Archive for June, 2010

3,890 Virginians could miss out on tax credit

Updated: Senate passes homebuyer tax credit closing deadline.

Let’s make this simple: If the Senate doesn’t extend the June 30 closing deadline for the $8,000 tax credit, NAR estimates that 3,890 buyers in Virginia will miss out.The House has already voted overwhelming to do so, but the Senate is still thinking about it.

These are not people who tried to slip in at the last moment. These are folks who met every qualification, but had their closing delayed by things out of their control — lenders, the non-renewal of the National Flood Insurance Program, and so on. In other words, by any reasonable standard, they ought to get the tax credit.

NAR is following the action in D.C., of course, but time is tight. If it isn’t passed today (June 30), those buyers will be out of luck.

Read the NAR release and get more info. And keep your fingers crossed.

House passes tax credit closing deadline extension

This just in from NAR:

The United States House of Representatives has just passed HR 5623, the Homebuyer Assistance and Improvement Act of 2010, by a vote of 409-5. This bill extends the deadline for closing tax credit eligible transactions from June 30 to September, 30, 2010. The bill moves to the Senate where the outcome is much less certain. NAR will continue to update you as the events move forward.

 

Your Input Requested for Governor’s Statewide Housing Policy

Bob Sledd, Chair of Virginia’s Housing Policy Advisory Committee, is soliciting input on a statewide housing policy from housing advocates across the Commonwealth.

He writes: On April 30, 2010, Governor McDonnell issued Executive Order 10, which established Virginia’s first executive housing policy framework. The Governor’s framework will guide the development of a statewide housing policy that will be announced in the fall. The Governor’s housing policy will address homelessness and affordable housing, as well as workforce housing, economic development, healthy neighborhoods, effective coordination with transportation, environmental issues and other housing related opportunities. The housing policy is being developed under my leadership as chair of the Housing Policy Work Group and Housing Policy Advisory Committee…We are now seeking input in the form of suggestions for addressing the identified critical housing issues. Broad policy areas, initially identified by the Virginia Housing Commission in 2006, provided the initial structure for soliciting comments. The Housing Policy Work Group identified several questions under each policy area that they would like you to address.”

Here’s the survey so that you can add your opinions (note: the survey will close July 9th).

Despite yesterday’s filibuster, NAR continues lobbying Congress to pass the closing deadline for the homebuyer tax credit and the National Flood Insurance Program. According to NAR:

  • Members are advised “to proceed as if the June 30, 2010 date is binding.”
  • NAR lobbyists are pursuing “all possible options with senior congressional staff to determine what other legislation may be available for passing a June 30 extension. Each of the possible options face[s] difficult obstacles…”
  • NAR lobbyists expect the Senate to consider HR 5569, the National Flood Insurance Program Extension Act of 2010, next week.
  • all possible options with senior congressional staff to determine what other legislation may be available for passing a June 30 extension.  Each of the possible options face difficult obstacles, but NAR’s efforts to clear the way are on going.

Homebuyer tax credit closing deadline extension filibustered

A Senate bill that would have delayed the closing deadline for the homebuyer tax credit until September 30 has been filibustered. All 40 Republicans and one Democrat voted against allowing the bill to move to the floor for debate, effectively killing it. The June 30 deadline to close on contracts entered into before May 1 and still qualify for the homebuyer tax credit remains in force.

(photo credit)

Rates have never been lower. Never!

The Washington Post reports today that mortgage rates for the three most popular loan products have reached an all-time low. Thirty, 15, and five year loans have all landed at their lowest levels on record.

  • 30-year fixed-rate mortgage: 4.69%
  • 15-year fixed-rate mortgage: 4.13%
  • 5-year adjustable-rate mortgage: 3.84%

Fannie Mae can pursue deficiency judgments in Virginia

Fannie Mae HQFannie Mae’s announcement of stiff new policies and procedures for borrowers who choose strategic default is especially relevant in Virginia. That’s because the Commonwealth allows lenders to pursue deficiency judgments against borrowers who default on home loans.  In case you didn’t see the news, Fannie now says it will pursue deficiency judgments against borrowers who choose to walk away.

Fannie also announced that if it has evidence the borrower chose to just walk away from a previous loan, it won’t guarantee a new loan for any homeowner for seven years.

Read more at Inman News.

Bill to extend homebuyer tax credit closing deadline stalled in Senate

No sooner than they were starting to make progress towards extending the homebuyer tax credit closing deadline, we receive this communication from a NAR lobbyist about a roadblock in the Senate.

Last night, for the third time this week, the Senate failed to get the required 60 votes to end debate on the latest version of the “extenders package” which now contains not only the carried interest provisions we don’t like, the flood insurance extension we needed passed 3 weeks ago, but also an extension of the closing deadline to September 30 for buyers seeking the homebuyer tax credit(s).

The Senate has adjourned for the week and Majority Leader Reid & Finance Chair Baucus are in talks now as to what to do next.   We are exploring a number of options of separating out provisions but there are lots of complicated moving parts and our provisions are only a couple out of hundreds now wrapped up in this bill.   Bottom line – earliest any of the above gets resolved would be early next week, but mid-to-late next week is far more likely as things would have to go back to the House, be signed by the President, etc….

Hot clicks from Commonwealth Online June 2010

What are Virginia Realtors® clicking in yesterday’s Commonwealth Online newsletter? Here are the top clicks:

Links that need your love (give them a click):

Virginia ranks #20 nationwide for mortgage fraud

An FBI report finds Virginia among the top 20 states with the highest incidence of mortgage fraud.  As reported previously on VARealtor.com, in an effort to stamp out mortgage fraud in Virginia, the Virginia Bureau of Financial Institutions is in the process of licensing all mortgage originators through the National Mortgage License System. The license application process includes a criminal background check.

Have you asked your loan officers if they are licensed?

Read more from Inman News.