Legislative Issues

| SERVICE PROVIDERS | MEMBER LOGIN


	LEGISLATIVE ISSUES

	HOUSING & MARKET STATISTICS

	VIDEO LINKS

Avoid foreclosure with help from HUD-approved agencies

WASHINGTON-Jan. 17, 2012– In recent years, many people have turned to individual agencies, housing counselors and lenders to avoid foreclosure-but many found themselves paying scammers who took money and failed to protect them.

In a new information campaign, the Department of Housing and Urban Development (HUD) is telling homeowners that anyone at risk of foreclosure can receive free counseling from HUD’s nationwide network of approved counseling agencies.

Although each agency offers specific services, each generally offers the following types of help:

General counseling in matters related to housing
An evaluation of a homeowner’s specific situation
Counseling on ways to avoid foreclosure
Help with refinancing through HUD’s various programs or with lender negotiations

HUD-approved agencies cannot charge for their foreclosure counseling services. However, they can charge a reasonable fee for other services, such as general housing education, pre-and post-sale counseling and other services.

A homeowner does not have to be in the foreclosure process to seek counseling. In fact, HUD advises anyone who thinks he might have problems in the future to contact a mortgage counselor sooner rather than later. Before a first meeting, HUD suggests having the following information ready:

Household monthly income and expenses

Currently monthly mortgage payment amount

Latest mortgage account statement

Any relevant communication with your lender regarding late mortgage payments

“It is also a good idea to have a sense of what you want to accomplish with the help of the approved counseling agency-keeping your home, selling it, refinancing, etc.,” HUD says in a release.

To avoid a scam, HUD advises homeowners to take the following steps if working with an agency not approved by HUD:

Avoid paying for foreclosure counseling services. HUD-approved agencies provide these services at no cost.
Resist any tactics that pressure you into signing documents without enough time to go over them carefully
Do not sign over the deed of your house to any other person or organization.
Make your mortgage payments only to your lender or an institution approved by your lender.

To find a HUD-approved agency in Florida,

visit HUD’s website (http://hud.gov)

Help from IRS on Tax Credit Repayments

The IRS yesterday released a tool to help consumers who used the home buyer tax credit in 2008, 2009, or 2010 and have to pay it back in installments. Buyers who used the credit in 2008 have to pay it back because for that first year of the program the credit was structured as a no-interest loan. Buyers who used it in 2009 or 2010 only have to pay it back if they sold their home within three years of using the credit. The tool is intended to make it easier for taxpayers to gather up the information they need to include the repayment in their tax filing. Click here for more information.

Congress restored the loan limits for the Federal Housing Administration (FHA) for two years.

The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties in 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000. The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets, the floor will remain at $271,050. However, Congress chose not to apply the loan limits restoration to Fannie Mae and Freddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115 percent of local area median home prices up to $625,500.

The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR will continue to press Congress to use the additional time to complete their work on a five-year reauthorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.

Congress passes flood insurance stopgap extension

President Obama signed a bill to extend the National Flood Insurance Program (NFIP) until Nov. 18, 2011. The move allows closings to go through if a mortgage leaders requires flood insurance as a condition. However, it’s only a short-term solution.

Citizens adopts sinkhole inspections

Effective Oct. 1, 2011, Citizens Property Insurance Corp. won’t automatically cover sinkhole damage through an insurance rider in certain high-risk areas without a pre-coverage sinkhole inspection. The change applies to all new policies in the affected areas – both existing homeowners applying for first-time sinkhole coverage and people planning to buy a home.

Citizens has posted a PDF list of frequently asked questions on its website about the new sinkhole policies. For more information, go to www.citizensfla.com

Consumers to soon get free credit score after loan denial

Consumers who are denied credit or whose existing loan terms become less favorable soon will be able to get free credit scores under new rules from the Federal Reserve Board and Federal trade Commission. Effective July 21, if a credit scores is used to set certain terms, or deny or revoke credit or change existing terms, then banks and others will be required to disclose credit scores and related information to consumers. Besides the consumer's credit score, the lender also must disclose the range of possible scores under the model used to generate the score; the date on which the score was created; the name of the consumer reporting agency or entity that provided the score; and up to four key factors that hurt the credit score, or up to five factors if the number of inquiries made into that consumer's credit report is a key factor. numerous inquiries into a consumer's credit report can suggest that the consumer has been out shopping for credit and might be financially stressed. The Fed has estimated that it would take lenders, on average, two business days to update their systems to comply with the new requirements, although some businesses affected said it could take weeks or longer.

Unemployed Homeowners Get More Relief

Under the policy changes, mortgage companies collecting payments on Federal Housing Administration (FHA)-backed loans will be required to offer 12 months of forbearance for qualified unemployed borrowers, the White House said in a release. Out-of-work borrowers with these loans now can receive a minimum of four months without mortgage payments. These adjustments will provide much-needed assistance for unemployed homeowners trying to remain in their homes while looking for work, the administration said. Federal housing officials said changes to the Making Home Affordable (MHA) program will require participating loan servicers to extend the minimum forbearance period from 3 months to 12 months for eligible unemployed homeowners, whenever possible subject to investor and regulator guidance for each mortgage loan. Additionally, forbearance under the Unemployment Program will be available to borrowers who are seriously delinquent. All FHA-approved servicers must participate in the agency's Loss Mitigation Program, which includes the special forbearance program, housing officials said. HUD has posted an FHA fact sheet online.