A proposed rule by banking regulators that would require a minimum 20% down payment for buyers would lop off almost 30 percent of the real estate sales, according to an analysis by the Community Mortgage Banking Project, a coalition of independent mortgage brokers. Increasing the down payment requirement will put home ownership out of reach for many potential home buyers, and have dire consequences on our economic health and the individual wealth of American’s.

National Association of Realtors ­opposes the rule and has been meeting with lawmakers and regulators with the message that this isn’t what Congress intended when it passed legislation last year creating what’s known as the qualified residential mortgage, or QRM. It was Congress’ intent to define QRM loans as those that are soundly under­written for responsible borrowers, but banking regulators defined it to mean loans with a minimum down payment.

Requiring a higher down payment does little to reduce the risk of default, but instead strips home buyers of their savings and increases the number of borrowers who would be ineligible for home ownership.

NAR made the issue one of its priorities while REALTORs® were in Washington, D.C., May 9-14 for the Midyear Legislative Meetings.

Earlier this month, a delegation of REALTORS from Oregon and from around the Country descended on Washington DC, myself included. REALTORS urged members of the House and Congress to keep housing first on the nation’s public policy agenda.

We spoke personally with Senator’s and Congressmen explaining the importance of the mortgage interest deduction in the housing market; the importance of supporting legislation to streamline short sales requiring approval within 45 days of submission; extending flood insurance coverage for a period of up to five years; and the importance of ensuring access to affordable mortgage products. (Watch for upcoming blogs for more details about each of the aforementioned topics.)

This was a fabulous and productive conference in Washington DC. It is absolutely incredible to see the difference REALTORS make in protecting and defending housing issues both nationally and locally.

~ Kim Heddinger

Kim outside Senator Merkley's Office

Times are changing for the traditional light bulb. Read the following by Wendy Koch, of USA Today…

On Jan. 27, 1880, less than two years after introducing his tin foil phonograph, Thomas Alva Edison earned a patent for another bright idea: the incandescent light bulb.

Rutherford B. Hayes was president of a U.S. with 38 states and a booming railroad industry that was starting to replace the horse and buggy.

Edison’s 131-year-old bulb still lights homes worldwide. In an age when iPhones get revamped every few months, its longevity stands out.

Yet its eclipse is coming. The United States is on the verge of a lighting revolution that will oust the traditional incandescent in favor of more energy-efficient (and less polluting) alternatives. Are you ready?

On Jan. 1, nationwide, a new federal law means the 100-watt incandescent will start disappearing from store shelves. Instead, an expanding line of alternative bulbs will be sold bearing new nutrition-like labels on their boxes. The labels will tout a bulb’s lumens, a measure of brightness, rather than its wattage, a measure of energy use. They will also estimate its yearly energy cost.

“This allows consumers to look at the full price,” not just the purchase price, says Hamptom Newsome, an attorney for the Federal Trade Commission, which is requiring the new labels. “People will need to look to lumens (not watts) for brightness.”

The old 100-watt incandescent, for example, yields about 1,600 lumens, while the 40-watt bulb provides about 450 lumens. The more lumens, the brighter the light.

“It’s a drastic change,” says Brad Paulsen, who buys light bulbs for Home Depot. He says customers shouldn’t worry, though, because they’ll still be able to buy pear-shaped bulbs that provide a warm, traditional light.

Why the change?

The reason for the switch is the inefficiency of Edison’s invention, which wastes 90% of its energy as heat rather than light. That’s why incandescents are so hot when in use and why Australia and the European Union began phasing them out in September 2009.

In 2007, the U.S. Congress passed the Energy Independence and Security Act, requiring light bulbs to use at least 25% less electricity for the amount of lumens, or light, produced. So, come January, manufacturers will have to produce the equivalent of a 100-watt bulb using 72 watts of power.

Edison’s bulbs won’t meet the standard, but the mercury-free halogen incandescent will. So, too, will the compact fluorescent lamp (CFL) and the LED (light emitting diode), each of which is at least 75% more efficient.

The bipartisan law, signed by President George W. Bush, will also phase out the traditional 75-watt incandescent beginning in January 2013 and the 60-watt and 40-watt versions in January 2014. California is phasing each out a year earlier. The law exempts appliance, colored, three-way, and 19 other less commonly used incandescent bulbs.

Although halogens, CFLs and LEDs cost more than the old-fashioned bulbs, the Department of Energy (DOE) says customers quickly recoup the price difference in energy savings. It says they save about $50 yearly by replacing 15 traditional incandescents in their homes.

Once the standards are fully in effect in 2015, DOE estimates families nationwide will save nearly $6 billion a year and will help eliminate 30 million metric tons of carbon dioxide emissions annually—the equivalent of taking about 8 million cars off the road each year.

“We want consumers to understand the energy waste that comes with traditional light bulbs,” says Jen Stutsman, DOE spokeswoman. She says DOE will work with manufacturers, retailers, and non-profit groups to launch an education campaign this summer on the new bulb standards and labels. The campaign is known as LUMEN, Lighting Understanding for a More Efficient Nation.

Check out the latest edtion of the Golden Realty Newsletter…

Golden Realty Insider

The 2009 Oregon Legislature passed HB 3450, the Lofgren and Zander Memorial Act, requiring the installation of carbon monoxide alarms in specific residential applications with a carbon monoxide source. The purpose of the bill is to reduce deaths and poisonings from carbon monoxide.

The law goes into effect April 1, 2011. Click on the link below for more information about the new requirements.

Click here for Carbon Monoxide Questions and Answers

Today, March 17, we celebrate St. Patrick’s Day. Most of us believe it’s a day to wear green (or get pinched), drink beer and eat lots corned beef. But it is more than that. Here are some interesting facts about St Paddy’s Day that maybe you did not know:

1. St. Patrick’s original name was Patricius, and experts believe he was born in Wales or Scotland, not Ireland.

2. The original color associated with St. Patrick was blue, not green.

3. St. Patrick’s Day was an alcohol-free holiday in Ireland until the mid-1970s.

4. Guinness stout, arguably the beer of choice for St. Paddy’s Day celebrations around the world, has fewer calories than a pint of low-fat milk or even orange juice.

Owning your own home opens the door to many tax opportunities. Here are 12 ways to save on your tax return, according to Wolters Kluwer, a tax information company:

• If you bought a home last year, you may benefit from a refundable first-time home buyers’ credit of 10% of the purchase price of a new home—up to $8,000. The credit is available for homes purchased before October 1, 2010 and you must have entered into a binding agreement to buy the home before May 1, 2010. You can’t have had an ownership interest in a principal residence during the three years before the purchase.

• A refundable repeat home buyers’ credit is available if you entered a contract to buy a home by April 30, 2010 and closed on the sale of the home before October 1, 2010. The credit is 10% of the purchase price with a limit of $6,500. To claim the credit, you have to have owned and used the same home as a principal residence for five straight years within a time period that may go back a maximum of eight years. You also must be at least 18 years old and your home purchase price must be under $800,000.

• You can exclude up to $250,000 of gain on the sale of your home (up to $500,000 for joint filers) if you have owned and lived in the home as your principal residence for two out of the five years prior to the sale, although a partial exclusion may be available for sales due to a change of employment, health, or unforeseen circumstances. The periods of ownership and occupancy do not have to be identical.

• You can take the interest on your mortgage indebtedness of up to $1 million as an itemized deduction. The interest can be on your principal residence and one additional residence.

• For ordinary income purposes, up to $100,000 in home-equity loan interest can also be deducted. In regards to the alternative minimum tax, interest on home-equity loans is deductible only if the loan is used to acquire, build, or substantially improve a home.

• The points you paid on a mortgage loan you used to buy or improve your principal residence are deductible in the year you paid them, as long as the points represent a customary practice in your area. Points paid on a refinancing loan must be deducted over the term of the loan.

• Through 2010, you can deduct mortgage insurance premiums as mortgage interest. However, the mortgage insurance had to be originally acquired on or after January 1, 2007.

• You can take the state and local property taxes you pay as an itemized deduction. An option to take up to $500 ($1,000 for joint filers) as an additional standard deduction for real estate taxes expired at the end of 2009 and is not available for 2010.

• If you rented your home for fewer than 15 days during the year, you don’t have to include that rental income in your gross income, but you can’t deduct any expenses related to the rental either.

• If your lender forgave your mortgage debt of up to $2 million on your principal residence, as in a write-down or foreclosure, the transaction won’t be treated as “cancellation of debt income.” This special relief is temporary and is available for six years, retroactively for taxpayers filing amended returns, from January 1, 2007 through the end of 2011.

• If you own a home and installed qualifying energy-efficient fixtures or systems by December 31, 2010, you may claim a 30% tax credit—up to a maximum of $1,500 for both the 2009 and 2010 tax years. The American Recovery and Reinvestment Act of 2009 created energy tax credits for installing insulation, energy-efficient exterior windows or doors, heat pumps, furnaces, central air conditioners, or water pumps.

• A separate 30% credit is available to home owners who installed alternative energy equipment such as fuel cells, solar water heaters, solar electric equipment, small wind energy projects, or geothermal heat pumps. Although the tax credit is more likely to apply for businesses, it’s also available for home owners.

If you have questions or would like to know more information about how you can save money on your taxes, it is always wise to contact an accountant.

Source: CCH, a Wolters Kluwer business

After a long winter and when the sun begins to finally warm the air, consumers are ready to take on the clutter and the dust that has accumulated in and around the house.

According to a survey conducted by the American Cleaning Institute (ACI), 60% of Americans say they regularly engage in spring cleaning. Among that group, eliminating asthma and allergy triggers, thoroughly cleaning the house, and removing clutter, are the top three reasons for engaging in the ritual of spring cleaning.

The ABCs of Spring Cleaning

A is for Asthma and Allergy Triggers

During a challenging winter, many of us get snowed in or rained out with our pets indoors, whose dander is one of the most common triggers of asthma and allergies. Compound that with a few months of everyday dust and the tiniest unwelcome guests who seek shelter in our homes during cold weather, and it’s time to do away with the “A.” Start by cleaning one room at a time. Wash the bedding and curtains. Dust all surfaces. Vacuum the carpet. Clean the window sills, moldings and door frames. Wet mop the floors.

B is for Bacteria

From the front door knob to kitchen counters, the telephone and remote control, ACI, recommends giving every surface in your home the thorough cleaning it needs with the goal of reducing the likelihood that bacteria stick around for spring.

Prevent mold and mildew from accumulating in the bathroom by using a daily shower cleaner. Use a disinfectant or products specially designed to remove mold and mildew. If you’re in the kitchen, give the surfaces a good cleaning and disinfecting. Make sure you allow enough time for the germ kill, and follow the product label instructions.

C is for Clutter

The first step to de cluttering is to sort it out. Remove everything from the closet and dressers, under the bed, and off the shelves and furniture. Put stuff in separate piles. Separate out what you don’t need anymore and donate it if you can. Keep similar items together so that children know where to find things. Put items inside drawers, closets, covered boxes or plastic containers so dust can’t collect on them.

While the furniture surface is clear, use an electrostatic dust sheet or furniture polish or wipes to take care of a winter’s worth of dust.

Whether it takes you a day or a week or maybe even a month to tackle your spring cleaning, make it fun and not a chore. Keep in mind the reward in the end will be worth the effort.

Yippee…the Snow is coming!

For us living in the Pacific Northwest, snow days are far and few between. But when the weather reports call for snowy weather, we all seem to get a bit excited at the thought of having a “free day” off from school or work. However, being trapped in the house for longer than a day is not all it seems, especially when boredom starts to set in. To help pass the time and to keep the peace in your household, here are a few suggestions for snow day activities.

Winter Cleaning Up and Clean Out

Cleaning out closets, drawers and cupboards is never a fun activity, but it must be tackled. Take advantage of the time you are cooped up, to sort through out dated clothes, clothes that don’t fit anymore or items that you no longer use. Bag it all up and when the weather improves donate it to a local charity.

When the closets and drawers are clean and organized, head down to the basement or out to the garage, and tackle the piles that have accumulated over time. You will be happy in the Spring and the sun is shining that the task is complete.

TV or Movie Marathon

How full is your TiVo or DVR? Use this time to catch up on all of your favorite shows. Or if you have a pile of Netflix movies it’s time to watch. Enjoy a bowl of popcorn and kick up your feet.

Read a Good Book

Snow days are the perfect time to curl up in your favorite chair, couch or even your bed and read. The book you started months ago or the magazines that have piled up on the coffee table are waiting for your attention.

Cook or Bake Something New

Cookies are always a good choice when the weather turns bitter and cold. If you are tired of making chocolate chip cookies or comfort food such as chili…look up new recipes and try something new. You have nothing but time to experiment so take advantage of it.

Play Board Games

Remember Board games? You actually can sit down with your family and friends and interact with humans rather than a computer. Enjoy old favorites like Monopoly, Trivial Pursuit or Scrabble.

Do Your Taxes

We all have to get ‘er done before April 15^th. Why wait until the sun comes out to sit inside and do the duty. Get it done now, and enjoy an early tax refund and when everyone else is frantic about the deadline, you will be able to relax and enjoy the good weather.

Whatever you choose to do when the snow comes to town, make the most of the down time and if you are at all feeling stressed…just turn it into something productive and positive.