Newsroom
Press Reports Indicate FHFA Will Allow Limited Principal Reduction for Underwater Fannie and Freddie Borrowers
According to a recent Wall Street Journal article (subscription required), the Federal Housing Finance Agency (FHFA) has approved a plan that will allow Fannie Mae and Freddie Mac to reduce borrowers’ outstanding mortgage balances to help them remain in their homes. FHFA might officially announce the plan in the next few weeks. In a recent speech, however, FHFA Director Watt said only, “… I expect to announce a decision within the next 30 days about whether we have been able to find a "win-win" principal reduction strategy or whether, on the other hand, we will take principal reduction off the table entirely. So, while I don't have an answer today, I invite you to stay tuned for more on this in the near future.”
FHA Releases New Single Family Loan Certifications; Proposes Modified Lender Certifications
On March 15, the Federal Housing Administration (FHA) announced that it has revised the form mortgagees must file when submitting a loan for FHA-insurance and proposed changes to the certification statements lenders and other mortgagees must file when applying to participate in FHA’s homeownership programs. FHA said it hopes these actions will increase lender participation in FHA’s single-family programs by clarifying FHA mortgagees’ underwriting responsibilities and liabilities.
Bond Buyer: Housing Bond Volume Increased 27% in 2015
Total tax-exempt housing bond issuance increased substantially in 2015, an analysis recently released by The Bond Buyer (subscription required) finds. The gains in the housing bond market were widespread, with both single-family and multifamily bond volume rising last year.
HUD Publishes State Assessment of Fair Housing Planning Tool
Earlier today, HUD published the draft Assessment of Fair Housing (AFH) Tool for States and Insular Areas and accompanying Federal Register Notice. The tool is intended to guide states through the AFH process required under HUD’s Affirmatively Furthering Fair Housing (AFFH) regulation. AFFH requires all entities that receive HUD funding from HOME, Community Development Block Grants, Emergency Solutions Grants, and Housing Opportunities for Persons with AIDS and public housing agencies (PHA) to take part in the AFH process.
HUD Proposes Changes to FHA-HFA Multifamily Risk-Sharing Program Regulations
On March 8, HUD published a proposed rule in the Federal Register amending existing regulations for the Section 542(c) Housing Finance Agency (HFA) Risk-Sharing Program. HUD explains in the proposed rule that the existing regulations were last updated in 2000 and some aspects have since become outdated. The proposed rule, largely informed by dialogue with NCSHA and a working group of HFAs, is intended to better align the regulations with current industry and HUD policies and practices and provide greater flexibility for program participants.
AHTCC Accepting Nominations for Housing Credit Excellence Awards
The Affordable Housing Tax Credit Coalition (AHTCC) is accepting entries and nominations for the 22nd Annual Charles L. Edson Tax Credit Excellence Awards. The awards honor the best in affordable rental housing development. Each winner and honorable mention will be recognized at an awards ceremony in Washington, DC in June.
IRS Issues Housing Credit Utility Allowance Submetering Regulations
On March 3, the Internal Revenue Service (IRS) published in the Federal Register combined final regulations amending the Housing Credit utility allowance rules to provide greater clarity for Housing Credit properties that submeter to account for actual tenant energy consumption, and temporary regulations for properties in which an owner acquires energy directly from renewable sources, rather than from a utility company.
Ways and Means Chairman Brady Issues Tax Reform Mission Statement for Pro-Growth Policy Agenda
House Ways and Means Committee Chairman Kevin Brady (R-TX), who has been tasked by Speaker of the House Paul Ryan (R-WI) with leading a task force on tax reform, on March 2 released a mission statement, set of principles, policy reforms, and desired outcomes for the task force. The tax reform task force is one of six task forces Ryan has established and charged with developing a Republican pro-growth agenda to be presented to the country in the months ahead.
ACTION Campaign Circulates Sign-On Letter Urging Congress to Raise the Cap on Housing Credit Authority
The A Call To Invest in Our Neighborhoods (ACTION) Campaign, which NCSHA co-chairs with Enterprise Community Partners, is circulating a national sign-on letter calling on Congress to address the nation’s severe shortage of affordable rental housing by increasing Housing Credit authority by at least 50 percent.
Representatives Hultgren and Ruppersberger Launch Municipal Finance Caucus
On March 1, Representatives Randy Hultgren (R-IL) and Dutch Ruppersberger (D-MD) announced the establishment of a new, bipartisan caucus, which will serve as an advocacy and discussion forum for House members who are supporters of municipal bonds.
IRS Issues Housing Credit Compliance Monitoring Regulations
On February 23, the Internal Revenue Service (IRS) issued regulations amending the Low Income Housing Tax Credit (Housing Credit) compliance monitoring requirements to revise and clarify physical inspection and certification review rules. In conjunction with the new regulations, IRS published Revenue Procedure 2016-15, which further explains the implementation of the new regulations. The compliance monitoring regulations will be effective upon formal publication in the Federal Register on February 25.
Treasury Announces Process for Awarding Additional Hardest Hit Funding
Earlier today, the U.S. Department of Treasury announced how it will award the additional $2 billion in Hardest Hit Fund (HHF) program funding Congress recently appropriated in the Consolidated Appropriations Act for FY 2016. As Congress directed, eligibility for the new funds is restricted to the 19 states Treasury previously selected for HHF. Treasury’s announcement includes a list of the HHF states receiving additional amounts and the amounts they will receive.
