CVAR in REALTOR® Party

Citrus Valley AOR joined 2,500 REALTORS® who descended on Sacramento on Legislative Day to stump for homeownership and property rights. You too can have a say, go to http://www.cvarrac.net to find out more!

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*AB 71 (Chiu) – Mortgage Interest Deduction for 2nd Homes – OPPOSE

*C.A.R. Opposing Bill that Would Eliminate Mortgage
Interest Deduction on Second Homes

* CALL TODAY! VOTE COULD BE TOMORROW!

C.A.R. is OPPOSING UNLESS AMENDED AB 71 (Chiu) a bill that would eliminate the mortgage interest deduction for second homes to fund an increase in low-income housing tax credits. While C.A.R. supports increasing the amount of tax credits available for low-income housing, the association is opposed to doing so at the expense of the mortgage interest deduction for second homes. AB 71 will be voted on by the entire Assembly as soon as TOMORROW – Wednesday, May 31st.

Action Item

Urge your Assembly Member to Vote NO on AB 71

Call 1-800-798-6593

Enter your NRDS ID (or the Red Alert PIN number in the chart below)

followed by the # sign to be connected to your legislator’s office.

When staff answers the phone, you can use the following script:  

“Hi, this is (insert your name). I’m a constituent and a REALTOR®. Please ask the Assembly Member to Vote No on AB 71.”

Also, if you use Twitter™, please Tweet the following:

Govt shouldn’t change the rules. , please protect the MID.  #NoAB71

 

Assembly Member PIN Number Twitter™ Handle
Chris Holden 3446 @ChrisHoldenNews
Blanca Rubio 5455 @Blanca_E_Rubio
Freddie Rodriguez 8335 @AsmRodriguez52
Ian Calderon 4670 @IanAD57

 

*Background and Talking Points

While C.A.R. supports increasing the amount of tax credits available for low-income housing, we are opposed to doing so at the expense of the mortgage interest deduction for second homes.

AB 71 (Chiu) would eliminate the mortgage interest deduction (MID) for second homes to fund an increase in low-income housing tax credits. If the MID were eliminated for second homes, 2,152 home sales would be lost in the first year after implementation. The potential impact of the MID elimination is an economic loss of $180.2 million to the state of California in the year following the implementation.

C.A.R. opposes changing the mortgage interest deduction because:

The state shouldn’t change the rules after the fact. People made significant financial decisions, trusting that the mortgage interest deduction would be there to make the property affordable.

The MID is already capped. The amount of the mortgage interest deduction is already capped regardless of whether the taxpayer has one home or two homes.  It’s not right for government to dictate to homeowners how they can allocate their housing dollars!

Second homes are not necessarily “vacation homes.”  Someone faced with a one-way commute of an hour or more may choose to purchase a small condo near where they work in which to live during the workweek.

Local economies and communities will suffer. The economic health of the recreational areas of the state will be harmed by elimination of the mortgage interest deduction on second homes. Homeowners in those areas of the state are going to be hard pressed tofind a buyer if the mortgage interest deduction on second homes is eliminated.

Using the MID as a piggybank sets a dangerous precedent. 

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2016 Election Recap

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By Bill Ruh, CVAR Government Affairs Director

Election Day 2016 is now one for the history books.  No matter where your partisan political preferences may rest, your non-partisan REALTOR® Party has been hard at work throughout this election cycle to help elect REALTOR® friendly candidates in the U.S. House of Representatives, the California State Senate and the California State Assembly.    To that end we at the Citrus Valley Association of REALTORS® are pleased to announce that ALL of the REALTOR® Party candidates in our service area have been elected or in some cases re-elected.

 In the U.S. House of Representatives, where we need to keep the Mortgage Interest Deduction and 1031 exchanges, we congratulate:

                              Congressmember Judy Chu – 27th Congressional District

                              Congressmember Pete Aguilar – 31st Congressional District

                              Congressmember Grace Napolitano – 32nd Congressional District

                              Congressmember Norma Torres – 35th Congressional District

                              Congressmember Ed Royce – 39th Congressional District

 In the California State Senate and the California State Assembly, where we need to stop the potential for Professional Service Taxes and need to keep the Independent Contractor status of REALTORS®; we congratulate:

                              Senator Mike Morrell – 23rd Senate District

                              Senator Anthony Portantino – 25th Senate District

                              Senator Ling Ling Chang – 29th Senate District

                              Assemblymember  Marc Steinorth – 40th Assembly District

                              Assemblymember Chris Holden – 41st Assembly District

                              Assemblymember Blanca Rubio – 48th Assembly District

                              Assemblymember Ed Chau – 49th Assembly District

                              Assemblymember Freddie Rodriguez – 52 Assembly District

                              Assemblymember Philip Chen – 55th Assembly District

                              Assemblymember Ian Calderon – 57th Assembly District

 That is 15 races in which the REALTOR® Party competed and 15 races the REALTOR® Party won! A 100% victory for REALTORS®  We know each of them and we know that they will fight for REALTORS®.

At CVAR we ask you to get involved with the real estate politics that affect your business. Join the advocacy of CVAR, CAR and NAR to keep all REALTORS® protected and nationally recognized. The REALTOR® Party is a powerful alliance of REALTORS® and REALTOR® associations working to protect and promote home ownership and property investment. The REALTOR® Party speaks with one voice to advance candidates and public policies that build strong communities and promote a vibrant business environment. Get involved with the real estate politics that affect your business. Without the advocacy of the REALTOR® Party, victories such as those above would not be possible.  We ask you to join the advocacy of the REALTOR® Party by making a contribution to the REALTOR® Action Fund. Your participation will help to ensure future victories.

 As Winston Churchill once said:  “Many forms of government have been tried, and will be tried in this world of sin and woe.  No one pretends that democracy is perfect or all-wise.  Indeed, it has been said that democracy is the worst from of government except all those other forms that have been tried from time to time.”

Another C.A.R. Win!

C.A.R. Amendment Included in AB 1381

C.A.R. successfully pressed amendments to AB 1381 (Weber) only minutes before the bill’s scheduled hearing in the Senate.

C.A.R. opposed the bill because it contained surprise amendments added during the last allowable day in the Senate, its second house. Those amendments would have created a new exemption to the real estate license and would have permitted unlicensed agents to broker leases, sales and easements for the placement of outdoor advertising.

After considerable lobbying by both sides, which involved administration officials and the entire Senate, the bill was called back to the Business and Professions Committee. C.A.R.’s member mobilization effort forced the proponents to accept the limiting amendments. The amendments ultimately agreed to make the advertising agents’ rule essentially the same as the existing “principals’ exemption” – that is, a corporation can use its own employees to work on its own transactions without having to have them licensed. Any agency or brokerage on behalf of another or a third party still requires a licensee.

Thank you to all the REALTORS® who contacted their state senators to voice their concerns about AB 1381. Your calls made the difference!

New Regulations Protect Widowed Homeowners

New Regulations Protect Widowed Homeowners

The Consumer Financial Protection Bureau has issued new rules aimed at protecting widowed homeowners from a red-tape nightmare that has caused them to lose their homes to foreclosure.

The regulations, announced Aug. 4, 2016, generally give surviving spouses who are not on a mortgage note the same protections that borrowers have. Those include a ban on so-called dual tracking, in which mortgage servicers negotiate with clients to modify a mortgage while simultaneously pursuing foreclosure.

The rules, which expand and clarify existing guidance from the agency, were long awaited by consumer groups that are pushing similar regulations in a pending California Senate bill 1150.

Advocates say survivors — who already owned their homes or inherit them after a death — face considerable resistance from servicers when they seek loan modifications after losing their spouse’s income.

The office of California Atty. Gen. Kamala D. Harris, who sponsored the California Homeowner Bill of Rights, said the passage of SB 1150 would “provide accountability and an enforcement mechanism that ensures California homeowners reap the benefits from these [new federal] rules.”

Often companies won’t allow a modification until the surviving spouse assumes the loan, which can’t happen until the owner is current on the mortgage — something of a Catch-22.

Advocates also say servicers give them inaccurate information or require unnecessary documents to prove ownership of the home when applying for a modification as a foreclosure proceeds.

The new rules, which take effect in about 18 months, seek to address those issues. In addition to banning the dual tracking of survivors, the rules stop servicers from mandating survivors first get current on payments before receiving a loan modification.

Applicants, however, must still show they can afford even a smaller loan payment and servicers are not required to give a modification.

Consumer groups praised the new rules, but expressed concern that they lack a strong enforcement mechanism.

Critics say that servicers have routinely flouted existing requirements for borrowers, but added companies have performed better in California.  Critics attribute the better performance to the California Homeowner Bill of Rights, which gives borrowers the right to sue to stop a foreclosure or for economic damages after one occurs if servicers don’t follow state requirements.

The Homeowner Bill of Rights, however, does not apply to survivors or other so-called “successors in interest” who aren’t on the mortgage note.

A bill that would extend those rights to such individuals passed the state Senate earlier this year. The full Assembly is expected to take up the bill, SB 1150, this month.

While the new federal consumer rules give survivors some rights to sue servicers, the ability to bring lawsuits is far more expansive under the pending state bill.

Featured

Free Tool Kit to REALTOR® Members

Hate politics? It’s OK, someone has your back!

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The REALTOR® Political Action Committee (RPAC) and REALTOR® Action Fund (RAF) are behind the scenes to lobby against laws that hurt the real estate industry and make home ownership less affordable for your clients.

Come into any of our three Citrus Valley Association of REALTORS® offices to find out how REALTOR® members can get a FREE CVAR tool kit.

CVAR is urging members to do their part to fight upcoming legislation that could devastate the California real estate industry.

The work that RPAC and RAF do includes raising and spending money to educate and elect candidates who understand and support issues that are important to our industry. We know that REALTORS® can make a difference. Each year CVAR sends REALTOR® members who support RAF to Sacramento to Legislative Day, sponsored by C.A.R., to meet and educate our legislators about issues impacting real estate.

“California REALTORS® cannot afford to ignore what occurs in the halls of government because Real Estate is one of the most regulated industries at the local, state and federal level,” according to C.A.R.

Support the fight for legislation that helps YOU do business–and your clients get into homes, CLICK HERE!

Phone-a-Friend for RPAC

Join the “party,” Tuesday, Aug. 16, 2016

Tell a Friend about RPAC / RAF and what it can do for their business during our Phone-a-friend for RPAC / RAF Event.

We had so much fun last month with our first-ever Phone-a-Friend, but if you missed out, we will host our second of three Phone-a-Friend events next week. The two-hour session from CVAR Headquarters, 504 E. Route 66, Glendora, will take place from 9:30 a.m.-noon.

This is an opportunity for REALTORS® to have a direct impact on legislation that affects the real estate industry! If you’re a REALTOR® and want to make a difference now,
please click this link!

NAR CFA: Tell the Senate to Get to Work for Future Homebuyers

RED ALERTCALL TO ACTION

TAKE ACTION NOW

I am REALTOR Party

Key Talking Points:

H.R. 3700 was passed by the U.S. House 427-0. Despite passing with NO OBJECTIONS, the U.S. Senate has not acted on H.R. 3700.This legislation provides significant benefits to taxpayers, homebuyers and the real estate market by:

Removing a burdensome and expensive FHA Condo approval process
Reducing FHA restrictions on the number of condos available to homebuyers
Permanently streamlining Rural Housing Service loan processing
More Information on NAR’s efforts to pass H.R. 3700:

TAKE ACTION NOW