NEW SMYRNA BEACH -- Mortgage interest deductions. Flood insurance. Short sale and foreclosure mortgage forgiveness. Property insurance. Commercial Business Taxes. Private property rights. New Federal banking rules. The upcoming Florida Legislative Session. Economic growth and opportunity. The housing market. Settlement payments for improperly foreclosed upon homeowners.
From January 23rd through the 27th, I attended the annual Florida Realtors Mid-Winter Business Meetings. I was there as a state association officer, director of our local New Smyrna Beach Board of Realtors and Realtor key contact to Florida Senator Dorothy Hukill.
During these intense days, I was immersed from early morning until late in the evening in information and discussion about the above topics and more that have an impact on how citizens live their lives, conduct their business and make their personal choices about economic issues.
Naturally, the focus was on the housing market and how we Realtors help our customers and clients make wise choices in the current economic environment.
The good news is that the housing market is currently improving. However, continued positive improvement is not guaranteed. The “Fiscal Cliff” discussions/decisions in Congress led to some consumer protections that got zero news coverage. The ability to continue to deduct mortgage interest from federal income taxes was one.
The good news is that the housing market is currently improving. However, continued positive improvement is not guaranteed. The “Fiscal Cliff” discussions/decisions in Congress led to some consumer protections that got zero news coverage. The ability to continue to deduct mortgage interest from federal income taxes was one.
Who knew that this multi-generational tax benefit was on the chopping block?
The National Association of Realtors threw all of its weight behind keeping this benefit available to current and potential homeowners. For those caught in the pain of foreclosure or short sales, the two-year legislation passed in 2011, prohibiting the IRS from collecting taxes on unpaid mortgage obligation as though it were income to the unfortunate seller was extended through 2013.
Again, on the federal level, we learned that the recent extension of the Federal Flood Insurance, very important to Floridians, came with a shelf life and a higher price. The federal government will continue offering the subsidized insurance for five years, but the price can rise 20-25% per year until it is at market value. (Tip to those who live in flood zones: get with your insurance agent and figure out how to lock in the best rates possible.)
Further on the federal level, the QRM (Qualified Residential Mortgage) standards required in the 2010 Dodd-Frank legislation that overhauls banking regulations, were finally issued.
What we Realtors and prospective homebuyers “in the know” feared most, a requirement of a minimum 20% down payment for all mortgage programs irrespective of the credit worthiness, assets and income of the buyer, is not a part of the recommendations.
What is recommended makes sense to everyone but those who were thrilled about the breakdown of lending standards during the housing bubble. If you have steady income and good credit, you can get a home mortgage that is in keeping with your debt to income ratio.
As the state’s largest trade association, Florida Realtors is fortunate to have the ear of government leadership. We have a crack team of policy experts and lobbyists whose reason for being is to protect property owners, private property rights, the housing industry, consumers and a positive business climate.
As the state’s largest trade association, Florida Realtors is fortunate to have the ear of government leadership. We have a crack team of policy experts and lobbyists whose reason for being is to protect property owners, private property rights, the housing industry, consumers and a positive business climate.
Our general membership dives in when lawmakers need to understand how certain legislation helps or hurts the housing market and business climate in the state. This year we have a commitment from Governor Scott to begin removing the tax on commercial leases, a burden that no state but Florida imposes on business. (Arizona previously had done so, but has just legislatively removed the tax. Florida and New York City are the hold outs.)
The governor actually attended our meetings!
We are also committed to working on affordable housing, improved private property insurance climate, economic development, common-sense deregulation and foreclosure process improvements. I will be personally involved whenever possible in these legislative initiatives. This barely scratches the surface of all that is before us that can positively or negatively affect our quality of live and prosperity.
There will be more updates to come as our local, state and federal legislative bodies deliberate on the policy and political issues before them. Stay tuned.