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Contribute to HOMEPAC today! The Texas Association of Builders (TAB) political action committee is an essential part of the advocacy program at TAB. HOMEPAC provides contributions in support of pro-housing candidates to both statewide office and the Texas Legislature. Find out more.
The Texas Builders Foundation serves as a resource to students, the residential building industry, and the citizens of the State of Texas. Its mission is to support the future construction workforce and to support the charitable activities of the residential construction industry. Donate to the Texas Builders Foundation TODAY!
ASSOCIATION HAPPENINGS AND INDUSTRY NEWS
84th TEXAS LEGISLATIVE SESSION ADJOURNED!
The 84th Texas Legislative Session adjourned sine die on June 1, 2015. This session yielded numerous proactive policies that, as passed, will greatly benefit the home building industry. During the 140 days of the session, TAB actively worked to reduce regulations, preserve private property rights, and improve codes and standards. In case you missed it, you can read the June 3 issue of Legislative Line here. A complete review of the 84th Legislative Session and the successes of TAB's government relations team can be found in the upcoming September/October issue of Texas Builder Magazine.
Only American Home Inspectors Training Institute offers the most comprehensive live-class training to help you become a licensed home inspector. Learn more at www.ahit.com.
SUNBELT BUILDERS SHOW SIX WEEKS AWAY
"Work & Play" is what the Sunbelt Builders Show™ has in store for you in 2015. There is incredible energy surrounding the move of the Show back to the Gaylord Texan in Grapevine — both exhibit booths and room nights are selling quickly!
Play — Since the Show was last at the Gaylord in 2010, the resort has added a 10-acre water park and all 1,000 rooms have been remodeled with a fresh, new look. But, make no mistake, you will still enjoy their Texas-sized entertainment and recreation activities. They have a first-class spa, the Glass Cactus Nightclub, a phenomenal sports bar with a 52-foot HD big screen TV and 50 flat screen televisions, a kids' club, and full-service marinas on Lake Grapevine with boat, jet ski and other water rentals. You will definitely want take advantage of the extremely discounted room rates offered for Sunbelt attendees.
If you dare to venture off the resort's property, the city of Grapevine is only a few short miles away. The area offers wine tastings, golf, shopping and fine dining. The Gaylord Texan offers regular trolley rides to downtown Grapevine and the Grapevine Mills shopping mall. Also, you can visit Six Flags Over Texas or catch a nighttime baseball game as the Texas Rangers are hosting the New York Yankees that week. This is the perfect vacation spot for Sunbelt attendees and their families this summer.
Work — Exhibitors are quickly filling up the trade show floor! Over 40% of our vendors are new to this year's Show. Unlike at national shows, you will be able to take your time visiting with Sunbelt exhibitors. Take advantage of this opportunity to spend time exploring their products and services so that you can identify those that will be the most valuable to you in growing your business. The education sessions that will be held on the trade show floor will help you bolster your bottom line with classes that focus on design, digital marketing, business processes, and best practices. Keynote sessions will feature:
Former Dallas Cowboy and U.S. Air Force fighter pilot Chad Hennings
Technology guru, Beth Ziesenis; and
A Texas Economic and Political Outlook with Dr. Jim Gaines, Texas A&M Real Estate Center and Ross Ramsey with the Texas Tribune.
You can view the best new homes, remodels and marketing campaigns of TAB members from around the state at the Star Awards cocktail party and awards presentation. The Star Awards feature the best of the best from around the state of Texas – don’t miss this chance to see these stunning projects from every corner of the state. Additionally, TAB will recognize the young, rising stars of our industry with the YP Awards during the Star Awards ceremony.
The Sunbelt Builders Show™ offers you an opportunity to do business and have fun with your family all under one roof. You’ll see your old friends and develop new relationships at the Sunbelt Builders Show™ July 29 – 30 in Grapevine, TX. Make your hotel reservations and register for the Show today at SunbeltBuildersShow.com.
Join Us — Get Started Here!
Website Sunbelt Builders Show | Register for Sunbelt | Book Your Room | 2015 Sunbelt Schedule
Thank you to the following Sunbelt Sponsors (as of 6/1/15)
TAB SUMMER BOARD OF DIRECTORS MEETING
The Texas Association of Builders will host its Summer Board of Directors Meeting in conjunction with the 15th Annual Sunbelt Builders Show™ on July 31 at the Gaylord Texan® Resort and Convention Center in Grapevine, Texas.
During this meeting, the Texas Housing Hall of Honor Board of Governance will announce the 2015 honorees for the November induction. In addition, the Excellence Under 45 Award winners will be acknowledged along with the winners of the first race of the RPM Cup Series Membership Challenge. Drivers with the highest RPMs statewide will be announced and prizes will be awarded.
Members are urged to make their hotel reservations now as the Show’s room block is near capacity for the two-day event. You may register for the meetings online at SunbeltBuilderShow.com. The Sunbelt Builders Show™ room block rate is $209/night and early bird deadline for this rate is Tuesday, July 7, 2015 or until the room block is sold out.
Call (512) 539-2562 or email Angelica@TexasBuilders.org for sponsorship opportunities.
Thank you to the following Board Meeting Sponsors (as of 6/1/15)
HOMEPAC FUNDANGO AND WASHERS TOURNAMENT SET FOR JULY 28
The 2015 HOMEPAC FUNdango is an event you don't want to miss! The family-friendly FUNdango includes entertainment, music, food, beverages and FUN for all ages. This outdoor event also hosts the 2nd Annual Statewide Washers Championship on the grounds of the Gaylord Texan® Resort and Convention Center in Grapevine, Texas. Winning teams from the local HBA washers tournaments will compete for the coveted championship belt buckle. In addition, two-person teams may also buy in to play.
To purchase FUNdango tickets and to buy into the washers tournament visit SunbeltBuilderShow.com/schedule-events.
Adults: $100 ($125 beginning July 8 and onsite)
Child 5–12: $35 ($50 beginning July 8 and onsite)
Child under 5: $15 ($20 beginning July 8 and onsite)
Washers tournament buy in: $125 per team member (includes FUNdango ticket)
Ticket proceeds benefit HOMEPAC, Texas Association of Builders political action committee. Corporate donations are not accepted.
Thanks to our FUNdango & Washers Tournament Sponsors (as of 6/1/15))
STAR AWARDS FINALISTS ANNOUNCED & TICKETS PRICED TO SELL OUT
The Texas Association of Builders would like to congratulate the 2015 Star Awards Finalists! To see a complete list of category finalists visit — SunbeltBuildersShow.com/news or click here to view the PDF.
Winners will be announced and celebrated at the 15th annual Sunbelt Builders Show™. TAB will host the Star Awards cocktail and presentation party on Thursday, July 30 at 5:30 p.m. at the prestigious Gaylord Texan® Resort and Convention Center in Grapevine Texas. Seating is limited and tickets are priced to sell quickly ($35 now/$50 after July 7) so don’t procrastinate, buy today.
In 1992, the Texas Association of Builders launched the Star Awards — the only statewide tribute to excellence in the home building industry. The 2015 Star Awards showcases the outstanding work of builders, remodelers, architects, designers, sales professionals, marketing professionals, construction professionals and industry leaders in Texas and the Southwest! With more than 75 categories to choose from and hundreds of entries each year, it is an impressive feat to be identified as a finalist!
Thanks to our Star Awards Sponsors (as of 6/1/15)
JOIN THE YOUNG PROFESSIONALS GET TOGETHER ON JULY 29
Mix, mingle and build relationships with the next generation of building industry leaders at the largest gathering of young professionals from across Texas at the Third Annual Young Professional Get Together. The Texas Association of Builders will host the event on July 29 at 9 p.m. at the Texan Station Sports Bar inside the Gaylord Texan in Grapevine.
Purchase your tickets at SunbeltBuildersShow.com. Prices are as follows:
Under 45 — $15 ($25 after July 7and onsite)
Over 45 — $50 ($75 after July 7 and onsite)
All proceeds from ticket sales to the YP Get Together will be donated to the Texas Builders Foundation, the charitable arm of the Texas Association of Builders. Donations allow the Foundation to award scholarships and work with building-related charities and organizations. The Texas Builders Foundation is a 501(c)(3) charity. All contributions to the Foundation are tax deductible.
Thanks to the following sponsors: Ferguson, Fox Energy Specialist and Wilsonart.
TAB HONORED WITH ASSOCIATION EXCELLENCE AWARDS
The Texas Association of Builders was named the state winner of three Association Excellence Awards by the National Association Home Builders. TAB was voted the best in the following state categories:
Best Publication — "2014 Star Awards Finalist Catalog"
Best Council Development Program — "Young Professionals Council"
Best Membership Event — "Statewide Washers Championship"
In addition, TAB and E&M Consulting, Inc., were honored for their outstanding work at the 2015 Hermes Creative Awards. The March/April 2014 Texas Builder magazine issue featured Risher Martin Fine Homes from Austin, Texas. The cover, designed by E&M Consulting, Inc., received honorable mention accolades for best print media design for a publication.
TRID/RESPA INTEGRATED DISCLOSURE RULES
Article courtesy of Steve Parks and Bayeh Tesfaye of imortage
New common sense disclosures are coming to the mortgage industry on August 1, 2015. Per the Dodd-Frank Act's mandate, the Consumer Financial Protection Bureau has amended the Truth in Lending Act and Real Estate Settlement Procedures Act. The amendments are commonly referred to as the TILA/RESPA Integrated Disclosure rules ("TRID"). Effective, August 1, 2015, TRID combines the initial Truth in Lending Act disclosure ("TIL") and the Good Faith Estimate disclosure ("GFE") into the Loan Estimate ("LE"); and the final TIL and HUD-1 Settlement Statement ("HUD-1") into the Closing Disclosure ("CD"). In addition to ushering in an era of common sense disclosures, TRID implements clarifications and changes to the timing, delivery, and fee limitations related to the disclosures. Although, TRID is directed at lenders, it will impact everyone in the mortgage industry, including home builders. This article summarizes the changes that impact the home builder community.
LIVING IN TWO WORLDS (PRE AND POST AUGUST 1, 2015):
Change: TRID applies to applications received on or after August 1, 2015, the current TIL, GFE and HUD-1 regulations apply to applications received prior to August 1, 2015.
Impact: Consumers with applications submitted prior to August 1, 2015 will receive the TIL, GFE and HUD-1, while consumers with applications submitted on or after August 1, 2015 will receive the LE and CD.
PREQUALIFICATION & PREAPPROVAL:
Change: Verification documents to underwrite an application or preapproval may be requested; however, such documents may not be required prior to providing an LE.
Impact: Pay stubs, tax returns, etc. may not be required to perform a prequalification. An LE must be provided prior to requiring pay stubs, tax returns, etc. for an application or preapproval.
Change: A fees worksheet or other document used to describe the terms and fees of a transaction prior to providing an LE must contain regulatory required disclaimer on top.
Impact: A fees worksheet or other document used to describe the terms and costs of a transaction during the prequalification stage must contain the regulatory required disclaimer on top.
WAITING PERIOD BEFORE CLOSING:
Change: A loan may not close within three business days of when the CD is delivered to the consumer. The borrower generally cannot pay more than what is disclosed on the CD. A new CD is required and the three business day waiting period is reset, if the APR goes up or down by 1/8th, the loan product changes or a prepayment penalty is added.
Impact: There is no known waiver to the waiting period. To avoid late closings, all parties in a transaction, including the consumer, seller, builder, real estate agent, closing agent, etc., must collaborate to set a realistic close of escrow date and collaborate to meet the date.
Impact: There are several permissible methods of delivery, including in-person, mail, overnight and electronic. In the absence of evidence of actual receipt, the regulations outline circumstances when the CD can be deemed delivered, e.g., three business days after it is placed in the mail, which means the three business day waiting period is extended to six business days.
The most effective method of delivery is electronic delivery, which has to be conducted in compliance with the E-Sign Act. To start the three business day waiting period early, it is essential for builders, real estate agents and lenders to coach consumers to access electronically provided CDs promptly. Electronic delivery is the most effective because the CD can be issued and delivered on the same day so the three business day waiting period can start.
1 The regulatory definition of application has changed. The seventh catch all element has been removed. The new definition is the submission of the consumer's name, consumer's income, consumer's social security number, subject property address, estimated= value of the property and mortgage loan amount sought.
2 TRID requires a 3 Specific Business Day waiting period between the delivery of the CD and consummation. According to the regulations, consummation is when the consumer becomes contractually obligated on the transaction, which is defined by state law. Based on state law, most lenders consider consummation as the time the consumer signs the promissory note, commonly at the closing table. Therefore, this article will refer to consummation as closing.
3 According to TRID, business days in this circumstance are defined as all days except Sundays and federal public holidays, such as Memorial Day.
4 Per TRID, loan products are fixed, arm, etc.
WATERS OF THE UNITED STATES: THE FINAL RULE
On May 27, the Environmental Protection Agency and the U.S. Army Corps of Engineers finalized the long-awaited rule to define "waters of the United States" and the jurisdictional scope of the Clean Water Act. This rule takes effect in August. It is important to the home building industry because it changes what areas can be regulated by the federal government under the act. Despite the agencies" claims that this rule is narrower in scope than existing regulations, the final rule contains changes that could significantly expand federal jurisdiction, triggering additional expensive and time-consuming permitting and regulatory requirements. This table offers an analysis of the rule.
NAHB policy calls on the agencies:
1. To adopt regulations, guidance and policies asserting that "navigability" is the guiding factor to determine the geographic reach of the Clean Water Act, consistent with congressional intent.
Why It Matters
2. To adopt regulations, guidance and policies asserting federal authority only over activities that "discharge" or "add" materials to jurisdictional waters.
3. In revising their regulations on the extent of Clean Water Act jurisdiction, to provide a set of clear and common-sense criteria that can be understood by those regulated and can be uniformly applied by the Corps and EPA field officers in all districts.
Despite some improvements to the original proposal, the final rule contains overly broad language that could place millions of additional acres of private land under federal jurisdiction. The rule is so extreme that the federal government will actually regulate certain roadside ditches, isolated ponds and channels that may only flow after a heavy rainfall.
This means, for example, that a builder in Arizona would have to get a permit for an activity in a dry desert wash that could be 30 miles from the nearest river. Such intrusive federal encroachment is bad governance and will inevitably lead to bureaucratic delays, increased project costs and mitigation fees, and ultimately, decreased housing affordability.
This federal overreach goes well beyond congressional intent and the limits of jurisdiction set forth by the U.S. Supreme Court. The bottom line is that, contrary to this rule, EPA and the Corps must recognize there are limits to the reach of the Clean Water Act. Without these limits, home builders and developers must obtain costly federal permits even when their activities impact the most marginal features commonly found on private property.
NAHB has been involved in trying to shape this rule since it was first proposed in April 2014. NAHB submitted extensive comments, urging the agencies to withdraw the rule and suggesting that Congress is better equipped to determine which areas should be affected by federal statute. NAHB also sought significant changes to make the proposal more understandable and workable in the field.
NAHB continues to successfully engage legislators on this rule. With bipartisan support, the House approved H.R. 1732, the Regulatory Integrity Protection Act, which would require EPA and the Corps to withdraw their rule and develop a new plan to safeguard America's waterways in consultation with state and local governments and other affected stakeholders, including small businesses. NAHB is also urging the Senate to pass companion legislation, S. 1140, the Federal Water Quality Protection Act.
Now that the rule is finalized, NAHB is considering all of its options, including legal action. The U.S. Supreme Court has already ruled twice there are limits to the scope of federal jurisdiction under the Clean Water Act.
Newsletter Coming This Summer
The Propane Council of Texas (ProCOT) is continuing its partnership with TAB to provide builder members with a quarterly publication, Propane Builder. ProCOT is a non-profit organization dedicated to educating the public and the propane industry on safety and the newest clean burning propane technologies. ProCOT is the state entity that represents the Propane Education & Research Council (PERC), which was authorized by the U.S. Congress with the passage of the Propane Education and Research Act (PERA). Builders, look for the next issue of Propane Builder in your mailboxes next month.
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