I created this handout for the Democratic National Convention. Homeowners of Texas, a nonprofit consumer advocacy, was urging Congress to adopt a Homeowners' Bill of Rights that includes financial, legal, and disclosure reforms.

1. The Homeowners’
www.HomeownersofTexas.org
Fix Housing First Tom Archer, President
Homeowners of Texas (HOT) urges Congress to 807 Brazos St., Suite 304
adopt a Homebuyers’ Bill of Rights that includes Austin, TX 78701
512-502-5349 Businesses large and small have closed their
the following national reforms: doors, and millions of Americans have lost
their jobs, their homes, and their life savings,
1. Financial: Restore checks & balances to the all because so many homes were under-
home buying process built, over-appraised and over-financed. To
recover, we must Fix Housing First.
2. Legal: Pass the Arbitration Fairness Act
Home is where the heart is, our castle, our
3. Disclosure: Repeal the “Brownfields Law”
sanctuary from the busy world, a place to
To enable recovery and prevent a repeat of the rest and recuperate, and a source of
housing collapse, adopt a Housing Fairness Act personal pride. It’s the biggest financial
that prohibits conflicts of interest between large investment we may ever make. As such, our
homebuilders and in-house mortgage, title,
About Homeowners of Texas home must be a safe, secure and structurally
insurance and appraisal companies. sound place to raise our family.
HOT is the 1-year old consumer group that
convinced Texas lawmakers to abolish the Texas But the political love affair with deregulation
Pass the Arbitration Fairness Act to ensure fair
Residential Construction Commission. We and the homebuilding industry propelled an
dispute resolution. And repeal the “Brownfields
advocate legislative reforms at both the State and epidemic of irresponsibility that plagued
Law.”
Federal levels to restore homeowners’ legal rights Wall Street, Main Street and Washington
Full written disclosure of all dangerous soil through fair dispute resolution, purchase and sparked a housing collapse. The
conditions to buyers, lenders and title companies protections free from abusive conflicts of interest, consequences have been disastrous.
helps protect the financial and structural integrity and full disclosure of construction defects and
of homes and the health, safety and welfare of dangerous soil conditions prior to the purchase of
homeowners. a home.
© Homeowners of Texas, Inc., 2009

2. FINANCIAL FAIRNESS LEGAL FAIRNESS FULL DISCLOSURE
Adopt a Housing Fairness Act to restore checks Pass the Arbitration Fairness Act and restore Repeal the “Brownfields Law” (the Small
and balances to the home buying process and Americans’ right to a jury trial. Americans today Business Liability Relief and Brownfields
prohibit builders from using in-house mortgage, are forced into compulsory arbitration by Revitalization Act enacted in 2001) since it allows
title, insurance and appraisal companies. contracts signed at the point of sale, whether homes built on contaminated soil to be sold to
buying a cell-phone or a new home. homebuyers without disclosure, putting both the
buyer and lender at risk.
Deregulation allowed the formation of large
The Act would allow consumers to choose
builder conglomerates, led to financial abuses,
judicial resolution of disputes rather than being Buyers and lenders expect their homes to be
and played a major role in the housing collapse.
forced into binding arbitration. safe, sound and free from contamination.
Subprime loans were made on substandard
Arbiters in this “private justice system” don’t Disclosure of contaminated or expansive soil
homes and sold to 3rd party investors on Wall
need the legal training of an attorney or judge, helps protect the financial and structural
Street as mortgage-backed securities.
and there’s no contribution to public law. integrity of homes and the health, safety and
welfare of homeowners.
Without preexisting firewalls and oversight by
Arbitrator fees are expensive compared to court
federal banking regulators, builder-owned
costs. Require full written disclosure to buyers, lending
finance companies could easily inflate appraisals
institutions and title companies of dangerous soil
and make risky loans with little or no risk. And
Predetermined arbitration is a waiver of rights to conditions prior to the sale of the property.
without local accountability, builders could cut
a trial by jury, to open courts and to an appeal.
corners and easily conceal building code
violations. Preselected arbiters can be (and usually are)
biased and beholden to industries they support.