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ARA Legislation, Loan Officer Licensing Advance Under the Dome Two top industry priorities for the Michigan Association of REALTORS® are making headway in the legislature. First, the Agency Responsibility Act (ARA) legislation passed the House last week, and makes its way over to the Senate Committee on Economic Development and Regulatory Reform. The legislation, House Bills 4416 and 4417 , are a product of a MAR Public Policy task force assigned to provide a framework for consumer protection to all individuals entering into an exclusive agency relationship. As a regulated industry, there is an expectation from consumers that laws have been established to protect them from brokers that would take advantage of them. The ARA model, introduced by Representative Tonya Schuitmaker (R-Lawton) and Representative Barb Farrah (D-Southgate), aims to clearly define those basic duties and services owed under an exclusive agency agreement and provide for a uniform statewide disclosure form when the consumer and broker choose to waive any of those services. A committee hearing on the ARA bills is expected in the near future. Second, the Senate passed legislation to strengthen the regulation of the mortgage loan industry in Michigan. This bipartisan, bicameral legislative package (Senate Bills 826-833, House Bills 5287-5291) provides licensing and education requirements, along with mandatory background checks for mortgage loan officers in Michigan. It also allows the Office of Financial and Insurance Services (OFIS) to keep better track of individuals within the industry as they may move around. Given increased real estate fraud and foreclosures in this state, these bills are a big step forward in addressing the root of these problems. This legislative package represents a compromise from many facets of the real estate community, including banks, credit unions and mortgage brokers. The passage of the loan officer licensing legislation is a positive step in halting mortgage fraud, while keeping industry standards high. The bills now move on to the Governor’s desk for her signature. The MAR will continue to closely monitor both the ARA legislation and the loan officer licensing legislation and meet with legislative leaders to stress the importance of enacting both packages of bills in order to protect both homebuyers and the real estate community. 2009 NAR Committee Recommendations Are you interested in serving on a NAR Committee in 2009? Each year NAR opens its online committee system to allow all members to request participation on a national committee. The following is some helpful information to get you started. On March 17, 2008 the Committee Recommendation Database opens and supporting documentation about the recommendation/selection process becomes available on REALTOR.org. Please visit REALTOR.org prior to March 17, 2008 and view your “NAR Expertise Profile”. You can view or modify the information that is on this site. This profile is a critical component of the Committee Selection Process. The information provided in this profile will be used as a resource in a variety of ways, including identification of members with certain expertise to serve on committees, working groups, presidential advisory groups etc. To get to your profile, go to REALTOR.org, NAR Governance and Expertise Profiles (on the right side of page). (Please note that by completing/editing your profile it is not synonymous with submitting a committee recommendation.) MIChild Offers Insurance to Low Income Families Many families around the State of Michigan are finding health care insurance for their children too expensive or plainly unaffordable, leaving their children uncovered. An affordable healthcare program, offered through the Michigan Department of Community Health, is available for children of families with no health care insurance. MAR wants to introduce MIChild as a possible solution to its members. MIChild is a comprehensive healthcare option that provides uncovered children with routine dental and medical services, sick-child visits, prescriptions and urgent care. Blue Cross Blue Shield of Michigan is just one of the participating companies, as well as three dental care plan options. Participating families use ID cards from the companies they choose when visiting their health care providers. With their card, families pay nothing out of pocket when they use their plan providers. The cost of ten dollars per month for each family covers routine dentist appointments, prescriptions, check-ups, vision and hearing care as well as emergency care and other hospital services. With this flexibility, families who were unable to afford these services can make sure their children are updated on necessary vaccines, get the medicine they need and are covered for glasses or contacts. A family of four with a yearly income of $40,000 or less could qualify for the MIChild program. To be eligible, children must be legal residents of the State of Michigan, under the age of 19, unmarried and currently receiving no other health care coverage. Families do have to apply and eligibility is also based on income. To apply, families can log on to michigan.gov/michild or call toll free 888-988-6300. Don't Miss the Largest Broker Event in Michigan! April 15-16, 2008 marks the sixth annual Broker Summit, the largest broker event in Michigan, which provides the knowledge, perspective and insight into the issues facing your brokerage. The conference, held at the Hyatt Regency in Dearborn, is designed to inform, inspire and amaze you with information about major trends that will impact your business. This year’s Broker Summit features nationally renowned industry speakers, including Lawrence Yun, NAR Chief Economist/Senior VP of Research, John Tuccillo, Foremost Real Estate Economist, Sherry Chris, President & CEO Better Homes and Gardens Real Estate, and Steve Harney, one of the top 250 Power Brokers in America by RISMedia. The Summit also includes an expert legal panel and MAR Update. Learn more about these speakers, and others here. In addition to the chance to hear about some of the most promising economical and business trends, the 2008 Broker Summit also offers a great opportunity to network with some of Michigan’s most successful brokers. Jump on this amazing opportunity and register now for only $149. With the help of McClelland & Anderson, we are taking the most commonly asked questions from our legal hotline and putting them in e-news. We will be featuring a different question each issue. QUESTION: An out-of-state broker has a buyer interested in purchasing one of my listings here in Michigan. He also wants to represent the prospective buyer in this transaction. It is my understanding that an out-of-state broker cannot negotiate on behalf of anyone without a Michigan license, but that I can pay the out-of-state broker a fee for the referral of his client. Am I correct? ANSWER: YES, so long as the broker is actually licensed in another state and does not negotiate in Michigan. Section 339.2512(h) of the Occupational Code states: . . . a licensed real estate broker may pay a commission to a licensed real estate broker of another state if the nonresident real estate broker does not conduct in this state a negotiation for which a commission is paid. Mortgage Forgiveness Tax Relief Instructions Available The IRS has released a document (IR-2008-17) to educate taxpayers on complying with the mortgage cancellation tax relief provisions enacted at the end of last year. Borrowers who had some portion of their mortgage debt forgiven in 2007 should receive a Form 1099C from the lender identifying the amount of forgiven debt. Borrowers must also file a newly created form to report to the IRS that the debt relief was for a qualified mortgage. The new form, Form 982, and its instructions are available online from the IRS. The mortgage relief provision applies to debt forgiven in 2007, no matter when the mortgage was entered into. The most frequent circumstances in which debt is forgiven is on foreclosure, short sale, or a workout or reformation agreed to with the lender. MAR Director Accepts "Best of Michigan" Business Award Last month, Milliken Realty Co., owned by MAR Director Bill Milliken, was awarded “Best of Michigan” Business by Corp! Magazine. “Best of Michigan” Business awards were made to businesses in nine categories, and were based on nominations by the Magazine’s readers. Corp! indicated that nearly 1,000 responses came in by mail and e-mail. The awards were held at the MSU Management Education Center in Troy, on February 19. Milliken accepted his award from Corp! editor-in-chief Edward Deeb, and about two hundred people were in attendance. "This came out of the blue,” says Milliken, “But I think it shows that, beyond the normal course of business, the business community places a premium on your community involvement."
Calendar of Events For more information, check the events page and the education calendar.
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