NAR Issues Brochure Explaining the New Short Sales Program (HAFA)

Administration Updates Home Affordable Loan Modification Program (HAMP)

Health Reform's Uncertain Future

HUD Issues Informal Letter on Admin Fees

Commercial REALTORS® Highlight Liquidity Problems to Members of Congress

Freddie Mac Tightens Rules for FHA-Approved Condo Projects

NAR Launches REALTOR® Neighborhood Stabilization Project

NAR Issues Brochure Explaining the New Short Sales Program (HAFA)

NAR has issued a new brochure to help members understand the new Home Affordable Foreclosure Avoidance Program (HAFA) that takes effect on or before April 5, 2010. The purpose of the program is to help homeowners, who are unable to retain their homes under the Home Affordable Modification Program (HAMP), avoid foreclosure through a short sale or a deed in lieu of foreclosure. HAFA includes uniform procedures, standards forms, and deadlines. This program has the potential to revolutionize short sales, but its success will depend on the implementation by servicers and cooperation by investors and subordinate lien holders. Fannie and Freddie are tweaking the rules for their own programs—their variations are expected "soon." Information about short sales, including HAFA, is available on www.realtor.org/shortsales.

NAR's HAFA brochure (text only) >
NAR's HAFA brochure (format for use by professional printing vendor) >
NAR's one page summary of HAFA >
NAR's HAFA FAQs >

Contacts: Jeff Lischer, 202-383-1117

Contacts: Tony Hutchinson, 202-383-1120

Administration Updates Home Affordable Loan Modification Program (HAMP)

On January 28, 2010, the U.S. Departments of the Treasury and of Housing and Urban Development released amended rules for the HAMP Program. As of the end of 2009, more than 900,000 homeowners had begun trial modifications, but only 110,000 had received permanent modifications. First, to expedite the program, the new guidelines require that homeowners document income and other information before the servicer may consider the borrower for a 3-month trail modification (effective for trial modifications on and after June 1, 2010). Second, the guidance clarifies procedures for determining eligibility of borrowers currently in trial modifications for permanent modifications (effective immediately). The new rules do not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac, which have each announced their own HAMP guidelines.

Press Release >
Supplemental Directive 10-01 >

Contacts: Jeff Lischer, 202-383-1117

Contacts: Tony Hutchinson, 202-383-1120

Health Reform's Uncertain Future

The election of Republican Massachusetts state senator Scott Brown to the U.S. Senate seat long held by health-reform champion Ted Kennedy (D-MA) has changed the political dynamic of the ongoing health care debate. It remains unclear whether Congress will proceed with its efforts to merge recently passed House and Senate versions of reform legislation or take a new course, which could include pursuing a scaled-down version of legislation. In his State of the Union on January 27, 2010, President Obama urged Congressional leaders to continue to work on reform, citing the ongoing need to address rising costs and the growing numbers of uninsured Americans.

While no single strategy has been identified, NAR proposals for improving coverage for small businesses and the self-employed have been widely reported as being on the list of provisions being considered for any streamlined or newly drafted legislation That stands to put REALTORS® in a solid position on health reform whether lawmakers press ahead or chart a new course. NAR will continue to focus on communicating the needs of small business owners and the self-employed, and NAR's support for reform of health insurance underwriting and rating and standards that would provide small businesses and the self-employed with access to the same types of health coverage enjoyed by those covered by large group plans.

A copy of NAR's letters, testimonies, and other background materials, as well as the text of the Senate and House bills can be found as follows:

NAR's letter and other background materials >

Contacts: Marcia Salkin, 202-383-1092

Contacts: Ken Wingert, 202-383-1196

Contacts: Scott Rinn, 202-383-7508

HUD Issues Informal Letter on Admin Fees

In response to a June 2008 joint letter from NAR and Washington RESPA attorney Jay Varon, HUD provided some informal answers to questions regarding what are often referred to as administrative fees or similarly named fees charged to consumers in real estate transactions. The letter discusses the ways to account for charges and circumstances where charges are appropriate or less appropriate. The letter notes that all charges to sellers and buyers must be disclosed on line 700 of the HUD-1 and that RESPA does not prescribe how an agent or broker determines the charge, noting it could be a flat fee, percentage, or combination of both. The letter concludes with the usual caveats that it does not provide protection from liability. Nevertheless, the letter does represent HUD's latest thinking on this issue and provides some reasonable parameters for agents and firms with regard to disclosing and charging fees or commissions.

Visit www.realtor.org/respa >

Contacts: Scott Rinn, 202-383-7508

Contacts: Marcia Salkin, 202-383-1092

Contacts: Kenneth Trepeta, 202-383-1294

Commercial REALTORS® Highlight Liquidity Problems to Members of Congress

Commercial REALTORS® continued to highlight the serious problems with commercial liquidity to Members of Congress. REALTORS® have participated in a series of roundtables with influential Members of Congress in their districts to discuss concerns with refinancing, technical defaults and overall lending issues. So far roundtables have been held with Reps. Biggert (R-IL), Paulsen (R-MN), and Foster (D-IL). Additional roundtables are planned for the coming months to continue to discuss the crisis in commercial real estate.

Contacts: Megan Booth, 202-383-1222

Contacts: Daniel Blair, 202-383-1089

Freddie Mac Tightens Rules for FHA-Approved Condo Projects

On January 28, 2010, Freddie Mac Issued Bulletin 2010-2 to allow lenders that sell condominium unit mortgages to Freddie to use FHA condo project approval only for mortgages under the FHA, VA, section 502 rural, and section 184 Native American programs. The Bulletin narrows current policy under which Freddie purchases condo unit mortgages in projects approved by other secondary market participants. The change takes effect February 1, 2010. Other categories of condo unit mortgages in FHA-approved projects may still be eligible for sale to Freddie, but only if the project meets Freddie's requirements. The Veterans Administration issued a similar policy that took effect December 7, 2009.

Freddie Mac Bulletin 2010-2 >

Contacts: Jeff Lischer, 202-383-1117

Contacts: Tony Hutchinson, 202-383-1120

NAR Launches REALTOR® Neighborhood Stabilization Project

On January 25, 2010, NAR 2010 President Vicki Cox Golder announced that NAR is launching the REALTOR® Neighborhood Stabilization Project. Central to the effort is a partnership with the National Community Stabilization Trust (NCST) to prepare state and local REALTOR® associations for active participation with local governments and other community organizations in designing and implementing strategies to help neighborhoods and communities recover from the ravages of the foreclosure crisis. Those communities are currently in the midst of using $6 billion in federal Neighborhood Stabilization Program (NSP) funding devoted to acquisition, rehab and resale of foreclosed properties in order to reclaim devastated neighborhoods.

Saying "Who better to strengthen the very communities where REALTORS® live and work?", President Cox Golder told the 2010 NAR Policy conference attendees in Washington that the new partnership will target its most intense efforts with the states hardest hit by foreclosures. In the high-foreclosure states targeted under the new program, NAR and NCST will provide high-impact training and education, along with contacts with key local officials facilitated by NCST, to insure that REALTOR® voices are heard in the local revitalization efforts.

All REALTORS® and associations will have an access to an online toolkit, currently in development, to assist in this endeavor. The toolkit will include briefings, feature articles, interactive tools, multi-media presentations and links to important websites, as well as contact information to receive additional technical assistance.

REALTOR® Neighborhood Stabilization Project >

Contacts: William Gilmartin, 202-383-1102