http://www.thehomeownerblog.com/ The American Homeowners Grassroots Alliance is a nonpartisan consumer advocacy organization dedicated to assisting homeowners understand significant policy issues affecting homeowners and homeownership, and helping them make their voices heard by state and federal officials. en Copyright 2011 Fri, 08 Apr 2011 08:34:54 -0500 http://www.sixapart.com/movabletype/ http://www.rssboard.org/rss-specification
In her decision Circuit Judge Karen Moore concluded that "substantial evidence supports the Commission's findings that: 1) Realcomp's website policy gave rise to potential genuine adverse effects on competition due to Realcomp's substantial market power and the website policy's anticompetitive nature; 2) the website policy in fact caused actual anticompetitive effects; and 3) Realcomp's proffered precompetitive justifications were insufficient to overcome a prima facie case of adverse impact. These findings establish that Realcomp's website policy unreasonably restrained competition in the market for the provision of residential real-estate-brokerage services in southeastern Michigan and the Realcomp MLS area."

American Homeowners Grassroots Alliance President Bruce Hahn thanked Judge Moore for her wisdom and the FTC for it's diligent defense of American homeowners. "This decision means that the issue is dead. Many other MLS's have tried the same tactic, and the NAR invested heavily in this appeal. They have lost every case. It is time for MLS's and industry leaders to put this issue behind them and stop wasting their members' dues money on lost causes that  only offend their customers and tarnish the profession's reputation. Instead they should focus instead on how to better serve their clients and their members."  ]]> http://www.thehomeownerblog.com/2011/04/federal-court-mandates-real-estate-sales-commission-competition.php http://www.thehomeownerblog.com/2011/04/federal-court-mandates-real-estate-sales-commission-competition.php FTC Real Estate Fri, 08 Apr 2011 08:34:54 -0500
Everybody can find parts of the proposal they oppose, and most of us can find parts that we like. What's critical is that we support the bottom line. If you don't like specific parts of the plan's tax increases and/or budget cuts you should offer specific alternatives to minimize the pain and/or make up for the difference. For example we're concerned about the Commission's proposed $500,000 cap on the mortgage interest deduction. At minimum it should be indexed to housing values. A flat $500,000 cap would have little impact in many rural areas where you can buy one of the largest and nicest homes in the county for that amount. In pricey cities like Washington DC that will barely buy you a small starter home. A cost of housing index could be applied that would lower the cap in the areas when home prices are lowest and raise it in the more expensive areas.

We'll look at how such a refinement might work out. If it leaves a large share of middle class homeowners unable to deduct all of their mortgage interest costs, then at minimum we'll propose some alternative revenue sources that would fund an increase in the caps. We would like to keep all mortgage interest fully deductible, but that may not be possible in the give and take of the political debate. It may mean that the future owners of a $2 million, 6,000 square foot McMansion can't deduct all of their mortgage interest. This is unfortunate, but perhaps it would help accelerate the trend towards building smaller homes, which are inherently more energy efficient.

Some of the plan's other provisions concern us as well, but we'll also suggest other budget cuts and/or revenue sources to cover other modifications we might suggest to Congress or the Deficit Commission.

This debate will test the mettle of consumers, business interests and politicians. Many will speak out against cuts in their favorite programs or tax deductions, but will not offer alternative sources for revenue to make up the difference. We all owe it to the future of our country and future generations not to take such a gutless approach. Voters should certainly express their views on specific programs and taxes to their legislators, but at the same time they should insist that legislators support the Deficit Commission's bottom line, and come up with alternatives that are least painful to their constituents and most consistent with their own ideology to get there.

]]> http://www.thehomeownerblog.com/2010/11/repeal-of-the-mortgage-interest-deduction.php http://www.thehomeownerblog.com/2010/11/repeal-of-the-mortgage-interest-deduction.php Mortgage Taxes Thu, 11 Nov 2010 10:36:52 -0500
Most estate tax avoidance tools are used to maximize the amount left to children or preserve the family business. In the latter case, Congress should exempt family farms and businesses up to a reasonable size from the estate tax. We should also remove the inequities in the current estate tax with respect to the number of heirs and their circumstances. Some people have no heirs, others have quite a few kids, and in some cases one or more of the latter children may be handicapped and unable to work and/or care for themselves.

The estate tax exemption should be tied to the number of children. Give everyone an exemption of $1 million per child (out of fairness the childless or those with no surviving children should also get a $1 million exemption). This would enable a parent to provide a good retirement nest egg for each child in an era where economic conditions make it unlikely that most able bodied, hard working, and  thrifty children are going to be able to save enough for even a modestly comfortable retirement. Give another $1 million exemption for every child that is handicapped and unable to work and/or care for themselves, in order to provide additional support for their special needs. Then eliminate the trusts and other estate tax avoidance tools and apply the estate tax to whatever is left. The exemption should be indexed to 2010 dollars so we don't have to keep revisiting the issue.

This approach aligns well with the primary estate planning goals of most people and would effectively eliminate taxes on most estates. There is no such thing as a "good" tax, but such a structure would reduce concentrations of wealth which have proved destabilizing in many societies. We do need to reduce the deficit, by spending reductions insofar as possible, but we will still need to tax individuals to bring it into balance. This may not be a "good" tax, but it would be a is a less onerous  tax on individuals compared to many of the other alternatives.

]]> http://www.thehomeownerblog.com/2010/09/fixing-the-estate-tax.php http://www.thehomeownerblog.com/2010/09/fixing-the-estate-tax.php Congress Taxes Mon, 20 Sep 2010 12:00:23 -0500
With U.S. unemployment stuck around 10%, a further erosion of the economy could be devastating. On the other hand, the bailout and stimulus funding approved by Congress at the request of Presidents Bush and Obama in recent years has resulted in a dramatic federal deficit increase that itself is posing a growing risk to the nation's long term economic stability. In fairness, those steps may have prevented an economic depression, but the net result is that we face a policy dilemma.
]]> http://www.thehomeownerblog.com/2010/08/more-stimulus-for-housing-2.php http://www.thehomeownerblog.com/2010/08/more-stimulus-for-housing-2.php Home Buying Housing Tax Credit Mon, 30 Aug 2010 14:12:37 -0500
The outcome clearly reaffirms the analogy of the Congressional legislative process to the making of sausage. In the view of many, the legislation does not address all the problem areas. In the view of others much of it is unnecessary and/or harmful. There is probably some truth in both views. Clearly the legislation's effectiveness in many areas will depend on the process of developing the numerous implementing regulations, where the outcomes in each case can range from strong and effective new rules to unintended consequences, and/or a waste of everyone's time.

Based on the history of major reforms, we will probably see some of all three. The legislation will also be revisited many times both to address loopholes and overkill. Both lie in the eyes of the beholders, and will certainly be influenced public opinion regarding financial services sector practices after the regulations have been implemented. Nevertheless there is today less likelihood of a future financial services meltdown than there was yesterday. For that we should be grateful, and thank the sausage makers for all the time and effort they put into the process.

]]> http://www.thehomeownerblog.com/2010/07/our-savings-are-a-little-safer-today.php http://www.thehomeownerblog.com/2010/07/our-savings-are-a-little-safer-today.php FDIC Financial Fri, 16 Jul 2010 09:35:22 -0500
Nevertheless, the Federal Housing Finance Agency has a point. Sometimes hoped-for energy savings don't fully materialize. Unfortunately some energy saving investments, such as solar panels, return far less in energy savings per dollar of investment compared to other alternatives, such as adding insulation to older homes that have little or none. It is understandable that the FHFA would not want to subrogate its mortgages to other debts, when many of those energy saving alternatives will leave the homeowner with less money for their mortgage after they have paid their PACE special tax assessment.
]]> http://www.thehomeownerblog.com/2010/07/a-disappointing-development.php http://www.thehomeownerblog.com/2010/07/a-disappointing-development.php Energy Financial Wed, 07 Jul 2010 15:08:24 -0500
According to FTC Chairman Jon Leibowitz, 200,000 homeowners who defaulted on mortgages serviced by Countrywide may receive refunds under the settlement. This was an appropriate settlement, and should discourage similar gouging by mortgage lenders and servicers in the future. Eligible homeowners will receive instructions on how to apply for the refunds in coming months. More information is available at http://www.ftc.gov/countrywide.

]]> http://www.thehomeownerblog.com/2010/06/thousands-of-homeowners-to-get-millions-in-refunds.php http://www.thehomeownerblog.com/2010/06/thousands-of-homeowners-to-get-millions-in-refunds.php FTC Tue, 08 Jun 2010 12:23:49 -0500
A fiduciary duty requirement is not that onerous. Real estate brokers owe a fiduciary duty toward their toward their clients, as do attorneys and many other professionals. It's not that complicated or hard to do, nor have fiduciary duty obligations resulted in excessive numbers of lawsuits or other serious problems in other sectors.
]]> http://www.thehomeownerblog.com/2010/05/holding-financial-advisors-to-a-higher-standard.php http://www.thehomeownerblog.com/2010/05/holding-financial-advisors-to-a-higher-standard.php Financial Real Estate Mon, 17 May 2010 14:35:16 -0500
We believe that there must be a mutually acceptable middle ground somewhere in this debate. The telecoms all say they continue to support network neutrality, but are concerned that some future FCC may not adhere to its light regulatory approach. The companies claim that the Internet were to be heavily regulated, it could undermine continued private investment that is critical to achieve universal broadband availability. This is a credible argument - infrastructure  investment in this sector continues to be impressive despite middling profit levels, and continued federal budget realities are such that universal broadband availability will not be achieved anytime soon without that investment. With these factors in mind it would seem that there must be some formula that would give the FCC just enough authority to protect maintain network neutrality should some company violate Network Neutrality principles in the future, but not so much authority that investors or consumers need fear that private sector investment might be threatened by a heavy-handed regulatory approach by a future FCC. ]]> http://www.thehomeownerblog.com/2010/05/should-the-internet-be-regulated.php http://www.thehomeownerblog.com/2010/05/should-the-internet-be-regulated.php FCC Sat, 15 May 2010 06:58:55 -0500
Acoustic switches are mandated on offshore oil rigs by Norway and Brazil, and some major oil companies install them even where they are not required. The Mineral Management Service (MMS) of the U.S. Department of the Interior, which regulates U.S. offshore oil rig safety procedures, concluded that the $500,000 devices are not necessary in light of other existing emergency shut-off alternatives. The oil industry has raised doubts about the effectiveness of acoustic switches, which fortunately have not yet been put to a real life test. The MMS was clearly wrong about the need for additional backups, but the oil industry could be right about the effectiveness of the as yet untested  acoustic switches. The solution is to ban all new U.S. offshore oil exploration and oil production rigs until independant rigorous testing confirms that acoustic switches are fail safe, and to require their installation (or the installation of a fail safe alternative), on all new exploratory and working offshore oil rigs in the future. MMS should also re-inspect all existing U.S. offshore oil rigs and require the installation of additional safety measures as appropriate. ]]> http://www.thehomeownerblog.com/2010/05/bp-oil-spill.php http://www.thehomeownerblog.com/2010/05/bp-oil-spill.php Dept. of the Interior Sun, 02 May 2010 09:32:23 -0500
Opinions on the latter vary greatly, and those opinions are mainly conjecture no matter which side they fall on. In the opinion of the financial services sector, all substantial regulatory changes are risky. If we heed their opinion, there will very little protection against another meltdown in the future. We've seen the results of the meltdown, and we would rather risk over-regulation than leave ourselves exposed to another financial meltdown. Besides, any regulatory excess will soon be corrected anyway. We can trust the financial services sector to get right to work on correcting any such excesses, even before President Obama signs the bill! That would be a productive use of their time and money. For that matter, even if the bill was virtually toothless, we can also count on the financial services sector to get right to work on watering it down further before President Obama signs the bill. Better that they productively spend their time and money bringing the measure back to neutral rather than gutting a weak bill entirely. At least that way we'll buy ourselves a couple extra years before the next meltdown.
]]> http://www.thehomeownerblog.com/2010/04/go-bravely-forward.php http://www.thehomeownerblog.com/2010/04/go-bravely-forward.php Financial Services Obama Administration Thu, 15 Apr 2010 12:40:17 -0500
The proposed National Broadband Plan is the first step to reaching a common agreement on the specifics and priorities of those goals. Once we reach a consensus on the goals, we will face significant challenges regarding the mechanics of its implementation. Those challenges will involve complicated decisions between alternative ways to achieve the nation's broadband goals. Policymakers will have to make those tough choices, but the Plan is the critical precursor to the day when all American homeowners and other consumers can fully realize the benefits of broadband.

Chairman Genachowski  and the staff of the Federal Communications Commission deserve our thanks for taking this first step. ]]> http://www.thehomeownerblog.com/2010/03/a-plan-to-provide-broadband-to-all-americans.php http://www.thehomeownerblog.com/2010/03/a-plan-to-provide-broadband-to-all-americans.php Broadband FCC Sun, 14 Mar 2010 10:17:00 -0500 ]]> http://www.thehomeownerblog.com/2010/03/dont-tax-internet-purchases.php http://www.thehomeownerblog.com/2010/03/dont-tax-internet-purchases.php Consumers Economy Taxes Tue, 09 Mar 2010 10:37:31 -0500 Congress is considering financial-system-overhaul legislation. Right now there are no laws in to prevent another financial meltdown. It's clear that major reform is necessary. The problems are complex, and there are many complicated proposals out there. Sometimes someone comes up with a fairly simple solution to a complicated problem.  One of them came from the famous investor and "Oracle of Omaha" Warren Buffet. His recent suggestion: "In my view a board of directors of a huge financial institution is derelict if it does not insist that its CEO bear full responsibility for risk control," Buffett wrote. "If he's incapable of handling that job, he should look for other employment. And if he fails at it -- with the government thereupon required to step in with funds or guarantees -- the financial consequences for him and his board should be severe."

Buffet's concept can be formalized in federal legislation by requiring that the CEO and any other senior staff or board members who had been active proponents of the company's irresponsible policies be asked to seek new career opportunities elsewhere as a precondition for future federal bailouts of companies that substantially contributed to the financial crisis. This policy should provide for an orderly executive transition, and it should not apply to any employees or board members who weren't involved in the decision making process regarding these policies, or who only provided staff support. In most of the offending companies, you would be talking about only a small handful of employees, and in the last crisis probably only in the low hundreds.

Creating a career hazard for those who created the current moral hazard in the financial services sector would discourage their successors and potential imitators from such  choices in the future. ]]> http://www.thehomeownerblog.com/2010/03/how-to-fix-the-financial-system.php http://www.thehomeownerblog.com/2010/03/how-to-fix-the-financial-system.php Banks Financial Fri, 05 Mar 2010 07:06:05 -0500
Democrats will certainly lose a lot of seats this fall if they game the reconciliation process in order to pass a bill that the public perceives is too expensive. Republicans will hammer them mercilessly on both the cost of the measure and the unfairness of the process. Moderates will desert the Democratic party in droves, whether the healthcare bill passes or not. Conversely the Republicans risk losing their current polling advantage on this issue if they refuse to meet the Democrats in the middle and the Democrats then take the more moderate approach in order to pass a health care bill without gaming the process. The risk for Republicans is that the Democrats might voluntarily reduce the cost and coverage of their bill as much as it takes to get 60 votes in the Senate, which would require the vote of one moderate Republican and make it a "bipartisan bill" in Washington parlance. The bill would only have to be affordable and just a little better that the Republican alternatives to achieve wide public support, and that is not a big challenge.  If the Democrats took the latter approach and succeeded, the current Republican polling advantage on this issue would evaporate.
]]> http://www.thehomeownerblog.com/2010/02/regardless-of-the-health-care-summit-outcome-the-political-math-is-pretty-easy.php http://www.thehomeownerblog.com/2010/02/regardless-of-the-health-care-summit-outcome-the-political-math-is-pretty-easy.php Healthcare Legislation Obama Administration Fri, 26 Feb 2010 11:11:57 -0500