Hello. Welcome to Todd Miller TV. Today’s update is sort of a legislative update. We’re going to talk about three pieces of legislation that are affecting the real estate market or that will affect the real estate market.
One is AB-284. One is AB-300. One is SB-321. If you’re not familiar, AB means assembly bill because we have an assembly in Nevada which is our legislature and SB means senate bill, so state senate.
So those are the three pieces of legislation: AB-284, AB-300 and SB-321. Now AB-284 has been out. It has been out for a year and a half and it puts some restrictions on – it just raised the requirements for what you had to do to file a notice of default. When it first came out, the NODs didn’t stop but there were very few of them.
Well, what has happened now is over a year and a half, the NODs have started up. Now AB-284 hasn’t changed at all. Legislatively it’s the same. It hasn’t been amended. It hasn’t changed and in January, there were over 1500 NODs filed and in February, there were also over 1500 NODs filed.
So a lot of people said when it came out, that the way it was written, you couldn’t – I mean you couldn’t do an NOD. It made NOD illegal and that’s not true. It didn’t make NODs illegal and I was right that they would start doing it again.
What really happened was that three months later, the banks made deals with the states and said, “We will stop doing the foreclosure sales and then we will go back and we try to give those people loan mods and everything for three years.”
So what happened was is we get this piece of legislation that in itself really is nothing because we can see from a couple of months of foreclosures that if NODs have been filed and – so people are all up in arms and that’s all they talk about.
Nobody talks about the mortgage settlement between the banks and the states. No one talks about that. That was the cause of everything. AB-284 was this minor thing. So now they’re saying we need to amend AB-284 so we’re going to do this AB-300. But who cares if you amend it? You can make it so that all you have to do is put an X in a block and hand it over and you could do an NOD. The banks aren’t doing them.
Bank of America, Chase and Wells Fargo are not doing them. Guess who’s doing them. Fannie and Freddie. They’re the only ones. So it doesn’t really matter what we do legislatively. It’s sort of like everyone got excited about it and then the settlement thing happened and people put the blame on this AB-284.
So AB-300, well, let’s make it a little easier for them. Well, they’ve already figured it out. It’s a little too late and it doesn’t really help the situation. It doesn’t really make that big of a change. It just says, hey, you don’t have to have it written. You can have it electronically and it just changes the requirements a little bit before you can file the NOD.
Now SB-321 could be a big deal, even more so than AB-284 was and this is why; because this puts us in real strong timelines and restrictions on the banks. It’s sort of like California’s homeowners rights law and homeowners do have rights. They have all of the rights that come with owning a property but the problem here is what about the homeowners who say, “To hell with it. I’m just going to game the system. I’m not going to make my mortgage payment. I’m staying in the house for three years and not make a payment. The person that lent me the money, too bad for them because I’m just going to say, hey, I’m going to stand behind the law and I’m going to go through the motions of doing all these protections and things.”
So they really don’t protect the homeowners as much as they think because a lot of this isn’t the poor homeowner. A lot of this is the scheming homeowner. Unfortunately there’s some out there. Not all but there are some out there who are taking advantage of this. Attorneys have gotten involved and this whole thing is a mess. So now we’re over-legislating a part of the market that doesn’t really need it, doesn’t need it that bad.
So what it has caused is problems. If you’re a consumer trying to buy a house, good luck because there are not many out there. The states went after the banks. The banks said, “Fine. We will back off and we will just leave those houses to sit and you guys can have a nice day.”
Then this legislature is getting involved, trying to do things to fix this and it is causing problems, causing a lot of problems. It’s causing instability in the market. It’s causing unpredictability in the market.
This is a huge industry. It’s the second largest industry in the state behind the tourism and gaming. So real estate is huge here and there are thousands, probably 20,000 or 30,000 people that make their living either as agents, loan officers, appraisers, processors, title companies. I mean everybody involved in the process.
So anyway, that’s my legislative update for those three bills: AB-284, AB-300 and Senate Bill 321. If more word comes out and if AB-300 and SB-321 pass, I will have another update. Thanks for watching my video.