| REALTORS are Force In Political Mortgage Issues
Review of industry groups’ contributions April 19, 2004 By PATRICK CROWLEY
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| When it comes to doling out cash to politicians, no special interest group in America has been more generous than the nation’s REALTORS.But Government Sponsored Enterprises Fannie Mae and Freddie Mac — both secondary mortgage industry giants — aren’t exactly stingy.
MortgageDaily.com reviewed federal campaign contributions made by Political Action Committees, or PACS. REALTORS, mortgage bankers, and home equity lenders fund PACS that give money to candidates for Congress. The information was viewed at OpenSecrets.org, the Web site operated by The Center for Responsive Politics, a Washington-based campaign watchdog that tallies and publishes contributions to campaigns. The Center reports The National Association of REALTORS (NAR) has led all other groups in contributions to Congressional candidates in three straight election cycles: 1999-2000, $3.4 million given, 41% to Democrats, 59% to Republicans; 2001-2002, $3.6 million, 47% to Democrats, 53% to Republicans; and 2003-2004, $1.5 million, 52% to Democrats, 48% to Republicans. So far this year, the REALTORS dropped to second with $1.4 million. Contributions are about evenly split between Democrats and Republicans. Goldman Sachs, a Wall Street investment firm, is first this year with $2.7 million in contributions. The NAR has been particularly concerned in Washington about proposed legislation that would essentially allow banks to enter the real estate business. NAR spokesman Steve Cook acknowledged in a phone interview that banks entering real estate “is a major concern of ours.” But also “a lot of issues important to the real estate industry come before Congress,” Cook said. “We’re concerned about affordable housing and the need for more federal initiatives that create more affordable housing activity,” said Cook. The NAR supported the American Dream Downpayment Act that Congress passed and President Bush signed into law earlier this year. It allows Congress to pump $200 million a year for two years for downpayment assistance for low and moderate households. And if people are spending $400 million on downpayments, that means and they’re buying houses — and that, of course, is a boost to REALTORS and others in the mortgage industry. The NAR also wants to keep the mortgage interest tax deduction — one of the last few tax write-offs for consumers — as part of federal law, Cook said. Cook said the NAR is also an active contributor to state legislator candidates around the country. Real estate licenses are handed out at the state level and state regulators oversee the real estate industry. The REALTORS are just one of thousands of special interest groups that give to federal candidates. Other big contributors on this year’s included PACs funded by labor unions, trial attorneys, doctors and auto dealers. “It is natural for organizations and groups to support candidates and legislators who support their issues,” Marc Wilson, a registered lobbyist in the Kentucky General Assembly, said in a phone interview. “It’s a matter of free speech,” said Wilson, whose represents the gaming, beer, tobacco and apartment industries. “If there is an issue of importance to REALTORS, and I know Senator XYZ supports my position, I’m going to support that Senator.” Fannie Mae and Freddie Mac have also been among the largest givers to national political parties and committees. In 2000, Freddie was the third largest donor to the National Republican Senatorial Committee, which works to elect GOP candidates to the Senate, by giving $671,300. Freddie also gave $825,000 to the Republican National Committee in 2002; $1.7 million to the Democratic Party in 2002; $950,350 to the National Republican Congressional Committee in 2002; and $560,265 to the Republican’s Senate committee in 2002. In 2002, Fannie Mae gave $350,265 to the GOP Senate committee and $440,300 to the National Republican Congressional Committee. Contributions made this year from other mortgage industry related groups include:
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Patrick Crowley is a political reporter and columnist and former business writer for The Cincinnati Enquirer. Email Patrick at: pcrowley@enquirer.com |
