NAR and MBA Urge GSEs and Regulators to Confirm Support for Buyer Financing, NAR Highlights Dire Lack of Housing Affordability and Inventory in Congressional Testimony, and Check Out the NAR Proposed Settlement Timeline on nar.realtor/the-facts
The National Association of REALTORS® (NAR) advocates for mortgage lenders continued custom of excluding seller’s payment of commissions for buyer’s agents from the limits on Interested Party Contributions. NAR highlights continued limited inventory and erosion of housing affordability. Check out the NAR Proposed Settlement Timeline on nar.realtor/the-facts to keep up to date with what’s next as the proposed settlement agreement moves forward.
1. NAR and MBA Urge GSEs and Regulators to Confirm Support for Buyer Financing
The National Association of REALTORS® (NAR) along with the Mortgage Bankers Association (MBA) sent a letter to the Federal Housing Finance Agency, Federal Housing Authority, Fannie Mae, and Freddie Mac seeking confirmation that homebuyers will continue to have access to mortgage credit after the proposed settlement in the Burnett et al and Moehrl et al cases is complete. Specifically, NAR and MBA asked the regulators and GSEs to confirm that the custom of excluding seller’s payment of commissions for buyer’s agents will continue to be excluded from the limits on Interested Party Contributions. This confirmation is a critical piece of the post-settlement puzzle.
This letter continues NAR’s efforts to engage the GSEs and regulators to provide near-term clarity to the market and members. This effort is one of several focused on supporting mortgage finance for buyers in the post-settlement environment. Read and download the coalition letter here. The FHA responded with confirmation on March 28 here. Additional updates will provided as they become available.
2. NAR Highlights Dire Lack of Housing Affordability and Inventory in Congressional Testimony
Dr. Jessica Lautz, deputy chief economist and vice president of research at the National Association of REALTORS®, testified before the House Committee on Financial Services Subcommittee on Housing and Insurance. During the hearing, "The Characteristics and Challenges of Today's Homebuyers," Lautz shared NAR's existing home sales research with members of Congress. She emphasized that in 2023, the annual number of existing home sales was at the lowest recorded since 1995. While January 2024 shows an increase in home sales, this follows a retraction in the housing market due to limited inventory and an erosion in housing affordability.
Lautz pointed to NAR's research, confirming that bidding wars for homes are more frequent due to the lack of housing inventory. She outlined research from the association showing that in January 2024, the typical seller received 2.7 offers, and 16% of homes sold were over the list price. Further, she explained that home prices continue to rise because of the lack of inventory, pushing more potential buyers out of the market. Read the full press release here.
3. Check Out the NAR Proposed Settlement Timeline on nar.realtor/the-facts
Checked out the NAR Proposed Settlement Timeline at nar.realtor/the-facts to know what’s next as the proposed settlement moves forward. This proposed settlement timeline along with many resources on the nar.realtor/the-facts webpage are continually updated with the latest information to keep you and your clients informed. If you have any questions, reach out to us at Aspire North REALTORS® and we will get back to you with the latest information we have available.
Content courtesy of the National Association of REALTORS®
