HR 3044
H.R. 3044: Attempting to impose an 18-month moratorium on the Home Valuation Code of Conduct
McLean, VA - June 26, 2009 - Last night, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation calling for an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). The National Association of Mortgage Brokers (NAMB) applauds the introduction of H.R. 3044. NAMB would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue.
"The introduction of this legislation is a victory for consumers and members of the industry alike," said NAMB President Marc Savitt, CRMS. "We thank Congress for recognizing the need to address the issue of appraiser coercion without causing undue harm to borrowers or diminishing competition in the marketplace."
NAMB has taken an active stance against the HVCC since its introduction in March of 2008. "We urge Congress to pass H.R. 3044 as soon as possible to ensure that more borrowers will not be negatively impacted by this de facto rule," stated Savitt. "In the period of time since its implementation, the HVCC has increased costs to consumers and decreased the quality of appraisals and has provided a level of uncertainty in an ailing housing market. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo's rule."
NAMB looks forward to working with Members of Congress as this legislation progresses.
gil
Please feel free to use these fliers for your listing and buyers presentations:
2) 100% Rural Development: www.realestateloans.com/usda.pdf
3) $100 down payment for HUD owned homes: www.realestateloans.com/100hudhome.pdf
4) Deferred maintenance/ugly homes: www.realestateloans.com/uglyhomes.pdf
5) Best Jumbo rate in the region: www.realestateloans.com/jumbo.pdf
6) Pre-approvals that close: www.realestateloans.com/concierge.pdf
7) VA home loans 100% financing: www.realestateloans.com/va.pdf
Home Affordable 125% Refinances
Home Affordable Website: http://makinghomeaffordable.gov/pr_07012009.html
Press Releases
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July 01, 2009
HUD SECRETARY DONOVAN ANNOUNCES EXPANDED ELIGIBILITY FOR MAKING HOME AFFORDABLE REFINANCING
Announces eligibility for borrowers up to 125% underwater in Las Vegas with Senate Majority Leader Harry Reid and Congresswoman Dina Titus WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced an expansion of the Obama Administration's Home Affordable Refinance Program to include participation by borrowers who are current but up to 125 percent underwater on their mortgage. Under authorization provided by the Federal Housing Finance Agency, borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will now be allowed to refinance those loans according to the terms of the Home Affordable Refinance program established earlier this year. Secretary Donovan made the announcement while touring a neighborhood in Las Vegas with Senate Majority Leader Harry Reid (D-NV) and Congresswoman Dina Titus. Las Vegas leads the nation in foreclosures and approximately 67 percent of the current mortgage holders have mortgages that are higher than the worth of their homes. "I am here in Las Vegas because it is ground zero of the foreclosure crisis," Secretary Donovan said. "I am pleased to join Senator Reid and Congresswoman Titus to make this announcement today, which I believe will make a critical difference in our ability to help many more Americans, particularly those here in Nevada, to stay in their homes. The president's Making Home Affordable plan is already helping far more families than any previous foreclosure initiative and with today's announcement we will extend its reach still further." "I am pleased Secretary Donovan accepted my invitation to come to Nevada and see firsthand the challenges homeowners here are facing," Senator Reid said. "His announcement that the loan-to-value requirement for the Administration's refinance program has been raised to 125 percent is good news for Nevadans fighting to stay in their homes. The neighborhood we visited today represents the hardships caused by the housing crisis and the hope that is being restored through the neighborhood stabilization program and the Home Affordable refinance program." "I am pleased to welcome Secretary Donovan to Las Vegas and thank him for coming. This is an opportunity to show him firsthand the magnitude of the foreclosure crisis in Southern Nevada," Congresswoman Titus said. "His announcement that the Making Home Affordable program will be expanded to help those further underwater, something I have advocated for, is welcome news that will help thousands of Nevadans stay in their home. I will continue working with Senator Reid, Secretary Donovan, and the rest of the Administration to find more ways to help the hardest hit areas like Southern Nevada, as every new foreclosure prolongs the housing crisis and hampers our country's ability to move out of the current recession." "This decision is part of our ongoing efforts to maximize the effectiveness of the Making Home Affordable program and adapt to an ever-changing housing market," said Treasury Secretary Tim Geithner. "By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly. It's a crucial step in our broader efforts to get America's housing market and economy on the path to recovery." Currently, only those borrowers whose first mortgage does not exceed 105 percent of the current market value of the property are eligible for the Obama Administration's Home Affordable Refinance Program. For example if the property is worth $200,000, the borrower must owe $210,000 or less. Today's announcement will allow more homeowners to become eligible for the program, by increasing the eligibility to 125 percent. Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. In just a few months, more than 200,000 borrowers have received offers for trial loan modifications, tens of thousands of refinances and trial modifications are under way, and informational mailings about the program have been sent to more than one million borrowers who may be eligible. Donovan toured a neighborhood that has experienced several foreclosures in recent years, negatively impacting the property values of surrounding homes. The neighborhood has been targeted for Clark County's Neighborhood Stabilization Program, which will use funds to purchase and rehab foreclosed homes, provide downpayment and closing cost assistance to those purchasing foreclosed homes, and provide housing counseling to potential buyers. Donovan also announced his plans to deploy HUD Foreclosure Rapid Response Teams to assess the areas hardest hit by foreclosure, starting in Las Vegas. The Las Vegas team will consist of two senior-level HUD Field staff with experience in Single Family Housing and in community outreach. Their task in the next two weeks will be to determine the needs in Nevada and in surrounding areas based on delinquency rate data at the zip code level, as well as listening sessions with local stakeholders such as housing counseling agencies, lenders, and members of the public. Based on the Foreclosure Rapid Response Team's assessment, HUD will commit two full-time employees to implement their recommendations. Additionally, HUD plans to deploy two Fair Housing equal opportunity specialists to the Las Vegas HUD office, which will provide the opportunity to conduct outreach and education locally, receive discrimination complaints and more readily conduct full investigations. HUD receives about 100 complaints of housing discrimination every year from residents of Nevada, well over double what was received as recently as 2005. With a local presence, HUD's Fair Housing & Equal Opportunity office should make it easier for Nevada residents to obtain justice and relief, to educate housing consumers about predatory lending, and to conduct program compliance and monitoring in the over 3000 public housing units and over 8500 Section 8 vouchers.
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Ultra Conservative China Sees Solid Opportunities in US Mortgage Market
EXCLUSIVE-China's CIC set to invest in US mortgages
* China to invest in US Treasury PPIP program-sources
* CIC talks with nine US-designated PPIP managers
* China seeks safer, more profitable US investments
* US Treasury aware of, approves CIC plan-sources (Adds responses from BlackRock, background)
By George Chen, Asia Private Equity Correspondent
HONG KONG (Reuters) - China's $200 billion sovereign wealth fund, which lost big on its ill-timed 2007 Morgan Stanley and Blackstone bets, plans to invest up to $2 billion in U.S. mortgages as it eyes a property market rebound, two people with direct knowledge of the matter said Monday.
China Investment Corp plans to soon invest in U.S. taxpayer-subsidized investment funds that will acquire "toxic" mortgage-backed securities from the nation's banks. CIC believes these assets are a safer bet than buying into the U.S. Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF), the people with direct knowledge said.
CIC is in talks with nine U.S. Treasury-designated Public-Private Investment Plan managers, the sources said.
They include: AllianceBernstein Holding, with sub-advisers Greenfield Partners LLC and Rialto Capital Management LLC; Angelo, Gordon & Co LP with GE Capital Real Estate, a unit of General Electric Co; BlackRock Inc ; Invesco Ltd; Marathon Asset Management LP; Oaktree Capital Management LP; Trust Company of the West, a unit of Legg Mason; RLJ Western Asset Management LP, a venture formed by Legg's Western Asset Management unit; and Wellington Management Co LLP.
CIC is expected to decide this month which of the nine PPIP managers will handle its investments in mortgage-backed securities under the PPIP plan, the sources said.
The fund is likely to select several, not all, of the firms, said the sources, who have direct knowledge of the matter, but asked not to be identified as the talks are confidential. CIC cannot invest directly in the PPIP.
CIC, BlackRock, Legg Mason and AllianceBernstein declined to comment. Officials from the other investment managers were not immediately available.
U.S. TREASURY APPROVES
Under the Public-Private Investment Plan launched earlier this year, the U.S. government plans to seed a number of investment funds with taxpayer money.
When combined with money from other investors, these private sector-managed funds are expected to soak up as much as $40 billion in soured, hard-to-sell securities clogging the balance sheets of banks.
CIC's move comes after the United States and China ended their first annual Strategic and Economic Dialogue late last month. The two countries agreed to lead the global economy out of recession, with China seeking safer investments in the world's leading economy.
"The Chinese government is always trying to seek a more ideal way to invest in U.S. assets rather than purely buying U.S. government bonds all the time," said the source.
"Some might think $2 billion for a $200 billion sovereign fund is not big money, but it can be regarded as an innovative and positive option for Chinese investment," the source added.
The U.S. Treasury has been informed the nine designated PPIP managers are in talks to receive CIC money, and supports bringing foreign investors such as CIC into the PPIP program, the sources said.
Early this year, some U.S. asset managers approached CIC to invest in their funds focused on mortgage securities sold into the market under the TALF, the sources said, but the Chinese declined given the uncertain outlook at the time for U.S. economic recovery.
They noted, however, that these TALF-focused funds performed well in the second quarter as global markets perked up following the long financial crisis triggered by the U.S. property market.
Compared with TALF, the PPIP program focuses on safer securities that have so-called "Triple-A" ratings by at least two credit-rating agencies and debts guaranteed by the U.S. Federal Deposit Insurance Corporation (FDIC), the sources explained.
"In this case, CIC feels safer to invest, and the safer it feels, the more confident it will naturally feel about its investments as well as in the prospects for the U.S. economy," said one of the sources.
CIC, established by China's Communist government in late 2007, is eager to participate in the PPIP as it expects the U.S. property market will recover gradually late this year, said the sources.
In June, Reuters reported Asia-Pacific sovereign wealth funds including CIC and Singapore's Temasek, which have been rocked by soured bets on western financial companies, were diversifying into the riskier arena of distressed asset investments.
CIC's $200 billion fund is part of China's roughly $2 trillion of foreign exchange reserves. The majority of its reserves are in U.S. government bonds. (Additional reporting by Ross Kerber in Boston, Chris Sanders and Joe Giannone in New York; Editing by Ian Geoghegan and Maureen Bavdek)
