The measure split Republicans, many of whom supported retaining the lower limit of $625,500. As a result, efforts to restore the higher limit fell short until the Senate attached an increase to a package of spending bills that were passed yesterday by both the House and Senate.

The higher FHA limit is expected to become law after the president signs the spending measures, which he must do by the end of today to avoid a government shutdown.

“Restoring the higher loan limits for the FHA will provide homeowners and homebuyers with safe and affordable financing, while providing a much-needed boost to housing markets all around the country,” James W. Tobin, chief lobbyist for the National Association of Home Builders, wrote in a Nov. 16 letter to Speaker John Boehner, an Ohio Republican.

Lawmakers who backed higher limits said withdrawing federal support could further undermine a housing market still struggling to recover from the 2008 credit crisis.

The final compromise, which dropped a similar increase to loans backed by mortgage firms Fannie Mae and Freddie Mac, represents a mixed victory for the housing industry.

While the increase to $729,750 is expected to spur some additional homebuying, it’s not clear by how much. FHA loans make up a smaller share of the market than those purchased by Fannie Mae and Freddie Mac.

5.3 Million Homes

Still, the measure was fully embraced by trade groups for homebuilders and realtors. The National Association of Homebuilders has estimated that 5.3 million homes lost their eligibility for conforming loans when the higher limits expired on Oct. 1. Nearly 670 counties saw their loan limits decline, according to the National Association of Realtors.

On the other side were a number of interest groups that push for free-market policies and against government support to the housing market. Those groups, which include the Club for Growth and Heritage Action for America, play a large role in the House Republican conference and can influence campaign funding for the next election.

Republicans backed by the groups thought efforts to increase the loan limits had been defeated earlier this year, particularly when the White House announced support for allowing them to go back down to pre-crisis levels.

‘Completely Bizarre’

“This is completely bizarre that the Congress would be to the left of this president on housing finance,” Representative Patrick McHenry, a North Carolina Republican on the House Financial Services Committee, said in an interview.

House Republicans who opposed the provision seized on the FHA’s annual actuarial report released earlier this week, which said the agency has a 50 percent chance of needing to seek taxpayer aid to bolster its insurance fund.

The FHA, which provides liquidity by protecting lenders against borrower defaults, has increased its share of the mortgage market in the wake of the credit crisis. The agency, created in 1934 during the Great Depression, now guarantees a third of U.S. mortgages, according to the report.

The House-passed legislation, approved in a 298-121 vote, was opposed by 101 members of the House’s Republican majority, some of whom said they opposed the measure primarily because of the loan-limit increase.

Representative John Campbell, a California Republican who pushed for the increase, called the compromise on the provision “just a bad deal.” Campbell said he would have preferred that lawmakers boost the limit for Fannie Mae and Freddie Mac over raising the FHA limit.

‘Short-Term Fix’

“I’m glad something got done, but because they got it backwards, this will be a much more short-term fix than I would have hoped,” Campbell said in an interview.

The Senate followed the House’s lead a few hours later, voting 70-30 to clear the measure for Obama’s signature. The provision was once again cited by several Republicans as a reason for their opposition.

“Raising the loan limits at FHA only, an unprecedented move, will simply drive more business into Ginnie Mae securities and put the FHA at even greater risk of losses to taxpayers,” Senator Bob Corker, a Tennessee Republican, said yesterday. “If we cannot even take this simple step, we risk crowding out the private sector for years to come.”

Thanks to Phil Mattingly at Bloomberg News

Refrigerator efficiency standards are a prime example of government standards that actually benefit consumers. The precise savings for major categories are as follows:

• 25% for top-mount (i.e. freezer on top) and side-by-side refrigerator-freezers
• 20% for bottom-mount refrigerator-freezers
• 30% for automatic defrost freezers

Categories with lower sales volumes will require 10-25% savings.

Since the first standards were enacted, the price of refrigerators has dropped significantly, even though modern refrigerators are larger, have many more features and cost less to operate than previous models. In 1978, the average new model cost $1,566 in today’s dollars – almost three times as much as the $550 an average model retails for today. This trend is expected to continue, even as refrigerators grow in size and features.

Long-Term Savings for Consumers and the Environment

According to DOE, the new standards over 30 years would save 4.84 quads of energy, or roughly enough to meet the total energy needs of one-fifth of all U.S. households for a year. Over the same 30-year period, and taking into account up-front costs, consumers will save up to $36 billion.

DOE also estimates CO2 emissions will be cut by 344 million metric tons over 30 years, an amount equal to the annual emissions of about 67 million cars. Smog-forming NOx emissions and toxic mercury emissions would also be reduced dramatically.

Advanced Technologies Help Manufacturers Meet Efficiency Standards

Refrigerator manufacturers have been able to improve the efficiency of their new models with incremental design changes such thicker insulation, more efficient compressors and automatic defrost. Energy saving improvements like through-the-door ice and alarms that sound when a door remains open for an extended period are features on a number of refrigerators as well. Despite these changes, many features were not part of the efficiency equation. For example, current standards simply assume that ice makers use 84 kWh per year. Once DOE finalizes a method for testing icemaker energy use, the placeholder value of 84 kWh will be replaced by actual measured energy use. These benchmarks will help consumers understand the cost and savings potential of future purchases.

Information on the New Standards

The new standards will take effect in January 2014 and cut energy use by 25% for the most common refrigerator types. High-efficiency single-speed and variable-speed compressors and further insulation improvements, including vacuum insulation panels (VIPs), will contribute to even greater energy savings. VIPs use technology similar to a thermos where space between the two walls is evacuated, limiting the transfer of heat. VIPs are already in use in refrigerated trucks, commercial refrigeration and some residential refrigerators and freezers.

Thanks to George Parman of  The Alliance to Save Energy

President Obama has directed a small team of advisers to develop a proposal that would keep the government playing a major role in the nation’s mortgage market, extending a federal loan subsidy for most home buyers, according to the Washington Post.

The decision follows the advice of his senior economic and housing advisers, who favor maintaining the government’s role as an insurer of mortgages for most borrowers. The approach could even preserve Fannie Mae and Freddie Mac, the mortgage finance giants owned by the government, although under different names and with significant new constraints, said sources knowledgeable about the discussions.

A decision to preserve a major government role would mark a big milestone in the effort to craft a new housing policy from the wreckage of the mortgage meltdown and could mean a larger part for Fannie and Freddie than administration officials had signaled.

In a statement, the White House said it is premature to say that senior officials have agreed on any of the three main options outlined earlier this year in an administration white paper on reforming the housing finance system.

For more information: www.washingtonpost.com/business/economy/on-mortgage-rates-government-should-keep-significant-role-obama-says/2011/08/15/gIQA8wP0HJ_story.html?wpisrc=al_national

Thanks to Mary Beth Nevulis, HousingZone Contributing Editor

Mortgage rates have fallen in recent days because of the debt deal — which averted a feared scenario in which the US Treasury ran out of funds to pay all its bills. That could have sent ripples of unrest through financial markets, pushing up interest rates throughout the economy.

So the good news for potential home-buyers is that the worst didn’t happen, and that mortgage rates have actually fallen a bit as a deal was reached.

Rates may have also come down for other reasons, such as signs of weakness in the US economy, which in turn postpones the day when interest rates will start rising back toward more typical levels. Also, fresh concerns about government debts mean firmer demand for US Treasury bonds as a comparatively safe alternative.

Low mortgage rates, however, are just one building block for a recovery in the US housing market. Many forecasters continue to warn that interest rates could start rising later this year and into next year, perhaps as high as 5.5 or 6 percent on a 30-year loan.

Basic problems in the market include downward pressure on home prices, which has made some would-be buyers hesitant and is also a factor behind cautious appraisal values that are causing many home-sale deals to fall apart at the last minute. A weak job market also contributes to slack demand for homes. Meanwhile, supply of homes is comparatively strong, the result of a high level of foreclosures.

Also, although interest rates are low, many lenders are being stringent when it comes to deciding who can get a loan.

Some housing analysts say a healthier market is starting to appear on the horizon, although slowly. The pace of borrower delinquency and foreclosures has been declining in recent quarters, and even a modest improvement in the job market (which many forecasters expect) could help to end declines in home prices.

Other economists say the recovery process still has a long way to go.

“Our view that the housing recovery, which has yet to begin in earnest, will be bumpy and prolonged,” writes Michelle Meyer, an economist at Bank of America Merrill Lynch. “The path will largely depend on the health of the economy, particularly the labor market.”

Still, for now, attractive mortgage rates have helped to make the typical single-family home very affordable by historic standards.

WASHINGTON–(BUSINESS WIRE)–A coalition of housing industry groups joined the National Association of Home Builders (NAHB) today in announcing plans to file a lawsuit against the federal Environmental Protection Agency (EPA) for removing the “opt-out” provision from its Lead: Renovation, Repair and Painting rule.

“About 79 million homes are affected, even though EPA estimates that only 38 million homes contain lead-based paint. Removing the opt-out provision extends the rule to consumers who need no protection.”

The Lead: Renovation, Repair and Painting rule (LRRP) applies to homes constructed before 1978 when lead paint was banned. Its opt-out provision, which expired July 6, let consumers allow contractors to bypass extra preparation, clean-up and recordkeeping requirements in homes where there were no children under 6 or pregnant women, thus avoiding additional costs.

“Removing the opt-out provision more than doubles the number of homes subject to the regulation,” said NAHB Chairman Bob Jones, a home builder and developer in Bloomfield Hills, Mich. “About 79 million homes are affected, even though EPA estimates that only 38 million homes contain lead-based paint. Removing the opt-out provision extends the rule to consumers who need no protection.”

The Hearth, Patio & Barbecue Association, the National Lumber and Building Material Dealers Association and the Window and Door Manufacturers Association joined NAHB in filing the petition for review in the U.S. Court of Appeals for the D.C. Circuit.

The group will challenge EPA’s action on the grounds that the agency substantially amended its LRRP regulation without any new scientific data and before the regulation was even put into place on April 22, 2010.

“Even under the original rule, the opt-out provision was not available in homes where small children or pregnant women live,” Jones said. “That shows that this change provides no additional protection to the people who are most vulnerable to lead-based paint hazards.”

Remodelers’ and other contractors’ estimates of the additional costs associated with the lead-safe work practices average about $2,400, but vary according to the size and type of job. For example, a complete window replacement requires the contractor to install thick vinyl sheeting to surround the work area both inside the home and outdoors – with prep time and material costs adding an estimated $60 to $170 for each window.

“Consumers trying to use rebates and incentive programs to make their homes more energy efficient will likely find those savings eaten up by the costs of the rule’s requirements. Worse, these costs may drive many consumers – even those with small children – to seek uncertified remodelers and other contractors. Others will likely choose to do the work themselves – or not do it at all – to save money. That does nothing to protect the population this rule was designed to safeguard,” Jones said.

ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 175,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country.

HOMESTAR
The House of Representatives passed HB5019 with minor amendments.  For details here’s a  link to the bill.

Accredited Contractors  will need to be BPI accredited or by some other future standard the secretary of Energy may approve. All workers performing installation must be certified in the appropriate job skills under BPI, North American Technician Excellence or the Laborers’ International Union of North America, or state programs or other programs that may be approved in the future by the Secretary of Energy.

The House bill seems to be very similar to the Senate version, before this goes any further the Senate will need to get their bill out of committee and onto the Senate floor for a vote.  Right now the Senate is occupied with other legislation and I don’t see anything coming up to indicate any action on their part.

Ply Gem, a leader in the building products industry, offers some tips and guidelines to help homeowners make the most of the energy efficient replacement window tax credit.

Homeowners can receive a tax credit worth 30 percent of the purchase price of qualifying energy efficient windows, up to a maximum of $1,500 if purchased and installed by Dec. 31, 2010.

To redeem the credit, be sure to save your invoice that shows a breakout of window and installation costs, the National Fenestration Rating Council (NFRC) labels from all windows and doors and the manufacturer’s certificate.

Energy efficient windows that meet the tax qualifications offer more savings than a one-time federal tax credit. The Alliance to Save Energy says that sealing and insulating your house – including utilizing energy efficient windows – is a great first step to take when improving your home’s energy efficiency. To learn more, visit www.plygemwindows.com or www.recovery.gov.

Courtesy of ARAcontent