It was such an embarrassment for Representative Michael Oxley, (R)-Ohio, chairman of the Financial Services Committee, that he left halfway through the "congressional committee hearings he had called for."
His bipartisan subcommittee was clearly not impressed by the parade of whining, sniveling dot-coms who want Big Daddy to eliminate their competition for them by destroying so-called traditional brokers, the MLS and the NAR. They want access to the MLS without regard to sellers' or listing brokers' rights. Neither were they impressed by the persecution of the real estate industry by the DOJ and FTC. Panel members, particularly Maxine Waters, (D)-California seemed irritated, and the overall conclusion of the committee was that there was no need for congressional intervention.
That's a good thing -- because the subcommittee was called purely out of spite. Frankly, Oxley is batting 0 for 3 against the real estate industry:
- His Fair Choice in Real Estate Act, an act that favors banks in real estate failed to garner more than one other congressional supporter.
- Last week, the Senate Appropriations Committee approved legislation that would permanently ban U.S. banks from engaging in real estate activities.
- There was no bill attached to the outcome of the subcommittee's probe into real estate competitive practices. Not only did NAR and RE/MAX defend the industry, but the self-serving scheming and whining of the dot-coms, DOJ, and FTC caused his own committee to kick back with a humiliating conclusion -- we don't know what we're doing here, and there's no congressional intervention needed.
The good news? The real estate industry is finally fighting back against the DOJ, FTC, banks and their paid hired guns like Oxley and the Consumer Federation of America.
Because Oxley failed to come up with examples where consumers are harmed by the present system, the Consumer Federation of America has joined Oxley's cause spewing out of date opinion as fact and getting lots of press coverage to roil more hatred against "traditional" real estate agents.
In fact, the CFA's accusations against the industry were so outrageous, namely that state legislatures aren't protecting consumers and calling for federal oversight of the real estate transaction, that the Association of Real Estate License Law Officials (ARELLO) made a rare press statement of its own.
Among the points ARELLO fired back at CFA:
- By stating that CFA has "no authority or research for this broad assertion that state regulators have failed to adequately inform, educate, and protect home sellers and buyers using brokerage services."
- By explaining the purpose of having licensees on state real estate commission boards -- that more than 800 professions are licensed at the state level and their governing boards are "typically composed of members appointed by the governor of the state, sometimes with the approval of the legislature ... . Because licensed practitioners understand the nature and complexity of the industry, the standards of practice, and codes of professional conduct, they are considered uniquely qualified to administer the licensing program and sit in judgment of their peers."
- To CFA charges that some states regulators fail to discipline licensees for discriminatory conduct, ARELLO suggests that "such issues can and have been addressed more appropriately in courts of law."
Says New Jersey broker Karl von Loewe , "I disagree that the cost of labor (commissions) is what this is really all about. Editor's Note: Isn't Consumer Federation of America funded in large measure by the Bank of America?) I think there is another issue, an elephant in the room, so to speak. State real estate transfer taxes are seen as one heck of a golden goose's egg, and the imposition of a federal real estate transfer tax could help fund a couple days' activity in Iraq, or something else equally useful."
More are calling for arms.
"As a 20 year participant in the real estate and mortgage industry, I certainly have many complaints about the archaic online tool sets, poor quality, and general mayhem that the nationwide MLS's and the Association of Realtors cause due to their general bureaucratic nature," says Dave Van Waldick, principal, ePrequal.com. "These growing and mostly baseless attacks against our industry by outsiders, regulators, and members has me thinking we are engaged in a war of sorts for our livelihood and control of our efforts and resources. On that note, I am wondering who is really carrying the charge on behalf of the industry? Is their any one "spokes company," member, PR firm, regulators, etc. who we can look to and provide resources to in support of their efforts? While I believe NAR may be the largest and designated mouthpiece, I think at a critical turning point like as this the industry needs a highly focused, nonpolitically handicapped firm or group whose sole purpose is to promote the industry and point out the fallacies and politics of regulators like Oxley who merely voice clichés and economically harmful barbs to further his public profile."
Or agents can continue to do business as they see fit, as long as they follow state regulations.
"I have now cancelled two credit cards -- BOA and MBNA, now Bank of America, too," says Washington broker Linda M. Hoffman. "In our MLS here in western Washington, an agent in my office is representing a LendingTree client in their purchase of a home paying her a .5 percent commission. As long as a prospective seller can ask me to work for nothing and I can say no, how is that consumer damaged?"
