New Hampshire HousingHomeownership ConferenceFebruary 18, 2014

Recent and Pending Legislation

Study Commission on Housing Policy and Regulation SB 185 (Ch. 233, Laws of 2013) –

examination of state agency policies that impact housing affordability

Specifically not about local regulation Also looking at incentives Actively pursuing legislation

From SB 185 Commission SB 387 – Land sales full disclosure

exemptions SB 393 – NHHFA and surplus land

Foreclosures SB 306 – Mortgage foreclosure study

commission SB 341 – Eviction procedures on

foreclosed properties

Discrimination, Abuse, and Civil Rights HB 1555 – Neglect/financial exploitation of

elderly or impaired adults HB 1409 – Discrimination in housing based on

“source of income” or domestic abuse HB 1143 – Update to anti-discrimination laws HB 1604 – Financial fraud laws commission SB 371 – Senior citizens bill of rights

Transactions HB 532 – PACE (municipal lending for

energy efficiency / lien and repayment on taxes)

HB 1532 – Radon level notification HB 1193 – Flood coverage notification

Miscellanea HB 1573 – Regional planning commissions HB 1297 – Workforce housing grants

Recent and Pending Legislation

Federal Budget FY 14 $1.1 trillion budget approved in January Provides stability, at least in the short run FY 15 negotiations still on the (very) short

horizon Debt limit

“Clean bill” signed by President on Saturday Government now solvent through March 2015 Action because of the upcoming mid-term

elections

Consumer Financial Protection Bureau (CFPB) Qualified Mortgage (QRM / QM)▪ Requires mortgage lenders to underwrite a loan based

on a reasonable expectation that the borrower can repay it; 43% max debt to income; effective 1/10/14

CFPB now wants ideas on improving public data▪ Dodd-Frank required loan length, total fees, teaser

rates, credit scores▪ Thinking about disclosure of interest rates, origination

fees, reasons for loan rejections; whether they’re QM’s

GSE Reform Fannie and Freddie occupy over 80% of the

mortgage market Both in FHFA conservatorship since 2008 Administration’s principles for housing reform▪ Private sector as the center of the housing finance

system;▪ Wind down Fannie and Freddie▪ Maintain access to 30-year fixed rate mortgage▪ Support affordability for creditworthy first-time

homebuyers and access for affordable rental housing.

GSE Reform (cont’d) Last year: Corker/Warner – generally

supported by Administration This year: Johnson/Crapo – details this month▪ Expected to be based on last year’s bill▪ Phase out GSE’s over 5 years▪ Federal Mortgage Insurance Corporation (FMIC) -

federal guaranteed catastrophic reinsurance on mortgage-backed securities

Meanwhile, GSE’s are being sued to distribute their “profits” to the National Housing Trust Fund

Tax Reform Look for a bill this month from House

Ways & Means Chair David Camp Resistance from both R’s and D’s, but

potential support from Senate Finance (Wyden and Warner)

Unlikely to happen, but…