The Mortgage Tax Deduction

I wrote to Senator Rubio re: the fiscal cliff and the possibility that Congress may take the mortgage interest tax deduction off the books. This is his response. I think it is classic pol-babble.




Dear Mr. Vass,

 Thank you for contacting me with regard to the housing market. This is an important issue for Floridians and I appreciate the opportunity to discuss it with you. As you know, misguided government policy fueled excesses in the housing and real estate markets throughout the 2000s, leading to a peak in the market in 2006 and a subsequent crash. The losses to American homeowners were enormous. Families across the country lost more than thirty percent of their home's value, in many cases leaving them underwater on their mortgages, and many have still not recovered to this day.

Nationally, the housing market is beginning to recover, albeit slowly. Though the worst may be passed, homeowners continue to struggle. Policymakers must learn the correct lessons from the recent crisis and not repeat mistakes. Past promises of assistance have only resulted in financial ruin for millions of Americans. Federal legislation passed during the downturn served only to make matters worse for Floridians by prolonging the negative impacts of government favoritism.

 The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed under a Democrat-led House and Senate and signed by the President in 2010, imposes stringent regulations on small and community banks, the most important lenders in a housing market recovery. One community bank president described the Dodd-Frank regulations as, "Costly, both in time and personnel to implement," and, "confusing to our [customers]." By placing burdens on the lenders and creditors most vital to recovery, this law will continue to hurt homeowners and families in Florida.

 Additionally, the Federal Housing Authority (FHA) and the government sponsored enterprises (GSEs) known as Fannie Mae and Freddie Mac have served as short-term band-aids for the housing market and further distort the true value of Americans' homes. The FHA recently said it may need a federal bailout of as much as $93 billion. With more than 90 percent of all mortgage originations backed by the government, a larger government role in the market and more bailouts are exactly the wrong solutions for taxpayers.

 Floridians know that if the government created a mess of the housing market, it cannot be trusted alone to be the solution. We cannot ask our children and grandchildren to finance Washington's risky lending and irresponsible government policies by accumulating more debt. Fannie Mae and Freddie Mac must be wound down and reformed, allowing a fair market for housing to return in the private sector. The federal government must learn the lessons of the Great Recession and allow lenders and borrowers to make informed decisions without excessive government meddling.

 A healthy housing market is a goal shared by all Floridians. Restoring choice and an open marketplace in housing will revive economic growth for all Americans. I will keep your suggestions and thoughts in mind when considering issues that will impact the housing market in Florida and the nation as a whole. It is an honor and a pleasure to serve the people of Florida.

 Sincerely,

 Marco Rubio United States Senator

 I've heard so many stories from middle class Americans about their financial struggles and accomplishments. As the result of an empowered middle class, I want to continue to be your voice in the Senate and give you a seat at the table. I hope you take a minute to visit my website and tell me more about your story. Each week I provide a weekly update on issues in Washington and ways in which my office can assist the people of Florida. Sign up here for updates on my legislative efforts, schedule of events throughout Florida, constituent services and much more.

I am a Mormon and a CHRISTIAN

I have been a member of this church for almost 50 years. I was educated at a Methodist College, Huntingdon, in Montgomery, Alabama. It is owned and operated by the Methodist Church. A huge percentage of the people I attended that college with are now Methodist ministers. One of my class mates was Senator Jeff Sessions one of the two U S Senators from Alabama. All that I was taught in that college I believe. I had to take 12 hours of religion in order to graduate from there. I was not taught anything that runs counter to what I have been taught as a member of the Church of Jesus Christ of Latter day Saints.

It has been my privilege to have taught in the church’ Seminary and Institutes division 6 years. I have shared lessons with 100’s of students. I have drawn on the things that were taught to me in college. I find no incongruence between the theology of the Latter Day Saints and that of the Methodists.

However, I have been told by countless people that I am a member of a cult. I don’t even comprehend what they are talking about. I had this well meaning client explain it to me. He said that a cult is any organization that teaches you have to do extra stuff to be saved. That is beyond the acceptance of the Savior and confessing his name. Incidentally this guy’s life looks like scrambled eggs resultant from the choices he has made over the years. However in his vernacular, he is a Christian and I am a non-Christian.

I approached a big mouthed radio talk show guy about hosting a member of our leadership on his show. The intent was to have a local Bishop and/or a Stake President speak to his listeners and handle questions. The reason was that the GOP candidate, a latter day saint, worked in those two positions for a sum total of 12 years. I suggested that the venue might be of interest. Following is his response back to me.

“ As for your offer, I will pass.  Gov. Romney's religion was discussed on the program last week when I received just one too many e-mail from people telling me that they would not vote for him due to his faith.  Suffice to say that I think it is a foolish position.  Though I believe there are vast and important differences between Christianity and Mormonism, I completely support Governor Romney as a good, moral, upright man.

 Feel free to listen to the segment (maybe Thursday).  I have no interest into getting into a protracted debate over Mormonism and Christianity.  I got a couple of e-mail to that effect from Mormons in the audience.  I have studied the faith, along with other world religions for eight years.  I served as a vocational pastor for about sixteen or seventeen years and studied the bible in three languages.  My position on Mormonism is rooted and not changing.

 I have learned over the years that practicing Mormons believe it to be their mission, in part, to convince people like me that the faith is fully compatible with Christianity.  I disagree and I would much prefer to leave it as that.  I lament that Christians do not live their faith out as completely as do Mormons, because Mormons that I call friends are among the finest people I know.

He reveals his contempt for Latter Day Saints in his words. It is sort of what a racist does when he castigates a general group of people by their ethnicity and/or demographics. “ Let me preface this by saying that some of my best friends are African Americans, orientals, gay people, muslims, etc, etc.”

I will tell you that I just don’t get it. Years ago I was sort of drawn to the message of The Promise Keepers . I was in a position to provide them with a spectacular family values display put together by my church and meant to be a standing display on family values. I put this display in the State Capital of Florida here in Tallahassee, the Leon County court building, numerous malls and other court buildings in outlying areas. My intent was to share it at a  Promise Keepers rally that was to transpire in the Donald L. Tucker, civic center here in Tallahassee. It was to be put up by volunteers and would have cost them nothing. They could have afforded it because the price per head to attend the rally was about $75.

I got back a scathing reply from one of their leaders, a protestant minister. He told me in no uncertain terms that theirs was a Christian venue and that they would not be accepting any help from a cult. He told me, in the name of Christ, that I should examine my allegiance to such a non-Christian organization as The Church of Jesus Christ of Latter Day Saints.

Back during the Republican primaries this drama developed at a rally of evangelicals in Texas. This venue was early in the candidacy of Texas Governor Rick ………………(oops)…………….Perry.

” It was no ordinary opener from the prominent Southern Baptist Convention leader, Pastor Robert Jeffress, who endorsed Perry on Friday. Jeffress praised Perry for defunding Planned Parenthood in Texas, calling the provider of women’s health and abortion services, “that slaughterhouse for the unborn.”

He also lauded Perry’s “strong commitment to biblical values.”

“Do we want a candidate who is skilled in rhetoric or one who is skilled in leadership? Do we want a candidate who is a conservative out of convenience or one who is a conservative out of deep conviction?” Jeffress said. “Do we want a candidate who is a good, moral person — or one who is a born-again follower of the lord Jesus Christ?”

Jeffress called Perry a “genuine follower of Jesus Christ.” The pastor did not mention Perry’s rival Mitt Romney by name, but he told reporters after his remarks on Friday that Mormonism was a “cult.” (USA Today)

I will tell you that I just flat don’t understand this assertion from so many people and avenues. I   worship Jesus Christ. He is my Saviour and my master. I pray to the Father through him every day. I read about him in the Old and New testaments. Everything that comes out of our church’ publishing division has His name in it. If I went out and drank myself off of a stool every night people would call me an alcoholic. If I shot myself up with heroin 2-3 times a day people would say that I am a dug addict. If I chased women and added up monthly conquests they would call me a fornicator. Here I am trying to live a Christ like life. I speak of Christ, I live my life around His teachings and I have taught my children of Him. Yet people call me a member of a cult. If I worship Jesus Christ, then I am a Christian, period, end of discussion.

Jan Shipps author of  Sojourner in the Promised Land (2000, by University of Illinois press)  is an authority of sorts regarding we Mormons. She describes her acceptance into the Mormon culture in sort of a Diane Fossey’s “ Gorillas in the Mist” fashion. She is an academic. A Ph D in history, BA from Utah State University and a practicing Methodist. She sums up her 400 page text with this alarming statement:

“ In the light of a contemporary rhetorical shift that seems to be turning Mormon into an adjectival modifier used to signify a particular kind of Christian. I may seem to be making too much of the fact that at a critical juncture in the establishment of their church , the Saints accepted and came to relish Mormon and Mormonism as alternative labels. But there can be little doubt that their embracing the label Mormon in lieu of being called Christian contributed to a perception that Mormonism is not Christian” ( pg. 345 3^rd paragraph)

She goes on in her summary to take the position that we Mormons are not Christians. I find that amazing. Not only does she begin sentences with prepositions but she spends 40 years studying our faith and does not have a clue as to whom we follow. That is simply illogical and extremely ignorant. She actually believes that we invented the terminology Mormon and prefer it to Christian. I have been taught from day 1 of my membership that we follow Christ. Mormon is a nick name given to us by outsiders because of our belief in the book of Mormon. We did not invent that nick name. Outsiders did that.

I suppose that the best we can do is live our lives in a fashion that tells people that we are Christian. Let them call us whatever they like. I have been alive almost 67 years. The people that I know that are the very best example of Christ like demeanor come from amongst my associates in the Church of Jesus Christ of Latter Day Saints.  

Cranky Old Man

This sort of touched me. Likely because I am becoming the cranky old man. It is said that this poem was found amidst the personal belongings of a stroke victim who passed away in a rehab hospital.


Cranky Old Man

What do you see nurses? . . .. . .What do you see?
What are you thinking .. . when you're looking at me?
A cranky old man, . . . . . .not very wise,
Uncertain of habit .. . . . . . . .. with faraway eyes?
Who dribbles his food .. . ... . . and makes no reply.
When you say in a loud voice . .'I do wish you'd try!'
Who seems not to notice . . .the things that you do.
And forever is losing . . . . . .. . . A sock or shoe?
Who, resisting or not . . . ... lets you do as you will,
With bathing and feeding . . . .The long day to fill?
Is that what you're thinking?. .Is that what you see?
Then open your eyes, nurse .you're not looking at me.
I'll tell you who I am . . . . .. As I sit here so still,
As I do at your bidding, .. . . . as I eat at your will.
I'm a small child of Ten . .with a father and mother,
Brothers and sisters .. . . .. . who love one another
A young boy of Sixteen . . . .. with wings on his feet
Dreaming that soon now . . .. . . a lover he'll meet.
A groom soon at Twenty . . . ..my heart gives a leap.
Remembering, the vows .. .. .that I promised to keep.
At Twenty-Five, now . . . . .I have young of my own.
Who need me to guide . . . And a secure happy home.
A man of Thirty . .. . . . . My young now grown fast,
Bound to each other . . .. With ties that should last.
At Forty, my young sons .. .have grown and are gone,
But my woman is beside me . . to see I don't mourn.
At Fifty, once more, .. ...Babies play 'round my knee,
Again, we know children . . . . My loved one and me.
Dark days are upon me . . . . My wife is now dead.
I look at the future ... . . . . I shudder with dread.
For my young are all rearing .. . . young of their own.
And I think of the years . . . And the love that I've known.
I'm now an old man . . . . . . .. and nature is cruel.
It's jest to make old age . . . . . . . look like a fool.
The body, it crumbles .. .. . grace and vigor, depart.
There is now a stone . . . where I once had a heart.
But inside this old carcass . A young man still dwells,
And now and again . . . . . my battered heart swells
I remember the joys . . . . .. . I remember the pain.
And I'm loving and living . . . . . . . life over again.
I think of the years, all too few . . .. gone too fast.
And accept the stark fact . . . that nothing can last.
So open your eyes, people .. . . . .. . . open and see.
Not a cranky old man .
Look closer . . . . see .. .. . .. .... . ME!!

Post election blues

I am posting here today just to express my depth of depression over the recent election. You see my candidate lost. I had supported him heart and soul with my time and my money. I am trying to disect my depression. Am I depressed because of the idealogical departure that the majority of Americans have taken which is polar opposite from mine? Or is my depression rooted in the experience of losing. The same as I experience when my Alabama Crimson Tide loses. Or when I pick an investment opportunity and lose my money.

I suppose it is a little of all of that. I was discussing this with Bellamy, my grand-daughter who is wise beyond her years. I think she may lean a little left because she likes the president. She finds him entertaining sort of in the same light as she likes Big Bird or Barney the dinosaur. However she is not seasoned in the ways of the world. She finds repeated episodes of Baby Einstein fascinating and frankly I don't get that at all. After all how many times can you watch a puppet puppy dog bark at a puppet baby duck and laugh out loud. 

As I watch and listen to her I come to the conclusion that she is not that far removed from where I am. After all I have to admit that I was entertained by repeated TV ads of my guy saying the same thing every time his ad came on TV. I would sit and smile at him and hang on every orchestrated word implanted by the puppet master. For the amount of entertainment I received from this Baby Einstein experience, I also have to admit that I would stare menacingly at the TV, often even mute the sound, when the opponent came on with his puppet master derived soundbites.

I am two days into our defeat. I am still not all that happy and upbeat. I feel dejected and have a dismal attitude of our path forward in this America that I have lived in for almost 67 years now. But I have to admit that I still got up this morning and had a couple of waffles, fed Bellamy some cereal and will later on this morning go to a petting zoo at my other two grand-children's preschool in a bright and sunny part of NE Tallahassee.

I tend to forget that most of what matters to me happens in the very tight circle of those that I love and am privileged to walk the walk of life with. The President never gives me a thought. My loser candidate has actually never given me a thought. I doubt that he would let me sit down and climb up on my lap and watch Baby Einstein with me. I doubt that he would listen to the same stories that I tell over and over and politely laugh at the punch lines. 

As Thanksgiving approaches and I gather with my family to give thanks, all the political candidates will do the same with their families. They never give me and my circumstances a single thought. I need to try hard to practice that same approach. I will look forward to putting little two year old Bellamy on a pony this morning and watch little 4 and 5 year old Benjamin and Georgia feed some grain to a billy goat. All the rest of the chatter is meaningless obsession over things that I can do very little about. 

Re post on Real Estate Commissions

thursday, may 29, 2008

Wal-Mart and Real Estate commissions

I am biting off a hard subject here today. Realtors and their commissions. I read an editorial this morning in USA Today. It had to do with a recent agreement, under pressure from court action, between National Association of Realtors (NAR) and so called internet real estate brokers. One such broker is Redfin which is an online brokerage that supposedly gives its users a big break on real estate commissions. The meat on the table is access to the 800 something Multiple listing services (MLS) around the country. Redfin insists that they should be able to access that information just like all other brokerages. NAR decided that they would share the information. Let it be said that they sure don't share that knowledge with me, a licensed real estate broker, unless I pony up about $1200 a year. The big, all knowing, USA Today Editor accuses the real estate industry of collusion, antitrust violations and downright meanness. He is as uninformed as he is opinionated.

First off, I am positive that this editor does not donate his time to USA Today. I will bet that he makes a pretty decent salary and probably some incentives. Why? Because he knows how to run a newspaper, or at least a department within a newspaper. So we can assume that the nasty old profit motive runs deep to his core beliefs.

The belief that the commissions realtors earn is out of line is not a new concept. When I first got into this business I had no clue how a Realtor made a living. I was advised that the average Realtor makes about $36,000 per year. I would be willing to bet that Mr. USA Today makes a lot more than that in a year. You must then take into consideration that a Realtor pays all, and I mean ALL of their own expenses. No company car, gasoline credit card, health benefits, etc. Add a 15% self employment tax on top of that and you will find that most Realtors make less than minimum wage. That does not take into consideration the costs for membership to the MLS, Licensing fees, Education costs, Lock box dues, cell phone, PDA, laptop computer,ISP costs, errors and ommissions insurance, etc. Then a salesperson has to split their commissions with their broker. My first broker splits were 50%. The negotiated 8,7,6,5% commissions are split between the Listing agent and the Selling agent, one representing the Buyer and the other the Seller.

I was fortunate to enter the business 6 years ago when the boom was on. I attained several listings from people who knew me and thought me to be a pretty savvy business man and wanted me to sell their houses. I had this "friend" who was a Broker who went around behind my back telling the people I had listed that he would have charged them 1/2 of what I was charging them to sell thier home. I confronted him and he told me that we Realtors make too much money in commissions. He spent his career in the Public sector so I laughed him off as just not quite understanding the good old American profit motive.

I told him this story that was told to me by an economics professor when I was in college back in Alabama. Seems that there was this manufacturer of widgets located up around Sylacauga, Alabama. He turned out 10,000 widgets a day which he sold for $1 each. He had several employees and business was good and life was rewarding to all involved. One day his assembly line came to a sudden and alarming halt. Over the next couple of days he called his engineers together to address the problem. Nothing, 4 days passed without a single widget rolling off the assembly line. They finally had no other choice but to ask for the Tech rep of the manufacturer of the assemblage machinery to come have a look. Into Sylacauga on a private plane comes the Tech rep. He comes to the factory with an attache' case in hand and walked up and down the frozen assembly line. He finally stopped at one particular place and opened the atache' case. He pulled out a hammer and gave a mighty whack to the line and it came to life rolling along without a hitch. Business was back on track and the widgets rolled off the line as before. A couple of days later the CEO recieved an invoice from the manufacturer for $10,000. The old man was livid. He told his Secretary to call the company and demand an itemization on the invoice. The itemization arrived a few days later. It said: $1 for hitting with a hammer. $9,999 for knowing where to hit. He paid the bill.

I remember back around 1988 putting my home on the market by myself as a For Sale by Owner. Interest rates were 18% on mortgages. Mine was 13.5%. No one was selling houses. My little FSBO sat there for two years. All the while I wondered what in the world I would do if someone came along and wanted to buy it. I had no clue what the next step would have been. I finally woke up and gave it to a Realtor and about 3 months later I attended the closing and got a check. I had little clue as to what happened in between.

You pay a Realtor for what they have between their ears. I have sold a little more than $10 million dollars since I first entered into the business. I have handled over 100 transactions, not all successfully. One thing I have learned along the way is that if you have seen one real estate transaction then you have seen one real estate transaction. They are all unique one to another. You need the professional by your side. Please see my last post.

In our modern world we have, including myself, developed a Wal-Mart mentality. We are all about saving the dollar, getting the best deal. Can we find it at Wal-Mart? You know they ALWAYS have the best price. What about Craigs List, E-Bay, etc. ? Let's take the Realtor out of it and then we can really shuck some corn and save a boat load of money.

I cannot for one minute imagine some faceless person on the internet in front of a keyboard on a computer caring about me in a real estate transaction. I mean really caring about me and my best interests first. You need someone you know well. A person who you trust and believe will put your best interests first and foremost. Most people only buy or sell a house 1-2 times in a lifetime. Wal-mart, E-Bay, Craigs List, Amazon discounting just does not apply in that scenario.

Please visit me on my website: http://elvass.com/.

Enjoy this bottom line philosophy of Marvin Gaye and Tammy Terrell:

http://www.youtube.com/watch?v=-0QjqErjTRU&feature=related

Choosing healthcare coverage

It is open enrollment time for the people of America. If you are now Medicare eligible you can choose to have your government pick up a sizable portion of your healthcare costs. Whereas before you were paying an exorbitant premium for private health care insurance, now you can shift those monthly costs lower. In my case almost $1,000 per month to $68 per month. Now that is a deal !

That is like getting a pay raise of $932 per month. Not only do you get that extraordinary deal but there are hundreds of plans to choose from. There are almost 100 in the nice booklet the government sent me. Now don't worry if this stuff is hard to understand. Anyone of the 100'ish  or so company plans listed in the book will send a representative to your house to explain their particular plan to you and sign you up. There is enough profit in whatever plan you choose that these representatives get a nice commission and renewal fees for the rest of thier lives, as long as they remain licensed and you remain alive. So how can a plan like this save you money and pay somebody else commissions?

What we seniors fail to remember is that we paid into this plan all of our working lives. You remember under FICA in your pay check? You paid in 10's of thousands of deneros over your working career. Now you have lived long enough to start to receive this benefit. The principle of risk-pooling has application in this scenario. While you were paying in money the likelihood of your becoming ill was pretty remote overall. Besides you were paying into a private insurance plan simultaneously that covered those risks. Now you are  in an elevated risk pool because of your age. But not to worry, there has been enough money set aside to cover your costs.

I remember when I used to lobby state legislatures. Anytime there was a proposed piece of legislation that might affect Medicare you could drive by the local airport and see an entire wing of private jets parked there. They had been used to fly in their legal muscle to follow the legislative threat and buy up influence and insure  the safe passage of any adjustments so as to not unfeather their nests. It is a known fact that the insurance companies are rich beyond belief.

So now we are eligible to to benefit from the largess of this system. It is an emotional playing field and has become more costly  simply because of the swelling ranks of beneficiaries. We " baby boomers" are tipping the scale. Add in the fact that the ranks of the worker bees who fuel the system are dwindling and we approach a fiscal and political landscape. You will hear our politicians speak many cumulative sound bites about this emotional subject. One of my favorites is " If I am elected, I am going to see to it that Social Security and Medicare are placed in a lock box and protected from the intrinsic evil of my opponent who wants to throw granny off the cliff."

Who says that getting older is a drag? Just to live long enough to benefit from the many thousands of dollars that have been taken from my pay checks over the years is exciting. Of course the front loaded funds I put in are almost like the poker chips thrown on the table in Vegas or Atlantic City. How far is the gamble going to take us down the road?    

Malpractice Reform

Florida can take lead on medical lia bility

As a physician who has traveled the country speaking to my peers, I can tell you that doctors want to provide better patient care but are hindered by our inefficient system that drives a wedge be­tween physicians and pa­tients and leads to increasing health-care costs.

I was not surprised when a recent study found that $640 billion out of the coun­try’s $2.4 trillion total health­care costs are spent on med­ical tests, procedures or consultations of no clinical value. They are ordered merely to protect the pre­scribing physician from having an attorney attack the care as malpractice. It’s called “defensive medicine,” and it is a fear­driven practice that on average costs each United States citizen $2,084 every year.

Reducing malpractice costs has been imperfectly addressed by malpractice “caps,” which reduce the total payment that attorneys can collect. However, physicians who have been burned by attorneys never want to return to the court room, regardless of the “cap,” and will continue to practice defensive medicine.

Patients should be paid for medical in­juries, just as they should be paid when an injury occurs on the job. Adopting a similar approach to worker’s compensation in pay­ing patients for medical injuries would re­duce the exhaustion of litigation. More im­portant, physicians no longer would seek the false security of protection in defensive medicine.

How can such a change occur, to the ben­efit of patients, physicians and our econo­my? In the next legislative session, Florida will have the opportunity to adopt a solution that works — a Patients’ Compensation Sys­tem.

The Patients’ Compensation System fo­cuses on the patient’s need for both prompt recognition of a medical injury and prompt payment. The doctor is not blamed for the injury, and in fact we may recognize and learn from our mistakes without being sued. This removes the wedge between patients and their physicians, allowing the doctors to choose the best health care for their pa­tients.

Compensation under the Patients’ Com­pensation System would take 180 days, as opposed to the current system that can take up to five years, and there would be defined steps to ensure a seamless process and an­swer key questions:

» A patient advocate: How do I get my claim submitted?

» A medical review department: Is a medical injury present?

» An independent medical review panel: Is this an avoidable medical injury?

» A compensation department: What should be paid for the injury?

» An administrative law judge: Was the patient’s need and physician record re­viewed properly?

» A quality improvement department: How do we reduce preventable medical injuries?

The new system’s patient benefits in­clude access to justice for all patients; deli­vering more compensation to more patients faster; increasing patient safety; encourag­ing medical innovations; avoiding unneces­sary tests; and providing more access to physicians — as additional part-time physi­cians will practice medicine. Economic benefits include lowering health-care costs, lowering employer costs and creating more jobs, as well as decreased state and federal taxes.

Florida has the opportunity to take the leadership role in reducing the real driving force behind skyrocketing health-care costs, while extending patient care to compensate medically injured patients more quickly and compassionately.

J. James Rowsey, M.D., is a longstanding delegate of Florida Medical Association and board member of the Florida Society of Ophthalmology; he also recently served on U.S. Sen. Tom Coburn’s Medical Legislation team.