Washington is a city of Southern efficiency and Northern charm - John F Kennedy

Do You Know What the Administration's Plan for Housing is this Year?



"In politics, nothing happens by accident. If it happens, you can bet it was planned that way." - Franklin D. Roosevelt

You may not have had the opportunity to read the Obama Administration's Report to Congress, "Reforming America's Housing Finance Market" to prompt you I have included the link HERE

It is no secret that all of us in the real estate industries are in for some challenging times. It is also no secret it is going to continue to challenge even the best of the best. In the Report's 32 pages the agenda for our future is revealed. It's position for Fannie Mae and Freddie Mac were not a shock, however the other items discussed were certainly eye-opening.

The highlights are...
1. Plans to decrease the conforming loan limits
2. Need to Increase "Guarantee Fees" (the fee paid to any loan sold to FNMA/FHLMC)
3. Larger down payment requirements for FNMA/FHLMC loans (10% down)
4. A decrease in the FHA loan limits back to the HERA requirements (115% of current median home value) which are set to expire on October 1, 2011
5. Consolidate FHA, VA and Rural Housing into one housing unit
6. Full implementation of Dodd-Frank's consumer protection provisions (including LO comp, risk retention and underwriting standardization)
7. Requirement of originators and securitizers to retain risk (5%)
8. Shift from homeownership to affordable rental housing
9. Coordinated moves to restrict FHA's loan to value ratios and increased customer cost in preparation to shrink FHA's presence in the market
10. 3 options to wind down FNMA/FHLMC


If one or more of these proposals are to take root, how will your business be impacted? How will your customers be impacted? Will our fragile economic market be able to weather the storm of increased down payment requirements for ALL loans, maximum government loan amounts rolled back or the continued increase in costs to credit?

I hope you wil become educated and aware of the changes being made, adjust your planning and by all means, let your informed voice be heard, not through empty complaints but through targeted advocacy, grassroots movements and old fashioned tenacity.

Report From the Front Line

My husband and I were honored to host Arizona's own real estate advocate, Congressman David Schweikert at a private reception at the home of Bill Rogers in Scottsdale on Friday. Representative Schweikert has been named to the powerful House Financial Services Committee, and the Vice Chair of the Capital Markets Sub-Committee, an unheard of feat by a freshman delegate.

He once again wowed some of Arizona's toughest industry critics through his knowledge, passion and experience as a real estate agent and investor. His frank and open discussion about what he would like to see happen in the committee was impressive, especially when coupled with his desire for input from those in attendance for solutions and options.

Many in attendance were pleased to hear of the Representative's support of the March 11, 2011 Letter to the Federal Reserve requesting the delay of the April 1st deadline for Loan Officer Compensation. We were also interest to hear his impression of how the next few weeks would play out with the Fed.

Overall it was a tremendous evening for those who committed the time and money to attend.

Ha Ha

Its a fine line between numerator and denominator.