Nation

NAR JOINS SENATORS TO INTRODUCE THE SMALL BUSINESS HEALTH OPTIONS PROGRAM

On June 10, 2008, NAR Treasurer Jim Helsel represented the National Association of Realtors at a bipartisan press conference introducing H.R. 6210, the Small Business Health Options Program Act (SHOP).

As proposed, the SHOP concept would offer tax incentives to encourage states to reform small group insurance markets and to make health insurance premiums more affordable for small businesses and the self-employed. It would also develop a nationwide insurance small-business purchasing pool that would still be subject to state insurance regulation to protect those who choose to participate.

In announcing its support for the Small Business Health Options Program (SHOP), NAR reiterated the importance of reforming the U.S. health care market for small businesses and independent contractors. In a recently conducted 2008 NAR Health Insurance Coverage survey, 82 percent of REALTORS believed the current health care system is not meeting the needs of most Americans, and nine out of 10 REALTORS thought that the U.S. health care system should be reformed. Nearly a quarter of NAR's 1.2 million members do not have health care insurance, and for most REALTORS without insurance, the reason is cost. NAR continues to meet with both Senate and House offices seeking additional cosponsors.

SBA's OFFICE OF ADVOCACY SHARES NAR's CONCERNS WITH HUD's PROPOSED RESPRA RULE IMPACTS On June 11, 2008, the U.S. Small Business Administration's Office of Advocacy (Advocacy) filed comments on the Department of Housing and Urban Development's (HUD) proposed regulations on the Real Estate Settlement Procedures Act (RESPA): Proposed Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs. A copy of Advocacy's comments can be found at: www.sba.gov/advo/laws/comments.

Advocacy commented that although the agency put forth a significant amount of effort in its initial regulatory flexibility analysis (IRFA) the agency may have underestimated the economic impact on small businesses. Advocacy suggested that HUD create a Good Faith Estimate that mirrors the HUD-1 to prevent consumer confusion and clarify the language on tolerances. Advocacy also suggested that HUD eliminate the closing script from the proposal, reconsider volume discounts, and the yield spread premium disclosure. Advocacy further requested a delayed implementation period for small entities, if HUD decides to go forward with the proposal.

NAR submitted a RESPA comment letter on June 11, 2008 to the Department of Housing and Urban Development (HUD) on its "Proposed Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs." The letter, signed by NAR President Dick Gaylord, applauds HUD's desire to improve disclosures but states that the proposed rule fails to achieve its objectives. The letter states that the proposal:

fails to strike the right balance between simplification and understanding, contains government -directed price controls that will have anti-competitive consequences and will reduce the quality of settlement services, and under-estimates the cost of implementation and overestimates the benefits to the consumer.