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Forty years ago the dream of homeownership for many Americans of minority groups became a possibility when the Fair Housing Act was passed.  April marks the 40^th anniversary of the Act, which protects the basic right of all Americans to pursue the dream of homeownership regardless of race, color, religion, sex, disability, familial status and national origin.

“REALTORS® build communities and play a vital role in advancing fair housing laws and improving access to affordable housing,” said NAR President Dick Gaylord.  “NAR and its 1.3 million members pledge to continue our work educating home buyers and homeowners in our communities about fair housing laws, discrimination, and predatory lending practices, making the dream of homeownership viable for all Americans.”  

Throughout the year NAR carries out initiatives to promote Fair Housing.  Currently NAR is pushing for the recently increased Federal Housing Administration’s conforming loan limits to become permanent.  NAR and REALTORS® across the country are also calling for a stronger, more flexible FHA program to give more first-time buyers access to affordable and safe financing options. 

NAR also educates its members through the “At Home with Diversity” program, which teaches REALTORS® how to work effectively with — and within — a rapidly changing multicultural market. More than 25,000 REALTORS® have completed the course.  In celebration of Fair Housing Month, NAR is offering 50 percent off the online course fee – a savings of $24.50.

The Massachusetts Association of REALTORS® is also offering a “live” version of the class on April 18 for $100.  For more information visit MAR’s website. 

To test your Fair Housing knowledge, click here to take an online quiz.

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On April 1, 2008, the US Department of Housing and Urban Development (HUD) released mortgage letter 2008-09 announcing that mortgages that exceed the January 1, 2008, conforming loan limit of $417,000 may require two appraisals. A second appraisal is required for these loans if the loan-to-value ratio (excluding MIP) equals or exceeds 95 percent AND if the property is in a declining market. A declining market is determined by the appraiser or by the lender.

The letter also limits the loan-to-value for cash-out refinances. The loan-to-value may not exceed 85 percent of the appraiser's estimate of value if the homeowner pursues a cash-out refinance and the loan balance, excluding the FHA mortgage insurance premium, exceeds $417,000.

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Fannie Mae, a government-sponsored provider of home-funding, has announced tighter standards for home mortgages it guarantees or buys.

Fannie Mae will now require a minimum credit score of 850 for most loans it buys on an individual basis.  In the past Fannie had no minimum credit score.  The organization also announced an increase in the period needed for borrowers to re-establish credit history after a foreclosure from four years to five.  The forbearance period for delinquent borrowers could be extended up to six months for borrowers to find an alternative to foreclosure.

 Separately, Fannie Mae announced changes and clarifications to its declining markets policy. This policy generally requires that the maximum loan-to-value ratio (LTV) that would otherwise apply to mortgages it buys must be reduced by five percentage points if the home is in a declining market. As a practical matter, this means that the minimum down payment will be five percentage points higher. (Freddie Mac has a similar policy.)

Fannie Mae reminds lenders and appraisers to make their own judgment about local market conditions. The announcement states: "Relying solely on a [Desktop Underwriter®] message without further due diligence may be inappropriate in specific instances as there may be stable submarkets within a given market." REALTORS® may remind lenders that a DU message that a property may be in a declining market is not the last word.

Some of Fannie Mae’s changes will make financing easier:

• For Fannie Mae programs with a maximum LTV of 95 percent or greater, the maximum is 95 percent for properties in declining markets, but only for purchase money and no-cash-out mortgages involving a 1-unit principal residence.
• The declining markets policy does not apply if the maximum allowable LTV is 75 percent or less.
• Fannie Mae has eased the impact of the reduction for borrowers with a Community Seconds mortgage.
• Fannie Mae has clarified that government mortgage loans are not subject to the declining markets policy (including FHA, VA, and Rural Housing Service loans).

The new Announcement tightens applicability to refinancing mortgages.

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This was the 24^th consecutive quarter that rental property rates have risen, according to New York-based real estate research firm Reis Inc. The last time rents fell was the first quarter of 2002, when they declined by 0.2 percent, according to Reis.

A soft housing market beset by stricter loan terms and falling home prices is the "dominant driver" pushing people to rent apartments, said Sam Chandan, chief economist at Reis.

New York had the highest average rent at $2,790 a month, followed by San Francisco at $1,801, Fairfield County, Conn., at $1,759 and Boston at $1,620, Reis said.

Want more talking points on buying vs. renting and the value of homeownership?  Check out the latest edition of Beyond the Headlines from GBAR or NAR’s consumer website www.housingmarketfacts.com.

Source: Bloomberg News (04/05/2008)

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Session topics for buyers include: Home Buying 101: The Basics Every Buyer Should Know; Successfully Navigating the Mortgage Maze; Deal or No Deal: Confessions of a Home Inspector & Appraiser.

Sellers will learn about: Preparing Your Home for Sale; Evaluating Your Home’s Value & Setting a Fair Price; and the Risk and Rewards of Short Sales & Foreclosures.  Consumers can register online at www.boston.com/realestate. Registration can be in-person at the event on Saturday.

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Do you know a fellow REALTOR® who exemplifies community activism?  Then recognize that person by nominating him or her for the first-ever GBAR Good Neighbor Award.  The deadline to nominate someone is Tuesday, April 15.  The award will be presented to a REALTOR® who demonstrates an extraordinary commitment to community service through volunteerism and civic and charitable contributions that improve the lives of local residents and make their community a better place to live.

Nominees for the award may engage in a broad range of eligible activities that might include, by may not be limited to, volunteer work involving affordable housing issues, educational programs, youth-related activities, or any other civic or charitable activity that improves the lives of local residents or the community at-large. 

The nomination form can be completed online or downloaded in a print version.  To access either, click here.

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The Greater Boston Association of REALTORS® will be one of the featured sponsors at this year’s “What’s in a Bag?” charity event sponsored by the Massachusetts Coalition for the Homeless.

GBAR’s Community Service Committee along with GBAR staff members will be present at the event, which auctions off over 100 handbags from designers such as Cindy Crawford, Martha Stewart, Ashley Judd, Cole Haan and even the Boston Red Sox.  The coalition is the official charity of GBAR. 

Founded in 1981, the Massachusetts Coalition for the Homeless was the first statewide advocacy organization for the homeless in the nation. The Coalition traces its beginnings to local task forces that grew up around Massachusetts as homelessness was recognized as a complex and widespread problem. Realizing that emergency services alone could not solve homelessness, shelter providers and advocates created the Coalition to work on broader economic and social factors that effect or cause homelessness.

Notably, if you or a fellow REALTOR® makes a difference in his or her community through service and activism, consider nominating the person for GBAR’s first-ever Good Neighbor Award being presented in June.  The deadline to nominate someone is Tuesday, April 15, so don’t delay.  You can access the nomination form online.

For more information, or to attend the event click here.

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