Now that the American Recovery and Reinvestment Act has been signed by President Obama, the National Association of REALTORS® is looking forward to swift implementation.
“We are pleased that Congress and the administration have taken prompt action to address the current economic crisis,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage Dallas-Fort Worth. “Job creation and tax cuts are going to help families recover and prosper and these initiatives will help more people keep their homes and help others become homeowners.”
An economic recovery is not possible without a housing recovery, and the legislation contains two important housing provisions championed by NAR. The final stimulus bill increases the first-time home buyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation. In addition, the credit is available to first-time home buyers for the purchase of a principal residence on or after January 1st of 2009, until December 1. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit
The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These higher loan limits are important to make mortgages affordable regardless of where you live. This will also help reduce inventory and improve liquidity in the overall mortgage market,” McMillan said. These loan limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of$729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.
The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and REALTORS®. While these new limits were included in version of the original stimulus bill approved by the House, the bill first approved by the Senate did not. NAR's Call for Action to both the House and the Senate prior to the final vote advocated strongly for the provisions which were then included in the final bill approved by both Chambers.
Estimated 2009 FHA, Fannie Mae and Freddie Mac Loan Limits
NAR commended President Obama and Congress for including resource allocation for neighborhood stabilization efforts to help communities purchase and rehabilitate foreclosed and vacant properties. This funding will protect communities across the country and preserve home values from further decline. REALTORS® also praised the provision to help America’s wounded warriors who need to move or relocate.
NAR’s housing policy agenda also includes better foreclosure mitigation efforts and lower interest rates for homeowners and buyers. These components in support of a housing recovery are expected to be addressed in the coming days.“NAR will continue representing Americans who are trying to purchase a home, protect their current home or preserve investment opportunities in residential and commercial properties. We believe that positive steps are being taken to improve the housing market, and it is important that we keep moving forward with our efforts,” McMillan said.
For more information on the federal stimulus package, please click here to find additional information important to the REALTOR® Community.
On Thursday, February 12, NAR held a webcast introducing the “Right Tools Right Now.” Initiative that will provide members with free tools that can help them in today’s economy. The “Right Tools Right Now.” Program will provide NAR publications, education, services, resources and tools for free, at cost, or reduced pricing. At the launch of the program, NAR is offering
34 free online educational publications
7 online educational courses at cost and free networking opportunities
12 free current and historical research tools online
The program also includes a variety of discounts on speciality products, membership fees and marketing products. The “Right Tools Right Now” Inititative
Web site will be live on February 27. Stay tuned to MAR’s
Web site for up to date details.
MAR is proud to announce an early registration rate for this year’s Broker Summit. The Broker Summit is the only broker specific event of the year, and is not to be missed by brokers, managers and leaders in the industry. Register by March 26 for only $119, a $30 savings. This member exclusive value consists of a two day conference, with keynote speaker Jeremy Conaway, opportunity to receive CE credit, Broker Legal Issues with MAR’s legal counsel Gail Anderson, networking events and much more!
The Broker Summit takes place April 22-23, at the Inn at St. John’s in Plymouth. By reserving your hotel room through the MAR group rate, you can also save an additional $85.
There is no better time for education and networking with your peers, then now.
Register Early and Save!
Do you want to recruit top agents from around the state? Having a recruiting strategy is essential to grow and improve your business even in down economic times. Increase your company’s listings by advertising in the
Michigan REALTOR® to bring your company new talent a fresh perspective.
The Michigan REALTOR® is your award-winning, member publication. It is mailed right to over 23,000 REALTOR® members throughout the state. No other publication in the state hits the desk of this many real estate professionals. Our members include the top residential and commercial real estate agents, brokers and appraisers.
Advertising in the Michigan REALTOR® can not only help you recruit, but also improve your company’s brand image and help you become more recognized by over 23,000 REALTORS® throughout the state. As a member of MAR your company is eligible for a special member rate. Now is the perfect time to reserve your space in our May issue and the upcoming Convention issue.
For more information on advertising visit the MAR
Web site or to place an ad e-mail
Corie Costello or call 517.899.4789.
With the help of McClelland & Anderson, we are taking the most commonly asked questions from our legal hotline and putting them in e-news. We will be featuring a different question each issue.
QUESTION: I am a broker and one of my salespersons wants to do some property management on the side. Is this allowed?
ANSWER: NO. Only brokers can enter into property management contracts. A broker can however, have one of its agents manage properties
on behalf of the broker with all commissions being paid through the broker.
View legal update videos covering hot topics in the Mirealtors.com Legal Update Center.
At the end of December, Governor Jennifer M. Granholm and Director Stanley "Skip" Pruss announced that the new Department of Energy, Labor & Economic Growth (DELEG) has officially opened for business. Granholm signed Executive Order 2008-20 on October 27 to streamline state government by aligning all renewable energy and energy efficiency programs together and adding "Energy" to the Department of Labor & Economic Growth's name in recognition of this concentrated effort.
Granholm appointed her special advisor on renewable energy, Stanley "Skip" Pruss, as director and as the state's new Chief Energy Officer to oversee the workforce and economic development efforts to prepare for Michigan's new energy economy.
The new DELEG brings together state employees from the Departments of Agriculture, Environmental Quality, the Energy Office and the Public Service Commission to work on energy related initiatives. This new office will partner closely with the Michigan Economic Development Corporation's tax incentive and business attraction efforts.
Real Estate Errors & Omissions (E&O) coverage from Pearl Insurance is underwritten by the A rated (by A.M. Best) XL Insurance companies (through Greenwich Insurance Company and Indian Harbor Insurance Company). Our E&O program has earned sponsorships from over 40 national, state, and local real estate associations, including the Michigan Association of REALTORS® since 1993.
Because Pearl understands real estate professionals' hectic lifestyles, we designed our Click. Quote. Buy. process for E&O shopping. We've made it easy for you to login, obtain a quick E&O quote, and, if qualified, even buy your policy, online immediately at www.pearlinsurance.com/quote/.