Nation

COMMUNITY CHOICE IN REAL ESTATE ACT REINTRODUCED IN HOUSE
-On the first day of the new 109th Congress, Representatives Ken Calvert (R-CA) and Paul Kanjorski (D-PA) reintroduced the Community Choice in Real Estate Act (H.R. 111). This bill is the same as last Congress, and would prohibit the big banking conglomerates from entering the real estate brokerage, leasing, and property management business. It is expected that a companion bill will be introduced in the Senate early in this session.

TIME RUNS OUT ON DO-NOT-FAX LEGISLATION
-Despite the best efforts of the bills' sponsors and the broad-based Fax Coalition, the 108th Congress adjourned without approving legislation that would create the statutory authority for an established business relationship (EBR) exception to the Federal Communications Commission's revised Do-Not-Fax regulations. While HR 4600, the Junk Fax Prevention Act, made its way successfully through the House in July, the Senate companion bill (S. 2603) met with opposition once approved by the Senate Commerce Committee. NAR and the Fax Coalition members worked successfully to overcome these objections only to be faced with an unrelated procedural tiff that further stalled consideration of the bill until the very last day of the session. Before adjourning, the Senate approved an amended version of the bill. Unfortunately, by the time the Senate acted, the House had come to the end of its session and was unable to take up the amended version of the bill adopted by the Senate. With the effective date of the revised rules stayed through June 30, 2005, NAR and the Fax Coalition will again seek passage of legislation in the new 109th Congress to correct the problems created by the new rules early in 2005.

FHA REDUCES ADMINISTRATIVE BURDEN OF HOME INSPECTION FORM
-Since 1996 HUD has required that homebuyers utilizing FHA sign a disclosure statement on or before execution of the sales contract informing the borrower of their right to consider a home inspection on the property they are about to purchase. The form titled "For Your Protection: Get a Home Inspection" informs prospective FHA borrowers of their responsibility to ensure the acceptable condition of the property since FHA does not warrant the condition of the home. HUD issued a mortgagee letter in mid-January stating that the form can be included in the standard sales agreement of each state. If the entire home inspection disclosure form is included in the executed sales agreement then the home purchaser no longer needs to separately execute the form. The effect of this would be that re-execution of the sales agreement, which is required if the form was not provided before or at signing of the sales agreement, would no longer be necessary. It is anticipated that this new procedure will reduce the administrative burden for NAR members who participate in the FHA program.

HUD NIXES REFUNDS OF FHA UP-FRONT MORTGAGE INSURANCE PREMIUMS -HUD has issued a mortgagee letter which eliminates the refunds of the FHA up-front mortgage insurance premiums. The borrower can still receive the refund if they refinance to another mortgage that is insured by FHA. This change became effective for those FHA mortgages endorsed for insurance on or after December 8, 2004. The Consolidated Appropriations Act of 2005 that was passed by Congress last year contained a provision that allowed the Department to proceed to implement this change. The provision was not included in either the House or Senate passed HUD Appropriations bills, but was inserted at the last minute while the omnibus appropriations bill was in conference. NAR worked with the National Association of Home Builders and the Mortgage Bankers to try to remove the provision. NAR will be working with Congress this year to restore the ability to receive a refund of the up-front premiums.