Politics and Real Estate

[Bill Gulley]

First, there is a stickey in the Off Topic section; Political Discussions On BP, where Josh has outline the rules concerning political discussions, so let's take care to follow them.

In our new political environment I'm getting concerned about how the real estate industry might change due to political influences and any good business person must give consideration to government oversight and how regulatory changes might impact any business plan.

This is not about any one official, (President) but rather the philosphy of the two major parties, the Democrats and the Republicans and their agendas and how,if their respective agendas become reality, could change the way you do business.

What is the likelyhood that either party will control the House and Senate and take the Whitehouse? What is the chance that power will remain divided? And in either case to what degree should we expect to see changes?

Targeted concerns of changes:

The Democrats got the SAFE Act and the CFPA on the books and operational. These are consumer oriented issues that restrict seller financing, require mortagage originators to be licensened and the adminstration of the SAFE Act under HUD. The Consumer Financial Protection Administration is a regulatory arm that will be looking at all financial transactions that may deal with real estate to include personap property or mobile homes. While much of this is unknown we should assume that the impact is to clean up preditory practices.

So it seems that if the Democrats take the field, thses regulations will be enforced and the agency supported.

Now, the Republicans have announced that in order to reduce government spending that they will be eliminating the Housing and Urban Development agency or HUD. The agendas also include restricting banking regulatory agencies, Comptroller of Currency (that regulates National Banks) and the FDIC regulating all others. As to lending, less oversight by regulators generally means violations go unchecked and tend to increase, it's human nature to act up when the teacher is out of the room. As to the closing of HUD, will Section 8 survive or will funding be cut and adminstration be abolished.

So, if the Republicans take the field, regulations and agencies may be shut down opening the doors to a different business modle.

Not asking who you support one way or the other, this is about how things may change and how to modify your business, or manage risks that will arise?

Please be nice and business like.....address the issues....