REALTORS® across the country convened in May to Washington D.C. for mid-year meetings. North Carolina REALTORS® attended various meetings but most importantly visited Capital Hill to lobby the delegation on important real estate issues. Fayetteville Regional Association of REALTORS® attended meetings with Senators Richard Burr and Thom Tillis and Representatives Richard Hudson, David Price and Renee Ellmers.
The following were and currently are talking points that the National Association of REALTORS® and NC REALTORS® discussed with the House and Senate.
- Patent Reform
- Data Security
- Mortgage Choice Act
- Like-Kind Exchanges
- Leasehold Improvements
- Federal Housing Adminstration mortgage insurance program
- Mortgage Interest Deduction (MID)
- Property Tax Deduction
- Mortgage Debt Forgiveness Tax Relief
FHA
- Congress says resources are inadequate
- targeted only to first time home buyers
- Changes to condominium rules are still are to finance through FHA
Freddie/Fannie
- No lobbyist at this time for Freddie/Frannie
- It is up to the National Association of REALTORS® to educate Congress
- Freddie/Fannie are about keeping the 30-year fixed mortgage
Tax Reform
- There has been NO bill introduced but there have been many studies conducted
- Another problem – 1/2 of Congress is NEW
Mortgage Debt Forgiveness
- Needs to be reauthorized this year
Mortgage Interest Deduction
- Eliminating would be a disaster
- Elimination of state and local property tax would equal a 12% to 15% drop in the value of a home
Patent Reform
- REALTOR® buisinessess are receiving more frequent notices
NEW RESPA/TILA Rules
- Possible “DELAYED ENFORCEMENT” until January 1, 2016
What Was Said:
From NAR – “This year is a slow burner and there are not many issues… but we have to be delagant.”
From Senator Richard Burr:
- Thom Tillis is some of North Carolinas best talent
- We are here to say thank you for what you do. I think where we are right now is frustrating because both of us realize there are some policy changes we need to make up here
- The U. S. economy is the 800lb gorilla in the economic picture
- We want to have lasting impact on your livelihood and your business. Id like to go home to my wife (she is a REALTOR®) and she actually thanks me for what I do
- North Carolina is the 4th in the country on job creation
- Healthcare – it’s going to be a challenging path
- Concerns – growing the economy and national security
- There is this little thing called national security and the world is real screwed up right now and I want to thank you for saving me from my morning intelligence brief. It has become the start of my day
- Question – What do you see coming down the pike? Answer – we have to have a vibrant economy. You have historically low interest rates right now but the problem is…there is no confidence in the American people that homeownership is a good investment. Homeownership was the best investment and we’ve got to get the confidence of the American people back
- We sort of look at houses the way we do education and it comes back to everyone should take advantage of. The challenge that we see right now is that it’s not the availability of a mortgage that’s forcing the younger generation to choose to rent versus to buy. There is a lifestyle change that is happening now and we need to recognize whether it’s become cost probibitive or whether this is a real change in the way they look at things
- We have a huge amount of higher education kids who graduate in North Carolina and homeownership is not on their list. Thirty percent of Americans do not have cable or satellite TV. They watch what they want, when they want on the internet. I just don’t know if they think differently about home ownership or whether it’s just the uncertainty of the job market and the income and the exposure that they are faced with. I know they use debit cards but they are not cash driven and it makes you wonder if they see value in home ownership
- There has to be a back stop in the mortgage industry. The Fannie and Freedie model certailnly could be transferred over to the private sector with the right conditions
- (on student loans) We have reluctantly rolled the entire student loan program into the federal government. The federal government has the exposure of the entire amount of student loans. There is more debt exposure from student loans today than FHA. This is going to be a disastrous social experiment and I would love to see us push back to the private sector. Two billion dollars a year is siphoned off from the student loan program to the Affordable Care Act. We are actually charging kids that are going to college to PAY for the Affordable Care Act
From Senator Thom Tillis:
- Our unemployment is under the national average
- We have the highest corporate tax rate in the world
- The regulatory environment in this country is one of the oppressed in the world
- I’m for clean air..I’m a camper, hunter, hiker, hunter and fisherman. I am a steward of the environment. I believe that regulations have to be in place but I don’t believe the regulations we have on the books today and in some cases create the exact opposite
- I want to be defined as one of the effective and one of the most boring members of the U.S. Senate
- Your daily life as REALTORS® and the time you spend in the community, you hear things. Little things that are causing big problems in your business. Those are the sorts of things I want to focus on
- A lot of folks here in Washington want to focus on the things that get you on T.V., I want to focus on the things that just get things done
- I want to thank a lot of you who are advocates in the state. You guys had great input on things we were able to do in the legislature…things that made a difference. Over the next few years I hope to develop that relationship with you, your lobbyist and PAC representatives and you
- (on EPA water rules) – This is an equal opportunity offender. It literally defines a puddle and will have a dramatic impact on development. I’m waiting for them to regulate flat roof homes with water on them. Right now commercial development is starting to see some good progress…not so much in new housing starts. Once these regulations get in place, it sets an even higher bar. This is something we have support for. I think there are enough members in agricultural areas and urban areas that see we’ve got to make some changes.
