Nation

NAR BACKS REAL ESTATE PROVISIONS IN BANKRUPTCY REFORM LAW
The U.S. House of Representatives is applauded for passed four real estate provisions as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, S. 256. The bankruptcy reform bill passed the Senate last month and now heads to President Bush, who has promised to sign it. The legislation contains four NAR-supported provisions. First, it provides a 90-day stay from creditors for certain commercial properties regardless of value. Second, the bill closes the loophole that allows residential tenants to avoid or delay eviction by declaring bankruptcy. This provision maintains the protections currently enjoyed by tenants under state landlord-tenant laws. Third, the bankruptcy reform bill requires homeowners or condo association fees to be repaid.
Finally, the bill protects shopping center owners by giving tenants who declare bankruptcy 120 days to assume or reject a lease. This is double the initial time permitted under current law, which gives tenants who declare bankruptcy 60 days to assume or reject a lease. However, courts have routinely extended this time for many months or even years.

SENATE BANKING COMMITTEE WRAPS UP FANNIE/FREDDIE HEARINGS
The Senate Banking Committee wrapped up its series of hearings on regulatory reform for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (GSEs) on April 22. It conducted seven hearings since the start of the new year, in addition to many more over the past two years.
On April 19th, NAR testified on a panel of industry representatives from the banking, mortgage broker, and consumer fields. NAR repeated REALTORS' support for a strong new safety and soundness regulator for the GSEs. NAR President, Al Mansell, warned against diminishing the GSE housing mission that has helped produce record homeownership in this country. He focused on proposals under consideration that could weaken the housing market. In particular, efforts to shrink the GSEs' portfolios, those mortgages they hold in house, could limit their ability to provide affordable housing. It could also lead to increased rates or a contraction in the availability of 30 year fixed rate mortgages. Creating a 'bright line' between primary and secondary mortgage activities could also immediately end many favorable consumer programs, like consumer counseling, anti-predatory lending programs, and joint marketing campaigns that the GSEs conduct with lenders and REALTORS. It could also prohibit the use of the GSEs' automated underwriting programs that have standardized and made it easier to obtain mortgages.
In addition, NAR warned that the regulator must have the flexibility to approve new programs and activities without unduly burdensome public comment periods and delays. This is necessary so that the regulator and the GSEs can adapt to changing markets. Most of the other witnesses expressed many of the same concerns. The two final hearings featured leaders from the GSEs and their current regulators. The GSEs' testimony reflected many of the points raised by NAR. The regulators expressed support for Congress to grant the new regulator sufficient authority to oversee the GSEs for safety and soundness, and not to hamstring this regulator with arbitrary definitions on programs or statutory limits on portfolios. The Committee is scheduled to take up the GSE reform bill in May. It is expected that Banking Chairman Shelby (R-AL) will offer a substitute bill at that time. NAR is working with Committee Members and staff to address REALTOR concerns.

FTC PROPOSES AN INCREASE IN FEES TO ACCESS DO-NOT-CALL REGISTRY
On April 18th, the Federal Trade Commission (FTC) issued a proposed rule amending the Telemarketing Sales Rule. The newly proposed rule would increase the fees for access to the Do-Not-Call Registry. Under the proposed revised fee structure, telemarketers will continue to have access to up to 5 area codes free. Additional area codes would cost $56.00 (currently $40.00) each. The fee for access to all 280 area codes would increase to $15,400 (currently $11,000). It should be noted, the original fee structure (2003) was $25.00 for each area code beyond 5 and $7,375 for access to all area codes. The deadline for commenting is June 1, 2005.
NAR will be submitting a comment letter to the FTC expressing concern about the rule proposal arguing that a fee increase for access to the Do-Not-Call Registry would financially burden small business owners, such as real estate professionals, and undermines their economic contribution to the marketplace.

NAR TESTIFIES IN SUPPORT OF SMALL BUSINESS HEALTH PLANS
NAR testified before the Senate Small Business Committee in support of S. 406, the Small Business Health Fairness Act, on Wednesday, April 20th. This legislation would allow trade associations like NAR to offer their members a single, uniform national health insurance program. Although the Small Business Committee does not have jurisdiction over S. 406, its Chair Olympia Snowe (ME-R) is the bill's original sponsor. NAR discussed the problems real estate licensees have obtaining health insurance and shared statistics indicating a high level of public support for small business health plans. On Thursday, April 21, the Senate Health, Education, Labor and Pensions Committee held its first hearing in the Senate on small business health plans in over four years. The HELP Committee is the committee that must approve S. 406 before it can move to the Senate floor. At this time, the bill has not been scheduled for formal consideration. Testifying in support of S. 406 was the AHP Coalition; NAR is a member of the AHP Coalition.