US Capitol

Government Affairs – Congress Passes PPP Flexibility Act

Bob Jones Member Update

Local News

Dayton REALTORS® is committed to fighting for equitable communities for all in the Dayton region.  Please read our statement in regards to how we will continue to be part of the national conversation against injustice.

National News

Emergency Rental Assistance

NAR urges Congress to pass emergency rental assistance for housing providers via Housing Wire: “The National Association of Realtors urges support for emergency rental assistance,” the statement said. “Direct federal rental assistance to housing providers will help alleviate some of the financial strain on the industry and stop the cascading effects on local economies. We also believe that any extension of the eviction moratorium should be narrowly tailored to provide relief to renters who are financially impacted due to COVID-19, as is required for housing providers seeking relief. Furthermore, the eviction moratorium should be matched with mortgage forbearance relief for housing providers.”

NAR said that this forbearance will have a “ripple effect” on mortgage liquidity. NAR suggested that Congress directs the Board of Governors of the Federal Reserve System and the Secretary of the Treasury to extend credit to multifamily mortgage servicers and other obligated advancing parties that have liquidity needs due to the COVID–19 emergency or due to the actual or imminent delinquency or default on mortgage loans due to the COVID–19 emergency. “Let us make sure we do not end up with a larger housing crisis as a result,” the statement reads. “Realtors stand ready to work with you on this important issue.”

Realtors Conference and Expo Registration Postponed:

Registration for the 2020 Realtors Conference & Expo is postponed while we wait for additional data and guidance from local authorities and health officials. We will keep you posted as to when the registration date is rescheduled. The event is still planned but we will continue to monitor the situation as the health and safety of our members and partners is paramount.

New NAR Resources:

Back-to-Normal Barometer and Buyer/Seller Survey Results

This free recorded webinar and slide presentation explores the precautions buyers and sellers expect to take during real estate transactions as well as the precautions they expect real estate professionals to take. The research also looks at how virtual tours are perceived in this new normal as well as the valuable role real estate agents and brokers play during the home sale process.

Watch the webinar and view the slideshow

Congress Passes PPP Flexibility Act

On June 5th, the “Paycheck Protection Program Flexibility Act,” was signed into law, which makes several amendments to the CARES Act to make PPP loans more helpful to small businesses by increasing flexibility.  The changes include:

  • Extending the program sunset to December 31, 2020;
  • Extending the length of time businesses can use the loans from 8 to 24 weeks, or until the end of the year (whichever is earlier) (note: businesses that have used it in 8 will not be penalized);
  • Removal of the requirement that 75% of the loan go toward payroll costs;
  • Makes PPP recipient businesses eligible for the delayed payment of employer payroll taxes in the CARES Act; and
  • Creating an exception to the rehire requirement for employees that were let go due to COVID-19 if a business can show that they are unable to return to normal operations due to compliance with federal government rules or guidelines based on maintaining sanitation, social distancing, or worker/customer safety requirements related to COVID-19.

NAR says they will continue to advocate for improvements to this program so it can be more responsive to the needs of small businesses and independent contractors during this crisis, and to ensure that the maximum number are able to reopen when it concludes.

Additionally, NAR has an updated PPP loan forgiveness infographic based on recently released guidance from the SBA, which you can also find at www.nar.realtor/coronavirusSBA.

FHA Premium Legislation

Senators Peters (D-MI) and Cornyn (R-TX) have introduced S. 3639, the ‘‘Housing Financial Literacy Act of 2020.’’ This bill will permit first time buyers who have gone through approved counseling to lower their FHA mortgage insurance premiums. S. 3639 will help homebuyers gain a greater understanding of mortgage and homeownership responsibilities while improving housing affordability. FHA’s current premiums are significantly higher than what is necessary to cover the risks of losses, and NAR strongly supports efforts to reduce FHA premiums.

This legislation is a companion bill to H.R. 2162, introduced by Reps. Beatty (D-OH) and Stivers (R-OH), which passed the House last year. NAR’s Letter Supporting S.3639

Mortgage Rates Update

Via Yahoo! Finance – The Fed just ensured that mortgage rates will stay low.  Despite last week’s promising news about jobs, the Federal Reserve has opted to keep its influential interest rate near zero, to help hoist the economy out of its coronavirus recession. And, it may hold rates at rock bottom for years. The central bank decided not to raise rates at its June meeting, but it didn’t lower them either. Projections released by policymakers indicate the Fed isn’t likely to make any moves with rates through 2022.

The Fed’s rate doesn’t have a direct effect on fixed mortgage rates, including rates on popular 30-year fixed-rate mortgages. But those rates have been barreling from one all-time low to another, thanks in part to the low-rate environment the central bank has been fostering. Another factor pushing down mortgage rates is the Fed’s program of buying up mortgage-backed securities to stimulate the economy. These securities are mortgages bundled together into securities similar to bonds. With the Federal Reserve choosing to maintain the status quo — likely for years — there’s no reason to think rates on home loans will be rising anytime soon.  Lucky borrowers have been finding 30-year mortgage rates below 3% — even as low as 2.5%.  Deeply low rates have been prompting homeowners to refinance their mortgages; refi applications jumped 11% last week, the Mortgage Bankers Association said Wednesday. The current ultra-cheap mortgage rates are pumping up home sales, which were held back by coronavirus lockdowns earlier this spring.