WASHINGTON, DC, May 13, 2009 (MARKETWIRE via COMTEX) — As Realtors(R) from across the country gather this week for the National Association of Realtors(R) Realtors(R) Midyear Legislative Meetings & Trade Expo, they come committed to continue working with Congress and the administration on efforts to stimulate the housing market. The Realtors(R)’ agenda also includes measures to protect commercial real estate markets and ensure the availability of affordable healthcare to the self-employed and small businesses.

The Realtors(R) launched this year’s meeting with its first ever “Real Estate Summit: Advancing the U.S. Economy.” The summit brought together some of the most influential and cutting-edge experts in the fields of housing, finance, government, academia and the media to find solutions to today’s economic conditions and move the economy as a whole toward recovery. The findings of the summit will be presented to Members of Congress during Realtors(R)’ visits to Capitol Hill throughout the week.

“Housing is the engine of economic growth, and real estate is the road to economic recovery,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “With many of the country’s current problems resting on a wobbly foundation of declining home prices, rampant foreclosures and increasing job loss, our members will be asking Congress to pass further legislation that moves the housing market forward. Last year, NAR asked Congress to pass housing stimulus legislation, which passed and is beginning to show results. However, the work is far from finished.”

This year, NAR is advocating expanding the $8000 first-time home buyer tax credit to include all home buyers at all income levels. In addition, Congress should make permanent the 2008 loan limit increase formula and loan limit caps, as well as fortify Fannie Mae and Freddie Mac to ensure continued availability of capital for mortgage lending throughout all mortgage markets and in all conditions.

Although housing and related financial issues remain NAR’s principal focus in the current economy, small business health care also remains a legislative priority. “We will continue to push for health care reform that offers affordable health care options to the self-employed and small businesses. Congress and the Obama administration must address the inequities faced by those that do not have an employer-assisted plan covering all or part of the individual’s health care insurance premiums,” said McMillan.

In addition, Realtors(R) will urge that Congress move to stabilize and restore liquidity to commercial real estate markets. “Having a sound and functioning commercial and multifamily real estate sector is critical to our country’s economic growth and development,” McMillan said.

NAR is also working with Congress to develop reasonable energy efficiency practices. NAR supports reasonable, incentive-based approaches to encourage energy efficiency and opposes “energy labeling.” “Energy labels don’t save energy; home and building improvements do,” said McMillan.

“We are excited to be here at this important juncture. More than 8,000 Realtors(R) from across the country have come to Washington to remind Congress that a renewed, revitalized and robust real estate market is essential to generating commerce and helping families build wealth and stability,” McMillan said.

The National Association of Realtors(R), “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. News releases are posted in the Web site’s “News Media” section in the NAR Media Center.

REALTOR(R) is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS(R). All REALTORS(R) are members of NAR.

For further information contact:
Mary Trupo
202/383-1007
Email Contact

SOURCE: National Association of Realtors

Realtors Urge Home Buyer Tax Credit Expansion

By DIANA GOLOBAY
May 13, 2009 8:47 AM CST

The National Association of Realtors (NAR) today called for expansion of the $8,000 first-time home buyer tax credit to include all home buyers at all income levels.

The push for a broadened tax credit comes after US Department of Housing and Urban Development secretary Shaun Donovan announced home buyers pursuing Federal Housing Administration-insured mortgages may soon use the tax credit as a down payment at the closing table.

An expanded tax credit, combined with HUD’s initiative to make the credit available at the closing table for down payment purposes — called ‘monetization’ of the tax credit in the industry — would make federal assistance available to anyone pursuing a government-insured mortgage.

NAR, from its legislative summit this week, also urged Congress to make the ‘08 loan limit increase formula and loan limit caps permanent, and to “fortify” mortgage giants Fannie Mae (FNM: 0.77 -6.10%) and Freddie Mac (FRE: 0.80 -6.98%) to ensure the continued availability of capital for mortgage lenders.

“Housing is the engine of economic growth, and real estate is the road to economic recovery,” says Charles McMillan, NAR president and Dallas-based broker, in a statement today. “With many of the country’s current problems resting on a wobbly foundation of declining home prices, rampant foreclosures and increasing job loss, our members will be asking Congress to pass further legislation that moves the housing market forwa

By Nick Timiraos

One of the problems during the housing boom was that many people were able to buy a home with little or no money down, giving them little financial incentive to work hard to hold on when times got rough.

Now U.S. housing officials are working on a plan that would essentially allow some first-time buyers to purchase homes by paying little money upfront. Rather, they would be able to put an $8,000 income tax credit for first-time buyers towards their down payment on loans backed by the Federal Housing Administration. The idea is to allow home buyers to “monetize” the tax credit. Right now, home buyers must wait until they file their taxes to receive the credit.

The FHA is finalizing a program that would allow approved lenders, non-profits, and state and local governments to fund short-term loans that could be used as down payments to be repaid once the borrower received the tax credit. Once they received their tax credit, they would pay off the short-term loan and put equity into their home.

The FHA requires a minimum 3.5% down payment on loans backed by the agency, which means that buyers could put little or nothing down on homes up to $230,000. “It is close to having nothing down,” says Thomas Lawler, an independent housing economist.

The proposal, hailed by home builders and Realtors, is drawing some comparisons to the no money down programs that the FHA has worked to shut down. Congress ended a program last year that allowed home sellers to fund down payments to home buyers through nonprofit groups, and the FHA has blamed that program for an outsized share of loan defaults. Under that program, nonprofit groups would “gift” the 3% minimum down payment to a home buyer, often funded by the seller of the home. Buyers would move into the home without paying any of their own money for the down payment.

“Although it remains to be seen how the program is actually implemented, the plan resembles former seller-funded down payment assistance programs,” writes housing analyst Ivy Zelman in a research note Wednesday. “We remain concerned that the lenient underwriting standards, low down-payment requirements and now the ability of FHA borrowers to purchase a home without putting any of their own equity into the purchase is creating a tremendous risk for the program and taxpayers in the future.”

Several states, including Pennsylvania and New Mexico, had already instituted similar programs. Housing Secretary Shaun Donovan outlined the plan Tuesday during a speech to the National Association of Realtors. “We think the policy is a real win for everyone,” he said.

Congress approved the tax credit in February’s stimulus bill, which provides up to $8,000 for first-time home buyers on a new or existing home. The tax credit expires Dec. 1.

Readers, would you be more likely to buy a new home if you could spend this tax credit before you file your tax returns?

News worthy because after not taking my wife on a cruise for the past 5 years, this is the one we went on..

The swine flu outbreak in Mexico caused dozens of cruise ships to forgo trips to sunny resorts like Puerto Vallarta and Cabo San Lucas, and to instead weigh anchor at considerably less exotic destinations such as Santa Catalina Island and San Diego.

In most cases, fast-thinking cruise ship operators came up with ways to keep passengers from mutinying, including coupons for onboard amenities and credits for future trips.

But the flu bug sent about 3,000 passengers of one cruise ship, the Carnival Splendor, on a one-way voyage to the land of lousy customer service.

“They just didn’t care about us,” said Encino resident Devorah Torres, 58, a passenger on the vessel. “As far as Carnival was concerned, we were nothing but cattle to them.”

For any service company interested in a lesson in how not to treat customers, look no further than the ill-fated voyage of the Splendor.

The ship departed from Long Beach on Sunday, April 26, one day before the Centers for Disease Control issued a travel advisory recommending that people “avoid all nonessential travel to Mexico.”

Torres and her husband, Marty Hoffman, 58, spent more than $2,000 for almost a week of sun and fun along the Mexican Riviera.

“We’ve done this trip before,” Torres said. “It’s great. It’s the kind of trip where you just throw on your shorts and go.”

The cruise went well at first. It was chilly as the ship headed south, but the weather gradually warmed. Passengers were excited about reaching Puerto Vallarta.

They never got there. On Tuesday, April 28, the Splendor anchored unexpectedly off Cabo San Lucas. Passengers were informed that because of the flu outbreak, all Mexican stops were being canceled. The ship would instead turn around and head to San Francisco, where the weather was cold and rainy.

The Splendor’s captain, Claudio Cupisti, issued a statement saying the ship would make a “courtesy call” back at Long Beach en route to San Francisco for those who wanted to disembark early.

“It is important you know that there will be no refund for unused portions of your cruise,” he said.

The captain also said that Carnival’s “Vacation Guarantee” wouldn’t apply.

That’s a big deal. Carnival boasts on its website of being the only cruise line to essentially offer a money-back guarantee if you’re unhappy with your holiday.

“If you are not completely satisfied with your cruise vacation experience,” it says, “all you need to do is notify us before arrival at the first port of call and you must debark at your ship’s first non-U.S. port of call. Carnival will refund the unused portion of your cruise fare and pay your flight back.”

Jennifer de la Cruz, a spokeswoman for Carnival Cruise Lines, confirmed in an e-mail that no refunds would be offered to passengers on the flu-fleeing trip.

“In this highly unusual situation, the parameters of the Vacation Guarantee would not have applied,” she said. She declined to elaborate.

“We apologize that we were not able to provide the itinerary that people anticipated,” De la Cruz said.

Los Angeles resident Margaret Zito, 62, another passenger on the ship, said the grumbling among passengers began almost as soon as the Splendor turned around. People were phoning their lawyers. Members of a wedding party aboard the ship were reduced to tears.

“The whole thing was an absolute nightmare,” Zito said. “I’ve never seen so much negativity on a cruise ship before.”

It’s not that Carnival wasn’t within its rights. The company’s contract with passengers stipulates that it reserves the right to change itineraries due to unforeseen circumstances.

And the Vacation Guarantee is specific about requiring passengers to disembark at a non-U.S. port to get their refunds. The Splendor never docked in Mexico.

But why be so rough with people who’d turned to you for a little rest and relaxation, and who you hope will do so again?

While most cruise lines sought to appease disgruntled passengers by offering food and drink and other freebies, the passengers of the Splendor were basically told to take their lumps.

I asked De la Cruz if this was any way to treat steady customers. She said only that Carnival was following “standard protocol for missed ports when an itinerary is impacted by events beyond our control.”

Standard protocol for Carnival apparently does include being nice to anyone who isn’t already stuck on your boat.

The Splendor was scheduled to set sail again today from Long Beach. Its original itinerary of Puerto Vallarta, Mazatlan and Cabo San Lucas has been changed to Victoria and Vancouver in Canada.

Passengers were told in advance that they’d be given a $100 onboard credit for making the trip. Those who didn’t want to visit Canada were told they could instead book a different cruise at any time before December 2010.

Hoffman said he wasn’t pleased that the company was offering perks to travelers that were denied to passengers on his trip.

“I can tell you this,” he said. “We’ll never sail with Carnival again.”

Making Home Affordable Program May Enable Millions to Refinance Mortgages

Brought to You By:
LATimes.com
Borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac could be able to get quick refinances for up to 105% of a home’s value.

So you want to refinance your house, but it’s not worth enough for you to get a good loan in the current market? A new Obama administration program is designed to fix that problem for millions of homeowners.

Here’s how it works. In the past, the federal Fannie Mae and Freddie Mac mortgage programs would only handle loans of up to 80% of your home’s value, unless you bought mortgage insurance. And if you owed more than your home was worth, you were flat out of luck.

As of this month, that has changed. Through June 2010, borrowers whose loans are owned or guaranteed by Fannie or Freddie may be able to get quick refinances for up to 105% of a home’s value. They must be current on their mortgage payments, but administration officials estimate that as many as 5 million homeowners qualify. And refis are available for borrowers with credit scores as low as 620.

“This is going to create a real opportunity for millions of people to save money on their mortgages — or replace an adjustable-rate mortgage with a fixed rate,” Freddie Mac spokesman Brad German said.

First, the rationale for the program.

As federal interventions go, encouraging refinancings may not compare with the $182.5 billion bailout of American International Group Inc. But a homeowner with a $500,000 loan can save $476 a month by cutting a 6.5% interest rate on a 30-year mortgage to 5% — savings that can be plowed back into the economy or can reduce the odds of foreclosure should the downturn deal the borrower a financial blow.

The historically low rates also make this a perfect time to replace a bubble-era adjustable-rate or interest-only loan with a traditional 30-year or 15-year fixed mortgage.

Switching to a fixed rate might mean higher payments initially, because of an artificially low payment on the adjustable mortgage, but guards against even higher payments in the future should rates skyrocket during an inflationary period, German pointed out.

Now, some caveats about the new refi program:

For starters, it’s only for folks with solid payment histories. You’re allowed to have been 30 days late on a single monthly mortgage payment once during the past year, but no more than one, and no 60- or 90-day late payments. (A separate Obama administration program encouraging loan modifications for struggling borrowers is also explained at makinghomeaffordable.gov.)

What’s more, the refinancings only work for mortgages owned or guaranteed by Fannie Mae or Freddie Mac. Still, about 40% of all U.S. home loans are Fannie or Freddie loans, Faith said, so millions will be covered.

Borrowers who owe less than 80% of their homes’ values are not eligible. They have the opportunity to turn to standard refinancings, a currently white-hot market that, as Kathy M. Kristof reports in an accompanying story, can require jumping through a host of financial hoops these days.

There are financial limits to the largesse, though. The maximum Fannie or Freddie loan is $729,750 in Los Angeles, Orange, Ventura and Santa Barbara counties, $697,500 in San Diego County, and $500,000 in Riverside and San Bernardino counties. Larger “jumbo” mortgages carry a heavy premium.

The erosion of home prices in former boom regions such as California is also a factor because a lot of people owe more than 105% of what their home is worth.

Finally, although the government-sponsored Fannie and Freddie refinancings are designed to encourage lenders to make new loans, the program is entirely voluntary. On its informational website, the government tells borrowers to exercise patience because lenders and servicers are just starting to implement the program, “and there may be a slight delay before they are prepared to process all applications.”

If you think you’re eligible and want to check, an initial screening test is available at the government website, including directions on how borrowers can determine if their loan is owned or guaranteed by Fannie or Freddie.

Mortgage rates dip near lows

• Ben Rooney, CNNMoney.com staff writer
• Thursday April 16, 2009, 1:09 pm EDT

Mortgage rates fell slightly this week and appear to be settling into a range near historically low levels, according to a national survey released Thursday.

Bankrate.com, an online aggregator of various types of interest rates, said 30-year fixed mortgages averaged 5.18% this week, down from 5.2% the week before. Rates on 15-year fixed mortgages fell to 4.72% from 4.75%.

The average jumbo 30-year fixed rate fell to 6.69%. Adjustable rate mortgages were mixed. The average 1-year ARM rose to 5.28%, while 5/1 ARMs sank to 5.12%.

Mortgage rates remain at historic lows. In the nearly 24-year history of Bankrate’s weekly rate survey, the 30-year fixed has been lower just once — two weeks ago, when it averaged 5.13%.

Still, rates have held relatively steady over the past few weeks as lenders respond to a surge in mortgage applications, particularly refinancing activity. That has helped offset ongoing sings of weakness in the economy, which would normally push rates lower, according to Bankrate.

“The ailing economy and inundated lenders are the two factors that will likely keep mortgage rates rangebound in the weeks to come,” Bankrate said in a report.

Bankrate’s national weekly mortgage survey is based on data provided by the top 10 banks and thrifts in the top 10 markets.

There has been confusion about claiming the $8,000 Stimulus Housing Credit for the 2008 tax year. You do not have to wait until next year’s tax return. It can be claimed this year even if you have already filed your taxes for 2008. See below for information from a Yahoo news story, Copyrighted, Kiplinger Washington Editors, Inc.:

Misconception #3: The first-time home buyer’s credit needs to be repaid.

You may not have to repay the credit, depending on when you bought the house

.
If you buy a house between January 1, 2009, and December 1, 2009, you could receive a credit for 10% of the home’s purchase price, up to $8,000. This credit does not have to be repaid as long as you own the home for at least three years.

If you bought a first home between April 9, 2008, and December 31, 2008, you are eligible for a tax credit of 10% of the home’s purchase price, up to $7,500 — but the credit must be repaid over 15 years, starting two years after you claim the credit. If you sell the home before you finish paying back the credit, the balance is due in full the year of the sale.

The 2008 and 2009 credits begin to phase out if your modified adjusted gross income is more than $75,000 (or $150,000 if you’re married filing jointly). The credit disappears entirely after your income reaches $95,000 if you’re single, or $170,000 if married filing jointly. You are considered a first-time home buyer if you (and your spouse, if you are married) didn’t own a primary residence in the past three years. The credit does not apply to rental property and vacation homes.

Misconception #4: You can’t get the 2009 first-time home-buyer tax credit until you file your tax return next year.

Actually, taxpayers who buy a first home in 2009 do not need to wait until they file their 2009 return (by April 15, 2010) to benefit from the credit. To get the money into the economy faster, the federal government is giving you a choice of claiming the first-time home-buyer credit on either your 2008 or your 2009 tax return.

There’s actually a way to benefit from the credit even before you buy your first home. If you plan to buy by the November 31 deadline, you can reduce your withholding on your paychecks right away. The increased take-home pay could help you with the down payment. File a new W-4 form with your employer to adjust your withholding. (And remember to re-adjust your withholding again next year.)

If you have already filed your 2008 return, you can use Form 1040X to amend it. If you purchase a first home after the 2008 tax-filing deadline of April 15, 2009, you can still claim the credit on your 2008 tax return either by requesting a six-month extension for filing your return (which doesn’t extend the deadline for paying any taxes owed) or by filing an amended return.

Reuters) – The regulator of U.S. government-controlled Fannie Mae (NYSE:FNM – News) and Freddie Mac (NYSE:FRE – News) is looking at ways the two firms might help finance small mortgage banks hobbled by a dearth of credit, the Wall Street Journal reported.

Reuters – The headquarters of mortgage lender Fannie Mae is shown in Washington September 8, 2008. REUTERS/Jason Reed …

The WSJ, quoting a Federal Housing Finance Agency (FHFA) spokeswoman, said the regulator is exploring options through which the two mortgage finance companies might help revive the market for warehouse loans – a key source of funds to mortgage banks.

A detailed plan for Fannie and Freddie to help mortgage banks get credit should be ready to be presented to the FHFA within about a week, John Courson, chief executive officer of the Mortgage Bankers Association, told the paper in an interview.

Fannie Mae and Freddie Mac were nationalized in September as losses at the companies mounted and a national foreclosure crisis deepened.

Reuters efforts to contact both companies out of regular office hours were unsuccessful.

Existing home sales rise 5.1 percent in February; prices plunge 15.5 percent

• Alan Zibel, AP Real Estate Writer
• MondaWASHINGTON (AP) — Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.
  AP – A house with a pool is advertised for under $80,000 in Stockton, Calif., Friday, March 13, 2009. The …

  The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest sales jump since July 2003.

  Sales had been expected to fall to an annual pace of 4.45 million units, according to Thomson Reuters.

  The median sales price plunged to $165,400, down 15.5 percent from $195,800 a year earlier. That was the second-largest drop on record.

  February’s median sales price was up slightly from January, which recorded the lowest median price since September 2002. Prices are down about 28 percent from their peak in July 2006.

  In contrast with the housing boom, when buyers took out ever-riskier loans and maxed out their home equity lines, “homebuyers are not over stretching” said Lawrence Yun, the Realtors’ chief economist. “They want to stay within their budget.”

  By summertime, sales are expected to get a boost from a $8,000 tax credit for new home buyers included in the economic stimulus package signed by President Barack Obama last month.

  The number of unsold homes on the market last month rose 5.2 percent to 3.8 million, a typical increase for the winter months. At February’s sales pace, it would take 9.7 months to rid the market of all of those properties, unchanged from a month earlier.

  The bursting of the U.S. housing bubble has caused foreclosures to swamp the market — especially in particularly distressed states like California, Florida, Nevada and Arizona.

  About 45 percent of sales nationwide are foreclosures or other distressed property sales, according to the Realtors group. Those properties typically sell for about 20 percent less than non-distressed homes.

  That’s great news for buyers, who are paying the most attractive prices in years. Plus, interest rates have sunk to historic lows.

  The Federal Reserve last week moved to reduce already low rates by printing $1.2 trillion and pumping it into the economy through the purchases of mortgage-backed securities and Treasury debt.

  The central bank also will double its purchases of debt issued by Fannie Mae and Freddie Mac to $200 billion.

  y March 23, 2009, 10:30 am EDT