“REALTORS® are a potent force in cultivating and
protecting homeownership in America
Homeownership has proven throughout history to be a worthwhile dynamic in America, benefiting families as well as communities. Although a drop in homeownership in recent years marks the largest decline since the great depression, homeownership continues to be a fundamental pursuit for most Americans.
It’s possible that the latest decline of homeownership could be made worse if the mortgage interest deduction is diminished or the housing finance system is reformed in a way that makes debt financing less attainable for purchasing a home. Safeguarding policies that facilitate sustainable homeownership is a vital focus for REALTORS® across the country.
Unlike common perception, real estate is not a business about houses, rather real estate is a business about people. The National Association of REALTORS® (NAR) happens to be the largest trade association in the U.S. and they are advocating every day on behalf of property owners, as well as aspiring homeowners.
At a national level, NAR promotes efforts to facilitate homeownership and property rights, The Colorado Association of REALTORS® (CAR) advocates for the same purposes at the State level, and the Pikes Peak Association of REALTORS® (PPAR) strives to safeguard homeownership throughout the Pikes Peak Region.
NAR is currently challenging the Tax Reform Act of 2014 by House Ways and Means Chairman, David Camp, which would repeal the mortgage interest deduction and replace it with a standard deduction.
Since its inception, the mortgage interest deduction (MID) has been a successful means to facilitate homeownership, and NAR is fervently opposed to any type of modification that would potentially limit or weaken that resource for consumers.
Regarding the proposed reform, Pikes Peak Association of REALTORS® Chairman of the Board Cherri Fischer, said “REALTORS® support reforms that promote economic growth, but we strongly oppose severely altering the rules that govern ownership and investment in real estate. Real estate powers almost one-fifth of the U.S. economy, employs more than 17 million Americans, and contributes a quarter of all federal and state tax revenue and as much as 70 percent of local taxes nationwide.”
REALTORS® are also actively campaigning to prevent limiting access to buyers as a result of the Consumer Financial Protection Bureau’s (CFPB) merger of the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).
Known as TILA-RESPA Integrated Disclosure (TRID), CFPD is implementing two new disclosure forms to outline the loan estimate and the loan closing. The intention of CFPD is to simplify loan documentation, limit fees for consumers, aid homebuyers in comparison shopping, and make documentation easier to understand.
However, the new TRID regulation is certain to disrupt and delay closings. Some experts are estimating that 60 day loan approvals will be standard, and the new forms will confuse buyers.
The country is experiencing one of the strongest spring markets in a decade, but there is concern that the new TRID rules will initiate an insecure fall market.
Closer to home, the Colorado Association of REALTORS® and the Pikes Peak Association of REALTORS® have launched efforts to introduce Project Wildfire.
Unfortunately, large and destructive wildfires have claimed hundreds of thousands of acres of Colorado land, destroyed homes and structures, caused deaths and injuries, and displaced a number of residents. Projected growth of the state’s Wildland Urban Interface (WUI) areas, assures that the wildfire threat will persist.
Colorado REALTORS® are partnering with fire prevention organizations across the state to bring education and awareness, as well as resources to residents and communities.
Project Wildfire addresses the most effective ways to minimize future wildfire destruction by combining education with monetary incentives and access to local resources. Without practical, preemptive steps by homeowners, the likelihood for increased property related expenses will escalate, as well as amplifying insurance premiums.
In addition, flood insurance has put homeowners throughout the state of Colorado in a complex predicament. The National Flood Insurance Program through the Federal Emergency Management Agency (FEMA) is intended to reduce the effect of flooding on private and public structures.
Urging communities to adopt and enforce floodplain management regulations and by providing affordable insurance for property owners, FEMA drives to mitigate the impact of flooding on structures, and the socio-economic impact of flooding disasters.
Both local and national REALTOR® representatives are steadfast supporters of efforts to renew and reinforce the long-term sustainability of the federal flood insurance program, in addition to maintaining funding to update and improve the accuracy of flood maps.
Every day, REALTORS® are endeavoring behind the scenes to advocate for and protect homeowner interests at every level of government as well as to promote a sound and dynamic U.S. real estate market and cultivate successful communities.
It seems likely that hard money loans contribute to and support easier requirements for non-owner occupied real estate investments which lead to home price appreciation and more equity for the average home owner.
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