Governmental Affairs - May 3, 2023

Governmental Affairs Report

May 3, 2023

The Rising Debate over Mortgage Pricing Rules

Last January, the Federal Housing Finance Agency announced its plan to help low-credit buyers by adjusting its pricing based critical indicators such as loan-to-values, credit scores, occupancy and number of units in a home. The direction signaled great news for marginal buyers, especially with the new Loan-Level Pricing Adjustments (LLPA) that offer pricing adjustments for borrowers with a DTI ratio above 40%.

But in the details of the FHFA’s guidance, comes information the fees may be paid by adding fees to higher income, or high-credit borrowers. It’s this fine print that has raised concerns from the National Association of REALTORS®. Especially when the cost of these mortgages appears to be on the backs of borrowers with good credit.

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Washington Legislature Ends with Key Wins for REALTORS®

Among the key bills:

Missing Middle Bill – mandates more housing types including duplex to six-plex units, townhouses, cottage houses, and other smaller housing types that fit within existing residential neighborhoods.
Condo Reform Exempts buildings with 12 or fewer units to streamline construction design process.
Increasing the Supply & Affordability of Condominiums Allows contractors a “Right to Cure” to fix construction issues before litigation.
Expanding housing options with ADUs. Eases barriers to the construction and use of accessory dwelling units.
Exempting Residential Sale/Leasebacks from Landlord-Tenant Act When Allows for rent back agreements for up to 90-days, and exempts them from Landlord-Tenant Act
Housing Project Streamline Regulations Two bills to help speed up city review processes.
Reducing local governments’ land use permitting workload – Has passed the House and Senate.
Improving the state’s response to climate change Adds a climate change element to the Growth Management Act.
Converting existing buildings to residential Makes it easier to convert office buildings to residential units
Covenant Home Ownership Account – Provides down payment assistance to those historically affected by housing discrimination
Expanding housing finance opportunities Expands ability of public housing authorities to re-benchmark median income limits.
Consumer “Right to List” Reduces “Right to List” agreements to 0nly 5-years.
Improve Consumer Protections in Real Estate Agency Law A first in the country, creates written buyer agency agreements, and dual agency agreements with clear disclosure for compensations.

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RPAC Update

Spokane REALTOR® answered the call by raising over $36,000 during its latest fundraising opportunity.

These funds help us support the REALTOR® Champions who fight for housing opportunities and property rights

Have you invested yet? Help us support REALTOR® candidates who support us!

Don't miss the next opportunity to be a part of this great movement.

For details on how YOU can play a part - contact Spokane RPAC Trustee Keri McCombs.

Email Keri.