Breakfast with Your Elected Officials

FAAR and FABA have teamed up to bring you a FREE Legislative Breakfast on Monday, July 19th at 8:30am in the FAAR Classroom.  Confirmed elected officials include Rep. Rob Wittman, VA General Assembly Speaker Bill Howell, and officials from Stafford, Spotsylvania, King George, Caroline, and Fredericksburg.  We will discuss challenges and bright spots in today's housing market and ways that we can work together to strengthen our economy and our communities.

This event is FREE to FAAR members and $10 for guests.  Breakfast will provided by our sponsor, Dominion Virginia Power.  Space is limited so register online today!  Download the event flier here to post up in your office. 

Legislative Highlight:  Financial Reform Bill

H. R. 4173, Wall Street Reform and Consumer Protection Act

The House and Senate have been hammering out a compromise on sweeping financial reform legislation that could impact the way REALTORS do business.  Here are some highlights from the bill's home mortgage provisions: 

• Establishes a Bureau of Consumer Protection housed at the Federal Reserve Bank
• The Bureau will issue rules laying out minimum national standards for mortgage brokers and institutions and would include requirements that a lender would have to ensure that a buyer has a reasonable ability to repay the loan that must be based on verified income and credit statements
• Prohibits pre-payment penalties on mortgages that do not meet certain "qualified" mortgage standards
• For mortgages that meet these standards, the bill requires that lenders offer a loan version without pre-payment penalties and limits the amount lenders can charge for pre-payment fees
• Bars any financial incentives that lenders pay to mortgage brokers for selling loans with higher interest rates
• Allows for liability action against mortgage originators that violate their obligations under the bill
• Creates an Office of Housing Counseling at HUD that would focus on homeownership and rental housing counseling programs
• Prohibits any high-cost loans without first getting a written appraisal which all parties to the transaction are prohibited from influencing
• Provides $1 billion in housing assistance for homeowners who have lost their jobs and another $1 billion for the Neighborhood Stabilization Program

National Flood Insurance Program Lapses Again

On May 31, 2010, the National Flood Insurance Program (NFIP) once again expired without congressional action on a long-term reauthorization.  NFIP provides vital flood insurance policies to millions of individuals across the nation.  The lapse will not impact current policyholders or those within the 30-day expiration grace period, but it will mean that no new policies can be issued and no renewals can take place until the U.S. Congress passes a bill reauthorizing the program. 

A long-term reauthorization bill has been approved by the U.S. House Financial Services Committee, but it has not yet made it to the House floor.  The bill, H.R. 5114, would reauthorize the program for five years.    

Legislative Highlight:  "Cash for Caulkers"

 H.R. 5019, the Home Star Energy Retrofit Act

• Bill will incentivize home energy retrofits by providing rebates to homeowners who install Home Star approved-products like insulation, windows, doors, and heating/cooling systems that will reduce energy consumption
• H.R. 5019 is intended to help homeowners and the slumping construction industry by pumping new federal assistance into the market
• The nickname "Cash for Caulkers" is a spinoff of the Cash for Clunkers measure enacted last year that provided federal funds for the purchase of new, fuel efficient vehicles to replace gas guzzlers
• The bill has passed the U.S. House and is currently awaiting action in the U.S. Senate

Focus on Virginia: Gov. McDonnell Announces Creation of Housing Policy Advisory Committee

Gov. Bob McDonnell recently signed an executive order creating a Housing Policy Advisory Committee for the Commonwealth, the first in the state's history.  The Committee will be tasked with developing a housing strategy covering homelessness, workforce housing, economic development, healthy neighborhoods, effective coordination of transportation, and environmental issues.  The Committee will consist of representatives from local government, state government, the housing industry, non-profits, and consumer advocates.