RISMedia, May 31 2011—Governor Fallin took swift action to protect Oklahoma homeowners by signing HB 1594 to restrict Wall Street Home Resale Fees, also known as “private transfer fees.” The new law sponsored by Representatives Steve Martin, Marion Cooksey and Senator Brian Crain places a ban on these fees, a dangerous new financial scheme that steals home equity, lowers home resale values and adds another layer of difficulty to selling a home.
“These fees infringe on property rights and hurt Oklahoma consumers,” says Representative Martin, a sponsor of the legislation. “They have no place in the Oklahoma real estate market. We’ve made sure that when a homeowner buys a new property, he or she owns that home free and clear.”
“The Governor and Legislature stood up for homeowners by protecting consumers from these predatory fees,” says Donna Schmulbach, Oklahoma Land Title Association President. “This bill is an important step in enhancing consumer protections, safeguarding the real estate market and protecting our property rights system in Oklahoma.”
Manhattan-based Freehold Capitol Partners is leading the push to add these fees to home purchase contracts. The fees require that a percentage of the final sale price of a home be paid to a private third party every time the property is sold, typically for 99 years. Freehold is attempting to then sell the right to collect these fees on Wall Street—all the while padding investors’ pockets while stealing equity from homeowners.
Oklahoma becomes the 30th state to have restricted the use of Wall Street Resale Fees.
The bill is the latest in a series of government actions to limit Wall Street Home Resale Fees. Oklahoma joins Arizona, Arkansas, California, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oregon, South Dakota, Texas, Utah, Virginia and Washington in restricting the dangerous fees. On the federal level, the Federal Housing Finance Agency has issued a proposed rule that would prevent government-sponsored entities from investing in mortgages with these fees.
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