FRONT LINES: Washington Report
Do-not-fax fix sought
NAR President Walt McDonald has asked Congress to support legislation clarifying that businesses such as real estate companies and entities such as REALTOR® associations can continue to fax those with whom they have an existing business relationship without having to obtain prior written permission.
That fax-approval exemption to the Telephone Consumer Protection Act of 1991 has been in effect since rules were written for that law in 1992. But the Federal Communications Commission would change that with a rule it published last year requiring entities to obtain written, signed permission before sending faxes. The rule is scheduled to take effect Jan. 1, 2005.
In testimony given in mid-June before the House Energy and Commerce Committee’s Subcommittee on Telecommunications and the Internet, McDonald voiced support for the Junk Fax Protection Act of 2004, H.R. 4600, which would maintain the 1992 fax-approval exemption and take other steps to make it easier for entities to obtain upfront faxing approval. The bill is pending in the full House, and a companion bill, S. 2603, is pending in the Senate. Meanwhile, NAR is advising its members and member associations to start gathering written consent from anyone to whom they would like to send future “advertising faxes.” For ideas on how to do that and a model consent form, click here.
Flood insurance reauthorized
Homeowners in flood-prone areas who have repeatedly refused government offers for mitigation assistance, such as buyouts or help with relocation, face higher flood insurance premiums under legislation passed by Congress in mid-June.
The NAR-backed Flood Insurance Reform Act of 2004, S. 2238, “makes an effort to improve the soundness of federal flood insurance by shifting more of the costs of recovery to property owners who choose to remain vulnerable to repetitive flood damage,” says NAR President Walt McDonald.
The bill includes an appeals process for homeowners facing a premium hike and includes reforms to help ensure consumers know what’s covered under their flood insurance policies. The federal government, through its National Flood Insurance Program, supplies about 90 percent of all flood insurance. The legislation reauthorizes the program for five years, through September 2008.
Leasehold improvement gains
The U.S. House of Representatives has passed a two-year version of an NAR-backed reduced tax recovery period for leasehold improvements. The American Jobs Creation Act, H.R. 4520, would reduce the recovery period to 15 years from 39 years for assets placed in service in 2004 and 2005.
NAR has argued that a 39-year depreciation is too long for leasehold improvements, which are typically made when tenants move into a space and can include such changes as new carpeting and wiring upgrades. The shorter depreciation period rights a wrong, say NAR analysts.
The Senate version of the jobs legislation doesn’t include the provision, but the NAR-backed change could be included when the two chambers iron out differences between their bills later this year, say NAR analysts. NAR’s long-term goal is to persuade Congress to pass a permanent reduction in the depreciation period.
Panel looks at FHA loan limit hike
In mid-June during hearings before the Housing and Community Opportunity Subcommittee (part of the House Financial Services Committee), lawmakers took a good look at NAR-backed legislation that would let FHA loan limits rise to area median home prices.
FHA maximum high-cost loan limits are currently 87 percent of the conforming Freddie Mac loan limit, which is $333,700. Allowing FHA loan limits to rise to area median home prices would make FHA more effective in high-cost areas, NAR analysts say. The House Financial Services Committee typically passes bills out of committee before the legislation is considered by the full House. No companion bill is in the Senate.
In a related development, the House in mid-June passed legislation to boost the maximum VA home mortgage guarantee from $240,000 to the conforming loan limit. The Senate was debating a companion bill in mid-June.
FTC: Do-not-e-mail registry counterproductive
A National Do-Not-E-mail Registry—similar to the popular National Do-Not-Call Registry launched last year—could backfire without a way to authenticate the origin of e-mail messages, says the Federal Trade Commission in a report to Congress. In its report, the FTC recommends against the launch of such a registry.
NAR backs the FTC’s position, saying an e-mail registry would impose a major compliance burden on small business without significantly deterring abusive spammers.
NAR is monitoring the congressional response to the FTC’s report for legislative attempts to mandate creation of a do-not-e-mail registry.
MORE ONLINE
NAR Legal Affairs do-not-fax compliance analysis
NAR model fax consent form
Fax-approval exemption testimony
Field Guide to Anti-Solicitation Laws: Do-Not-Call, Do-Not-Fax, and Do-Not-E-mail
FTC e-mail registry report
