Builders Urge Congress to Improve Lacey Act to Protect Consumers, Businesses

Builders Urge Congress to Improve Lacey Act to Protect Consumers, Businesses

WASHINGTON, May 8 - The National Association of Home Builders (NAHB) today called on Congress to amend the Lacey Act so that individuals and businesses that unknowingly purchase illegal wood products from overseas do not have their property seized and are not exposed to civil and criminal liability.

Testifying before the House Natural Resources Subcommittee on Fisheries, Wildlife, Oceans and Insular Affairs, Barry Rutenberg, chairman of NAHB and a home builder from Gainesville, Fla., said that NAHB supports the goals of the Lacey Act and the prevention of trade in illegally harvested plant and wood products.

"Unequivocally, we do not support illegal logging in any place at any time," he said. "However, honest business owners, including home builders who exercise due care and had no knowledge that a seized product contains illegal wood, should have the right to seek the return of those goods."

Under the current statute, innocent companies are left without legal standing to challenge a government taking in court. As a result, both builders and consumers who buy products that encompass the entire supply chain dealing with imported wood products (lumber, cabinets, guitars, etc.) are held personally liable to certify that the timber product did not come from plant material that was taken, transported, possessed or sold in violation of any foreign law.

"Builders have no way of knowing the origin of a particular piece of lumber, a component of a cabinet, a closet door or crown molding," said Rutenberg. "The sheer number of different sources of wood that could be included in the finished home makes it nearly impossible for a builder or remodeler to know with certainty where and under what circumstances the individual components were sourced."

With this in mind, NAHB is urging Congress to amend the Lacey Act to include reaffirmation of civil forfeiture law so that innocent consumers and businesses would have the opportunity to seek the return of their property in court if it was seized as a result of any enforcement actions under the Lacey Act.

NAHB also commends Rep. Jim Cooper (D-Tenn.) for his efforts to propose much needed reforms to the Lacey Act while at the same time seeking to improve and protect the integrity of the law.

H.R. 3210, the Retailers and Entertainers Lacey Implementation and Enforcement Fairness Act, or "Relief Act," recognizes the essential need to hold harmless those who unknowingly and without any culpability, are found to be in possession of products that run afoul of the Lacey Act.
"H.R. 3210 represents an important first step and we look forward to working with Rep. Cooper to improve the bill as it moves through the legislative process," said Rutenberg.

Diverse Group Calls on CFPB to Create Broad QM Market - Narrow QM Would Harm Consumers and the Housing Recovery

WASHINGTON, April 17- A diverse group of 33 lenders, housing professionals, consumer advocates and civil rights organizations came together today to call on the CFPB to issue broadly defined and clear Qualified Mortgage (QM) standards as part of the forthcoming Ability to Repay regulation.

The organizations wrote to Richard Cordray, Director of the Consumer Financial Protection Bureau, that a narrowly defined QM would undermine prospects for a housing recovery and threaten the redevelopment of a sound mortgage market.

"Congress intended that all creditworthy borrowers - especially low- and moderate-income borrowers and families of color - should be extended the important protections of a QM ... A broad QM, which includes sound underwriting requirements, excludes risky loan features, and gives lenders reasonable protection against undue litigation risk, will help ensure revival of the home lending market."

Federal Reserve Chairman Ben Bernanke, other regulators and many private sector economists and housing market analysts have highlighted the fact that today's underwriting standards are too restrictive and are holding back a housing recovery. A narrowly constructed definition of Qualified Mortgages would further tighten credit, and harm consumers, curtail lending and jeopardize the fragile housing recovery.

- Consumers - Many of today's loans and borrowers would be forced into the non-QM market, which will be far costlier, burdening families least able to bear the expense. Furthermore, these higher-priced loans would not be required to include important protections against the loan features that drove the highest failures in the mortgage boom.

- Lending - If more borrowers are forced into the non-QM market, lenders and investors will be at greater risk of violating ability to pay violation and anti-steering rules. As a result of these increased risks, these loans are either less likely to be made or else made at increased cost to consumers.

- Housing market - If the parameters of the QM are not clear, risks become unpredictable, forcing lenders to decrease their risk tolerance and operate well within the standards. Such an outcome will lessen both the availability and affordability of credit for far too many borrowers.

"Creating a broad QM, which includes sound underwriting requirements, excludes risky loan features, and gives lenders reasonable protection against undue litigation risk, will help ensure revival of the home lending market," wrote the organizations.

The following organizations signed on to the letter, which is available at http://www.ksefocus.com/billdatabase/clientfiles/172/3/1480.pdf

1 American Bankers Association

2 American Escrow Association

3 American Financial Services Association

4 American Land Title Association

5 American Securitization Forum

6 Asian Real Estate Association of America

7 Center for NYC Neighborhoods

8 Community Associations Institute

9 Columbus Housing Partnership

10 Community Mortgage Banking Project

11 Community Mortgage Lenders of America

12 Consumer Bankers Association

13 Consumer Mortgage Coalition

14 Financial Services Roundtable

15 Habitat for Humanity International

16 Housing Policy Council

17 Independent Community Bankers of America

18 Leading Builders of America

19 Mortgage Bankers Association

20 Mortgage Insurance Companies of America

21 National Association of Hispanic Real Estate Professionals

22 National Association of Home Builders

23 National Association of Mortgage Brokers

24 National Association of Neighborhoods

25 National Association of Real Estate Brokers

26 National Association of Realtors®

27 National Community Reinvestment Coalition

28 National Council of State Housing Agencies

29 National Housing Conference

30 Real Estate Services Providers Council, Inc. (RESPRO®)

31 Real Estate Valuation Advocacy Association

32 The Appraisal Institute

33 The Realty Alliance

A Rite of Spring Time: Unlicensed Builders Pulling Scams on Michigan Consumers

There are a few things you can count on when spring arrives. Daylight savings time, warmer temperatures, rain and unlicensed builders that prey on unsuspecting consumers with building scams and rip‐offs. “Unlicensed scam artists will try to con you in several different ways,” said MAHB CEO Robert Filka. “They will tell you it’s cheaper to do the job if the consumer pulls the building permit or that no permit is needed. They do this because without a builders license, they can’t pull a building permit. If no permit is pulled, there will be no inspections done to assure the quality of work or that it meets the requirements of the Michigan Residential Code (MRC).”

Under Michigan law, all contractors offering to do work which totals $600 or more in labor and materials must be licensed by the Department of Energy, Labor & Economic Growth (DELEG). A Residential Builders license allows a contractor to build a complete structure and do maintenance or alteration (remodeling) work. A Maintenance & Alteration license indicates that the holder has met requirements for one or more of 14 different trades. The trades in which a contractor is qualified to practice are listed on the license.

“Consumers should also be wary of builders who offer a “special low price” or claim they have materials left over from another job they can use on their project,” said Filka. “Legitimate builders and remodelers do not over buy materials for a job. Consumers are also warned to be cautious about any builder who asks to be paid in cash or requires total payment up front.”

Hiring unlicensed builders also exposes the consumer to potential liability issues that could be very costly. Consumers that contract with an unlicensed contractor can be held liable for on‐the‐job injuries sustained by that unlicensed person and their employees. This exposes the consumer to liability, including having to pay medical bills and lost wages. Licensed contractors must carry workers compensation insurance to cover injuries to their employees. Unlicensed builders do not.

Licensed contractors offer consumers several benefits, including:

• The contractor knows his/her trade and has been tested and approved, including a credit check by the state of Michigan;
• They are required to show continuing competency in their profession to keep their license.
• They know and build to the Michigan Residential Code;
• Liability for on‐the‐job injuries will rest with the licensed contractor, not with the consumer.

All licensed contractors carry a pocket license card, which consumers should ask to see. If they cannot show their license, consumers should call the Michigan Department of Labor and Economic Growth’s (DELEG) Builder’s Unit at (517) 241‐ 9254 or visit the DELEG website at www.michigan.gov/builders, to confirm that an individual or company has a license.

Consumers are encouraged to file complaints against unlicensed builders. By doing so, consumers not only assist in legal crackdowns against unlicensed builders, but also will help friends and neighbors from being ripped off. Complaints against unlicensed builders must be in writing and signed. Necessary forms may be obtained at http://www.michigan.gov/documents/dleg/builders_complaint_forms_320691_7.pdf, or a consumer may request a form and information by telephone at (517) 241‐9202. Consumers filing complaints are urged not include any information such as your social security number, that you do not want to be released to the respondent.

A good rule of thumb for consumers to follow when dealing with attractive sounding construction opportunities is –“if it sounds too good to be true‐it probably is.”

Home Maintenance Quiz

It’s the weekend and you have a whole list of household chores to do. Oh, we know you’d rather be golfing or playing tennis or watching TV, but keeping your home in good shape is important. Your home may be the biggest investment you will ever make. Taking good care of it with regular maintenance is necessary to maintain its value and ensure it will provide a comfortable, safe shelter for you and your family for a long time.

Here is a home maintenance quiz that will test your maintenance knowledge. While this quiz does not address every home maintenance project, it does provide helpful tips and reminders for chores you may have overlooked.

1. How often do forced-air furnace filters need to be changed?
At least every three months during the heating season.

2. What part of the faucet usually needs to be replaced when you have a water leak?
The washer.

3. Should you run hot or cold water through your garbage disposal?
Cold water.

4. How often should the moving parts of garage doors be oiled?
Every three months.

5. What tools can you use to unclog your drains?
A plunger and a plumber’s snake.

6. What tool can be used to unclog a toilet?
Coil spring-steel auger.

7. What faucet part needs to be cleaned every three to four months?
Aerator—the screen inside the end of the faucet.

8. What can you use for traction on icy sidewalks, steps and driveways?
Cat litter or sand—never use salt because it damages the pavement.

9. Where should the fire in your fireplace be built?
On the andirons or grate, never on the fireplace floor.

10. What will prevent soot and add color to the fire in your fireplace?
Throw in a handful of salt.

11. Where should your firewood be stored?
Outside, away from your house and not directly on the ground.

12. What helps keep unpainted concrete floors easy to keep clean?
Concrete sealer.

13. What should you use to clean unpainted concrete floors?
A solution of 4 to 6 tablespoons of washing soda in a gallon of hot water. Mix scouring powder to the solution for tough jobs.

14. When can you clean hardwood floors with water?
When the floors have a polyurethane finish.

15. Do hardwood floors need to be waxed?
Hardwood floors that do not have a polyurethane finish probably will need to be waxed periodically. Use liquid or paste “spirit” wax.

16. What is the best polish for vinyl floors?
Water emulsion wax.

17. When is basement condensation at its maximum?
In new homes because gallons of water went into the concrete of basement walls.

18. Why should noisy water pipes be fixed promptly?
The condition that causes noisy pipes may be accompanied by vibration that can cause fittings to loosen and leak.

19. Why should frozen pipes be thawed slowly?
Frozen pipes should be thawed slowly to prevent the formation of steam, which could  cause the pipe to burst.

20. How often should your roof be inspected?
A qualified roofer should inspect your roof every three years.

21. What should be regularly checked on your security system?
The alarms and circuit breakers should be checked to make sure they are in working order and the sensors should be inspected one by one.

22. To ensure your safety, what household equipment uses batteries that must be checked regularly to make sure they are operable?
Smoke and carbon monoxide detectors.

23. What do you use to fill nail holes and cracks in plaster walls and gypsum wallboard?
Spackling.

24. What is the white powdery substance that develops on masonry walls?
Efflorescence sometimes appears on masonry walls. It is crystallized soluble salts that can be removed by scrubbing with water and a stiff brush.

25. At what temperature should your water heater be set?
120 degrees Fahrenheit

26. How often do skylights need to be inspected?
Skylights should be inspected each time your roof is inspected so leaks don’t develop from cracks and interruptions around its seals, caulking and flashings.

27. What is a simple solution you can use to wash extremely dirty exterior windows?
A solution of equal parts vinegar and water or 3 tablespoons of denatured alcohol per quart of warm water. Use a piece of crumpled newspaper to wash the glass to avoid lint left behind by papertowls.

28. What can you use to help a window slide easily?
Rub the channel with a piece of paraffin.

29. What should you look for when you inspect your siding yearly?
Determine if wood-sided homes need to be repainted; check to see if the caulking around the windows and doors has split and cracked, and replace the caulk; clean the mildew; trim shrubbery away so it does not touch the siding.

New Homes Strengthen Economy Year-Round

WASHINGTON, April 4--While the housing industry celebrates New Homes Month in April, home builders want Americans to know just how much of a positive, direct impact residential construction has on the U.S. economy throughout the entire year.

"Home building is a key driver of the American economy," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "By generating economic activity including new income and jobs, purchases of goods and services, and revenue for local governments, housing--which has historically accounted for around 17 percent of the GDP--can put America back to work."

Economists at the National Association of Home Builders estimate that the one-year local impacts of building 100 single-family homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other local government revenue, and 324 local jobs.

The employment effects extend beyond the home building industry. About half of the jobs are in construction, with the other 50 percent creating employment opportunities in industries ranging from production and sales of home furnishings to service providers such as real estate attorneys and landscapers.

Those 100 new homes also provide the community with additional, annually-recurring impacts of $3.1 million in local income, $743,000 in taxes and other revenue for local governments, and 53 local jobs.

The income earned from construction activity is spent and recycled in the local economy, and the new homes that are built become occupied by residents who pay taxes and buy locally produced goods and services. Those tax revenues help pay for a wide range of government services, including local school teachers, police departments and road repairs.

In order to accommodate population growth and necessary replacement of older homes, however, a long-run trend of approximately 1.7 million new homes a year is needed. Yet as of February 2011, the annual projection for housing starts stood at less than 500,000.

"The gap between actual home starts and what is required to fulfill America's future housing needs represents more than 3 million jobs," said Nielsen. "Restoring the health of the housing industry is a crucial first step in stabilizing our country's path to economic recovery."

During New Homes Month, home builders also bring attention to the advantages of newly-built homes, including safety, amenities, energy efficiency and floor plans to fit a wide variety of modern lifestyles. Combined with today's near record-low interest rates and competitive prices, the current market offers new home buyers unprecedented opportunities.

Home buyers can access resources to help guide them through the home-buying process on NAHB's website at www.nahb.org/forconsumers.