The National Associations of Realtors (NAR) held its annual conference last month in Anaheim. During its governmental and legislative affairs session, NAR lobbyists expressed great concern over a new bill that had originated in the Senate. This bill would eliminate government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac.

After the collective moan from those assembled evaporated, Sen. Bob Corker (R-Tenn.) was identified as the culprit who had drafted the legislation. This came as a surprise to the Tennessee delegation as the Senator has a reputation a friend of business and once owned the two largest real estate firms in Chattanooga.

As mayor of Chattanooga, he had a solid relationship with the Realtor community and, as he has noted in the past, his mother was a Realtor. Tuesday, Sen. Corker visited the Greater Nashville Association of Realtors to meet with Realtor leadership from the Midstate.

He gave an overview of the overall economy, but pointed to the fact that we are doing better than Europe in the world of finance, noting that the United States is viewed as a “safe haven today, as far as investing goes,” ading the US is the “least worst country” in that regard.

He noted that few aware of the situation feel that Fannie and Freddie can exist in the condition they are in are in today. And Realtors, even NAR, agree with this. Actually, they have failed and are in receivership. Sen. Corker referred to Fannie and Freddie as “wards of the state.” All sides are in agreement that reform is necessary. And the sooner the better, Sen. Corker said, citing an example.

“On Friday, one of the most egregious things that I have ever seen happened.” He explained that Bill Dudley, president and CEO of the New York Federal Reserve, had recommended that Freddie and Fannie begin giving mortgage reductions to borrowers in California and Florida. To further explain his point, Corker offered that “all of you Tennesseans would transfer their wealth by sending your hard-earned money to California and Florida.”

In explaining his bill, which would eventually dissolve the GSEs but through “draconian measures,” Corker noted there is an industry that purchases mortgages and feels that the people that invest on mortgages “are on strike right now.” They are not buying and the reason is they are not “able to look under the hood” and see what they are buying.

He says his bill would require mortgage transparency so that investors would be able to evaluate what they are purchasing. He also said he is in favor of a 5 percent down payment. This was welcome news, as there is a bill in Washington, the Dodd-Frank bill, which he described as a “bonehead idea.”

The concern of Realtors is that it appears that the real estate market is rebounding and, by Sen. Corker’s admission, the loans made in “2009, 2010 and 20112 are actually good loans.” He joked that all of his “free market friends aren’t very free market when it comes to their own arena.”

One of the Realtors asked if the Senator considered the mortgage interest deduction and depreciation of investment real estate – two deductions that Realtors hold sacred – as loopholes.

His response was that “they both are (loopholes). If you do certain activities, you don’t pay taxes.” Good point. But he went on to say that the mortgage interest deduction is safe.

As Anne Murray once sang, “We sure could use/a little good news.”

Richard Courtney is a real estate broker with Pilkerton Realtors and the author of Come Together: The Business Wisdom of the Beatles. He can be reached at [email protected].