June 19, 2015
FROM AN ARTICLE IN REALTOR MAGAZINE: BUYERS FACE BARRIERS IN HOA NEIGHBORHOODS:
From an article in REALTOR Magazine
- The threat comes from mortgage industry officials who are warning areas with state laws that give community associations “super-priority liens” on homes in which owners have failed to pay their assessments. Super-priority liens grant a homeowner association the right to initiate foreclosure as well as get the proceeds from the sale of the delinquent home ahead of the first-lien position, which is typically held by a mortgage broker. Twenty-two states including Massachusetts have the authority for super liens.
- The Mortgage Bankers Association warned that in these states, buyers may start to face higher loan fees, more stringent down-payment requirements, as well as time-consuming reviews of the HOA finances. Some lenders have also said that they will reconsider whether to do business in communities that have super liens.
FROM THE U.S. CHAMBER OF COMMERCE:
- The Wall Street Journaleditorial board writes that, “While retrenching abroad, the Obama Administration remains committed to expanding Washington’s footprint at home. Behold the Environmental Protection Agency’s rewrite Wednesday of the Clean Water Act that extends federal jurisdiction over tens of millions of acres of private land. The Clean Water Act limits the federal government to regulating the ‘navigable waters of the United States’ like the Colorado River or Lake Michigan. In 1986 the EPA expanded that definition to seize jurisdiction over tributaries and adjacent wetlands. Now it is extending federal control over just about any creek, pond, prairie pothole or muddy farm field that EPA says has a ‘significant nexus’ to a navigable waterway. Congress should try use its regulatory review powers to overturn the new rule, forcing Members to show whose side they’re on—the average landowner’s or the Washington water police.”