Event Coverage
SILVAR Members Discuss Issues with Legislators
SILVAR members gather before heading to the State Capitol building to speak with their legislators.
Approximately 50 SILVAR members joined over 2,000 REALTORS® from across California at the State Capitol in Sacramento and met with their respective legislators on Wednesday, the California Association of REALTORS®' 2012 Legislative Day. Legislative Day is a once a year opportunity for REALTORS® to meet as a group with their representatives in office and personally explain how certain bills and policies impact homeowners, home buyers and the industry.
REALTORS® first gathered at the Sacramento Convention Center for a Morning Briefing with C.A.R. officials, including a welcome by C.A.R, President LeFrancis Arnold, a special appearance by California Governor Jerry Brown, and a briefing on "hot issues" from C.A.R.'s chief lobbyist Alex Creel.
Brown championed REALTORS® and what they do. He also acknowledged the beleaguered economy. "People screwed up. … Things are out of whack in Washington and in California," exclaimed the Governor.
Brown said if his new tax plan on the November ballot is not passed, more cuts will have to be made. "We need to decide what will work against what is acceptable to the people. We need to get the will to make the cuts," said Brown. "Unless we get to make big unpleasant cuts, we are not going to balance the budget."
The briefing was followed by a joint luncheon with members of SILVAR, the San Mateo County and Santa Clara County Associations of REALTORS®, with political analyst Dr. Tony Quinn as guest speaker. Quinn discussed the impact of the open primary law and the new system of preference for a party. He predicted a lower voter turnout in the coming election, with more absentee voters as voting by mail has become more popular.
In the afternoon SILVAR members met with Assembly Members Paul Fong (Dist. 22), Richard Gordon, Jim Beall, Senator Sam Blakeslee (Dist. 15), and staff of Senators Elaine Alquist (Dist. 13), and Joe Simitian (Dist. 11). Issues of concern they discussed included:
• AB 1745 (Torres), a bill C.A.R. is sponsoring to prevent dual tracking. This bill would prevent lenders from foreclosing on a property after having approved a short sale. This practice has resulted in families losing their homes even when a short sale has already been approved.
• REALTORS® are also opposing several foreclosure reform bills introduced as a package and sponsored by the state Attorney General. The package of bills, which includes some bills that were never voted on in committee, is bypassing further committee hearings and has gone straight to a conference committee. C.A.R. opposes provisions in these measures that will 1) force those filing a Notice of Default (NOD) to certify the chain of title of the note and mortgage or deed of trust; 2) create a very broad definition of a "robo-signed document" and impose civil penalties for recording that document; and 3) permanently establish a 90-day notice to vacate foreclosed properties.
While careful and balanced reforms to the foreclosure process are necessary, these measures will further delay the housing recovery by creating a disincentive for lenders to lend money; prompt lenders to increase the cost of loans; and allow strategic defaulters and investors to abuse the foreclosure process. C.A.R. specifically opposes AB 2425 and SB 1471, which seek to impose a version of the state of Nevada's disastrous robo-signing prohibition. The "Nevada approach" broadly defines a robo-signed foreclosure document to include ANY document with any error, intentional or not and imposes a civil fine of up to $10,000 for recording a robo-signed document and requires a servicer filing an NOD to be able to personally certify the chain of ownership of the mortgage. The "Nevada approach" has prompted lenders to opt for a judicial foreclosure instead of a trustee sale, which has slowed down the process.
Also in the package are AB2610 (Skinner) and SB 1473 (Hancock), which C.A.R. opposes because these bills seek to lock into California law part, not all, of the federal "Protecting Tenants at Foreclosure Act," preempting existing state law and extending the tenant eviction requirement to 90 days. While federal law contains a sunset provision and requirement of a "bona fide" tenancy, AB 2610 and SB1473 do not contain these safeguards. Under these proposals, a borrower, knowing the loss of property is imminent, could recruit a "renter" to prevent the new owner from taking possession for 90 days or the duration of the lease with the "renter."
All the legislators thanked SILVAR members for coming to the Capitol and personally meeting with them. "Your presence is important here… We respond to people who talk to us. If you don't talk to us, we haven't heard the story," Assemblymember Gordon told REALTORS®.
"We are by no means out of the woods yet until the foreclosure market is addressed," said Senator Blakeslee.
Blakeslee said the routing of the package on foreclosure reform directly to a conference committee "creates a new path and is against the normal process." The challenge is how to bring more attention to the negotiation aspects, "to agree on the things we can change and agree on the problems," he explained.
Blakeslee added that the legislators are keenly aware of the disinterest and impatience of the public. "The people don't want to understand it; they just want it fixed," said Blakeslee.
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The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
For further information, please email or call the SILVAR office at (408) 200-0100.