Advocacy Scoop
Are you listening to the NAR podcast The Advocacy Scoop? It’s the only podcast that takes you inside the advocacy work of the National Association of REALTORS®.
The Advocacy Scoop is dedicated to peeling back the curtain on the advocacy operation of the world’s largest trade association. The real estate sector makes up nearly 20% of the entire U.S. economy, and NAR’s advocacy work is critical for housing affordability and protecting private property rights. Listeners will walk away with a better understanding of how NAR’s advocacy operation works, its many successes, and how the advocacy team is faring on some of NAR’s biggest legislative fights. Shannon and Patrick will also share insights on the 2024 Election, as well as stories you won’t hear anywhere else.
Listen and subscribe where you get your other podcasts.Â
Settlement Resources for Consumers
We are pleased to share the next two resources in our NAR’s new “Consumer Guide” series, which cover the following topics:
Open Houses and Written Agreements: Defines key terms under the settlement in consumer-friendly language and helps to explain when agents are required to enter into written agreements with buyers and when they are not.
REALTORS’® Duty to Put Client Interests Above Their Own: Explains what it means for a REALTOR® to act in their client’s best interest and describes how the practice changes combat unlawful steering practices.
Designed to be given directly to inquiring buyers, these resources are part of NAR’s ongoing campaign to help our members bring clarity to the practice changes for consumers. Both guides are available for download on facts.realtor. As a reminder, the first installment in this series was an overview of written agreements, which can be found here.Â
Announcing the New Pro-Property Platform
Pro-Property Platform is a new giving platform that enables individuals to contribute directly to pro-REALTOR®, pro-property rights congressional candidates and incumbents of their choice. The Platform is a new way for us to participate directly in building a pro-REALTOR® Congress.
Giving directly to our congressional champions through Pro-Property Platform labels our dollars as pro-REALTOR® and sends a powerful message about the strength of our industry.
This won’t replace RPAC, it isn’t a mini–President’s Circle – but it is a new tool that will amplify the impact of RPAC’s investments in candidates – delivering winning resources to campaigns.
There are no goals for state and local associations – this program was conceived of by RPAC’s Fundraising and Disbursement Trustees and we are relying on volunteer leaders to support and grow this program.
If you have any questions, feel free to contact the Platform team at info@propertyplatform.com
FinCEN Issues New Anti-Money Laundering Rule for Real Estate
Recently, the Financial Crimes Enforcement Network (FinCEN), a Bureau within the U.S. Treasury Department issued a final anti-money laundering rule for the real estate industry. In February 2024, NAR submitted a formal comment in response to FinCEN’s proposed anti-money laundering rule on this issue.
The final rule requires certain real estate professionals to report information for non-financed residential real estate transactions, and transfers of real estate to trusts or legal entities.
The rule imposes a cascading reporting regime, which requires closing or settlement agents to provide certain transaction information and details. Alternatively, the real professionals can also designate a specific professional to be responsible for reporting. FinCEN explained that it expects reports to be filed primarily by settlement agents, title agents, insurance agents, or attorneys; however real estate agents are not explicitly exempt from reporting under the rule.
The rule also imposes recordkeeping requirements as well. The rule goes into effect on December 1, 2025.
In addition to the rule, FinCEN issued two resources, the FinCEN Residential Real Estate Rule Fact Sheet and a Frequently Asked Questions document.
NAR will continue to monitor this rule, and will provide updates, educational resources, and guidance to members regarding this rule.
Read FinCEN’s Press Release
Biden-Harris Administration Announces Actions to Increase Housing Supply
The Biden-Harris administration announced several actions to help increase the supply of affordable housing. Furthering on the administration’s June announcement, which NAR supported, and which awarded $85 million in grants through the Department of Housing and Urban Development’s (HUD) Pathways to Removing Obstacles (PRO) Housing program, today’s actions included an additional $100 million in grant funding to assist state and local governments with identifying and overcoming barriers to housing development.
The administration’s fact sheet to creating more affordable housing included a number of other items, including solutions to interest rate predictability for multifamily development, streamlined processes through the Department of Transportation for loans near transit centers, and a commitment to finalizing its rule for updating the Manufactured Home Construction and Safety Standards.
NAR commends the Biden-Harris administration for continuing to take important steps to address the nation’s critical housing supply shortage.
NAR Submits Comments on Fannie Mae and Freddie Mac's Duty to Serve Plans
NAR submitted comments to the Federal Housing Finance Agency (FHFA) regarding Fannie Mae and Freddie Mac’s (the GSEs) Duty to Serve Plans. FHFA requires the GSEs submit plans in three-year increments about how they are going to serve traditionally underserved markets, especially for rural housing, manufactured housing, and very low-, low-, and moderate-income consumers. The proposed plans align closely with NAR policy, and we thank FHFA and the GSEs for continuing to explore and execute plans to help underserved markets.
NAR especially applauds their dedication to multifamily housing in rural communities, dealing with issues surrounding heirs’ property, energy efficiency upgrades, and Low-Income Housing Tax Credit (LIHTC) investments. We also suggest that FHFA explore ways that the GSEs can provide funds for condominium complexes that have significant deferred maintenance. This will help to not only preserve and strengthen current housing stock, but also repair complexes and bring them in compliance with GSE lending standards. This will create safer housing while also making more complexes open to conventional lending. Read the Letter
CFPB Weighs in on Contract-for-Deed Arrangements
The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion and research on contract-for-deed financing arrangements. This announcement makes clear that such arrangements fall under the Truth-in-Lending (TILA) laws which require the lender to prove the borrower has the ability to repay the loan, to provide disclosures, and limits balloon or bullet payments.
Contract-for-deed or land contracts are agreements for a buyer to make regular payments on the property to the owner at the end of which time, they receive the deed. These arrangements were rife with exploitation during the 1970s and 1980s and are still common in some communities. They often carry high rates, quick foreclosure processes, and limit home buyers’ ability to recoup maintenance or improvement expenses.
This clarification by the CFPB will also impact FinTech companies that offer to purchase a home for a borrower, which the borrower then pays back or has a finite period within which to purchase the home. It also highlights some of the murky agreements that affect some equity sharing deals, an issue NAR’s Shared Equity Work Group is currently contending with.
2024 Association Profile
NAR became the largest trade association in the United States in the early 1970s, with over 400,000 members in 1975. Today, the National Association of REALTORS® has 1.5 million members, 54 state associations (including Guam, Puerto Rico, and the Virgin Islands), and more than 1,000 local associations. With varying sizes, markets, members, and resources, different associations have different priorities and policies. The purpose of this report is to serve as a reference guide of best and common practices for Association Executives and staff members nationwide.
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Key Findings
With a network of more than 1,000 local associations and 54 state associations, it is important to understand commonalities and differences and to understand best practices. With varying sizes, resources, and local markets, let’s take a look at how REALTOR® associations operate and compare to each other:
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Associations Overview
Most local REALTOR® associations are smaller in size: 77% represent fewer than 2,000 members each.
37% of associations’ MLSs allow non-REALTOR® participation.