In response to Linda’s great idea for us each to share some “take away’s” from the GAR Conference with our members, I asked Moe Veissi’s speech writer (yes, he actually has a staff speech writer at NAR) to supply me with his talking points. What I received was a combination of speeches he’s given recently to Alaska, Maryland and GAR. So, I have taken the liberty of editing them all into the attached, which I hope will enlighten the members who weren’t able to hear Moe. Further, I think that we all, as leaders and spokespersons for our wonderful Association, can use these points when we address the media, or sales meetings or whenever we have an opportunity. Also, I would like to video a presentation of these remarks which we can make available to Brokers and on line. Thanks
Chip Kreps, RCE
Executive Director
Moe Veissi's talking points
Accomplishments
Ø Let me update you on some of our legislative and regulatory issues.
Ø First, a couple of NAR’s accomplishments this year.
Ø It was a relatively quiet year legislatively, but NAR worked hard behind the scenes.
NFIP
Ø We were happy the President signed the bill containing the five-year reauthorization of the National Flood Insurance Program.
Ø This is an important success, but like all legislative accomplishments, it was the result of compromise.
Ø Moving forward we expect Congress to focus on the budget deficit.
Ø Given the shortfall, we’ll have to fight hard for our goals.
VA Loan Limits
Ø We’re also pleased Congress passed, and the President signed, a bill (HR 1627) that will reinstate the higher VA loan limits through 2014.
Ø It makes the ARMs permanent and allows loan pooling
Ø This helps our servicemen and women open the door to homeownership by keeping mortgage financing affordable and accessible.
Ø It’s part of our promise to American’s veterans who have given so much to defend our freedom.
What’s Ahead
Tax Reform
Ø With the so-called fiscal cliff looming, we’re expecting Congress to undertake comprehensive tax reform in the year 2013.
Ø We’re having ongoing discussions with House leadership, and we intend to keep that going throughout the process.
Ø We’ll be pushing hard to maintain the historical tax incentives to homeownership.
Ø In particular, we do not intend to give an inch on the Mortgage Interest Deduction.
Ø A huge tax increase on the middle class during an economic recovery doesn’t sound like a great idea to me. How about you?
Ø The mortgage interest deduction is crucial to the stability of the American housing market and the economy. And it’s something we need to protect.
Ø We hope to be as successful nationally as you’ve been here on the State level, but we’ll need to keep fighting.
GSEs
Ø NAR believes we must restructure Fannie Mae and Freddie Mac.
Ø The best way to do this is by enacting comprehensive legislation to restructure the secondary mortgage market, while continuing the federal government’s role in the secondary mortgage market.
Ø We want to see mortgage liquidity in all markets, under all economic conditions.
QRM & QM
Ø NAR is urging federal regulators to re-craft the QRM exemption to include loans with down payments of less than 20 percent.
Ø As you may know, responsible lending standards and borrower’s ability to repay have the greatest impact on reducing lender risk—not high down payments.
Ø NAR supports a QM definition that:
o establishes strong consumer protections,
o promotes mortgage liquidity,
o incorporates ability-to-repay standards, and
o offers lenders a “safe harbor” that reduces litigation exposure.
Ø Simply put, we want to protect consumers while encouraging private lenders to return to the market.
Ø NAR forged the broad-based Coalition for Sensible Housing Policy, which asked for and received an extension of the proposed regulation comment period.
Ø We expect action on QM before the end of 2012, with QRM to follow in 2013.
Ø We want to ensure the rules do not block access for millions of lower income, first time buyers and residents of many communities who were most impacted by the recent foreclosure and credit crises.
Mortgage Cancellation Tax Relief
Ø Mortgage cancellation relief is set to expire at the end of the year.
o Passed in 2007, with NAR’s support, it’s already been extended once, in 2009.
o The bill was reported from the Senate Finance Committee; now it has to pass the House and the Senate.
Ø NAR is making a strong push for another extension to ensure this “phantom-income” tax doesn’t return.
o Given its strong bipartisan support in both houses, many members can be expected to support an extension.
o We’re optimistic that agreement can be reached.
