I just read the press release where NAR comes out in support for the government intervention in mortgage contracts between borrower and lenders. NAR basically says, "Stick it to the lenders".  While maybe a popular sentiment throughout history, is it a good policy?

I guess it's time to redefine the concept of "contract".  Here's the old definition:  "An agreement between two or more parties based on mutual promises and responsibilities."  I'm wondering how this definition will be reformulated in the years to come.

When it comes to mortgages, the borrower is flooded with all kinds of government imposed and sanctioned "disclosures" well before closing.  This is to "protect him/her".  Given all that protection, where does the "predatory" part come in?  What is the purpose of the "Truth in Lending" document?  What about the "good faith estimate"? What about the borrowers right to review the final documents 24 hours prior to closing.  As professionals, we do insist on that review by our client, right?

Sure, there are instances of abuse and fraud- but we have laws to prosecute that.  Let's prosecute those instances instead of painting the entire market with a broad brush?  It's simply wrong headed.

It's disappointing to read that NAR agrees that government should intervene and alter fully executed, fully disclosed contracts... after the fact.  Describing fully disclosed loans as "predatory" is a juvenile way justify the hysteria.  But this predatory claim is far overstated- and hides the fact that most subprime borrowers now facing foreclosure  chose to "roll the dice" and lost... and now want to escape responsibility for their risky decision.  That's the truth in every case that I'm aware of.  NAR and the government want to remove the responsibility component of the contract.

At some point, don't we have to take personal responsibility for the contracts we execute, or is the concept of binding contracts simply too old fashioned for our current enlightened leadership?  Should we reform our laws to more closely align our future with the concepts based on communism?  I mean, should all current and future contracts be subject to government intervention if our government deems it politically popular?  No matter that it sets aside the enforcement of the "promises and responsibility" that contracts have heretofore imposed on the parties to an agreement.

If we choose to set aside our contracts in this manner, how does that affect all of other dealings among ourselves, commercial and otherwise?  In my opinion, this "plan" leads us down a slippery slope that will take us to places we did not plan to visit, and may be unable to return from.

I think the "bail out" plan is a serious blunder and should give us all pause to think about the role of government in our lives and the perhaps unintentional effect and precedent this kind of overreaching has on our society as a whole. We are fast becoming a "Nanny" state.. Dependent on government for our well being.  Our leaders are turning away from the idea that we want to live in a free society that allows us the freedom to make decisions for ourselves.  We need the freedom to take risks, and to fail if we make poor decisions.  If we are constantly bailed out, what do we learn? How do we mature?  How do we succeed long term if our government becomes our "nanny"?  Don't we become soft and compliant? Someone has to pay for bad decisions.  Why remove responsibility from the contract?   Isn't that a set up for failure as we march through time?

We are, day by day, marching toward collectivism- this is just one example of the gradual removal and elimination of our individual liberty and control.  Think about it. It's time for we the people to accept personal responsibility for our actions and decisions.  We must insist on some maturity when it comes to these important issues. To ask government to re-write the rules, after the fact, is very short sighted.

How do we strengthen our economy, and give more people a REAL opportunity to live the American Dream?

One of the major reasons we, as a country, are underperforming (compared to where we could be) is directly attributable to our current, out-dated, extremely expensive system for calculating, imposing, and collecting taxes. The current system is simply unfair and needs to be changed. It is deficient in so many ways, it's difficult to summarize.  Here are just a few of the problems

Problems:

• Far too complex for CPA's, let alone ordinary citizens
• Billions are spent/wasted on non-wealth producing activities-draining our economy
• Hidden taxes abound- Do you know how many tax dollars are "built into" the new home you buy? Hidden taxation is a very real problem- and very difficult to control. Why not make taxes transparent?
• Underground economy flourishes with no taxes being paid on the economic activity-forcing higher taxes on everyone else
• The IRS is a huge drain on our economy. The cost of being "compliant" is way out of line- another drain (tax) on our economy- a form of "hidden" tax
• The system makes it easy to fall victim to tax "hell".  The legal system is filled with suits against "cheats" and others who make errors on tax returns, intentional or not. Why stay with a system that is so complex and expensive?  Ordinary citizens are compelled to become "tax experts" , rely on "professionals" who are quite often wrong, and be always tempting criminal prosecution and/or financial disaster?

Why don't we foster a system that removes all income tax, social security taxes (employer and employee), medicare taxes, and pays EVERY legal citizen a monthly check of around $200.. and never requires a tax form- eliminates the complex, unfair tax code, extinguishes the IRS, eliminates all withholding and tax schemes (they would no longer be necessary), and finally restore free enterprise to our economy.  How can we remain competitive in the world when our tax system requires every product and service pass along 'hidden taxes"?

I encourage you to read and support a new plan.  Don't think you know what it is until you've carefully looked at ALL the benefits and the fairness built in. This system will unshackle each and every one of us from a system that is simply counter productive to our individual and national interests, reduce prices, encourage saving and investment, and make our economy grow and generate a flood of new, high paying jobs.

I encourage you to contact your congressman-  ask him/her to set aside politics for a moment and review this exciting new plan.  Let our people become free of the IRS and set the stage for a new surge of economic prosperity.

Summary pdf:  http://www.fairtax.org/PDF/FairTax-Fundamentals_and_facts-070122.pdf

for more info: www.fairtax.org

Video summary: http://easylink.playstream.com/fairtax/fairtax-multistream.wvx

As time goes on, the promise a uniform 'e-signature" platform remains elusive.  In this electronic age, surely it's time for someone to come up with a secure, easy to use way to sign docs without having to use ink and paper.

How about you?  Are you using electronic/digital "secure" signature technology? What are the pros/cons?

One company that seems to offer a good platform is http://docusign.com/ - but I can see how the cost for this service can climb VERY quickly.

Have suggestion for an alternative?  People (brokers) want to know!

Here is an interesting bit of video about Google and it's enourmous influence in less than 10 years time.

The application is free for everyone. It searches (and almost always finds) virtually all real estate that is truly currently on the market. It integrates with other online applications, like http://craigslist.com to provide excellent street maps, overhead pictures, pictures of the outside/inside of available properties all over the country (world).

The real estate professional acts much less as taxi driver than at any time in history.

So where should the future professional invest time and resources?  What are the primary functions/ services demanded by the buyers and sellers?  As the inventory of available properteis continues to become easier to "find", it seems to me that the services we should focus on providing are now more clear than ever before. 

We need to be good at evaluating comparable properties... we need to improve our "people skills" to move people closer to agreement and be able to document the agreement competently and without ambiguity.  We need to understand financing- advise seller's and buyer's how to use financing to create win-win transactions. We must above all be trustworthy and understand that trust is the foundation of all relationships.

There is much more we need to work on, but Google is making the focus of our work "different".  How do you think Google will change the emphasis of your business?