Washington Update - 05/08/2009 (Plain Text Version)
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E-mail Our Editor House and Senate Approve Mortgage BillsThe House on May 7 passed a mortgage reform lending bill designed to curb abusive lending practices. Prior to the House vote, NAHB sent a letter to every House member commending lawmakers for tackling this issue and providing several suggestions to modify and improve the bill. H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act, was approved by a vote of 300-to-114. The measure would require mortgage lenders to retain at least a 5 percent stake on any non-qualified home loans sold off to investors. Qualifying loans that would be exempt from this measure include 30-year fixed rate mortgages and other prime fixed-rate loans as well as mortgages backed by the government or Fannie Mae and Freddie Mac. H.R. 1728 would also increase regulation of mortgage brokers, help renters avoid eviction when landlords default on their mortgages and provide new safeguards for consumers seeking a mortgage or to refinance their existing home. The House action occurred the day after the Senate passed its own mortgage aid bill, S. 896, that would help revamp the Hope for Homeowners program aimed at helping struggling borrowers to refinance into more affordable loans. The legislation would also protect mortgage servicers from lawsuits when they modify loans and increase the Federal Deposit Insurance Corporation's line of credit from the U.S. Treasury to $500 billion through 2010 and $100 billion thereafter. The Senate bill passed 91 to 5 just one week after an amendment that would allow judges to modify the terms of mortgages on a primary residence, known as a "cramdown," was stripped from the legislation. The outlook for the House bill is uncertain as no companion bill has been introduced in the Senate. It is also unclear whether the House will take up and pass the Senate's housing bill. NAHB continues to monitor the situation closely and will continue to work with lawmakers to improve both housing bills. For more information on the House and Senate housing legislation, click here and type the respective bill numbers in the box in the upper center screen. For further details, contact Scott Meyer at 1-800-368-5242, x8144. Administration Proposes $17 Billion in Budget CutsThe Obama Administration on May 7 unveiled details of its $3.6 trillion budget for fiscal year 2010. The budget dedicates $1.2 trillion to discretionary spending and proposes to eliminate or reduce $17 billion from 121 government programs. Although the $17 billion amounts to just a fraction of the overall budget, many Democratic lawmakers vowed to fight the White House's efforts to cut their favorite programs. The budget comes on the heels of the Administration’s broad budget outline that was released in late-February and it serves as a guidance document for the Congress as it works through the fiscal 2010 appropriations process. The annual appropriations process determines the levels of federal spending for each of the federal departments and agencies, and all programs within their respective jurisdictions. While the President's budget recommends spending levels for the next fiscal year, it is not legally binding. Congressional appropriators will have the final say in program realignment and spending levels.
Department of Agriculture
Department of Labor
The House and Senate Appropriations Committees have already begun drafting the fiscal year 2010 appropriations bills, so it is unclear how much of an impact the Administration’s budget blueprint will have on that process. House appropriators are scheduled to begin marking up their versions of the spending bills within the next few weeks and the House hopes to complete floor consideration of all of the fiscal year 2010 bills before the end of June. The Senate will likely begin marking up its own spending bills sometime in late June. The House and Senate always work towards meeting the goal of having all appropriations bills completed and signed by the President prior to the fiscal year-end deadline of September 30. Fiscal year 2010 will begin on October 1, 2009. NAHB will continue to monitor the appropriations process as funding decisions are made on key housing and labor programs. For more information, contact Jenna Hamilton at x8407. [return to top] NAHB Discusses Broad Range of Housing Issues with HUD SecretaryMeeting with HUD Secretary Shaun Donovan and several top Department advisors on May 5, NAHB Chairman Joe Robson, First Vice Chair Bob Jones, President Jerry Howard, Exec. VP for Advocacy Bill Killmer and Senior VP for Housing Finance David Ledford discussed a number of home builders' key housing and finance concerns and set the stage for future such interaction with the Obama Administration. Included on our list of discussion items were: the housing outlook; the need for guidance on condominium mortgage insurance as well as on use of the home buyer tax credit as a down payment on FHA-insured loans; ways to improve FHA's multifamily mortgage insurance programs; foreclosure mitigation efforts; and NAHB’s Green Building Standard and challenges in financing energy-efficient homes. Going forward, NAHB's leadership will present Secretary Donovan's request for recommendations on HUD issues to NAHB members attending this month's Spring Board of Directors Meeting in Washington, D.C. For more information, contact David Ledford at x8265.
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