Over 1,000 Realtors from across Texas met in Austin, the state Capitol of Texas, to discuss issues with state legislators that could be potentially harmful to consumers and to the real estate industry.

"We had approximately 200 Realtors from the Houston area leave their homes bright and early to voice their concerns as citizens," said the Chairman of the Houston Association of Realtors(r) and Heritage Texas Properties Senior Vice President Dovie Morgan. "Our Realtors discussed issues such as relief from increasing homeowners insurance rates and the governance of mortgage bankers."

According to the association, major issues discussed include:

Homeowner's insurance - Currently, Texans pay the highest homeowners' insurance rates in the country. Consumers also face problems such as the use of credit scoring, the Comprehensive Loss Underwriting Exchange that stigmatizes properties and makes them uninsurable, non-regulated rates, cherry-picking and right-of-rescission clauses that allow insurance companies 90 days to cancel insurance for any reason. Realtors lobbied hard against the use of credit scores, limited use of the C.L.U.E. report, rate regulation and a time-length reduction in right-of-rescission clauses.

"Realtors realize how important the availability and affordability of insurance is to a healthy housing market and feel duty-bound to lead this charge on behalf of consumers," said HAR Governmental Affairs Director Dana Simons.

Mortgage bankers - During the 1999 legislative session, mortgage bankers were excluded from the Mortgage Brokers Licensing Act, leaving the Texas Savings and Loan Department without the authority to regulate mortgage bankers.

"Approximately 30 percent of our complaints when closing on homes have to do with mortgage bankers," said HAR Director Judy Monroe. "We've seen many instances where we will be at a closing and the banker will change the terms of the loan. At that stage in the game, what choice do consumers have, but to accept?"

Taxes - With Texas facing a $10 billion budget deficit, Realtors recommend a complete review of the state's current tax structure and support the closure of franchise tax loopholes that siphon tax revenue. Additionally, Texas Realtors oppose any taxation on services including a tax on the sale or transfer of real estate and the placement of a tax on services and commissions of real estate professionals.

Home equity - The Texas legislature passed home equity provisions in 1997 that allowed Texans to borrow against the equity in their home. Texas Realtors would like to ensure consumers are protected during the home equity loan process through several progressive measures such as limiting the amount that may be borrowed against a home and eliminating credit card companies and banks from soliciting homeowners to borrow against their homes.

According to some Realtors, it is getting increasingly hard to sell homes in the current economic climate. If Realtors are successful in limiting or improving some factors which are currently out of their control, all the better for homeowners.

Published: April 11, 2003

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