The National Association of Realtors comment on Debt, FHA loan limits and National Flood Insurance

Washington Update: Debt Ceiling Analysis, FHA Loan Limits, National Flood Insurance

Earlier this week, Congress passed and President Obama signed into law, the Budget Control Act of 2011, more commonly known as the Debt Ceiling Bill. After careful analysis of the bill, the National Association of REALTORS® (NAR) reports that it contains no direct impact on real estate tax rules or spending provisions. No tax laws of any kind were changed, nor were any housing programs cut. The bill passed the House and Senate on strong bipartisan votes: 269 – 161 in the House and 74-26 in the Senate. A potential debt default has been averted.

Bottom Line

The next 100 days could be the most important part of the battle over Mortgage Interest Deduction and Carried Interest. NAR will be actively engaged in lobbying Congress and will be reaching out to state and local associations, as well as REALTOR® members directly to engage their members of Congress on the importance of preserving real estate tax provisions.

Other Important Issues Remain

While preserving real estate tax provisions is essential, two additional and vitally important measures were not acted on by Congress in advance of the five-week summer recess. Congress has not acted to extend the FHA Loan Limits and National Flood Insurance Program beyond the current expiration date of Sept. 30. Congress is scheduled to return to Washington, D.C. on Sept. 7, requiring swift action to prevent a lowering of the Loan Limits and a lapse in the Flood Insurance Program. During this August recess NAR will be working with our state and local association partners to urge Congress to pass extensions and avoid potential damage to the fragile housing market.

(source, Metropolitan Indianapolis Board of Realtors)