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Archive for the ‘Politics’ Category

Is Your Livelihood Worth $99?

Posted in Politics, tagged on February 15, 2011 | Leave a Comment »

Our industry is under attack:

Mortgage Interest Deduction
The proposed White House budget cuts call for taxpayers in the 33 percent and 35 percent tax brackets to be limited in deducting charitable contributions and mortgage interest payments at the 28 percent rate. The deduction would affect households with taxable income of $250,000 or more.

GSE Reform
Cutting back significantly on Fannie Mae and Freddie Mac’s involvement in the mortgage market will (1) reduce housing access and affordability for those who are able to become homeowners (2) create higher profits for America’s big banks, (3) create more too big to fail banks, leading to greater consumer risk and taxpayer exposure, and (4) hurt the economy and hinder job creation and growth.

Conforming Loan Limits
Unless extended, the higher conforming loan limits of $729,750 will expire on September 30, thus making the purchase and sale of homes within our more expensive markets that much more challenging.

NAR is working to defeat bills, policies and proposals that are detrimental to your business. Since 1969 RPAC has been promoting the election of pro-REALTOR® candidates across the United States. During the last federal election cycle alone, RPAC contributed over $12 million to pro-REALTOR® candidates to Congress, making it the number one trade association political action committee in the nation.

Help me stop the attacks. Allegiance is a Sterling R RPAC contributor, the highest level of donation. I urge you to contribute to allow NAR to continue its important work on your behalf:

Virginia: http://www.varealtor.com/contribute-to-rpac-online
DC: http://gcaar.com/News.aspx?id=5452
Maryland: http://www.mdrealtor.org/SiteLogin.aspx?returnurl=/RPAC/ContributetoRPAC/ContributetoRPACOnline.aspx

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No Better Time to Give to RPAC

Posted in Politics, tagged , , , , , , , , , , , on May 14, 2009 | Leave a Comment »

Earlier this week at the NAR Mid-Year Conference, it was mentioned that there is no better time than now for NAR to lobby for the needs of REALTORS and home owners. The consensus, to me, was the Obama Administration representatives at the meeting were aware of the issues at hand but did not believe Congress would do much more about them (or did not want to spend Obama’s political capital on the issues). I hope you’ll strongly consider giving to RPAC. Below is a video my VAR Leadership Academy class created in 2007 that explains RPAC.

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NAR Summit

Posted in Politics, Positive Economic News, Real Estate Education, tagged , , , , , , , , , , on May 12, 2009 | 1 Comment »

I attended the NAR Summit on Tuesday in Washington. Here are a few quick highlights:

Robert Reich was the keynote speaker for the legislative and political forum. The former US Secretary of Labor described these good signs:

- housing market showing signs of improvement
- job loss rate dropping
- business inventories reducing

Reich stated that the government is always the buyer of last resort and that is what we are seeing now. While intervention has been considerable, the debt to GDP ratio is actually half of what it was after WWII.

He believes there will be a bottom later this year with considerable recovery in 2010.

Later in the morning CNBC Analyst Ron Insana moderated a large panel on reshaping real estate to sustain communities and revitalize the economy. I was thankful to be in our markets when I heard that Detroit has 40 years of inventory for $1 million homes.

Another complaint from the panel was the huge amounts of misinformation on the tax credit. I’ll be posting a video on the tax credit tomorrow. It is critical to educate your clients and have handouts available at open houses.

Assisting the jumbo market was discussed and, sadly, the consensus was helping that market is politically difficult as many on Main Street would see that as a bailout for fat cats. The consensus was the same for increasing the tax credit to $16,000 or $20,000 and removing the income limits. That, too, would not go over well on Main Street.

HUD Secretary Shaun Donovan addressed the summit and outlined the accomplishments of the Obama administration’s housing plan, Making Home Affordable:

- interest rate deductions
- increasing modifications
- tax credit will result in 160,000 sales this year that would not have occurred

Sec. Donovan feels that market recovery will occur this year.

The big announcement of the day also came from Sec. Donovan. He said the government will permit monetization of the tax credit via bridge loans so buyers can use that money for down payment and closing costs. Details of this program will come soon.

In the afternoon there was another forum that bantered about financing. Like the morning session, the consensus was money is not flowing as it should. Alan Greenspan spoke and stated that he expected that there is a large liquidation of homes inventory coming. The sooner home prices stabilize, the sooner the overall economy will improve. Falling prices are keeping many buyers on the fence, hoping to catch the bottom of the market.

Finally, FDIC Chairman Sheila Bair addressed the audience and stated that we will continue to see banks fail but that customer’s deposits are safe. She feels that any bank should be allowed to fail and agreed that there are problems with mortgage modifications and short sales. She stated that that loans that are not securitized should be able to be modified without a home owner needing to be late on payments. She said, however, that those loans that are securitized are much more difficult due to the agreements with the investors.

Overall, NAR did a great job with the summit and I believe that those in positions to do something about the problems we face are acting.

We need to continue to get the positive word out about our market:

- Interest rates are at historic lows
- A tax credit exists to help buyers
- There is money to lend, especially via FHA
- A home is a place to live, not a place to make a quick buck. If someone is looking to stay in the area for a number of years, it is a great time to buy, regardless of whether we have hit bottom. There is no way to predict the bottom until you look back and realize you’ve missed it.

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RE/MAX: Support NAR Stimulus Plan

Posted in Politics, tagged , , , , , on December 2, 2008 | Leave a Comment »

Dave Liniger, co-founder of RE/MAX International, recently requested, via his blog on RE/MAX Mainstreet, ideas on how to stimulate the market. My reply to his question, which was published on his blog, follows:

Part of the issue here is everyone seems to think they have the best idea to get us out of this problem. If every RE/MAX Associate pushed his or her own idea, nothing would get done. If every REALTOR pushed his or her own idea, nothing would get done. NAR has had a plan in place since mid-October and, regardless of whether we think it’s perfect or can be improved, we need to get behind it. NAR has struggled to get anything through the short lame duck session of Congress. We need to act so Congress acts quickly when they reconvene in January. Here’s their plan:

1. Remove the requirement in the current law that first-time homebuyers repay the $7,500 tax credit, and expand the tax credit to apply not only to first-time buyers, but also to all buyers of a primary residence.

2. Revise the FHA, Fannie Mae and Freddie Mac 2008 stimulus loan limit increases to make them permanent. The Economic Stabilization Act, enacted in February, made loan limit increases temporary, and subsequent legislation reduced the loan limits and made them permanent. This has broad implication for homebuyers in high cost areas.

3. Urge the government to use a portion of the allotted $700 billion that was provided to purchase mortgage-backed securities from banks to provide price stabilization for housing. The Treasury department should be required to use the newly enacted Troubled Assets Relief Program to push banks to:

-Extend credit down to Main Street, making credit more available to consumers and small businesses;

-Expedite the process for short sales;

-Expedite the resolution of banks’ real estate owned (REOs) properties.

4. Make permanent the prohibition against banks entering real estate brokerage and management, further protecting consumers and the economy.

Contact your members of Congress today via: http://takeaction.realtoractioncenter.com/campaign/4pointplan?rk=A1LyIoSqTI_IW

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Obama’s Ideas on Key Real Estate Issues

Posted in Politics, Real Estate News, tagged , , , , , , , , on November 8, 2008 | Leave a Comment »

To find out where president-elect Barack Obama stands on issues vital to real estate practitioners, REALTOR® Magazine went straight to the source.

This fall, when the presidential campaign was in full force, Obama responded to the magazine’s pressing questions about the mortgage crisis, sustainable development, housing affordability and other topics. Here’s what he said:

What’s the most important action the federal government can take to ease the mortgage crisis and prevent a recurrence?

Obama: For the short term, the housing relief legislation [signed by Pres. George W. Bush July 30] authorizing the FHA to refinance the mortgages of struggling homeowners is the right approach. I’ve also called for the creation of a $10 billion foreclosure prevention fund that works in tandem with state, local, and community nonprofit efforts to help households facing foreclosure renegotiate with lenders or put their homes on the market. We also need to expand the mortgage revenue bond program to give state housing agencies $10 billion in new resources to help struggling homeowners. For the long term, the Stop Fraud Act that I introduced two years ago would create criminal penalties for mortgage professionals found guilty of fraud and increase funding for federal and state enforcement of antifraud programs. I also want to see a simplified, standardized metric for calculating the costs of a home mortgage, similar to the annual percentage rate used by banks to identify the effective interest rate a borrower ends up paying on a loan.

What role should the federal government play in reducing gridlock and carbon emission and in promoting livable communities?

Obama: Our long-term competitiveness depends on the development of new transportation networks that reflect our increasingly mobile society. That’s why a strengthened transportation system is a priority for me. We must renew the federal government’s commitment to high-speed rail and take steps at the front end of planning processes for many transportation options. For example, I support a measure by Sen. Tom Harkin (D-Iowa) to require states and metropolitan planning organizations to adopt policies that incentivize bicycle and pedestrian use of roads. I’ll double the federal Jobs Access and Reverse Commute program to ensure that additional federal public transportation dollars flow to the highest-need communities and that urban planning initiatives take this aspect of transportation policy into account.

Even though prices have been easing for the last two years, housing affordability remains a challenge for many people. What can the federal government do to improve this situation?

Obama: I’ve proposed a universal mortgage interest tax credit for families that aren’t benefiting from the mortgage interest deduction. They would get an average credit of $500 a year. And I worked to pass the bipartisan homeownership tax credit. That’s a strong incentive because it gives developers a credit to bridge the gap between the cost of building a house and a sale price that’s affordable to low- and moderate-income households.

How should the federal government help millions of small-business owners and the self-employed obtain affordable health insurance?

Obama: Let’s build on our existing private health care system by allowing small employers and independent contractors to participate in a “national health insurance exchange” so they can purchase affordable health coverage similar to the plans available to federal employees. Individuals who need help paying for premiums will receive tax credits to ensure they can afford coverage. Employers that do not make a meaningful contribution to the cost of quality health coverage for their employees will be required to contribute a percentage of payroll toward the costs of the national plan. Small employers that meet certain revenue thresholds will be exempt. The plan will reimburse employer health plans for a portion of the catastrophic costs they incur above a threshold if they guarantee these savings are used to reduce workers’ premiums.

What’s the federal government’s role in promoting energy efficiency in commercial properties?

Obama: I’ll establish a goal of making all new buildings carbon-neutral by 2030 and work to improve new building efficiency by 50 percent and existing building efficiency by 25 percent over the next decade. To achieve that, I’ll seek to make federal buildings zero-emission by 2025, starting with a goal to make them 40 percent more efficient in five years. I’ll create a competitive grant program to recognize states and localities that take the first steps in implementing new building codes that prioritize energy efficiency. I’ll also seek to provide a federal match for states with public benefits funds that support energy-efficiency retrofits of existing buildings. In addition, I’ll invest in green-collar job training programs and create a “Green Jobs Corps” to connect disadvantaged youth with job skills in high-growth clean-energy industries.

What IRS code changes are needed to spur growth while ensuring tax burdens are spread evenly?

Obama: We need to reform our tax code so that it’s simple and fair and advances opportunity rather than loopholes for special interests. I’ll end tax breaks for companies that ship jobs overseas and reward companies that create good jobs here. I’ll encourage innovation and entrepreneurship by extending the research and development and renewable energy production tax credits and eliminating capital gains taxes for small and start-up businesses. And I’ll provide broad middle class tax relief—a “Making Work Pay” $500 tax credit, among other things—to help working families struggling with stagnant wages and skyrocketing energy and health costs.

—Robert Freedman, NAR

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Obama Victory: What It Means for Real Estate

Posted in Politics, Real Estate News, tagged , , , , , , , on November 5, 2008 | Leave a Comment »

With the election of Sen. Barack Obama (D-Ill.) as president of the United States, and gains by Democrats in U.S. House and Senate races, one big questions is on many REALTORS®’ minds: How will the new government leadership affect the housing industry’s ability to move forward with its top legislative goals?

“We’re in a good place,” says 2009 NAR President Charles McMillan. “REALTORS® are excited by this historic election and stand ready to work with our new president and the new Congress on issues that are at the heart of the American dream of homeownership.”

The availability of affordable mortgage financing and affordable health insurance top REALTORS®’ legislative priority list; more important, those issues are also priorities for both major parties.

“There is no partisan divide when it comes to homeownership, strong communities, affordable health insurance, and strong commercial real estate markets,” McMillan says.

Bipartisan Election Support
NAR provided election support through the REALTORS® Political Action Committee (RPAC) to more than 400 candidates, with just slightly more than half of its funds going to Democrats. The small difference in support reflects the larger number of Democrats in the outgoing 110th Congress. “Ours is the most bipartisan PAC in the country,” says RPAC Chair Larry Edwards.

The PAC provided more than $4 million directly to candidates in the general election. Another several million dollars went toward helping about 74 candidates through the NAR Opportunity Race program and a half dozen candidates through the association’s Independent Expenditure program. All told, NAR was expected to spend up to $16 million total in the two-year cycle that ended with the Nov. 4 elections.

In an Opportunity Race, NAR sends educational and get-out-the vote materials in support of an RPAC-backed candidate in the candidate’s district. Independent Expenditures are aimed at the general public and fund radio, TV, and direct mail ads to explain issues of concern to the real estate industry.

REALTOR® Victories in Congress
Rep. Shelley Moore Capito (R-W.Va.). A member of the House Financial Services Committee, Capito was one of REALTORS®’ big winners, overcoming a stiff challenge to win a fifth term. Capito has been a strong advocate for NAR-backed small business health insurance coverage and helped pass FHA reform, the first-time homebuyer tax credit, and expansion of homeownership opportunities for U.S. veterans.
Jerry McNerney (D-Calif.). This freshman lawmaker who played a key role in Congress to increase conforming loan limits, won decisively in a fiercely contested race. “Rep. McNerney made his mark quickly as a strong advocate for FHA reform, the home buyer tax credit, and expanded homeownership opportunities for veterans,” says NAR Chief Lobbyist Jerry Giovaniello.

Rep. Paul Kanjorski (D-Pa.). Kanjorski, who authored legislation to keep banks out of real estate, surprised pundits and pollsters, beating out Republican challenger Lou Barletta, the mayor of Hazleton, Pa. “Rep. Kanjorski has been a courageous leader on our behalf,” says NAR’s McMillan. “We’re proud of our support for him.”

Not all of NAR’s efforts to help REALTOR®-friendly lawmakers succeeded. Rep. Chris Shays (R-Conn.), a veteran lawmaker on the pivotal House Financial Services Committee, lost a hard-fought campaign. Shays helped pass housing stimulus legislation this year and has been a steady supporter of NAR-backed legislation to keep banks out of real estate.

Shays was defeated by Democrat Jim Himes, a former Goldman Sachs vice president who went on to become an executive with Enterprise Community Partners, a leader in affordable housing and community development.

Expect Renewed Focus on Fannie, Freddie
NAR analysts say REALTORS® can expect the Obama Administration and the new Congress to focus first and foremost on regulatory reform of the country’s financial services industry.

Lawmakers will be looking at what went wrong and what needs to change to ensure proper regulation of mortgage- and other asset-backed securities.

A large part of this review will focus on potential changes to secondary mortgage market companies Fannie Mae and Freddie Mac, which are under government conservatorship. Among the options on the table: folding them entirely into the government, making them 100-percent privatized companies, or keeping them as public-private hybrids.

NAR has formed a presidential advisory group (PAG) on the future of Fannie and Freddie, and the association will be weighing in as Congress takes on the issue, NAR analysts say.

Another Stimulus Package in the Works?
Obama and Congress will also likely look at another economic stimulus package, particularly if the outgoing 110th Congress balks at passing new stimulus provisions before the end of 2008.

NAR is pushing for a lame-duck session of Congress to make conforming high-cost loan limits of $729,750 permanent and to eliminate the repayment requirement in the first-time homebuyer tax credit.

NAR also want to see heightened consumer protection with a permanent ban on national banks entering real estate brokerage and management. And it wants to ensure Wall Street banks use some of the $700 billion in rescue funds to make mortgage financing available at reasonable costs.

Health-Insurance Reform on the Way
Looking ahead, Congress is expected to take on comprehensive reform of health insurance, infrastructure investment, and climate change—all issues impacting real estate and the real estate profession. On all of those issues, NAR will move aggressively to help shape the debate.

“We see much opportunity as well as challenge in this new environment,” says McMillan. “But thanks to the success of RPAC and the attraction of our issues in both parties, we are well positioned to ensure the best environment for real estate.”

—Robert Freedman, NAR

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