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Making Sure Congress Gets It Right, Posted by Ron

Comments
  1. kria

    Thank you for testifying about this issue. We need to have reasonable loan packages for our buyers.

  2. Thomas Kostopoulos

    Yes-Congress Needs To Know That If They Make 20% Down The Minimum For Purchasing Residential Real Estate We Will Lose Two-Thirds Of Our Buyers And Fall Further Into A Real Estate Recession Which Would Continue To Drag Our Whole Economy Down As Well-I’m Glad You Are Speaking For Us And Keep Fighting The Good Fight!!!

  3. The real estate market has suffered enough, stop this madness of the federal government, playing the blame game and picking winners and losers. We need to open up this stail market by allowing the simple assumption of all fed backed mortgages. Quit the process of having a lender feisting over every closing in the US. We REALTORS then can turn this market into a boom overnight. This will cost nothing by setting asside the due on sale clauses in all government backed mortgages in existence today. Many would be buyers can not qualify, but have cash or can get cash to assume a loan. This one thing will reduce foreclosures by 60%. Investors will turn again to the real estate market. Free enterprise will not hurt anyone. The only issue will be of who controls our marketplace. The lenders, the government, or the buyers and sellers AKA taxpaying voters.

  4. Quite frankly where was NAR, CAR and other Realtor organizations during the hay days of lending “fraud”. They were silent and turned a blind eye to what the banks were doing. Because of that inaction and lack of whistle blowing on the financial industries practices, now the consumer is going to pay up to protect the bank’s bottom lines.

    NAR, CAR and Realtors should be supporting Elizabeth Warren and her policies in order to get our housing market back and trust restored in the financial industries. Quite frankly I have no faith in the financial industries having sound business practices because they are continuing to produce “paper giants” which are no more than legalized ponzi schemes.

    Realtors need to take note and plan their business activities going forward accordingly.

    Unfortunately because of banking’s reckless behavior’s millions of American’s real estate investments are under water. There are people who have put down as little as 10 percent still current on their mortgages and able to pay, however, is it fiscally the right thing for them to do?

    If NAR, CAR and others are to survive as an organization going forward, I’d suggest that we be on the side of REAL BANKING REFORM. Until then, as a Realtor I will not support our current unsustainable positions … Crying Wolf at 20% down … instead of pushing for financial reform and rule of the road for BANKS.

    Currently we tout that we won against the banks as an organization to keep them out of real estate … WRONG. They have been controling real estate through short sales, REO’s, foreclosures and auctions for 1.5 years. Additionally, the banks are controling what Realtor’s get paid in short sales and REO’s. Enough.

    NAR get tough with banking and financial reform and we will have the public interest, like we used to. Until then we are an ineffective and lagging organization whose fight with the banks may have been lost.

  5. BREAK AWAY FROM NAR!!!! REVOLT REVOLT REVOLT REVOLT REVOLT

    I’m thoroughly upset with NAR over it’s lack of a nationwide survey ……. something they are really good at ………. to discuss their self imposed dues increase for an involuntary contribution to their PAC Political Party nonsense prior to a vote. A nearly unannounced “town hall meeting” in some obscure out of the way place does not constitute “notice” nor did the vote that followed by a fraction of the membership! Our US system is broken in part because “our” lawmakers listen to the money rather than the people. It is the very reason we need term limits and campaign finance reforms that would prevent PACs and all types / kinds of campaign contributions.

    NAR acts as though they are a UNION yet provide us none of the benefits a UNION might (and I don’t necessarily support unions either!).

    Membership in NAR is required in order for us to do our jobs ……. List and Sell real estate. Our area was one of the first MLS’ to have RPR and while it was initially embraced, it is proving to be unreliable and too complex. I’ve made numerous suggestions to fix it and some have been made but it remains to be “just another tool” and not one you can use exclusively.

    I made an inquiry about why NAR can’t get it’s million members HEALTH CARE. Long story short, it rocks the boat and would cause “smaller HMOs” to go out of business. Gee, then lets not offer it to your HUGE MEMBERSHIP!

    NAR LEADERS – HEAR THIS!!!! THERE IS A NATIONAL MOVEMENT TO BREAK AWAY AND FORM A NEW ASSOCIATION. YOU GUYS WORK FOR US, IF YOU WISH TO CONTRIBUTE TO A PARTICULAR POLITICAL CAUSE, DO IT WITH …. VOLUNTARY …. CONTRIBUTIONS! GET OUT OF MY POLITICAL “BUSINESS”.

    MANY OF MY LOCAL BROKERS (I NOW REFUSE TO USE THE NAME “REALTOR”) HAVE INFORMED OUR LOCAL ASSOCIATION (WHICH ALONG WITH OUR STATE ASSOCIATION WERE AGAINST THIS) HAVE INSTRUCTED OUR ASSOCIATION THAT WE WILL REFUSE TO PAY THIS INCREASE OR ANY OTHERS DESIGNATED TOWARD INVOLUNTARY CONTRIBUTIONS TO A PAC / POLITICAL PARTY – GOOD INTENTIONS OR NOT. THEY WILL HAVE TO EITHER REMOVE US FROM MEMBERSHIP WHICH WILL FORCE US TO WORK AS NON “REALTORS” OR FIND A WAY TO MAKE IT UP FROM LOCAL DUES TO KEEP US FROM COMPETING WITH THEM.

    THE NAR HAS NO PLACE DEMANDING DUES INCREASES FOR POLITICAL PURPOSES! THE NAR IS NOT A POLITICAL PARTY DESPITE WHAT THEY WISH TO TELL US. REVOLT REVOLT REVOLT REVOLT REVOLT REVOLT REVOLT

  6. Get Real NAR

    Evelyn Cost has it right! The banks rule the roost and are the primary reason ALL local markets continue to drop in value. They refuse to work with distressed home owners in 90% of the cases, approve only a few short sale offers after months and months of waiting for an answer then dump their homes on the markets at below value and discount even further! The average home owner needs to be able to sell their home and generate enough money to afford moving up. In the past 2 years, the homes I’m listing are estates or those moving out of the area. People can’t afford to sell and with 3 – 4 years of shadow inventory yet to come on the market – many that need to sell may be forced to default due to the low values established by REOs.

    Demand that banks be required to offer the distressed homeowner a huge reduction in their balance comparable to what they would end up selling the home for if they foreclose, adjust their interest rate / mortgage to a fixed rate, 30 year with a rate 1% over the “going” rate. I believe most will remain in their homes.

    But if the distressed home owner doesn’t default, the “SYSTEM” set in place by our OUT OF TOUCH lawmakers, won’t reward them with bailout money and without that, cannot continue to pay their execs huge bonus’.

  7. Ron,

    Thanks for all your hard work! Keep it up!

  8. It would really be nice if the D.C. lawmakers would stay out of the real estate business. If all of the lawmakers in Washington, D.C. were required to maintain a business in their districts and only come to D.C. periodically, they would have a more realistic approach to decisions they make that adversely affect millions of people.

    I would be surprised if all of you haven’t seen this in your areas. Properties that are eventually foreclosed sometimes sit vacant and forelorn for months without being listed with a real estate professional. They deteriorate and become an eyesore to the neighborhoods where they’re located. Then, of course, they can’t be marketed at the fair market value of a like property in optimum condition. It’s as though the lenders could care less. It’s not their money!!!! They can mismanage and never feel the pain their mismanagement causes.

    I totally agree that if mortgages were assumable, we would see less foreclosures and short sales. It would be a win/win situation for everybody concerned. Why can’t the people making regulations not see this? It’s a simple solution to a serious problem. It’s almost as though there is a conspiracy to continue to “take down” the real estate market — “how low can you go” — and ultimately, the economy overall.

    The fact that organizations such as NAR and others must pay lobbyists to influence lawmakers to make plain, common sense judgment calls is criminal. Federal employees are prohibited from accepting a free lunch or any type of gift from any outside vendor. Why is lobbying permitted in Washington, D.C. where they give elaborate gifts to lawmakers? For the record, I also object strenuously to the increase in NAR dues in order to fund lobbying. The fact that such contributions have not been voluntary in the past should tell NAR something.

    That’s part of what I’m thinking!

  9. Janet Miller

    Thank YOU, Thank YOU, Thank YOU! Well said.

    WHAT ARE THEY THINKING? We need reasonable loans available for reasonable folks. Don’t blame the foreclosure blowout on reasonable lending; blame it on the un-reasonable lending practices of pushing ARM’s to folks that aren’t in a financial position to purchase a home.

  10. You have got to be kidding me. NAR is telling Congress to get something right. HAHAHAHA!! NAR has once again shown total fiduciary irresponsibility to its members. Maybe they can turn it around by charging all of us an additional $40.00 per year…..FOR WHAT? The same Hot Tongue and COld SHoulder that we have always received.

    So again, LETS GET IT RIGHT, but i think we need to be looking in our own backyard instead of blaming Congress. NAR is inept at governing itself, let alone the Political Engine of the United States Congress.

    2 THUMBS DOWN NAR!!!

  11. Alice in Wondeland

    Thomas says ‘Yes-Congress Needs To Know That If They Make 20% Down The Minimum For Purchasing Residential Real Estate We Will Lose Two-Thirds Of Our Buyers”
    Hmmmm …….and just who will we ‘lose’ these buyers too?
    If you would only bother to think this thru you would know that you don’t lose
    ‘legitimate’ buyers. If buyers can’t afford a 20 percent down on a half a million
    dollar shack … then guess what? That shack has to come down to what its worth
    truly is. So, buyers may not (and may have 100K down for a half million dollar home) but perhaps they can come up with 20K.
    Taxes on a realistic-reasonably priced home would also be easier to pay thru-out the life of the loan.
    If you let ‘fundamentals’ dictate what the prices should be then, we, the salespeople would have no trouble selling homes to people who want and can
    afford them. Until we bring prices back down to match what people can
    afford, we’re only playing games and fooling ourselves.
    Why is everyone so hell bent on keeping home values up at unsustainable
    (fundamentally) prices? I’ve been tracking home sales and, more often than not, I’m still seeing buyers purchasing homes using the same shenanigans (less than 3 percent/no skin in the game) that got us into this mess in the first place. I’ve even had a friend tell me that a friend of hers had told her that he was going to borrow 3 percent from a relative to buy a home. Once in the home he and his family were going to make the first 2 to 3 months payments and then stop paying. He had done his due diligence and had figured out that it was taking the banks a little more than a couple of years to foreclose in his area. He figured he would save up enough money to pay back the relative as well as end up with a nice chunk for a down payment on a home. Absolutely BRILLIANT! Not to put any ideas into someone that hadn’t, already, thought of this new ‘creative’ method of ‘buying’ a home!!! To add the icing on the cake, California is a non recourse state and just passed a brand new law, this past January, that keeps the banks from sending out deficiency statements. Again, buyers are totally insulated from any loss or liability. The banks know that the game is on and they can continue to make money selling loans. As downward pressure on home prices continues and upside down buyers walk, the banks are happy. The profits are theirs to keep and the losses on the bad loans they ‘knowingly’ wrote are the tax payers to swallow. It’s a win win win situation for everyone.
    Everyone BUT the people who still have a job and pay taxes…….

    THNX Evelyn for having the courage to speak the truth…. same to Steven & Aggravated with NAR …….
    If ‘Aggravated’ would only elaborate more on the movement to ditch the NAR ….. it would be much appreciated. Organizations without competition serve no one but themselves….. hence the mandatory confiscation of our hard earned money to further their agenda, which BTW, is totally illegal. I forwarded my bill to the Bill Handel show and they said I had a case. To be allowed to join the MLS, NAR and CAR mandate you fork over money to them (isn’t this typically called a mafia or a racket?!!) However, to join the CAR and the NAR I’m obligated to pay ‘political’ contributions which I can NOT deduct as a part of doing business……. even though I had no choice and could do NO business if I was not allowed to join the MLS?!!! How about we come up with our own ‘agent’ operated and owned MLS …. complete with lock box keys and all the other propaganda needed to run our business?!!!

  12. Thank You so much for helping to preserve the right of home ownership. If congress actually passes the 20% down rule, our economy will definitely start going down again!

  13. Joel Kaczor

    People, wake up. Don’t you get it? A bank using one of the GSE’s for capital has never loaned anyone over 80% on a home without PMI of some sort. There max exposure has always been 80%.

    Where are these risk taking banks? It didn’t happen. There were insurance companies taking the risk on these transactions.

    Banks did and are losing money on these transactions where the market or the property has lost more than 20%. They are not at fault. In many instances, they were being forced to pledge billions to borrowers that did not qualify under normal underwriting. The community reinvestment act.

    While the banks are losing money hand over fist, have they ever asked for a dime of your commission back?

  14. Most of the problem would never had occurred if investors in 2nd., 3rd., and 4th. homes they purchased to flip HAD been required to put down 20%.
    I do not blame anyone for trying to put a family into a home and if a bank wants to loan on that basis to a local family, that will work just fine. If the bank is being FORCED by any governmental entiry to put more people into homes, that is wrong.
    Some one suggested that it makes fiscal sense to stop paying on a mortgage because that owner is up-side down; that kind of immoral and un-ethical thinking and conduct is part of the moral decay which has also lead to this mess.
    If we as an ethically bound association do not ALWAYS stand for moral and ethical conduct, we stand for nothing!

  15. I’m not a seasoned realtor, however, I am a mature citizen who knows that politics has always been a sly game. I call most of Washington at this time the home of spoiled brats. I don’t know what to think about NAR presently because I still consider myself new at selling real estate but, I was amused at seeing an Ad poised on the NAR website thanking all the senators for their representing us with the QRM rule. Ron, correct me if I’m wrong but, isn’t that what their paid to do? There was also mention of the banks having to lend to clients regardless of whether or not they could pay. This I know to be true. Some of these banks had no choice. Of course (Yawn) it’s the same cronies who dole out what they believe to be their greatest brain child and in the end cause the greatest havoc. The 20% cent down payment for a home loan is outrageous. This is yet one of their silly proposals that will come to no good.

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