The National Association of Realtors' new president Tom Stevens doesn't pussy-foot around about banks, group health insurance, the housing bubble, and other hot topics.

Take the press release he just had the NAR issue about a new Bankrate.com study that shows banks are boosting fees faster than the interest rates they offer their customers. Stevens wants the world to know what banks are up to.

"We're selling shelter," he says bluntly. "That's what people need, and we can't afford to have banks in real estate charging fee upon fee."

The Bankrate.com survey found that:

• The fee for using the "wrong" automated teller machine -- one owned by a bank where you don't have an account -- hit an all-time record high. You’ll be hit twice for a single withdrawal -- once by that other bank's ATM fee and once by your own bank, for a total average fee of $2.91.

• American consumers will pay more than $4.3 billion in withdrawal fees for using ATMs not owned by their own bank in 2005.

• Bounced-check fees have gotten sneakier. While the average insufficient funds fee fell a few cents, from $27.13 to $26.90, Bankrate found more banks are instituting tiered fees that ramp up the more often you bounce a check or leave a check uncovered. Even at $26.90, the bounced-check fee remains the second-highest recorded since Bankrate began surveying checking accounts in 1998.

• Interest-bearing checking accounts remain an unattractive option, where you have to pay a lot more to open an account and lock up a lot more money to gain a pittance in interest.

"Banks have once again demonstrated their incredible ability to find ways to charge customers record fees. Banks that once touted warm, fuzzy customer relations now are brazenly charging nearly $3 to use an ATM and more than $26 for a bounced check," chastised Stevens. "Imagine what they will do to the real estate customer if they are allowed to broker real estate. Banks will control the real estate transaction end-to-end, creating virtually unlimited opportunities for extra charges and add-ons."

Since 2001, NAR has successfully opposed a rule promulgated by the Federal Reserve and Treasury Department that would allow federally chartered banks to enter real estate brokerage and property management. Some 250 members of the House and 27 senators support the Community Choice of Real Estate Act, which would bar federally chartered banks from entering real estate, however getting the legislation passed isn't happening fast enough or publicly enough to suit Stevens.

There's been some opposition, namely by Congressmen Mike Oxley and Barney Frank. Their election campaigns were heavily supported by banks, and they have tried unsuccessfully so far to garner support for legislation to allow banks into real estate.

That doesn't mean Stevens is going to let opposition off the hook, just because they're losing.

"The consumer is the ultimate client. That's how I've done business for 34 years," says Stevens.

So is there a new tone to the NAR? A more challenging public persona?

"You'll see a faster pace, quicker decisions, and more focus," vows Stevens. "My style is you evaluate the options, make decisions and move forward. The NAR is a volunteer organization, but we have a lot of decisions to be made. It's very visible, and when you're on top, more people take shots at you, but challenges like that create more opportunities."

Stevens says his focus this year of his tenure will be on three major topics -- getting banks out of real estate for good, getting affordable group health insurance for Realtors and other self-employed people, and convincing the financial press that the real estate market is strong and will remain strong.

The affordable group health insurance project was started with Terry McDermott, outgoing NAR CEO. "We participated in getting President Bush to announce it (the NAR was in the forefront lobbying for that)," says Stevens, "but hurricanes and disasters have pushed some decisions back. We're going to push to get this on the front burner again."

He's also intent on getting the word out, that despite the financial press' harping, there isn't a housing bubble.

"We will be challenged by the next market," says Stevens. "We hear so much that it's a bubble, and the press wants to say we'll have a soft landing. Appreciation rates might change, but real estate will remain strong. Once you own a home, you don't want to go back to renting. We are teetering at 70 percent home ownership, and that is built-in momentum. Interest rates going up, Katrina, the economy, job formation, and other things might have effects but they aren't going to move the housing market down. People want shelter."

"The President's tax reform of converting the mortgage interest deduction into a tax credit -- no way," he vows. "We won't stand for that. We have worked hard to build savings in our homes, if we converted the average sale priced home to tax credits, those homeowners would lose $20,000 to $30,000 in value on a $216,000 home."

Stevens says he likes to get things done.

I like you this way, NAR.

Published: December 5, 2005

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