8 hr 5823 support


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A letter to Congressman Gary Miller expressing support for his bill HR 5823 to eliminate the FHFA Bulk Sale Pilot Program in California.

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8 hr 5823 support

  1. 1. September 5, 2012The Honorable Gary Miller2349 Rayburn House Office BuildingWashington, D.C. 20515Dear Congressman Miller,As a resident living and working in Southwest Riverside County, I am pleased to SUPPORT your bill H.R. 5823, theSaving Taxpayers from Unnecessary GSE Bulk Sales Program Act of 2012.We have just lived through the deepest and most prolonged housing slump in history. Our region suffered one of thehighest rates of foreclosure in the country for the past three years. But we are starting to climb out of that slump and ourhousing market is robust with strong demand, multiple offers above asking price and shrinking inventory. In just the pastyear we have gone from 60% of homes on the market being distressed properties to just over 30%.We have very serious concerns with the design of the Federal Housing Finance Agencys (FHFA) “REO Initiative” pilotprogram. We believe implementing this program as proposed would negatively impact the housing market in Californiaand is counter to FHFAs role as conservator to restore the financial health of the Government Sponsored Enterprises(GSEs) and protect the taxpayer. Given the current state of Californias housing market, we can find no reason to includeCalifornia in this pilot program. Our market is getting healthy on its own again, we cant afford any more governmentintervention.According to our local Realtor® Association, local inventory of homes has dropped 62% just since January of this yearand prices have been stable to slightly appreciating since January 2009. Local cities including Temecula, Murrieta, LakeElsinore, Menifee, Wildomar and Canyon Lake currently have salable housing inventories of 2 months or less.Converting carefully selected REO properties into rentals might help reduce excess inventory in appropriately targetedareas, namely those with high inventory and low demand. However, counties in California do not reflect the marketconditions required for the GSEs to benefit from such a program. While Los Angeles and Riverside counties are includedin the pilot program, they currently have a shortage of homes available for sale. This environment of high demand andlow inventory is not appropriate for the REO pilot program. The GSEs have been able to minimize their losses on non-performing loans in our counties through the traditional foreclosure disposition process. As such, we see no reason to alterthe current system in our county, as such an action would only harm the market and result in greater losses for the GSEs,and ultimately the taxpayer.More fundamentally, we are concerned that including California counties in this initiative is in direct conflict with FHFAsduty as conservator to preserve and conserve the Company’s assets and property and to put the Company in a sound andsolvent condition. In California, there is no question that disposing properties through bulk sales will yield a lower returnfor the GSEs and taxpayers than through traditional disposition methods. This means that such a program will increaselosses to the taxpayer and GSEs and make it more difficult for homebuyers to find their American Dream.For these and other reasons, we are pleased to SUPPORT your H.R. 5823. Please let us know what we can do to assistyou in your efforts.Sincerely,
  2. 2. Cc: (via fax) The Honorable Gary Miller 202.226.6962 The Honorable Ken Calvert 202.225.2004 The Honorable Ken Calvert (District Office) 951.784.5255 The Honorable Joe Baca 202.225.8671 The Honorable Duncan Hunter 202.225.0235 The Honorable Timothy F. Geithner, Secretary Department of the Treasury 202.622.6415 Mr. Edward DeMarco, Acting Director, Federal Housing Finance Agency 202.649.1071 The Honorable Shaun Donovan, Secretary, Department of Housing and Urban Development 202.708.1455 Mr. Moe Veissi, President, National Association of Realtors 305.665.1230 From a recent report from the Southwest Riverside County Association of Realtors: 500 Southwest California 450 August Demand Chart 3 3 4 3 7 7 6 3 400 3 4 1 6 7 3 2 5 2 350 8 4 8 2 2 2 0 300 5 2 2 3 5 1 1 8 1 1 5 250 9 1 8 7 7 1 5 4 200 1 4 9 1 4 2 3 1 1 150 5 8 8 2 7 6 7 6 9 7 6 100 6 5 2 7 4 1 6 0 2 2 2 3 1 1 1 0 2 0 2 50 7 0 . . . . . . 5 2 0 8 5 6 0 On Market Pending Closed Days on Months Supply Absorption (Supply) (Demand) Market rate * Murrieta Temecula Lake Elsininore Menifee Canyon Lake Wildomar * Absorption rate - # of new listings for the month/# of sold listings for the month