Election time strategy

In the spring flowers bloom and the air is filled with their fragrance. Also at this time of year, mailboxes fill with campaign literature from hopeful candidates, both incumbent and newbies each vying for our votes in the upcoming primary elections. What better time then, to lobby these folks to focus on issues that affect the real estate market?

Each year at this time Realtors descend upon "the Hill" in Wash-ington, D.C., in response to invitations from our legislators. These mid-year meetings are attended by staff and representatives from Realtor associations throughout the U.S. An election year audience with our government officials is especially important since people who are interested in retaining their offices tend to listen more intently then right after they are elected.

This year we are presenting issues that are important to protecting the somewhat fragile housing recovery. What with fluctuating interest rates and threats including flood insurance (which was successfully extended), USDA loans (set to expire this year in Post Falls) and Mortgage Interest Deductions, the decisions made in Congress are critical to sustaining the recovery.

The Mortgage Interest Deduction is often looked at by lawmakers as one of the easier ways to raise tax revenue. It allows homeowners to deduct the interest paid on their mortgages so of course, only benefits those with a mortgage. Still, it provides an important incentive for people who are looking for ways to build wealth through homeownership, allowing them to borrow for a home, knowing that the impact on their budget will be minimized through the deduction. Even though the threat is not imminent it is always present. Realtors are firm on preserving the mortgage interest deduction and the deductibility of state and local taxes.

To help consumers still struggling to right themselves after the downturn, the National Association of Realtors is backing a two-year, retroactive extension of mortgage debt cancellation relief, which expires at the end of this year. The law prohibits the IRS from treating forgiven mortgage debt as income, thus protecting already struggling households from a tax bill on money they never see. Even though we see a decline in sales of distressed properties, to tax those who have lost their homes seems an insult after injury.

Realtors are also in discussion with legislators regarding the future of Freddie Mac and Fannie Mae as the government looks toward redesigning or eliminating these Government Sponsored Enterprises. NAR has long called for replacing Fannie and Freddie but maintaining an explicit federal presence in the market to ensure continued mortgage market liquidity. Even though no legislation is pending on this issue, Realtors want politicians to keep their eye on the ball and to protect some kind of government insurance for loans and to prevent raising the down payment requirement for these types of loans, maintaining a 3.5 percent down for borrowers as currently available through government backed mortgages. Realtors urge policymakers to prioritize strong underwriting standards over high down payment requirements that would put homeownership out of reach for otherwise creditworthy buyers.

In addition to volunteer activists from local associations Realtors make campaign contributions both Democrat and Republican, to those candidates who support private property rights including the unfettered transfer of all types of real estate. These contributions are funded through voluntary contributions to the Realtor Political Action Committee or RPAC. If property rights and a healthy real estate market are important to you, ask your agent if they contribute to RPAC.

Trust an expert...call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.