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 >>

© New York Times 2009  President Obama is likely to propose a fee on financial institutions to help reduce the federal deficit when he releases his budget plans in February, although the details remain unresolved, according to administration officials.  The bank fee would recover some of the money that taxpayers put up to bail out the financial system after its near-collapse in the fall of 2008, a rescue effort that has contributed to the largest annual budget deficits since World War II.  Read more.  ...
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© Reuters 2009 Democratic leaders in the U.S. House of Representatives briefed party members on Thursday on healthcare talks with the Senate, with competing approaches on taxes and the shape of new insurance exchanges topping the list of priorities. Read more. ...
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© Reuters 2009  Federal Reserve Bank of Boston President Eric Rosengren said U.S. job growth will probably be slow and unemployment will stay “quite elevated” while the economy recovers, warranting continued low interest rates.  Employment growth “will not likely be rapid enough to put a large dent in the unemployment rate,” Rosengren said in a speech today in Hartford, Connecticut. “This should allow for accommodative monetary policy to continue to support the economy until the underlying demand of consumers and businesses becomes self-sustaining.” More >>

The Defense Department spending bill recently signed into law, included a 2-month extension of the authority for the National Flood Insurance Program (NFIP). This gives Congress until February 28, 2010, to continue considering a range of reforms to strengthen NFIP's long-term financial viability. Without NFIP, property owners in federally designated areas across the nation would not be able to obtain a mortgage or flood insurance to protect their property. ...
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Last month, the Small Business Administration (SBA) announced that funds continue to be available for SBA ARC loans and Microloans. In addition, the SBA announced an extension, to February 28, 2010, of the enhancements made possible under the American Recovery and Reinvestment Act (ARRA) to the SBA's 7(a) and 504 loan programs due to additional funding of $125 million. The funding was made available as part of the Department of Defense appropriations bill signed by President Obama on December 19th. The enhancements to the 7(a) and 504 programs include higher loan guarantees and elimination of borrower fees. Realtors® are eligible for all of these SBA loans. More >>