Why the NAR Has So Much Political Influence

• The National Association of Realtors Political Action Committee (RPAC) is among the largest trade association PACs.
• RPAC contributed $3,752,005 in 2006 to federal candidates (49% to Democrats and 51% to Republicans).
• RPAC also raised $1,716,960 in political contributions in 2006 (from individual donors giving $200 or more).

Source: OpenSecrets.com

The Voice for Real Estate

If you thought there was nothing further that the NAR could do to discredit themselves, you were wrong. In a recent press release, NAR's president Pat Combs made it clear that the Association isn't looking out for the public interest, but rather, for its own 6 percent commission checks.

According to Combs' statement, the NAR applauds Bush's mortgage bailout because the proposed changes to FHA guidelines will 'ease the crisis in the mortgage industry'.

'NAR has been advocating many of these FHA changes since early in 2007. In letters, speeches, testimony and meetings, we have encouraged Congress and the U.S. Department of Housing and Urban Development to make meaningful changes to the FHA to stem rising foreclosures,' writes Combs. 'The proposed changes can allow more people to refinance with FHA insurance, like people that have fallen behind in their mortgages because of so-called exploding ARMs.'

The NAR fails to mention that these proposed changes are also going to bail out the lenders who thoughtlessly offered these exploding ARM loans in the first place. Also not mentioned: when a homeowner refinances into an FHA-guaranteed loan, this risk is then transferred to taxpayers. If these newly-refinanced borrowers default on their mortgages once again, it will be taxpayers who eventually pay off these loans.

And let's face it; the reason why many borrowers are now defaulting isn't because they have ARMs, but because they can't afford the homes they are now living in on their current incomes. That's why they got ARMs to begin with.

So, why is the NAR so eager to keep this bubble inflated at other people's expense? Why are they so eager to transfer this risk to taxpayers instead of to the banks who will no doubt keep this easy money train rolling if they can just get out of this mess?

Because, the NAR is the (self-dubbed) 'Voice for Real Estate', not the 'Voice of Reason'. They want to keep their 6 percent commission checks rolling in. The more people pay for housing, the more realtors make in commissions. That's why they were so eager to encourage investment housing purchases during the boom, and so eager to encourage the bailouts now.