New Hampshire Housing Homeownership Conference February 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…