8/14/2019 Positive Real Estate News - Special Issue: Legislative Update (Vol 2, Issue 10 - June 18, 2009)

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 June 18, 2009 Vol. 2, Issue 10

What are real estate professionals saying to homebuyers and sellers about current market

conditions? The successful brokers and sales associates are talking about the strengths that exist in

the market — not the negative media hype. Below are positive angles that appeared recently in themedia and underscore why it is a good time to buy real estate.

SPECIAL ISSUE: Legislative Update

Business Roundtable Submits Recommendations to Help Revive the Housing Market

Richard A. Smith, president and CEO of Realogy, is the chair of the Business Roundtable’s Housing

Working Group, which recently submitted the following recommendations to the White House and

Congress to stimulate the U.S. housing market:

  Keep mortgage interest rates at historically low levels (below 5%) for at least one year;

  Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10% of thepurchase price of the home or $8,000 to a higher limit of either 10% or $15,000 for all homebuyers,remove the income restrictions and include all primary residence purchases for one full year;

  Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light

of rising loan-modification re-default rates;  Make permanent the current temporary conforming loan limits; and

  Continue to review and strengthen government efforts already underway to review and refinemortgage lending practices.

-- To obtain the Business Roundtable’s June 10 press release and its Housing Working Group’s detailed recommendations, click here.

Housing Industry Associations Endorse Business Roundtable Proposal

 “The National Association of Realtors® (NAR) and our 1.2 million members applaud the Business

Roundtable for its sound policy recommendations put forth to reinvigorate our nation’s housing market.The proposal they announced today is consistent with the recommendations NAR has advocated and

reflects the critical need to continue efforts to bring stability to the housing market.” 

-- Charles McMillan, president, National Association of Realtors®

 , “Realtors®

Join Business Roundtable in Calling for Renewed Focus on Housing Stabilization ,” Yahoo Finance, June 10, 2009.

 “The National Association of Home Builders (NAHB) supports the Business Roundtable’s efforts to

promote policies that will stimulate housing demand. NAHB looks forward to working with all interestedparties in the business community, on Capitol Hill and in the Obama Administration to foster new ideas

and policies that will help to get housing and the economy back on track, particularly at a time when therecovery is facing a number of significant challenges.” 

-- Joe Robson, NAHB chairman, “Statement from NAHB Chairman Joe Robson on Enhancing the Home Buyer Tax Credit  ,” Yahoo Finance, June 11, 2009.

8/14/2019 Positive Real Estate News - Special Issue: Legislative Update (Vol 2, Issue 10 - June 18, 2009)

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 “Stimulating the housing market is one of the best ways Congress can help accelerate the recovery of ournational economy. Offering $15,000 to potential homebuyers is a powerful incentive that I believe will

 jumpstart the housing market. The current $8,000 credit for first-time buyers has had a positive effect onthe housing market this year. Increasing the amount and expanding the benefit to include all homebuyers

will have an even larger impact in spurring the housing market and stabilizing the economy.” 

-- David G. Kittle, CMB, Chairman of the Mortgage Bankers Association , “MBA Supports Proposal for $15,000 Tax Credit for All Home Buyers ,” RISMedia, June 12, 2009.

Bill to Increase Homebuyer Tax Credit Introduced to Senate

Drawing on more than three decades of experience in the real estate industry, U.S. Senator JohnnyIsakson, (R-Ga.), introduced legislation to invigorate housing demand and to boost the economy by

expanding the first-time homebuyer tax credit passed by Congress earlier this year. Specifically,

Isakson’s legislation would:

  Increase the maximum amount of the credit from $8,000 to $15,000 and expand the current tax

credit so that it applies to any buyer of any home, not just first-time buyers

  Eliminate the income caps of $75,000 for an individual and $150,000 for a couple under the currenttax credit so that there is no income limit for eligibility

  Extend the tax credit for one year from date of enactment and would still allow homebuyers to

claim the credit on their 2009 tax return for purchases made in 2010.

-- “Isakson Continues Push to Stimulate Housing Market  ,” The Daily Citizen (Ga.), June 10, 2009.

Bill to Spur Home Sales Introduced to House of Representatives

Saying that it was critical to spur home sales because of their impact on our nation’s economy, U.S. Rep.Howard Coble (R-NC) announced that he has introduced legislation to:

  Extend the [homebuyer] tax credit through January 1, 2011 (currently, the credit only applies to

purchases made between April 8, 2008 and December 1, 2009)

  Repeal of the limitation based on modified gross income (currently, the credit would “phase out” 

for singles making more than $75,000 and couples making more than $150,000); incomelimitations aren’t necessary if the credit is capped at $8,000

  Extend waiver of the recapture provision. Under current law, the tax credit for purchases made in

2009 does not have to be paid back unless the homeowner sells or ceases to use the property as a

principal residence within 36 months of purchase. Extending this waiver ensures that the creditisn’t treated as an interest-free loan, but still requires responsible homeownership

-- “Coble Introduces Bill to Spur Home Sales ,” The Daily Citizen (Ga.), June 10, 2009.

Chief Economist at Moody’s Economy.com: “Expand the Housing Tax Credit”

 “Based on simulations of the Moody's Economy.com macro model, the expanded tax credit, if extendedthrough the end of 2010, would increase 2010 sales by almost 600,000. This in turn would generate $33billion in additional real GDP, lifting growth in 2010 by about 25 basis points. That would translate into

$56,000 in real GDP generated for each additional home sale. Benefits would flow to a range of hard-

pressed industries, including mortgage lenders, real estate firms, insurance companies, propertymaintenance and repair businesses, and building supply retailers.” 

-- Mark Zandi, chief economist, Moody’s Economy.com, “Expand the Housing Tax Credit  ,” Moody’s Economy.com, June 16, 2009.