Nation

NAR TESTIFIES ON PREDATORY LENDING AND FORECLOSURES

According to NAR the Senate Banking Committee recently held a hearing on predatory lending practices and the extent to which abuses in the sub-prime market are contributing to increased foreclosure rates. The hearing witnesses included the Reverend Jesse Jackson, representatives the Mortgage Bankers Association, National Association of Mortgage Brokers, AARP and the Center for Responsible Lending. The Committee also heard testimony from two homeowners who are in the process of losing their homes to foreclosure due to abusive refinancing schemes. Senator Brown (D-OH) introduced NARs statement advocating for stronger anti-predatory lending legislation and increased consumer education. The overall sentiment of the committee members was that, while responsible sub-prime lending can be a valuable tool in helping people become homeowners, there are too many incentives in the sub-prime market to make loans that put borrowers at too great a risk of failure. Chairman Dodd (D-CT) also announced he is drafting anti-predatory lending legislation and committed to holding more hearings focusing on regulatory solutions.

AMT AND SOCIAL SECURITY DOMINATE BUDGET HEARINGS
President Bush submitted his FY 2008 Budget proposal to Congress on February 5. None of the tax provisions in it would have a direct effect on real estate. The Senate Finance Committee, Senate Budget Committee and House Ways and Means Committee all held hearings on the budget proposal, receiving testimony from Secretary of Treasury Paulson and Office of Management and Budget (OMB) Director Rob Portman. Nearly all the questions Members posed addressed ongoing problems created by the Alternative Minimum Tax (AMT) and the impending problems with Social Security. The President's proposal to create a new standard deduction for health insurance premiums received some attention, but the concept was generally criticized as being ineffective in reforming the individual health insurance market.