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Homeowners-
Your most
important constituents
A 2012 Issue Guide for
Federal and State Policymakers
Presented by the
American Homeowners Grassroots Alliance
on behalf of more than 70 million American homeowners
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Who are the
Nation's Homeowners?
American
Homeowners' 2012 Priorities:
Budget and the Economy
Consumer Protection
Credit & Financial Services
Education
Energy and the Environment
Healthcare
Housing and Real Estate
International Trade
Tax
Technology and Communications
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Who Are the Nation's
Homeowners? |
Home ownership contributes to our nation’s social stability,
and home equity is the biggest form of saving for most
homeowners. Among the most diverse U.S. population segments, the
over 70 million American homeowners are the largest single
identifiable group of consumers. They are also politically
active - 91% of homeowners said they are very likely to vote in
the next election in a national survey. Homeowners span the
spectrum of political philosophy, but most are politically
moderate: 23% are independents and the remainder is split evenly
between the two major political parties. The American Homeowners
Grassroots Alliance (AHGA) seeks to reflect that diversity and balance
in its policy positions.
AHGA focuses on policy issues that have a significant economic
impact on homeowners and home ownership. Housing is the single
greatest monthly expense for most homeowners and most
have to spend their remaining income prudently. Therefore
any government policy that substantially impacts the cost and quality of
living inevitably affects most homeowners. These policies
include federal and state budgets, consumer protection, credit
and financial services, education, energy and the environment,
health care, housing policy, international trade, taxation, and
technology and communications. AHGA is nonpartisan, and does not
take positions on social or ideological issues.
This Issue Guide contains a summary of AHGA's positions, divided
into ten issue areas. More information about AHGA’s positions on
specific issues is at
www.AmericanHomeowners.org . There you can find our
testimony, press releases, and stories in the current and past
issues of our newsletter, Home Base.
Also on the website is information about the consumer
education programs of the American Homeowners Foundation (AHF).
Established in 1984, AHF is a separately incorporated education
and research organization providing homeowners objective
guidance and tools to assist them in home buying, selling,
remodeling, financing, building, and other major home-related
areas.
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1. Budget and
the Economy
As the U.S. slowly emerges from the greatest recession since the Great
Depression, we must begin to address the burgeoning Federal deficit that
resulted from spending that was necessary to prevent economic collapse.
At the same time, the economy is still fragile, and as we begin to
curtail Federal spending, we must do so at a graduated pace so we do not
undermine the nascent recovery. At the same we must recognize that deficits limit
growth and add pressure on interest rates, which is adverse to the best
interests of homeowners and other consumers. The challenge is great, and no
program, entitlement, or tax deduction (including those that benefit
homeowners), should be exempt from scrutiny. It will require that both
Democrats and Republicans accept cuts in programs dear to their
respective parties.
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2. Consumer Protection
All legislation should reflect
the Consumer Protection Principles of the Consumer Federation of
America (see below).
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3. Credit & Financial
Services
● The primary cause of the recession was the mortgage crisis. It
resulted from the decision of senior financial services executives to
abandon sound underwriting practices. Strong Federal sanctions should be
enacted that would make those decision makers personally liable for
decisions that end up destroying their stockholders' equity, requiring
taxpayers to bailout those companies, undermining the US economy, and
ruining the lives of naive home buyers who should not have been provided
those mortgages.
● The role of Government Sponsored Enterprises (GSEs), such as Fannie Mae and
Freddie Mac should be reviewed. Subject to current budget realities,
some means of assuring that affordable mortgage financing remains
available to low and middle income homeowners should be preserved.
● The
foreclosure crisis should be addressed through a carrot and stick
approach featuring incentives for lenders to reduce mortgage balances to
the homes current market value if necessary if such a reduction will
enable existing homeowners whose income had been reduced keep up with
their mortgage payments, a new law that would subject foreclosures to
bankruptcy court oversight would encourage lenders to reduce mortgage
balances and monthly payments so homeowners can avoid foreclosure and
keep their homes.
● RESPA should be expanded and enforcement actions and penalties should
be increased. Loan originators and mortgage brokers should be required
to provide written estimates in binding agreements with potential
clients on broker compensation and fees. Title 8 (anti-kickback rules)
should be more vigorously enforced and severe penalties should be
imposed for noncompliance with RESPA regulations.
● All professionals who arrange home financing should be subject to all
Truth-in-Lending Act (TILA) requirements and minimum national education
standards for lending executives should be established. Title insurance
companies should provide substantial title insurance discounts for
refinanced loans under 10 years old. Lender title insurance commissions
should be disclosed on HUD-1 statements and capped at 20%.
● The U.S. and global financial services sector is broken and in need of
major reform. We must end the era of mega banks, limiting their size and
prohibiting them from managing hedge funds. There should be increased
oversight of mortgage lenders, money market mutual funds and credit
rating agencies. The U.S. should work closely with the Group of 30 to
implement these and other financial services sector reforms on a
consistent international basis.
● Stronger identity theft and Internet fraud legislation should be
enacted. Sharing of sensitive financial and other personal information
should be subject to an explicit opt-in system.
● Predatory lending should be outlawed and consumer financial education
should be expanded. The Consumer Financial Protection Bureau
should require that mortgage brokers and bankers will in the future owe
a fiduciary duty to consumers. Stronger enforcement and penalties for
violations by all real estate fiduciaries, including real estate brokers
and agents, should be developed.
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4. Education
● The “No Child Left Behind
Act” must be fully funded. Strong systems of accountability based upon
student performance must be maintained. We must also increase local
control and flexibility, and preserve the option for disadvantaged
children to participate in public school choice programs or obtain
supplemental tutoring.
● Educational budgets must be increased. Teacher salaries must be
increased to draw better qualified teachers and more teachers must be
hired to reduce class sizes and allow more personal attention to
students.
● Student college loan programs must be enhanced to cover increases in
tuition and room and board and expanded so they are available to all
qualified students in need.
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5. Energy and the Environment
We must develop a balanced and
comprehensive national energy and environmental policy. The hydrocarbon
based energy sources whose emissions are most adversely affecting public
health and the global environment must be reduced as soon as possible,
but not at a pace that would hinder economic recovery. The policy should
include market-based conservation incentives, and enhanced consumer
education.
● Tax credits to encourage higher standards of energy efficiency in new
home construction and remodeling, and the purchase of hybrid vehicles
and other energy efficient products should be made permanent.
● Funds earmarked for home weatherization for low-income homeowners
should be increased, and the program should be expanded to include
active and passive energy systems.
● Federal funding for research into energy conservation and renewable
energy technologies for home, consumer, automotive, and industrial uses
should be expanded.
● Tax credits to encourage teleworking, the creation of home based
businesses, the greater use of public transportation and the expansion
of car-pooling should be enacted.
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6. Healthcare
It is appropriate for Congress to study the new national health care law
and seek ways to improve it. As with any major legislative reform, some
components will prove effective and popular while others will not. While
it is important to address problems when they become apparent, many of
the changes are broadly supported. It would be inappropriate to repeal
the entire bill or to act prematurely in addressing specific components
until their viability and contribution to society can be accurately
assessed. At the same time, additional ways to reduce health care costs,
such as allowing consumers to buy prescription drugs on the
international marketplace should be enacted.
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7. Housing and Real Estate
Historically home equity has been the
single largest savings vehicle and source for retirement security for
most homeowners. Programs that help families achieve the dream of home
ownership can be the most cost effective policy tools to both strengthen
the economy and enhance savings in the U.S.
● Congress should extend the Work Opportunity Tax Credit and
Welfare-To-Work tax incentives to help the unemployed and economically
disadvantaged on the road to home ownership.
● The national housing trust fund should be expanded to build more
rental housing for the lowest income families.
● The use of eminent domain procedures should be limited to property for
public use and not be allowed as a tool for commercial real estate
developers to seize homes.
● State real estate laws that allow a real estate broker to represent
both a buyer and a seller simultaneously (i.e. dual agency) should be
repealed at the federal or state level.
● A federal law prohibiting restrictions on real estate sales commission rebates to
consumers and restrictions on consumer access to discounted real estate
services should be enacted and should include the retroactive repeal of
noncompliant state laws or regulations.
● Required disclosures should be made in writing by real estate agents
at the first substantive meeting with consumers. They should identify
all services provided, and sanctions should be imposed for violations.
An agency relationship with a real estate broker or agent must be in
writing and signed by the consumer.
● Entry standards and continuing education requirements for real estate
brokers and agents, mortgage brokers and mortgage lenders should be
increased substantially.
● Multiple Listing Services and their member brokers should be required
to immediately post all MLS listings on their consumer-facing websites,
and real estate brokers should erect no barriers to the redistribution
of those listings by third parties.
● At least half of the members of all state and local real estate boards
or commissions should be consumer representatives who have no business
ties to any segment of the real estate services community.
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8. International Trade
Homeowners and other consumers
worldwide ultimately benefit from reduced tariffs and non-tariff
barriers to international trade. The U.S. should pursue unfair trade practices
by other countries vigorously to defend American workers and American
businesses. While U.S. trade policy can also be an appropriate
diplomatic tool to discourage human rights violations by trading
partners, care should be taken to assure that it is not used to protect
U.S. industries that are not victims of unfair trade practices. Workers
displaced by foreign trade should be provided expanded re-education
benefits, including extending unemployment benefits during the
re-education period.
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9. Tax
●
The current social security system should
not be modified by other than minor rate adjustments to improve long
term solvency. IRA, 401K, and other retirement savings plan contribution
limits should be increased. To improve savings employee contributions to
employer sponsored retirement plans should be automatically set to the
highest deductable amount, with the employee also clearly and regularly
informed that they may opt out at any time. Additional tax incentives
for home ownership and retirement saving should be created. Annuity
payments should be taxed at a rate no higher than dividends. The
alternative minimum tax (AMT) should be adjusted and indexed to exempt
middle class homeowners.
● The first time buyers tax credit should be extended for all home
buyers if needed to reduce the number of unsold foreclosed home and
stabilize home values.
● A $2,000 teleworking tax credit for
the purchase of computer hardware and software and/or broadband
connections by employees, employers or home-based business owners should
be created. Similar in objectives to the $2,000 hybrid vehicle tax
credit, it would reduce automobile pollution, traffic jams, and gas
prices, as well as lessen maintenance and investment pressures on our
transportation infrastructure. The increase in broadband demand would
benefit the accessibility of telemedicine.
● The Employee Retirement Income Security Act of 1974 (ERISA) should be
amended to permit investments by retirement plans in principal
residences of children and grandchildren who are buying their first
home.
● Tax credits and other incentives that promote business use of the
home, affordable health care insurance, energy efficiency, and
protection of the environment should be enacted or extended.
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10. Technology and
Communications
Homeowners use technology to pay
bills, buy products and services, plan vacations and business trips, and
increasingly to telecommute, and/or facilitate home-based businesses.
The use of land line telephones is declining, and consumers are rapidly
shifting to cellular telephones and mobile computing. Students use technology tools to do school work and research.
Telemedicine is allowing the chronically ill to remain in their homes
longer and reducing the net cost of healthcare. Promotion of
telecommunications and computing technologies should be a national
priority, and barriers to their use should be eliminated.
● Collection of sales taxes on out of state Internet purchases are
opposed by 85% of consumers, and should be prohibited.
● The Universal Service Fund should be reformed in a manner to
redirect subsides tot he provision of Internet service via any means of
distribution, including wireless.
● Web sites should provide clear and
conspicuous home page disclosure of company privacy policies and include
procedures that give consumers the ability to control the disclosure of
any information they provide.
Broadband access should be made universally available as soon as
practicable. Consumer education on the benefits and use of broadband
technologies should be expanded. The Federal Communication Commission’s
Network Neutrality principles should be updated to reflect changes in
technology since their creation. The FCC has done a good job in
enforcing those principles, and should continue to be allowed the
flexibility to enforce their broad goals in order to minimize the risk
of unintended consequences.
● Spam enforcement procedures should be
included in international treaties. Congress should enact new laws to
punish unauthorized use of spyware and phishing. Anti-spam laws should
be strengthened if necessary.
● Federal funding for programs and tax incentives that provide
affordable broadband services to rural and underserved homeowners and
other consumers, or which promote telemedicine solutions should be
created or expanded.
● Digital Rights Management (DRM) technology should not be mandated.
Consumer’s “fair use” rights to make digital backup copies of music,
movies, and books for personal use should not be abridged.
● It should be illegal to put any software code on computers without the
owner’s expressed advance permission.
● Internet service providers or backbones should be allowed to offer
consumers different pricing based on access speeds but should not be
allowed to arbitrarily slow or restrict consumers’ access to specific
websites.
● To increase competition and consumer choice and lower prices,
additional competitors should be allowed to enter the TV services
market. Internet-based (VOIP) telephone service providers must provide
direct access to 911services. Congress should examine cost-effective
alternatives to improve first responder interoperability.
Consumer
Protection Principles of the Consumer Federation of America:
The marketplace must enable consumers to make informed choices among
services, goods, and sellers:
● Unsafe goods and services should carry appropriate warnings if they
put the user at risk.
● Contracts, advertisements, telemarketing, warranties, mailing
envelopes, sweepstakes, and other written materials should not be
designed to confuse, mislead, or frighten the public. Cooling-off
periods should be available to consumers in transactions that have high
financial risks or involve extended periodic payments.
● The marketplace must make available to consumers complete and accurate
information regarding the goods and services they purchase. Information
should be communicated in plain language, with written information
printed in type that is legible and readable or, if broadcast, is
audible and understandable, to a reasonable consumer. Consumers should
have reasonable time to review disclosures before consummation of the
transaction.
● When consumers are wronged in a marketplace transaction, appropriate
and adequate redress must be available. Clear disclosures identifying
how and where aggrieved consumers can complain must be provided. Redress
must be provided in a timely manner and with a right of appeal.
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