) FHA Reform Chart (PDF) Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan). First-time homebuyer tax credit chart Frequently asked questions about the first-time homebuyer tax credit FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008. FHA Foreclosure Rescue Chart Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008. More about the seller-funded downpayment assistance provision Tips to finding downpayment assistance programs (PDF) VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008. Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009. GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail. Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages. National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing. CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes. More about the CDBG funding provision LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient. Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.