H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. President Bush signed the bill on July 30, 2008. The bill includes the following provisions:

• GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
• FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program.The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
• First Time Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
• FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
• Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
• VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
• Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
• GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
• Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
• National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
• CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
• LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
• Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

Settlement is Reached regarding VOW

(Virtual Office Websites)

VOWs requiring users to login to receive MLS data prompted an antitrust lawsuit by the Department of Justice (DOJ) in 2003. Click here for the Podcast explaining the May 27, 2008 NAR and Department of Justice settlement concerning VOWs. (6.59 min.) Also the Podcast explains the important MLS Participant rule which will affect current MLS Participants in May 2009. This rule will be mandatory for all MLSs and is in place to protect our data from licensed brokers participating in a MLS for the express purpose of using our MLS data to distribute and/or sell to the general public (ex. such as Goodlebase, Yahoo, homes.com, zillow.com etc.).

Unauthorized Access

Why You Must Never Share Your WARDEX User ID and Password

You can obtain a login ID for your personal assistant. See Policy 12 Use of Alias.

June 2008: An agent recently shared his user name and password with a personal assistant and title agent. Your local association can set up an alias for your assistant who needs their own log-in.  Occasionally, we hear that an agent shared their MLS password with a client. Both of these actions are in violation of RMLS rules and subject to a $2000 fine. User accounts are approved for one individual and should not be shared with anyone.

Unauthorized access puts the system security at risk and, potentially, our customers. User names and passwords should not be shared with anyone; co-workers, family, friends, technology vendors or clients.

The MLS is a core asset of the real estate industry. If unapproved persons access the MLS, they are stealing the data that you provide and pay for. The consequences of unauthorized access include data harvesting for solicitation, disgruntled former staff altering data, viewing of sensitive showing information, and targeting of vacant property for theft or vandalism.

Protect your asset. Do not share your user name and password with anyone.                                

Beware of Third Parties Seeking Unauthorized Access to MLS Data

When you subscribe to WARDEX IDX you and your webmaster have agreed that data is to be used exclusively on a WARDEX Participant’s firm or Subscriber’s personal website only.