You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Why We Value the Government’s Role in Housing, Posted by Ron”.
You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Why We Value the Government’s Role in Housing, Posted by Ron”.
1st licensed in 1973 I saw the failure of the Savings & Loan companies. Now even with Fannie May & freddie Mac we have failure to a larger degree.
Risk is risk and the private sector shoukld bear the burden. While you saw homeownership at an all time high, DON’T take any credit for that. Unless You bear the burden for 1 million foreclosures last year and 1.2 this year.
Government makes a mess of everything they touch. Look at the USPS it is losing money.
Quit lobbying and let the people determine through free trade what is going to happen and if that means 10 year mortgages, so be it.
14Plus trillon dollars in debt. No relief at all for me the small business man. No bailout, no cheap mloans to stay in business, pay my on benefits and pay you what amounts to dues for NOTHING.
YOU, NAR instead of looking at hopw many members you can get paying dues should have been all over Washington in 2004 trying and succeeding in slowing things down.
I persoanlly did not deal in “D” paper in 2004 and 2005 so I can proudly say while I made fewer sales I did not put people in homes that would wind up BROKE.
Shame on you. You do not look out for the realtor at all in my opinion. The only thing worse is the local association and nl less blame for state association.
If it were not required by my broker and the MLS I would drop membership in the realtor organization like a hot potato.
STEVEN HARP, these are my opinions alone
Interesting read.
Hard to see how Fannie and Freddy can be transitioned into something better than just let the open market would come up with.
I believe that Bank Owned Properties and Short Sale properties should be treated seperate from other homes. This would make appraisals more accurate on homes that are not under water. It would also make it easier for buyers who are just looking for discounted homes.
Concerned Broker
Home sales can be increased by perserving the mortgage interest deductions on home ownship and second homes.
The American Dream is still owning their own home. Rent has become so high that you can buy a home cheaper than rent. It still is great to buy a home, because your rent money is gone at the end of the year.
I really think it is time for us to start help our people that are in service for our country.
yes, they can get a va loan, but most of them need help with their credit scores mostly the younger generation. I believe we should drop the credit score where we can get more people qualified to buy homes. Remember, the lost of jobs has caused the crisiss in our home loans. Not the people who had low credit scores.
It seems to be that our government does not want people to own their homes, but live in government homes.
Our taxes have gotten out of controll. Small Businesses do not have a chance.
Small business is helping our economy, but we are being pushed to close our doors.
Let me offer the suggestion that the mortgage interest deduction of IRC Section 163(h) be repealed, and in its place, enacted a deduction for payments made to reduce loan principal on a residential purchase money mortgage.
I am not a real estate professional, but believe that a deduction for principal payments instead of interest has more market stimulative potential than preserving the MID. In the short-term there may indeed be negative revenue impact on the federal budget, but long-term, replacing the open-ended MID (which an owner can perpetuate until he or she dies or sells the house, by serial refinancing or adding on consumer debt) makes fiscal sense.
To have any positive fiscal impact long-term the MPD (mortgage principal deduction) must be limited to a primary residence, and limited further by capping the deduction on subsequent purchase money loans or re-fi’s by allowing the MPD in those circumstances only on payments made to principal amounts exceeding the cumulative amount of prior MPDs.
Ultimately the owner who doubles down on principal payments benefits by having the largest tax deduction his budget and loan amount will permit, and has lower interest payments in subsequent periods.
The kicker for the real estate market is this: buyers who have accumulated equity by taking advantage maximum advantage of the MPD are less desperate sellers, less apt to let a home go into foreclosure, and at least in theory they embark on the next home search with a bigger down payment fund, making upgrading and relocating more attractive.
Where’s the rub?
We are fighting over scraps as the noose of government intrusion and control of our lives slowly chokes the life, liberty, and the pursuit of happiness (ownership of property) out of us, transferring our capital earned from our sweat equity to those in control.
NAR is promoting a “hang on a little longer my friend” solution in the face of a totally co-opted free market capitalist society. Banks that cannot fail are consuming all the smaller banks that are allowed to fail. Every time the Treasury takes out a bond, it is making the tax payer pay interest to the Federal Reserve, a private for profit organization that operates in its own self interest. The more wealth is transferred to their member banks, the less responsive they become to the US citizen.
GSE’s, FHA, VA, and Rural loans are on the citizen’s side. The banks are on the Federal Reserve’s side. Regulation attempts to create a level playing field between the two opponents in the contest of wealth creation. However, rules of the game that are not enforced with a referee lead to mean spirited hurtful violations that destroy the ownership game that makes the United States so very different than the rest of the world.
The most painful part of the process is when it appears that the referee has chosen sides and ignores violations against one side in favor of the other. Players, coaches, spectators, and the sport itself get discouraged to the point of anger, disgust, despair, resignation……
I encourage all of us to fight the good fight. By that I mean, let’s straighten out the rules committee, let’s hire honest referees, let’s promote the game, let’s encourage each other to bring more players to the game, let’s make sure that the sweat generated capital is not stolen through the sleight of hand trickery of the protected few, and let’s start down the long hard road of reclaiming our heritage.
Government organizations that support the strength of the real estate market are necessary evils to counter the self interest of the FED. However, they must be on point, the point being to help each citizen grow wealth through property ownership.
This is what I believe NAR is working hard to do. Let’s keep our organization on point with our diligence and support. Let’s get educated with all the facts they and others provide. And then make our Republic work through addressing our representatives on this issue vital to our very livelihoods.
I already contribute to TREPAC, but that is at my own decision to do so. I am uncomfortable with being asked to raise my dues to go solely towards a Political Action Committee that NAR would control where and who they feel speaks the voices of ALL it’s members. I; for one, do not believe that we should support the GSE’s. In my opinion I feel through the various administrations in the past and present the inability to see what these initiative do in the long run just speaks to the failure of the Governments role in the real estate industry to begin with.
I am not ever in favor of intitlements and work hard for what I have and give. I feel the only way I could ever support NAR with the using of my dues towards political actions is for a clear, concise message each and every time those monies would be used for any lobbying of candidates or measure being proposed.
In realilty the MID costs the government nothing. Every dollar of MID deducted by a homeowning taxpayer is paid to someone who is liable for income taxes on that money.
If the MID were eliminated, homeowners would make every effort to pay off their mortgage. The same happened when deductions for interest on auto loans and credit cards were eliminated. The only taxpayers hurt are those who cannot afford to finance themselves on a day to day basis. Most of those are people who already pay little or no income taxes (the lower income 50% of Americans).
In my case, I have income from a $1m carryback note from selling my previous home, and at the same time I have mortgages of $0.75m for my current homes. If the MID were eliminated, I would cash out my note and pay off my home. Net to the USGOV would be zero. Actually the net to USGOV in long run would be negative, because next time my buyer would not even buy the house because the lack of MID on the loan would run his monthly cost up by 20% or more. The whole economy would be stifled.
In the case of other Americans, they simply would not move if a new mortgage were involved. This would inhibit moving to a new job or to a retirement area.
I could understand eliminating MID if it were not for the fact that government collects taxes from the interest recipient. It is simply not fair to collect from both. In fact, I am in favor of returning the tax deduction for consumer loans. It would be a great stimulus to the economy, and the consequently increased frequency of consumer loans would likely generate significantly more GDP and more government income, not less.