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 ...
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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—t ...
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© Reuters 2010Health research is a potential winner in the budget proposed by U.S. President Barack Obama on Monday, with the National Institutes of Health in line for an extra $1 billion for medical research. Obama's budget plan also would provide $25.5 billion for six months to help prop up Medicaid, the state-federal health insurance plan for the poor, $1.4 billion for food safety efforts and $3 billion for AIDS prevention. The budget also proposes an expansion of health and food aid to other countries, especially for research into AIDS and neglected tropical diseases. Read more.  ...
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© Reuters 2010 There is growing concern in Congress that the shaky $6.7 trillion commercial real estate market could implode, delivering a major blow to the economic recovery. A bipartisan group of 79 House members led by Representative Paul E. Kanjorski, Democrat of Pennsylvania, and Representative Ken Calvert, Republican of California, sent a letter to the Treasury Department and the Federal Reserve on Monday urging them to take a more active role in keeping the commercial real estate market from ...
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The IRS has released IR-2010-006 providing a revised Form 5405 to reflect the changes to the tax credit made in the extension and expansion legislation enacted in November 2009. The release reminds taxpayers that all tax returns claiming the tax credit must be filed manually (i.e., they cannot utilize the IRS E-File automatic system). The revised form includes a section for those repeat buyers who are eligible to claim the $6500 tax credit. The HUD-1 or evidence of the transaction must be filed with all returns claiming the credit (both the $8000 and $6500 credits). Individuals who claim the repeat buyer credit must also provide evidence that they have owned and used the prior residence for ...
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Last week, the Federal Housing Administration (FHA) announced major changes to ensure its long-term financial soundness. NAR has met with the FHA Commissioner on several occasions to discuss the state of the housing market and to underscore FHA's invaluable role. By all accounts the new changes are a victory for home buyers. FHA has carefully balanced the need to make financial reforms with the need to keep FHA available to a large segment of consumers. This is evident by retaining the 3.5 percent minimum down payment requirement and allowing the upfront mortgage insurance premium to be financed. FHA announced changes in the following areas: 1) The upfront mortgage insurance premium ...
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For more than 10 years, a temporary provision in the depreciation rules has allowed a 15 year recovery period for the cost of making improvements to leased property. This rule expired as of January 1, 2010, however. Thus, unless Congress acts to renew and extend the provision, the cost recovery period is now 39 years, with the improvements being treated as part of the cost of the underlying real property. The House of Representatives has passed HR 4213, a bill that extends this and dozens of other expiring provisions on a mostly party-line vote of 241 - 186. The bill is "paid for" by changing the tax treatment of real estate partnership carried interests from capital gains rates (c ...
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In recent weeks, calls to NAR have shown some confusion as to whether the tax relief for cancellation of mortgage debt rules remain in effect. The short answer: YES. The rules were enacted in 2007 and were originally scheduled to expire as of December 31, 2009. The financial system relief package enacted shortly before the 2008 election extended the relief through December 31, 2012. Thus, sellers who satisfy the requirements will continue to receive tax relief when a lender cancels all or some portion of debt associated with the sale of a principal residence. ...
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Economic conditions continue to improve "modestly" as 2009 came to a close, according to the Federal Reserve's latest snapshot report on the economy, nicknamed the Beige Book, released Wednesday. Ten of 12 Fed districts reported some increase in activity or improvement in conditions, up from eight in the previous survey in early December. Two important factors in assessing credit conditions - demand for loans and credit quality -- continued to deteriorate. ...
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© USA Today 2009  Another congressional delegation went to the White House today to talk with President Obama about a health care bill -- and another congressional delegation left without talking to reporters.  What this means for the fate of Obama's health care initiative we can't say. As has been reported, these health care negotiations are very secret. White House spokesman Robert Gibbs said the meetings are designed "to bridge the differences" in the House and the Senate health care bills passed last year. More >>