Legislative and Regulatory 2006 Highlights

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Once again, NAR convinced Congress to block the Federal Reserve/Treasury Department rule that would

RE: REAL ESTATE

Commentary and current events from the National Association of Realtors®

Legislative and Regulatory 2006 Highlights

The NATIONAL ASSOCIATION OF REALTORS®' (NAR) Government Affairs and Regulatory and Industry Relations staff are the brokers' advocate for legislative and regulatory issues. Their efforts drove the following accomplishments:

Small Business Health Plans
NAR was instrumental in drafting S.1955, which would permit Associations to negotiate for and provide health insurance coverage to their members through small business health plans (SBHPs). Despite the Senate's failure on procedural grounds to consider S.1955 in May, NAR will work with the Senate leadership to take advantage of any opportunities that may arise during the post-election lame-duck session.

Banks in Real Estate
Once again, NAR convinced Congress to block the Federal Reserve/Treasury Department rule that would allow banks to engage in real estate brokerage and property management. This year, the House again approved a one-year prohibition in an appropriations bill. The Senate Appropriations Committee again approved a permanent prohibition in its bill.

OCC Real Estate Development Rulings Issued in December 2005
NAR defended its position that the Office of the Comptroller of the Currency (OCC) inappropriately expanded the authority of banks to engage in commercial real estate developments that include luxury hotels, residential condos, and windmill farms. In letters to the OCC, FDIC and Congress, NAR argued that the OCC actions undermine the longstanding, national policy against mixing banking and commerce.

Competition in the Real Estate Industry
NAR successfully defended the real estate industry against charges of anti-competitiveness. NAR President-Elect Pat Vredevoogd Combs testified at a House Financial Services Subcommittee on Housing and Community Opportunity hearing, reiterating NAR's position that competition is thriving, prices for real estate services vary and consumers can find more information than ever before through the Internet.

National Flood Insurance Program
NAR successfully lobbied Congress to increase the borrowing authority for the National Flood Insurance Program (NFIP) from $1.5 billion to $20 billion to enable FEMA to pay existing claims. NAR also obtained congressional appropriations for 2007 for improved floodplain maps, flood mitigation assistance and pre-disaster mitigation programs.

Tax Policy
NAR led opposition to the President's Advisory Panel on Federal Tax Reform's recommendation to convert the mortgage interest deduction into tax credits, which would drive down home values. NAR successfully secured provisions in the House and Senate bills to renew and extend the 15-year cost-recovery period for leasehold improvements.

FHA Reforms
NAR successfully lobbied for the passage of H.R. 5121, the "Expanding American Homeownership Act of 2006," reforming the FHA single-family insurance program. Reforms include raising FHA loan limits, eliminating restrictive down-payment requirements, providing risk-based mortgage insurance premium flexibility and offering optional extended 40-year term FHA loans. NAR supports the Senate companion and will continue to work for enactment.

RESPA Reform and Education
NAR is leading the effort to ensure REALTORS® remain at the center of the real estate transaction. NAR supports a market-based approach to reform, simplify and improve the mortgage process and reduce consumers' costs. NAR is also leading the RESPA education effort to promote compliance by real estate professionals.

Reaching Out to the Large Brokerage Community
This year NAR created a Real Estate Services Task Force to identify and enhance value to large brokerage firms and their core businesses, such as mortgage, title and insurance endeavors.

Re:sources
For the latest on NAR's regulatory and legislative agenda, visit www.REALTOR.org/GovernmentAffairs.