Federal Legislative Outlook - 2008

C.A.R. lobbied hard for REALTORS® during the 1^st session of the 110^th Congress.  While there were some strong victories for REALTORS®, our work is not done and is continuing into the 2^nd session during 2008.  While there was success getting our issues through the House, the Senate was slow to move on legislation and we are hoping to get our issues heard in the Senate so they can be passed during 2008.

In the 1^st session of the 110^th Congress C.A.R. was successful in getting REALTOR® priorities passed and signed into law.  This included passing mortgage debt relief for struggling homeowners, a two-year ban on banks in real estate, and an expansion of the Terrorism Risk Insurance program.  Mortgage debt relief will help homeowners who face foreclosure or short sales avoid the phantom income of debt forgiveness.  The two-year ban on banks in real estate allows us to be sure that during the chaotic election cycle this ban will continue.  Nonetheless, C.A.R. will continue to lobby to have this ban made permanent.  Additionally, the Terrorism Risk Insurance program was expanded for seven years. 

While there were some strong lobbying efforts to pass other REALTOR® priorities, often times they were backlogged in the Senate.   In 2007, the following provisions passed the House, but not the Senate: a FIRPTA fix, GSE reform that includes an increase in the conforming loan limit for high-cost areas, natural disaster insurance reform, and flood insurance reform.  C.A.R. will continue to lobby hard to make sure that these REALTOR® priorities are heard in the Senate and we hope to pass legislation on these priorities in 2008.

Additionally, Congress is close to passing FHA reform and reforming the Qualified Veteran Mortgage Bond (QVMB).  FHA reform has passed both the House and Senate, but in different forms.  We are lobbying to have any final FHA reform include an increase in the FHA loan limits and the conforming loan limit for high-cost areas.  A change to the rules on QVMBs, which would allow veterans who served post 1977 to qualify for these low interest rate loans, is also close to passage.  The QVMB legislation should move quickly once Congress returns from recess and the FHA conference should start shortly after their return as well.

During the 2^nd session of the 110^th Congress, C.A.R. will continue to lobby hard for REALTOR® priorities.  We will push to have legislation already passed through the House, move through the Senate, we will continue to monitor subprime and predatory legislation, and we will also push to have both chambers of Congress pass new VA loan limits for high cost states.  C.A.R. and REALTORS® enjoyed big legislative victories in 2007 and we hope to continue with even greater successes in 2008. If you have any questions, please contact Jeff Keller at 213-739-8398 or at jeffk@car.org.  Thank you.