By Steve Brown, First Vice President, National Association of REALTORS®

When people think of the National Association of REALTORS® (NAR), they usually think of our issues advocacy with the Legislative and Executive branches.  But the truth is NAR also works with the Judicial Branch when needed.

Standing up for the rights of property owners is one of NAR’s critical missions.  Sometimes that means going all the way to the highest court in the land.  Not long ago, NAR joined a dozen other associations in submitting what’s called a “friend-of-the-court” brief to the Supreme Court of the United States.

When NAR heard the story of Chantell and Mike Sackett from Priest Lake, Idaho, it seemed like, in this instance, the U.S. Environmental Protection Agency (EPA) had gone too far.

Here’s what happened:

Four years ago, the Sacketts bought less than an acre of land sitting in the middle of a developed subdivision, complete with a sewer infrastructure.  The couple had obtained local building permits and even a verbal okay from the U.S. Army Corps of Engineers that the property, which periodically has water on it, was not a wetlands.

As soon as the Sacketts started to build their home, EPA officials, citing the Clean Water Act, ordered them to stop and restore the property to its original condition and monitor the property because they hadn’t obtained a permit from the Army Corps of Engineers.  If they didn’t comply, they could be fined as much as $32,500 a day!

Then, the EPA said that the Sacketts could not challenge the EPA’s order because they had not been charged with noncompliance, and prior to that the agency’s orders are not subject to judicial review.

NAR and others filed a brief, arguing that the Sacketts were denied due process because they couldn’t contest the EPA’s order without violating it and facing serious or substantial penalties for non- compliance, or alternatively, seeking a permit, which is a lengthy and potentially expensive process.

After considering the case, the Supreme Court handed the Sacketts, and private property owners, a victory.  It ruled that property owners may contest in court EPA compliance orders like the one issued to the Sacketts without having to first violate that order.  This means the Sacketts can now appeal the EPA ruling.  Finally, they get their day in court.

This is just one case, but be assured that NAR will not rest.  We will continue to be proactive in all three branches of government, protecting the dream of home ownership in every way we can.

As soon as I heard about the rally in Washington, D.C., I knew I had to be there. The American Dream of homeownership is under attack. As REALTORS® and as Americans, it’s our duty to defend homeownership and point out the tremendous contributions that the real estate industry makes to this great nation.

We plan to raise our voice at the “Rally to Protect the American Dream,” on May 17th, in Washington, D.C. At 9:30 a.m., we’ll gather by the Washington Monument, right on the National Mall. You can’t ask for greater visibility than that!

We need you to join us, however you can. Take a plane, ride a bus or drive a car—but get here! First, you should register so we know you’re coming. I’ve registered and you can too, right now, at www.RealtorRally.org.

You can even create your own Rally poster at the site, like I have. Include your own personal message about the Rally, homeownership, or revitalizing real estate and share it with your friends and colleagues in your office. Or you can distribute it via Twitter or Facebook.

Together we’ll remind Washington that owning your own home is still a huge part of the American Dream. Not only is homeownership a good long-term investment, it provides exponential economic benefits. Research shows that for every two houses sold, one job is created. That means 2.25 to 2.5 million jobs supported annually. Out of over 80 million taxpayers, homeowners pay 80 to 90 percent of personal federal income taxes.

Owning a home also provides many social benefits. Homeowners are healthier and happier. They are more involved in their communities, volunteer more and vote more often. Their children stay in school longer, get better grades and get better jobs after school.

Homeownership knits together the social fabric of our country. It’s a policy issue, an economic issue and a cultural issue. Let’s ensure that future generations have the same opportunity to buy, own and enjoy their own homes as we, ourselves, have enjoyed.

 

By Chris Polychron, First Vice President-Nominee, National Association of REALTORS^®

As one educator said, “America is a land of taxation that was founded to avoid taxation.”  So I think Tax Day is a good opportunity to talk about the tax benefits that go along with home ownership. 

Since 1913, when the federal income tax became permanent, the tax code has offered a break for mortgage interest.  This incentive to homeowners has reflected the high value that our nation places on homeownership due to the many financial and social benefits owning a home provides.

Additional tax incentives that encourage home ownership include deductions for property taxes and tax credits for energy-efficient remodeling projects and heating and cooling systems.

We believe these incentives should be protected because of the numerous financial and social benefits to the nation that are provided by homeownership.  Even with these benefits, home owners currently pay 80 to 90 percent of the federal individual income taxes.

Let me mention a few of the financial benefits:

• Every home purchased pumps more than $60,000 into the economy for things like furniture and home improvements.
• Historically, a home owner’s net worth is 31 to 46 times that of a renter.
• For every two homes sold, one job is created.
• Housing is a key driver of our economy, accounting for more than 15 percent of the national Gross Domestic Product. 

These benefits show the importance of housing as an engine of our economy.

On top of financial benefits, there are many social benefits:

• Home owners are happier and healthier.
• They participate more in their communities, including voting, volunteering and donating to charities.
• Their children stay in school longer and have higher test scores.
• Homeowners are less likely to be victims of crimes.
• They have a greater attachment to their neighbors and their neighborhoods, which fosters a greater sense of community.

This is just a partial accounting of the many social benefits that make our communities a better place to live and work. 

While we don’t have to throw the tea in the harbor—yet—we can let our government representatives know strongly that we believe in the tax benefits provided to homeowners, particularly the mortgage interest deduction.  As one former Secretary of the Treasury put it, “The nation should have a tax system that looks like someone designed it on purpose.”

So on this Tax Day, tell our leaders that we want to see the tax code continue to reflect the values of ordinary Americans, most of whom still consider home ownership to be a key part of the American Dream. 

Death and taxes are certainties.  Meanwhile, if you’re a homeowner, Tax Day doesn’t look so bad after all.  And if you’re expecting a refund because of the MID—it can even become a day to look forward to.

The countdown to the Rally to Protect the American Dream is officially on.

NAR Vice President & Liaison to Committees, D.J. Snapp, talks about how important it is for state and local associations to spread the word to their members about the Rally. He also shares some tools, available from NAR, that will make it easier for associations to promote the Rally, including a countdown clock to post online.

Get the tools (including the countdown clock) to promote the Rally

E Pluribus Unum.  Out of many, one.

For many years, this has been the motto of the United States.  Today, it seems to be more important than ever.  As a country, we need to come together in order to thrive in the next century, rather than simply survive.  You hear a lot about the changing role of the United States in the world.  While that is important, we need to come together to take care of families, whether home owners or renters, in this country.

As an organization, we need to do the same. Out of many we need to be one.

The Rally to Protect the American Dream, in Washington, D.C., on May 17, is a tangible example, a true witness to the agenda.

E Pluribus Unum.  Fifteen thousand of our members will represent the 1,000,000 members who represent the 75,000,000 home owners and the 320 million Americans who need shelter.

Another way of looking at it is thousands of voices coming together for a single message, in a single voice — the voice for home ownership.  Out of many, one.

It is also true that this country is “of the people, by the people, and for the people.”  We as an organization are exactly that:

• We are OF our membership, leadership and REALTOR® on the street;

• We are participants  in our industry and our country (BY the people);

• And we work FOR ourselves, our customers and clients, and our country.

We truly are OF the people, BY the people and FOR the people.

We are gathering in Washington, D.C., to personally and collectively deliver our message to our representatives and our government.  They both need to be of, by, and for the citizens of this nation.

I am excited to be joining fellow REALTORS® in Washington D.C., to do my part for families across this country.  E Pluribus Unum.

by Steve Brown, First Vice President, National Association of REALTORS^®

Recently, President Obama proposed several programs to revive the housing market.  One such proposal calls for the bulk sale of real estate owned (REO) properties.  In areas where property values have plummeted and there is a backlog of inventory, units would be bundled together and sold to investors, creating additional single-family rental properties, thus helping to stabilize housing value market.

According to a letter sent to Congress by Federal Reserve Chairman Bernanke, increasing rentals may reduce losses by lenders on foreclosed and surrendered properties and stem declines in home prices.

While NAR supports the goals of the program, we urge the Federal Housing Finance Agency (FHFA) to proceed cautiously with its REO Initiative pilot program to sell homes repossessed by government agencies to private investors to convert into rental units.  While it may help to quickly reduce high REO inventories, the plan would obviously decrease the overall number of property owners and require taxpayers to perhaps accept more risk and larger losses than are necessary if the market were able to react to these properties individually.

NAR supports small pilot programs in those areas that would potentially benefit from this type of market approach, and we will closely monitor the impact of such.  At the same time, we believe the government needs to also follow through on separate efforts to loosen tight credit markets, modify existing loans to keep people in their homes and remove bureaucratic burdens associated with short sales. 

Individual sales should be incentivized over bulk sales, except in small geographic areas.  Selling in bulk to large national investors puts a large section of the housing market into the hands of fewer property owners, which then puts individual home buyers and sellers at a great disadvantage.

We must watch closely the increased risk to taxpayers from loans that involve large deals and foreclosed and abandoned properties, backed by Fannie Mae and Freddie Mac.

That said, this program could very well benefit some areas of the country.  In Florida, the foreclosure inventory is at 14.27 percent, and many REALTORS^® believe this would help move the market. Yet, other areas may not need it.  In California, the inventory has already been reduced to 3.45 percent.  Instead of helping California’s market, bulk sales would take more transactions out of the market, thus hurting the consumer’s access to the housing market in such a high cost area. 

One well learned principle of real estate must be applied to Federal policy—all real estate is local.  Federal programs will succeed only if this underlying principle is observed.

By President-Elect Gary Thomas, National Association of REALTORS^®

There is a persistent truth about home ownership.

No matter how difficult the last few years have been, and no matter how much of a battering the housing industry takes, Americans still want to be homeowners.

A New York Times/CBS News poll earlier this year said that 89 percent of all Americans continue to see home ownership as an important part of the American Dream.

That’s in large part because our homes are the place where we settle down, raise our children, relax and live out our lives.

And it’s still hard to beat a house as a long-term investment.  Home ownership is a contributing factor in building long-term wealth.  Historically, a home owner’s net worth has ranged from 31 to 46 times that of a renter.

There are also numerous social benefits to home ownership.  People who own homes are more involved in their communities.  They vote more, volunteer more and contribute more to their neighborhoods.  Even better, their children do better in school, stay in school longer and are more likely to participate in organized activities.  As a result, they spend less time in front of the television.

Home ownership even contributes to a better quality of life.  Research shows that home owners are happier and healthier.  They enjoy more freedom in redecorating and renovating their house to meet their needs.  Housing costs are more stable for home owners than for renters, and they can usually deduct mortgage interest and property taxes on their federal individual income tax return—an issue that will come up very soon as tax day draws near.

All in all, Home Ownership Matters!  Truer words were never spoken.

NAR First Vice President Steve Brown speaks to the Chinese Association of Real Estate Brokers

By Steve Brown, First Vice President, National Association of REALTORS®

I confess. All this time, I thought the passionate dream of owning your own home was somehow uniquely American. After all, this is the dream that has inspired every generation in this country to work hard and save money so as to be able to afford to buy that house, that condo, that farm, to call home. And it is that dream that has inspired REALTORS® to consistently advocate for a financial and tax system that encourages and enables Americans to be able to realize that dream—not to mention protecting the private property rights of those who already do.

Well, over the past seven days my understanding of the dream of homeownership has broadened. I have discovered it lives in the hearts of people in at least two Asian countries. And I suspect it lives in the hearts of people all over the world.
I had the opportunity, on behalf of NAR, to meet with local and national real estate professionals as well as senior governmental officials in Taiwan and the Philippines to promote home ownership in America, and the REALTOR® brand. Obviously, given their own histories, political structures and economies, many of their local issues are different from ours. But what was not different was their desire to help their countrymen have a home. And all the benefits of home ownership that we espouse here, they too see as a result of home ownership—better, safer communities, more civic involvement—increased voter participation, better performance in school, long term wealth accumulation, even better, healthier lifestyles.

And one more thing I witnessed this past week: NAR has a real role to play throughout the world in fostering home ownership. Our business model of an association of REALTORS® working together for the good of not only the consumer, but also of our industry; our model of advocacy work with our governments; our practice of transparency in our businesses; our professional, ethical business practices developed for the past 100 years; our technology that we use to better serve our customer. For all of these reasons and more, our Association needs to be increasingly global. It’s no great stretch to see how much more mobile our world is becoming and what a great pool of buyers are waiting for REALTORS® from America! Moreover, spreading the REALTOR® model, and REALTOR® brand, throughout the world could easily mean doubling our membership in the coming decades.

My eyes have been opened a little wider these past few days. What I have said so often in the past was underscored: “The work we do as REALTORS® is important.” Now, I would add three more words to that sentence: “The work we do as REALTORS® is important—around the world!”

By Bill Armstrong, Treasurer, National Association of REALTORS®

Last week, NAR participated in a positive meeting with Fannie Mae, Freddie Mac, and the Federal Housing Finance Administration (FHFA) —the federal agency in charge of housing finance oversight. We talked about additional ways to improve the short sales process for mortgages backed by Freddie Mac or Fannie Mae. I was pleased to participate and to represent NAR along with Scott Louser, 2012 Vice President and Liaison to Government Affairs.

All in all it was a great meeting, made even more so by the fact that we brought a number of REALTORS® with us so that officials at FHFA could hear directly from those in the trenches, about the difficulties they experience during a short sale. And bringing together the individuals facing those challenges day in and day out – REALTORS® – with those in charge of oversight, is the most effective way to convey the reality of the situation and the need for a solution.

Now, fortunately there has been some progress recently, such as the amendment Freddie Mac made to its policy on short sales affidavits, at the request of NAR and the American Land Title Association. We continue to push lenders to implement the updated policy.

But as we all know, short sales continue to be an issue for many REALTORS®. That’s why NAR is working hard with both the GSEs and regulators to find real, workable solutions that will simplify the process, and we won’t rest until that happens. FHFA has been open to discussion and were very interested in hearing directly from REALTORS®. So I am optimistic that changes will be made that will benefit REALTORS® during a short sale…and rest assured that we here at NAR will continue to push for them to happen.