Agenda Summary
National Association of REALTORS®
2009 Midyear Legislative Meetings
Marriott Wardman Park Hotel
Marriott Ballroom Salon 3, Lobby Level
Wednesday, May 13, 2009
10:00 AM – 12 Noon

Chair: Bill Plattos, Costa Mesa, CA
Vice Chair: Colleen Badagliacco, San Jose, CA
Committee Liaison: Lance Lacy, San Angelo, TX
Committee Executive: Marcia Salkin, Washington DC
Melanie Wyne, Washington DC
Scott Rinn, Washington DC

I. Call to Order

II. Opening Remarks

III. Ownership/Conflict of Interest

IV. Approval of 2008 Annual Meeting Minutes

V. Approval of the 2009 Committee Goals

VI. Guest Speaker—Lydia Parnes, Fomer Chief of Consumer Protection Bureau, Federal Trade Commission, Legislative and Regulatory Outlook on Consumer Privacy and Data Security

VII. Guest Speaker –Nicole McCleskey, Public Opinion Strategies, Review of NAR Sponsored Voter and Realtor Health Care Reform Polling Results

VIII. Action/Discussion Items

A. Arbitration Policy
Congressman Hank Johnson (D-GA) has introduced H.R. 1020, the Arbitration Fairness Act of 2009.  His bill would prohibit mandatory arbitration agreements in certain contracts.  While this is intended to protect consumers against financial institutions, hospitals, insurance companies and other entities that require arbitration; the language of the bill could preempt the voluntary arbitration clause within California’s Residential Purchase Agreement.  The California RPA allows for both the seller and buyer to voluntarily choose mandatory arbitration within the RPA. 

C.A.R. is opposed to the current language in H.R. 1020 and is working with NAR to amend the bill.

B. Mortgage Unemployment Insurance Program
To help provide first-time home buyers with peace of mind when purchasing a home, the C.A.R. Housing Affordability Fund (C.A.R.H.A.F.) is offering a new mortgage protection program to first-time home buyers.

Through the Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program this year, and estimates that up to 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:
 - Be a first-time home buyer – someone who has not owned a home in the last three years
 - Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
 - Use a California REALTOR® in the transaction
 - Purchase the property in California
 - Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

C. Health Care Reform
Twenty-eight percent of Realtors - more than 350,000 individuals - are uninsured. As part of efforts to address the health insurance needs of members, NAR has advocated for more than five years for the creation of association health plans (AHPs), small business health plans (SBHPs) or a small business health options plan (SHOP). NAR continues to work on the development of a viable legislative vehicle to address the health insurance problems facing the nation’s small business community.

Lacking affordable health insurance, many Realtors and other self employed individuals are unable to seek necessary medical attention and/or face significant financial burdens when they or their dependents need medical care. Without changes, problems with the availability and affordability of health insurance will undermine the ability of the self employed to continue in their chosen careers.

In the 111th Congress, NAR is working with the sponsors on the reintroduction of the Small Business Health Options Plan (SHOP) bill. NAR is also on record in support of HR 859, the CHOICE Act, introduced by Reps. Velasquez (D-NY) and Bartlett (R-MD); and HR 1470/S. 725, the Equity for Our Nation's Small Self-Employed Act of 2009, introduced by Reps. Kind (D-WI) and Herger (R-CA) and Sens. Bingaman (D-NM) and Hatch (R-UT), respectively.

HR 859, the CHOICE Act, would limit the volatility of health insurance premiums for the self employed by allowing participation in cooperatives of like businesses that would purchase excess claims insurance for those participating. HR 1470 and S. 725 would allow the self-employed to deduct health insurance premiums from their income for the purpose of calculating their payroll tax obligation.

The outlook for passage of these targeted health reform measures is somewhat unclear given the high priority being placed on more comprehensive health reform by the new Administration and Congressional Democratic leaders. It is expected that both the House and the Senate will begin consideration of a comprehensive reform bill this year.

Most observers expect the Senate Finance Committee and the Senate Health, Education, Labor and Pensions Committee to continue drive the reform discussions. To date, the chairs and ranking members of both committees, Senators Max Baucus (D-MT) and Charles Grassley (R-IA), and Ted Kennedy (D-MA) and Mike Enzi (R-WY) respectively, have taken the lead in discussions. Also expected to play major roles in the Senator are Senators Chris Dodd (D-CT), Judd Gregg (R-NH), and Tom Harkin (D-IA).

In the House, the new and immediate-past chairs of the House Energy and Commerce Committee, Representatives Henry Waxman (D-CA) and John Dingell (D-MI) and the Energy &Commerce Health Subcommittee chair and ranking member, Frank Pallone (D-NJ) and Nathan Deal (R-GA), will be key players in the any legislative developments.

D. Silver Card Visa Update
Now that the 111th Session of Congress has begun with a new Democrat President and Democrats increasing their majority in both chambers of Congress, it is unclear where the issue of immigration reform stands.  It is likely that any attempt to pass a Silver Card Visa bill would have to be wrapped up in a larger immigration bill.  This fact makes the Silver Card Visa issue dependant upon the larger issue of immigration reform.

Below are the recommendations of the Immigration PAG from May of 2008. 

From the Immigration PAG Report

“We recommend NAR adopt the following principles to guide NAR members and staff in developing policies relating to immigration and in responding to questions from the public.

Proposed NAR Statement of Principles

NAR believes the interests of its members are best served by stable, prosperous, thriving and secure communities. Accordingly, NAR policy should be guided by the following principles:

1. We believe NAR should be involved in immigration issues to the extent necessary to support stable, prosperous, thriving and secure communities and to enhance the United States as a destination of choice for those seeking to own, transact, lease and use real property.

2. We support a timely federal resolution of illegal immigration that includes (A) securing U.S. borders to prevent illegal entry, (B) allowing for the flow of labor to accommodate the needs of the U.S. economy, and (C) settling the status of illegal immigrants in a way that acknowledges the reality of their presence, their role in the economy and their historic contributions to U.S. society.

3. We support the rights of foreign citizens to acquire, own and sell U.S. real property and the right of U.S. citizens to acquire property outside the U.S. We also support the free flow of international capital for real estate and oppose laws and regulations that impede that flow.

4. We believe all resident owners of U.S. real estate should be subject to the same set of rules under the U.S tax system. In addition, any unique reporting and disclosure requirements regarding foreign buyers and/or their agents should be kept to a minimum.”

E. RESPA Update (Click Here)

F. FATF Rule Update
The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of policies, both at national and international levels, to combat money laundering and terrorist financing. The Task Force is therefore a "policy-making body" which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

The FATF monitors members' progress in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. In performing these activities, the FATF collaborates with other international bodies involved in combating money laundering and the financing of terrorism.

The FATF does not have a tightly defined constitution or an unlimited life span. The Task Force reviews its mission every five years. The FATF has been in existence since 1989. In 2004, Ministry representatives from the 33 FATF members agreed to extend the mandate of the Task Force until 2012. This 8-year mandate demonstrates that members of the FATF remain united in their commitment to combat terrorism and international crime, and is a sign of their confidence in the FATF as an important instrument in that fight.

IX. Political Update—Ken Wingert

X. New Business

XI. Adjournment