1. Russell W. Riggs Senior Regulatory Representative National Association Of REALTORS® Washington, DC March 20, 2012 Kiawah Island, SC

2. Presentation Topics 2 1.2011 Investment and Vacation Home Buyers Survey 2.Government Affairs and Advocacy: An Important Member Benefit 3.Legislative and Regulatory Issues Affecting the Resort and 2nd Home Real Estate Sector

3. 2011 Investment and Vacation Home Buyers Survey Methodology: Online panel Based on representative panel of U.S. households 1,895 households responded—represents 1,926 home purchases 3

4. Share of Home Sales

5. Share of Sales 2010-2003

6. Age Vacation and Investment Buyers 2005- 2010

7. Income Vacation and Investment Buyers 2005- 2010

8. How Buyer Purchased the Home

9. Investment and Vacation Buyers Used a Mortgage 2007-2011

10. Outlook of Buyers 52% of investment buyers and 34% of vacation buyers are likely to buy again in the next 2 years 80% of vacation buyers and 77% of investment buyers think it’s a good time to purchase real estate

11. NAR Government Affairs: Important Member Benefit 11 - Lobbyists, Research, Legislative Regulatory -RPAC- Largest in the Country -Funds Raised Through the Dues Increase Going to Local Grassroots - Land Use Initiative

12. Legislative and Regulatory Issues 12 - National Flood Insurance Program - H-2B Visa Program - VISIT-USA Act - Property Insurance - Condo Financing Challenges - Sackett vs. EPA – Supreme Court Case

13. National Flood Insurance Program 13 - NFIP authorized until May 31, 2012 - Still working on long-term reform/ reauthorization bill -Mid-Year Talking Point and a CFA - Contentious Issues Will Include: - Subsidies and Map Updates

14. H-2B Visa Program 14 - Resort Areas Need These Seasonal Workers for Operations/maintenance - Workers Allowed Only After Employers Try to Fill Jobs W/Americans - Coordination with DHS, other federal agencies - Not an immigration program, but is caught up in the broader debate -Recent Rule would have caused big problems – NAR opposed and Congress Stopped it

15. VISIT USA ACT 15 -S. 1746 – Schumer (D-NY) and Lee (R-UT). Bill creates two real estate- related visas. Creates Canadian retiree visa that would allow Canadians older than 50 years of age who own a U.S. home or have a signed lease for the time of their proposed stay to obtain a non-immigrant resident visa. Canadian Visa would allow retiree, spouse, minor children to spend up to 240 days, living in the U.S. Creates a non-immigrant visa for those who make at least $500,000 cash purchase of a residence in the United States. If more than one property is purchased, one must be listed as their primary residence. This visa would allow the individual, their spouse and minor children to live in the U.S. Bill does require the visa holder to spend at least 180 days in the states. This Does Not Create a Path for Citizenship

16. VISIT USA ACT 16 Internal NAR Working Group Has Been Appointed Both Schumer and Lee Have Expressed Interest in NAR Perspectives and Making Appropriate Changes Passage Will Be Difficult in Current Political Environment

17. Affordable and Available Property Insurance 17 - Property insurance premiums have increased in many areas -Availability has decreased – Insurers are pulling out of markets, increasing premiums and not renewing policies. - These circumstances impact housing affordability – especially in resort areas.

18. Current Approaches to Resolve the Problem 18 - Combine Wind/Flood Ins. - Federal guarantees - Tax Credit - Blue Ribbon Commission

19. Condo Financing - GSE’s, FHA and lenders have all tightened lending standards - Stricter standards include owner occupancy, pre-loan sales, condo commercial space and condo-tels - This impacts condo projects nationwide, especially resort areas

20. Condo Financing – NAR Action - Current policy directs NAR to address all issues associated with housing finance – including condo financing - In all meetings and communications with FHA, GSE’s and lenders, condo financing concerns are raised - NAR has raised this issue numerous times in testimony before Congress over the past year - NAR has received clarification from the GSE’s regarding the waiver and appeals process. - GSE’s have also responded positively to our request to streamline regulations 20

21. Sackett vs. EPA Supreme Court on when homeowners are allowed to take EPA to court Oral arguments held on Jan. 9, 2012 NAR submitted an Amicus Brief in support of the Sacketts Sacketts were building a house on Priest Lake but were stopped by EPA because of wetlands Justices were sympathetic – “Can you imagine this happening in the United States.” – Justice Alito Decision is anticipated late spring Why is this Important? Case will test the scope of EPA authority under the Clean Water Act. 21