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REALTORS® Oppose Mortgage Tax Proposal

The CALIFORNIA ASSOCATION OF REALTORS® (C.A.R.) is opposing a proposal in Congress to impose a hidden tax on mortgages to pay for highways. Congress is seeking to disguise this tax by calling it a “fee.”

C.A.R. is asking that all California REALTORS® contact their Member of Congress to ask that the House not include this tax in the long-term Transportation funding bill.

A portion (in the form of a fee) of every conforming loan, (those backed by Fannie Mae and Freddie Mac) is used to offset losses from bad loans and to pay for the administrative costs of running these companies. These are called guarantee fees (or g-fees). In 2011 Congress added on a tax of an additional 10 Basis Points, equal to .1% of the value of the loan, to the guarantee fee of every new loan to fund an extension of unemployment benefits. That “add on” tax was due to expire in 2021 and loans originated after that date would not be subject to the additional fee.

The U.S. Senate just passed a long-term transportation funding bill that extends the “add-on” fee until 2025 for all new mortgages in order to pay for transportation infrastructure. As an example using real numbers, buyers purchasing a median priced California home of $489,560 using a typical conforming loan with a 20% down payment and a 4% interest rate will pay an additional $8,100. This figure is sure to rise with an increase in sales prices. This "g-fee" is actually a disguised tax on homebuyers.

This “fee” for highways unfairly burdens homebuyers for something not related AT ALL to their mortgage. And it will also erode housing affordability by adding another $8,000 to the cost of a median priced home.

C.A.R. opposes this tax because of its impact on homebuyers and housing affordability and believes that g-fees should only be used to reduce Fannie Mae and Freddie Mac’s (and therefore the taxpayers’) exposure to the risks associated with guaranteeing a mortgage and for the operation of these companies. A mortgage tax will also make it more difficult to enact meaningful mortgage finance reform because, going forward, Congress would need to offset the “cost” of reducing or eliminating the tax. 

Please oppose this tax by responding to C.A.R.’s Call-for-Action.

Click here for more details and to take action today for more details and to take action today.

NAR Variable Dues Video

NAR Variable Dues Video thumbnail

Click here to watch this video where C.A.R. Treasurer Geoff McIntosh speaks about the NAR Variable Dues. (Note the link will take you to dropbox, where the video is stored.)

New CFPB Tool for Real Estate Professionals

In our continuing efforts to keep you abreast of the latest news on the implementation of the Truth in Lending RESPA Integrated Document (TRID) rule by the Consumer Financial Protection Bureau (CFPB), NAR is pleased to announce new resources to help REALTORS® prepare for the changes.  Today, after close collaboration with NAR, the CFPB has launched a new online toolkit for real estate professionals as part of its “Know Before You Owe” campaign. CFPB uses the term “Know Before You Owe” for its consumer facing communications regarding TRID.  The new website is designed to help real estate professionals understand the changes to the closing process, that will go into effect on October 3, 2015, and how to explain the changes to clients.  The site also includes resources that real estate professionals can provide to their clients.

You can visit www.realtor.org to get additional information about the new website or visit the CFPB website directly

If you have any questions please contact John DiBiase, Government Affairs Communications Director, This email address is being protected from spambots. You need JavaScript enabled to view it. or 202-383-1037

Complete Links:

http://www.realtor.org/articles/cfpb-releases-new-trid-tools                                                 

http://www.consumerfinance.gov/know-before-you-owe/real-estate-professionals/

Nomination Committee Names Candidates for Election/Reelection to 2016 Board of Directors

July 21, 2015

 

In accordance with the provisions of the Bylaws, the Nomination Committee has proposed ten candidates to run for four directorship positions which will become vacant at year end. The vacancies in the following categories and the names of the candidates running for election/reelection to the 2016 Board of Directors to fill those vacancies are as follows:

 

REALTOR® or Designated REALTOR® elected from a brokerage with more than 75 REALTOR® members (One Vacancy)

 

Dierk A. Herbermann, Paragon Real Estate Group

Carol M. Luckenbach, Alain Pinel, REALTORS®

Jeffrey A. Silver, Coldwell Banker Previews Int'l

 

REALTORS® or Designated REALTORS® elected at-large (Two Vacancies)

 

Nina Dosanjh, Coldwell Banker Res. R.E. Svcs.

Gabriel L. Rojas, Climb Real Estate

Masood Samereie, Aria Properties

Tina C. Wong, Realty World Advance Group

 

Affiliate member elected at-large (One Vacancy)

 

Barbara E. Herzig, Herzig & Berlese

Ashley E. Klein, G3MH

Eric Tang, Umpqua Bank

 

All nominees have met the Bylaws requirement of having served as a member of at least one committee.

 

Nominations are not limited to those proposed by the Nomination Committee.  The Bylaws provide that 100 REALTOR® members may nominate an additional REALTOR® member candidate for any position becoming vacant.  All such nominations must be submitted in writing and filed with the corporate secretary not later than 12 noon on August 4, 2015, at which time nominations will close.

 

The Association wishes to express its appreciation to REALTOR® members who indicated an interest in running for election/reelection to the 2016 Board of Directors. The continued success of the Association is dependent upon the willingness of members to serve on policy-making bodies, such as the board, and we should all be grateful to the members for manifesting that interest. 

 

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