Public Affairs Update

Public Affairs Update……………………………………………………..January 20, 2016

  • FED Will Proceed With Caution on Future Rate Increases

  • FHFA Finalizes Home Loan Bank Rule

  • FIRTPA Bill Takes First Step

  • NAR: Expect a More Modest Market in 2016

  • State of the Union: Long on Optimism, Short on Housing Policy

  • Pizza & Public Affairs Wednesday, February 3, 2016 Noon to 1:00pm at BARA

  • In Case You Missed It


    Fed Will Proceed With Caution on Future Rate Increases

    Boston Fed President Eric Rosengren said that while he hopes more normalization is appropriate, at the same time it is important to carefully manage risks in the economy.
    READ MORE [Source:: 01-15-2016]


    FHFA Finalizes Home Loan Bank Rule

    On January 12, 2016, The Federal Housing Finance Agency (FHFA) finalized the Federal Home Loan Bank (FHLB) Membership rule.  NAR had written in support of an expanded, ongoing mortgage asset test, however, FHFA determined that 98% of FHLB members met the ongoing test and that it implementation would be burdensome to capture the other 2%.  With this rule, banks can remain members of the FHLB system without holding any mortgage related assets.


In addition, FHFA also moved forward with a rule to prevent Real Estate Investment Trusts (REITs) from gaining access to the FHLB system by creating “captive” insurance companies, or a insurance company that serves just one single, related entity.  Though insurance companies that serve the public at large can still become members of the FHLB system,  FHFA defined “insurance companies” to exclude these “captive” insurers.  Companies have five years to wind down membership.  NAR comments raised concerns that completely eliminating REIT eligibility could remove liquidity in the mortgage system.

FHLB Membership Final Rule [Source: NAR 01-15-2016]


FIRTPA Bill Takes First Step

The recently-enacted Protecting American Taxpayers from Tax Hikes (PATH) Act (H.R. 2029, P.L. 114-113) includes two NAR-supported provisions affecting the Foreign Investment in Real Property Tax Act (FIRPTA) that are estimated to boost significantly foreign investment in U.S. commercial real estate.  However, as part of a package of tax changes to offset the cost of the two provisions, Congress also included an increase in the FIRPTA withholding rate from 10% to 15%.  But property acquired from foreign persons that is to be used as a personal residence is exempt from the increase if the sales price does not exceed $1 million.

An explanation of the changes to the FIRPTA rules can be found here. [Source: NAR 01-15-2016]


NAR: Expect a More Modest Market in 2016
National Association of REALTORS® chief economist Lawrence Yun releases his state of union for the housing market for 2016. Find out what you can expect. [Source: NARenews 01-13-2016]


State of the Union: Long on Optimism, Short on Housing Policy

In his final State of the Union Address, President Obama spoke of the hope for America that has permeated his speeches during his seven years in office. Much like last year, however, housing policy was noticeably absent from his remarks.
READ MORE [Source: 01-13-2016]


Pizza & Public Affairs Wednesday, February 3, 2016 Noon to 1:00pm at BARA

This is your opportunity to learn what is ahead for the City Of Boulder in 2016 that is likely to affect your business opportunity in the Boulder Valley.


Guest Speakers:

Suzanne Jones, Mayor, City of Boulder

Jan Burton, Council Member, City of Boulder


What they will present:

Mayor Jones and Council Member Burton will provide a report on the January 22 and 23 City Council planning and goal setting retreat. We will learn what the City Council’s priorities are for 2016.


Topics will include:

  • Housing (market rate and affordable) policy and strategy is a top concern.

  • Transportation is another key issue that will drive housing and employment.

  • Land use, especially efforts to address the City’s jobs and housing goals.

  • Energy conservation in commercial buildings is on tap for action in 2016.

  • Boulder’s energy future milestones on tap in 2016.

  • Boulder Valley Comprehensive Plan Update priorities.

  • And more…

    Of course we will have time for a lively Question and Answer exchange, so be sure to bring your own hot topic to add to the conversation.


    This is going to be an information packed event that you don’t want to miss!

    RSVP Today


    In Case You Missed It