Transition to a New Administration:  People and Policies:  Regulatory Issues Forum. 

            Obama will support housing per NAR.      In Illinois, Obama advocated tax credits for property owners and fought to end predatory lending.  He has advocated for a stronger FHA and voted for the NAR-backed economic stimulus bill, which increased loan limits in high-cost areas.

            External events will drive the overall agenda about housing decisions.  No one can predict what will happen 48 hours from right now.  No matter what candidate won, the reactions to the housing industry would be similar. 

            Angry Republicans will be an issue to be dealt with.  The Republican Party feels like they have been treated unfairly.  The forum suggested the Republicans will no longer be total big business driven and the Democrats and Republicans will work better together and see views more similar in the near future.

            Issues New President is faced with:

1.       Fix market failure, how to get the private market working better

a.       Buyers have no confidence in the market or banks

b.       Banking investors have no confidence in the mortgage lenders due to past undisclosed high risk

2.       Mortgage Broker Reform

a.       Loan to loan scoring system, from the mortgage broker to the investor

3.       Cycle of Foreclosure

a.       The cycle is explained as a home in the neighborhood goes into foreclosure, this affects the value of surrounding homes and a circular events starts with no way to stop.

b.       Possible proposal, allow judges to modify the terms of the loans already made and the servicer just has to live with it.

4.       FHA issues

a.       FHA is the most trusted type of loan

b.       FHA is expected to run over 50% of the market

c.       Can FHA get too big?

d.       Is FHA ran properly, if not, in the future will we have another bail out?

Realtors need to be more involved in RPAC and talking to the local and state reps.  Nothing is more effective than when a REALTOR® walks in an office and explains how a decision will impact the market and the REALTORS® job.

HUD employees start to transition before the election.  HUD supplies room for Obama’s HUD staff and their own systems.  Because Obama separated himself from the lobbyist he has less starting staff. 

Currently the 2^nd part of the bail out is waiting to be released.  NAR is waiting to find out if it will be released with out strings.

Many of the US notes are held by foreign countries, these countries have no interest in assisting the US.  If it weren’t for China right now, we wouldn’t be selling any mortgages or homes.  Is that good or bad?

RESPA Change:  HUD says its proposed changes to RESPA -- which include a new, four-page Good Faith Estimate that's intended to help home buyers comparison shop for a loan, title insurance and other settlement services -- would save consumers $8.35 billion a year.

            RESPA change also involves at the settlement table a new HUD 1 form, Good Faith Estimate and a mandatory script to be read out loud.  This may cause a raise in the settlement cost, more time and less transaction per day for the settlement company.

            Question asked:  Could Obama change the new RESPA Rule?  Congress could take action not to fund.  This must be revisited by the Obama team per forum speakers.  If rule is dated properly, no one can touch it except to create a new rule.