Russ Global posted on February 21, 2009
With Obama elected to office and the gains by Democrats in the U.S. House and Senate races people want to know how this impacts our current housing market. On the top of the consumers legislative list is the availability of affordable mortgage financing and health insurance. These are also priorities for both major parties.
"There is no partisan divide when it comes to homeownership, strong communities, affordable health insurance, and strong commercial real estate markets," says 2009 NAR President Charles McMillan.
The Obama administration and Congress is expected to focus on regulatory reform of the country's financial services industry. The ensure regulation of mortgage and other asset-backed securities, lawmakers will look at what went wrong and what needs to change. They will focus on and review possible changes to secondary mortgage market companies Fannie Mae and Freddie Mac, which are under government conservatorship. Some of the options for these companies are to fold them into the government, make them 100% private, or keep them as public private hybrids.
Another stimulus package might be coming as well. This option will be looked at by Obama and Congress. NAR is currently pushing for a few things with Congress.
§ Elimination of the repayment of the first time home buyer tax credit
§ Make conforming high-cost loan limits of $729,750 permanent
§ Heightened consumer protection
§ Permanent ban on national banks entering real estate brokerage and management
§ Ensure Wall Street banks use some of the $700 billion in bail-out money to make mortgage financing available at reasonable costs
Congress is also expected to take a look at comprehensive reform of health insurance, infrastructure investment, and climate change, which all have an effect on real estate and the real estate profession.