Nation

Nation

OBAMA ADMINISTRATION ANNOUNCES FINANCIAL REGULATORY REFORM PLAN

The Obama Financial Regulatory Reform Plan, announced on June 17, 2009, would change the regulation of all lenders and their holding companies, give the Federal Reserve Board supervisory power over large and complex entities that pose a systemic risk to the financial system, create a new consumer protection agency, and provide for managing future financial crises. Key objectives include restoring consumer and investor confidence in the nation's financial system. Of particular interest to REALTORS, the plan would strengthen the national policy against mixing banking and commerce and create a Consumer Financial Protection Agency to consolidate the regulation of consumer protection laws related to mortgage loans and other financial products, including the Truth in Lending Act and the Real Estate Settlement Procedures Act. (NAR)

SENATE COMMITTEE APPROVES WETLANDS EXPANSION BILL

The Senate environment committee approved S. 787, the "Clean Water Restoration Act." The bill would strike "navigable" from the federal definition of regulated waters and replace the term with the "waters of the United States" expanding - not restoring - the definition to "all... intrastate waters, including... all tributaries... and all impoundments of the forgoing." NAR policy is opposed to federal government encroachments upon private property rights. Thanks to REALTORS, before approving the bill, the committee made two important changes that while taking small steps in the right direction, did not resolve NAR concerns with the bill's approach. As part of an amendment by Sens. Baucus (D-MT), Klobuchar (D-MN) and Boxer (D-CA), the bill now excludes prior converted cropland and waste treatment systems from the U.S. waters definition. While still expanding the Clean Water Act's reach to non-navigable waters, the bill would not expand it to "the fullest extent that these waters, or activities affecting these waters, are subject to the legislation power of Congress" - i.e., the original language of the bill. Rather it expands the scope only to the EPA and Corps' interpretation of regulated waters on January 9, 2001, which in effect would overturn two Supreme Court decisions that reigned in federal permitting authority.

It is still early in the process, and NAR will continue to oppose S. 787 as amended and seize every opportunity to educate members of Congress about the effects that the bill will have on property rights. Next step is consideration by the Senate but the timing of this is unclear, as at least one senator is expected to place a "hold" on the legislation, signaling the intent to filibuster. A companion bill has not been introduced in the House. (NAR)

NEW NAR SHORT SALES PAGE

NAR has set up a webpage on short sales. REALTORS who are new to short sales can learn the basics and watch webinars to increase their knowledge. The site includes information about NAR's advocacy efforts to improve the process, getting a short sale to closing, and informing buyers and sellers about the process. There is also information on the upcoming Obama Administration short sales program, which will be part of the Making Home Affordable Program. The Treasury Department is targeting the end of July for issuing guidance and uniform forms and for signing up servicers to participate in the new initiative. NAR's Short Sales Page , or http://www.realtors.org/realtors/basics_short_sales?wt.mc_id=rd0041. (CAR)

NATIONAL HEALTH CARE REFORM DEBATE BEGINS IN EARNEST
Building off of two years of formal hearings and discussions, the health care reform debate has begun in earnest in Washington, D.C. Congress has set an aggressive timeline for debate with the goal of delivering a final bill to President Obama by October 15. Five committees - Senate Health, Education, Labor and Pensions, Senate Finance, House Energy and Commerce, House Education and Labor and House Ways and Means - are involved in drafting health reform legislation. In the Senate, two bills, introduced by HELP Committee Chairman, Edward Kennedy (D-MA), and Finance Chairman, Max Baucus (D-MT) respectively, will be considered and then conferenced into one bill that will be put before the full Senate. In the House, the process will be more simple as the three chairs of the respective committees, Henry Waxman (D-CA), George Miller (D-CA) and Charles Rangel (D-NY), plan to introduce a single joint measure.

As outlined, all three bills would provide the self-employed, small employers and those without employer-provided insurance with access to an Exchange that would offer an array of private insurance products that are governed by a uniform national set of rating and underwriting rules. Insurance products offered through an Exchange would available to all eligible applicants regardless of their health history, be guaranteed to be renewed, and would not contain any pre-existing condition exclusions. In addition, premiums would be set on the basis of a limited number of factors - type of policy, geographic location and age - that would not include health status or claims history. By establishing new rating rules, standardizing administrative functions and creating larger pools of insureds, proponents of the bills believe that premiums will be reduced.

NAR has already submitted comments to the Senate HELP Committee on the Kennedy measure and will comment on each of the other proposals as they are released. While much remains to be determined and all proposals will be much amended, many of the elements of the NAR-supported Small Business Health Options Program Act (SHOP) have been, or are expected to be, incorporated into the drafts. (NAR)