An Overview following April 2010 Day on the HillNational Real Estate Investors Association’s 3rd Annual Day on the Hill was officially deemed a success by President, Linda Muscarello, but it is important to point out that our fight is not over! Our efforts to connect and communicate with legislative officials from across the country were targeted and after our Wednesday planning session, during which many excellent ideas and plans were discussed among our spirited group, we were able to conduct nearly 30 meetings we had scheduled with confidence and veteran-like poise. To make a much appreciated contribution, and to help National REIA continue it’s fight against malintended legislative initiatives, please CLICK HERE.
HR 4173 – Wall Street Reform and Consumer Protection Act, is the current bill in which that text can be found, in Title VII. The specific language that has investors across the country worried is in Section 101(3)(e): (E) does not include, with respect to a residential mortgage loan, a person, estate, or trust that provides mortgage financing for the sale of 1 property in any 36-month period, provided that such loan- (i) is fully amortizing; This says that if you want to sell more than one property with seller financing every 3 years the law applies. That means you must undergo the same licensing, ongoing testing, bonding, proof of net worth, and reporting required of mortgage loan originators. The passage of this legislation, in its current form will limit how many buyers are able to fulfill their dream of home ownership because many buyers often turn to seller financing when banks decline a home loan. In fact, based on numbers derived from “The Invaluable Investor”, a study conducted by Personal Real Estate Investor Magazine through RealTrends and Harris Interactive, more than 26,000 homes each year are sold with seller financing or installment sales, which means there is more than $3.2 Billion in seller financed transactions each year. In order to propel the fight against this potentially harmful legislation National REIA would ask that you contact your Congressman and Senators, NOW, to inform them of your opposition to the efforts to require private property owners to secure and maintain the same licensing as mortgage loan originators who loan money every day for a profession. It is important to note the negative impact that these efforts, if passed, will have on the same consumers that the Anti-Predatory Lending legislation is supposed to be protecting. Also, highlight that you are not opposed to the regulation of the mortgage industry at large, only of private property owners who would seek to offer terms of sale of a property for monthly payments in exchange for equity. The Anti-Predatory Lending provision is aimed at protecting consumers and individuals, but this provision could directly impact, negatively, more than 26,000 families, each year, which is the number of families who benefit from seller financing per every one percent of investment properties sold. CLICK HERE for more information about the Economic Impact of Seller Financing. In order to propel the fight against this potentially harmful legislation National REIA would ask that you contact your Congressman and Senators, NOW, to inform them of your opposition to the efforts to require private property owners to secure and maintain the same licensing as mortgage loan originators who loan money every day for a profession. It is important to note the negative impact that these efforts, if passed, will have on the same consumers that the Anti-Predatory Lending legislation is supposed to be protecting. Also, highlight that you are not opposed to the regulation of the mortgage industry at large, only of private property owners who would seek to offer terms of sale of a property for monthly payments in exchange for equity. CLICK HERE for a SAMPLE LETTER to be sent to your legislator. To find your Congressman visit http://www.house.gov and put in your zip code in the top left hand corner of the screen. To find your Senators, visit http://senate.gov/general/contact_information/senators_cfm.cfm. If you have any questions regarding HR 4173, or the Senate Finance Reform legislation please feel free to contact Keith Knapp, Director of Communications and Legislative Affairs, at KKnapp@NationalREIA.com or 1-888-762-7342. |
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WHILE IN WASHINGTON D.C.:
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During the meetings with legislators and many staffers we discussed several pieces of legislation, including the Senate Finance Reform legislation, S 3217 – Restoring American Financial Stability Act of 2010, which is currently being debated in the Senate Banking, Housing, and Urban Affairs Committee, under the direction of Senator Christopher Dodd (D-CT). This 1,400+ page legislation, which has been the target of spirited debate in the Senate, is one that seeks to increase regulatory oversight of many industries, including the mortgage industry. While there is no harmful language in the S 3217 to date, the worry is that the same language from Anti-Predatory lending legislation which has passed the house will find its way into the text.
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