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Home > Government Affairs > Eye on the Hill Report
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When Congress Returns to Washington
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When Congress returns to Washington this month, they have an agenda of unfinished business to address including: health insurance reform, financial regulatory reform, tax provisions, the expiration of the Home Valuation Code of Conduct (HVCC), flood insurance program reauthorization and Fannie Mae/Freddie Mac restructuring. Congress will also face increased political issues as all 435 Members of Congress and several key Senate seats will be on the ballot in November.
With a packed year ahead for Congress, below is the state of play for these key issues.
Healthcare Reform — Bills have passed both the Senate and the House and must now be merged into a final bill to be ratified by both Chambers before being sent to the President. NAR has weighed in throughout the entire legislative process with the Congressional offices and committees to secure changes to the bills that better address the challenges facing the REALTOR® community. NAR's vigilance was a major factor in the successful effort to fend off changes to the mortgage interest deduction as a "pay for" used to offset the cost of the health reform legislation. As Congress begins to merge these two bills into one, NAR will continue to monitor their progress to ensure that REALTOR® interests are addressed.
Financial Regulatory Reform — In December, the House passed H.R. 4173, the "Wall Street Reform and Consumer Protection Act of 2009", which contains the legislation that will create the Consumer Financial Protection Agency (CFPA). It is now the responsibility of the Senate Banking, Housing and Urban Affairs Committee (SBC) to develop companion legislation for the Senate to debate and pass before this legislation can be enacted. As of January 6th, the SBC has not released a companion bill. NAR will continue to monitor the progress of this legislation, and work to ensure that the exemptions achieved for real estate professionals in the House version are in the version ultimately debated and passed by the Senate.
Home Valuation Code of Conduct (HVCC) — Currently an amendment is attached to H.R. 4173, the "Wall Street Reform and Consumer Protection Act of 2009", which will ultimately sunset the HVCC. While this bill has passed the House Financial Services Committee, there is agreement in Congress to work on the amendment language to incorporate the appraisal provisions from H.R. 1728, the "Mortgage Reform and Anti-Predatory Lending Act." These amendments provide enhancements to protect appraiser independence and regulate AMCs. NAR is supporting this amendment and we will work with Congress to support incorporating the appraisal provisions from HR 1728 into the CFPA legislation.
National Flood Insurance Program Reauthorization (NFIP) — NFIP has been extended until February 28, 2010, at which time Congress will have to either renew the program or once again grant it an extension. For the long term, comprehensive reform of the program will include discussions on ways to improve its actuarial and financial foundations. Congress is expected to revisit issues of expanding coverage to wind and business damage and possibly, a phase-in of "full-risk" premiums for those primary homes selling over $600,000. Regarding flood maps, NAR has successfully advocated for maintaining funding at current levels every year since 2003. NAR will continue to work with Congress to seek alternative funding sources, as FEMA's modernization initiative is set to end in 2010.
Tax Provisions — The high level of government spending has created, according to some Member of Congress the need to lower the federal budget deficit. While no single tax plan has emerged to date, the tax-writing committees in both the House and Senate, have indicated that tax overhaul is a "must do" before 2011. House Ways and Means Chairman Charles Rangel is on record saying that throughout 2010 he will work hard to restructure the tax system. He has indicated that "everything is on the table." NAR will be working with Congress to protect the mortgage interest deduction and capital gains provisions.
Fannie Mae/Freddie Mac Restructuring — It is unlikely that Congress with reach a consensus on GSE restructuring this year. Despite the slow pace in Congress, NAR has adopted a series of recommendations on how to restructure the GSEs into Secondary Mortgage Market Authorities. Further complicating Congressional action in 2010 is the recent retirement announcement from Senate Banking Committee Chairman Christopher Dodd (D-CT). Additionally, recent actions by the Obama Administration have led many in Washington to speculate that any significant actions are not likely to occur until late 2010 or early 2011 because, as currently structured, the GSEs are playing an integral role in the Administration's housing recovery plan.
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