Public Policy
REAL Advocacy for REALTORS®
Check out GCAAR’s bi-monthly Legislative and Public Policy Report at www.gcaar.com for a full list of federal, state, and local legislation being reviewed by the Government Affairs Department. You can also email mdlegislative@gcaar.com or dclegislative@gcaar.com with comments or questions!
ON THE HILL While Congress was in August recess, NAR was hard at work on many issues that will be on the chopping block this year. Here is what’s on the table: FANNIE AND FREDDIE REFORM Lawmakers are finally moving forward with reforming the secondary mortgage market. Recent introduction of legislation like the “PATH Act” (Protecting American Taxpayers and Homeowners) would eliminate Fannie and Freddie, and drastically reduce the accessibility to FHA loans. MORTGAGE INTEREST DEDUCTION (MID) House and Senate leaders are considering significant federal tax reform options. A “blank slate” approach emerged this summer, which would initially eliminate every provision in the tax code, including MID. QUALIFIED RESIDENTIAL MORTGAGE (QRM) More revisions to the QRM rule are possible, helping millions buy homes and strengthen the mortgage market. A recent proposal would require banks to retain a piece of mortgages when borrowers spend more than 43% of their monthly income to repay the debt. FLOOD INSURANCE In response to REALTOR® concerns about rate increases, a proposal for a one-year delay to any changes is moving through Congress. Stay up-to-date on NAR’s political activity and access all CALLS FOR ACTION through NAR’s REALTOR® Action Center at http://www.realtoractioncenter.com
NEW MARYLAND LAWS IN EFFECT SHORT SALES & FORECLOSURES MD law now requires a “mortgage assistance relief service provider” providing “mortgage assistance relief services” to comply with specific MD and federal regulations. “Mortgage assistance relief services,” such as negotiations or discussions over short sale issues, are considered outside the scope of a MD real estate license. Violators of the new law can be liable for serious damages and criminal charges. On the foreclosure front, Homeowner Associations (HOAs) and Condo Associations may no longer foreclose on a property if the lien is comprised only of fines and/or attorney fees to collect those fines. Foreclosure may only proceed on liens for delinquent assessments and/or attorney fees to collect those assessments. HOMEOWNER’S INSURANCE A new law requires an insurer to provide notice to consumers clarifying what the anti-concurrent coverage (ACC) clause in their policies mean. An ACC clause provides that if loss is caused by both covered and non-covered events, the loss claim will not be paid. REFINANCING Homeowners can now refinance a first mortgage without obtaining permission from the lender that funded a home equity loan or second mortgage. Visit MAR’s Government Affairs section at www.mdrealtor.org for a full list of bills from the 2013 Session.
TRANSPORTATION UPDATE OVER $1 BILLION IN MD STATE FUNDING FOR TRANSPORTATION Governor Martin O’Malley recently announced funding for nearly $1.7 billion in transportation projects in Montgomery and Prince George’s Counties. Funded by a sales tax on motor fuels, the Governor pledged $400 million for construction of the 16-mile Purple Line, a public-private partnership connecting Bethesda and New Carrollton with light rail service. O’Malley also named members to a MD task force that will investigate the feasibility of creating regional transit financing districts and local-option revenues for transportation. They are set to report recommendations by December 15, 2013. The transportation overhaul doesn’t stop there—MD voters will also see an amendment to the Maryland Constitution prohibiting the use of the Transportation Trust Fund for other purposes on their ballots during the 2014 election. MONTGOMERY COUNTY RAPID TRANSIT SYSTEM UPDATE After nearly 5 years of planning on a Rapid Transit System (RTS), the Montgomery County Planning Board finally submitted a Draft of its Countywide Transit Corridors Functional Master Plan to the Council this past July. Bonnie Casper, GCAAR Immediate Past President, presented testimony at the Council’s hearing in September. She urged the Council to adopt a plan that allows for the design and construction of a high performance Rapid Transit System, with flexibility for those who implement the plan to build the best possible system.
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10/10/13 3:16 PM