By james art LaPolitics recently spoke with Norman Morris, CEO of Louisiana Realtors, to get his take on some policy issues affecting real estate.
How will this year’s landmark settlement on commissions change the housing market?
Morris: We made two major changes. Broker compensation will not be included in multiple listing services, and all buyer agents must commit their clients to a buyer representation agreement on all residential one- to four-family homes for sale that outlines the services the brokers will provide along with an agreed upon compensation. The proposed agreement is due to be finalized next month. Additionally, last legislative session we worked with Congresswoman Paula Davis to draft ACT No. 690, which requires all Louisiana real estate licensees to enter into a buyer agreement with their client(s) for all residential real estate transactions.
How does the current cost of property and flood insurance affect the market? What reforms would you like to see in these two areas?
In many cases, especially in areas of south central Louisiana, real estate consumers either cannot afford property insurance premiums or cannot find insurance products to cover their properties at all. We worked with Insurance Commissioner Tim Temple and other industry partners to help pass several bills that we hope will attract new insurance companies to our state and encourage existing companies to increase their policy numbers. We continue to support efforts to fund the reinforced roof program to provide more protection to property roof structures. When it comes to the National Flood Insurance Program, many property owners cannot afford the rising flood premiums. The industry still has questions about how FEMA determines property premiums using the relatively new Risk Rating 2.0 rating system.
What can lawmakers do to improve access to homeownership?
We support several bills currently in Congress: The More Homes on the Market Act would increase the amount of capital gains a homeowner can exclude when selling their primary home. The Neighborhood Housing Investment Act would offer tax credits that would create a path to neighborhood stability through incentives to build and rehabilitate homes for low- and moderate-income homeowners. The Downtown and Main Street Revitalization Act would provide tax credits for converting downtown commercial properties into affordable housing.
The Federal Reserve is likely to continue cutting interest rates. Can we expect mortgage rates to drop as well, and if so, when?
We have seen interest rates fall over the past few months and we certainly hope to see rates fall below 6% next year. We are focused on policies that keep housing and ownership affordable and accessible across the state. We will continue to support legislation that promotes home ownership while finding solutions to increasing insurance costs.
What are your organization’s priorities for the upcoming regular legislative session?
While interest rates and housing inventory are big challenges for today’s homebuyer, the overwhelming major issue is insurance – both property and flood insurance. We will continue to work with Insurance Commissioner Tim Temple and the Department of Insurance to find ways to reduce these costs for Louisiana homeowners as well as attract more companies to our great state.
They said it: “The majority has removed an unattractive wart with a scalpel, whereas a scalpel would have removed the problems of the present litigants and done no collateral damage to our codified legal system.” – Justice Jay McCallum, dissenting in a recent state Supreme Court decision, repealing law allowing legislators who are lawyers to delay court proceedings, c Louisiana porthole.
Jeremy Alford posted LaPoliticks Weekly NewspaperLouisiana Politics Bulletin, c LaPolitics.com. Follow him Facebook or X (formerly Twitter). He can be reached at [email protected].