REALTORS® Testify! Posted by Dick
This was another busy week for NAR, as lawmakers in Washington, D.C., asked REALTORS® to lend our perspective to some current problems in the housing and financial markets and potential solutions.
On Tuesday, we testified before a committee in U.S. House of Representatives on the need for responsible RESPA reform – and why HUD’s proposal falls well short of the goal. Our perspective on the issue caught the attention of The Hill Newspaper, and they asked me to submit an entry to their Congress Blog. It was posted this morning for all of Congress and Washington, D.C., to read. Please take some time to read it and share with your colleagues.
On Wednesday, Ron Phipps, who will serve as NAR’s First Vice President in 2009, did an outstanding job testifying on the foreclosure crisis and how short sales could be a more viable option, if lenders improved the process. This time, C-SPAN picked up the story and is running the video of the hearing on their web site.
I think it says a lot about NAR, and our reputation in the industry, that we are called on so often to help address problems in the market. Thanks to all of you for the great work you do to give us that sterling reputation. Rest assured that NAR will keep raising our “Voice” until these challenges are resolved and the housing market is back on track. – Dick Gaylord, 2008 NAR President
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Comments
This would be an excellent time to advocate legislation making commission kickbacks to buyers an unacceptable and illegal practice. As we know a major reason for the overwhelming foreclosure crisis is the buyer with 'no skin in the game'. This issue is exacerbated further by the belief on the part of the buyer that they should also get money back from someone after closing to lessen the burden of providing a down payment. We have seen too many companies that can't compete on a level playing field offer the kick-back as a way to induce buyers to use their services. Then these brokers usually have to find a way around the lenders requirement that buyer not get cash back from a party in the transaction. This should be viewed as the FRAUDULENT PRACTICE that it truly is.
john rausch
Posted by: john rausch | September 25, 2008 10:57 AM
This 700 billion dollar bailout really should include some of the refinancing opportunity for those who are having or about to have problems paying for their mortgages. I understand the necessity to stabilize the market with lenders and banks, but wait a minute... aren't these the guys who invented this "get you later" high interest rate loan products.
FHA secure is not the easiest loan to do and lenders who offer them starts the rate high where borrowers probably wouldn't realize much savings.
Here is the catch, if you were not in default, lenders are not willing to take a loss on the refinance deals. At the same time, once someone is in default then one's credit is down to the disgusting level, the rates offered wouldn't be affordable anyway.
Unable to sell their home within a normal 3-4 month time frame, combinated with lower home values, it just make more sense for them to walk away from their houses than to deal with the stress. I would think that once the foreclosures are under control then it could be better for rest of the home owners to start to move along the selling cycle. All the economic gurus or speculators, please shed some light on this matter.
Alex Chiang
alexsellhome@yahoo.com
Posted by: Alex Chiang | September 23, 2008 10:19 AM