A Federal Housing Administration (FHA) expansion measure (H.R.5830) was reported out of the House Financial Services Committee May 1st and is headed for a House floor vote the week of May 5, along with a foreclosure grant measure (H.R.5818). These are the first pieces of a housing package House Democratic leaders originally planned to complete by Memorial Day, but have now said may take until July 4th.

The FHA expansion would authorize $300 billion in loan guarantees for homeowners who want to refinance their existing mortgage; but is contingent upon lenders agreeing to reduce the outstanding principal of the mortgage to reflect lower home values. With 10 Republicans supporting the measure, it passed out of committee by a vote of 46-21. The White House has expressed concern that H.R.5830 goes too far to bail out irresponsible borrowers, but has held short of issuing a veto threat. The second bill, H.R.5818, would provide $15 billion in loans and grants to states to rehabilitate foreclosed properties.

Meanwhile, the Senate Financial Services Committee has postponed a planned May 6 hearing on Fannie Mae/Freddie Mac reform that was omitted from the first Senate-passed housing measure.

ACTION NEEDED: Visit www.BuildtheVote.org to urge your legislators to move forward quickly to pass a strong and comprehensive housing reform package that includes FHA and GSE reform, new homebuyer tax credits and extension of net operating loss carryback tax treatment to assist those who depend on a strong housing industry.

MLA will provide Bob Aiken’s popular plumbing and electrical sales seminars in August. Scheduled for August 21-22 in St. Louis and August 25-26 in Wichita, Bob Aiken will help your employees better understand these important topics to boost your sales.

St. Louis area – Holiday Inn Select, 4341 Veteran’s Mem. Pkwy., St. Peters, Mo.

Members: $350 for first person; $325 for each add’l from same company; $225 for Day 1 or Day 2 separately.

Don’t Delay – Registration is limited to 28 at each location. Late sign-up fee: After August 1^st – add $50 per person surcharge.

Special room rates have been arranged at each location. Registration forms are now available on our web site at www.themla.com.

The Federal Motor Carrier Safety Administration (FMCSA) has proposed a new rule that would require additional training for entry level drivers to obtain commercial driver’s licenses (CDL). The proposal would increase the training requirement from 10 hours currently to 90 hours for Class B or C licenses, 120 hours for Class A. Applicants would have to complete this training from an accredited truck driving program or institution.

NLBMDA has heard from several members who are concerned that this proposed rule will make it more difficult and expensive for building material suppliers to find or replace drivers.

If you have feedback or concerns about this proposal, please contact Colleen Levine at colleen@dealer.org by May 15 so that she can prepare comments on behalf of the industry to FMCSA.

Specifically, please address the following questions:

Foreclosures Double... The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday. Click here for complete story.

Timber Giants' Profits Sag Under Strain of Housing Crisis… Last week saw revelations from three of the timber industry's heaviest hitters of wider-than-expected losses: Canfor, Weyerhaeuser, and Tembec all experienced declines and blamed their dreary performances on a host of problems. For instance, Canfor cited the devaluation of its log inventory and foreign exchange losses. Weyerhaeuser and Tembec, meanwhile, blamed torpid home sales in the U.S.

Softwood Imports at Issue in Farm Bill… With Congressional leaders anxious to complete conference negotiations on the Farm Bill by May 16, when the latest extension of current funding expires, Canadian softwood lumber imports have become a sticking point. Sen. Saxby Chambliss (R-GA) has attempted to insert a provision requiring a certification system, which would force importers to certify that shipments are in compliance with the Softwood Lumber Agreement. This would duplicate current customs record-keeping requirements and add an additional expense and time burden on importers.

Fed Cuts Rates, But Signals Change in Strategy… The economy has emerged as the number-one concern for Americans as housing woes continue, foreclosures gain numbers, and food and energy costs skyrocket. It has been a rollercoaster ride in the stock markets while jobs are slashed and the dollar deflates on the world stage.

There was little doubt that the Federal Open Market Committee (FOMC) of the Federal Reserve Board would cut the Fed Funds rate last Wednesday. Investors are in the mindset of expecting the Committee to lower rates each time it meets, as the rate has been cut in six straight meetings, including an emergency rate cut in January. But, the quarter of a point notch down to 2.0% was the smallest cut the FOMC has made since December 11, 2007, showing a return to a less aggressive strategy, particularly in the face of inflation fears. The previous three meetings have resulted in the lowering of the rate by .75%, .50% and .75% respectively, with the Fed anticipating moderate inflation on the backside.

The 2.0% prime rate is the lowest it has been since November 10, 2004. Likewise, the Board of Governors also agreed to cut the secondary discount rate by .25%, lowering it to 2.25%. This is the lowest this rate has been since the FOMC met on June 30, 2004.

Not surprisingly, the Fed's decision to cut rates was based on recent information that indicates economic activity remains weak and markets are still under considerable stress. The outlook is that tighter credit conditions and the slumping housing market will continue to weigh on economic growth for the next few quarters.

Home Depot to Close 15 Locations…In a sign of the times and sagging home sales, The Home Depot, the world’s largest home improvement retailer, revealed today, May 1, that it will be closing 15 stores, senior editor Andy Carlo reports.

In a prepared statement, the Atlanta-based retailer said the “underperforming” stores did not meet The Home Depot’s “targeted returns” and represent less than 1% of its existing store portfolio. About 1,300 associates will be impacted by the move. Store managers and assistant managers will be offered other positions within the company while associates will be placed in comparable positions “where available,” the company said.

The closings will result in a charge of approximately $186 million for The Home Depot, including inventory markdowns of $11 million and severance of $8 million.

Stores being closed include: east Fort Wayne and Marion, Ind.; Frankfort, Ky.; Opelousas, La.; East Brunswick and Saddle Brook, N.J.; Rome, N.Y.; Bismarck, N.D.; Findlay and Lima, Ohio; Brattleboro, Vt.; along with locations in Beaver Dam, Fond du Lac and Northwest Milwaukee, Wis.  Click here to read more.

Source: National Association of Home Builders, May 8, 2008

Temporary Tax Provisions Could be Extended… The House Ways & Means Committee is working on a bill to extend for one year all temporary tax provisions that expired at the end of 2007. These include depreciation rules for retail stores, the research and development credit, the deduction for state and local sales taxes and the deduction for tuition expenses. It could also include other tax provisions that will expire at the end of 2008 and several energy tax credits. It does not include alternative minimum tax (AMT) provisions. It is expected to be fully offset, but how is still to be decided.

Have you ever met a business owner who doesn’t want to be profitable and provide a safe work environment? Have you ever met an employee who doesn’t want to be appreciated, fairly compensated, and to work without injury? Accidents reduce business profits through direct and hidden costs, and they decrease employee morale. Yet accidents happen and people continue to get hurt.

Experience tells us that proper training for employees is essential in reducing injuries and illnesses in the work place. Simply training employees in how to perform their jobs safely can prevent many workplace injuries. Training provides the knowledge and motivation to interrupt the events that often lead to injuries.

Injury prevention begins with an effective hiring program to assure you hire qualified people who will become assets to your business. Organizations that accurately assess the demands of the job are in a better position to select qualified people and to develop effective training methods for specific tasks.

Orientation and training should cover the job expectations and instructions to perform the job safely, and should be documented. In developing orientation and training programs, consider your people, the work environment, and the equipment used in your operations. Focus on tasks that most frequently lead to injuries. The more frequently incidents occur, the higher the chance of experiencing a serious injury.

Here is a checklist that can be used to evaluate your training program and its effectiveness.

 This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer.

 THOUGHT FOR THE DAY

"Sometimes one pays most for the things one gets for nothing."

 – Albert Einstein