The Supreme Court ruling in Tyler v. Hennepin County confirms the equity homeowners build in their properties is a constitutionally protected right and cannot be unduly or unfairly seized by the government. Tyler owned a condominium that accumulated about $15,000 in unpaid real estate taxes along with interest and penalties. The County seized the condo and sold it for $40,000, keeping the $25,000 excess over Tyler’s tax debt for itself.  Tyler filed suit, alleging that the County had unconstitutionally retained the excess value of her home above her tax debt in violation of the Takings Clause of the Fifth Amendment and the Excessive Fines Clause of the Eighth Amendment.  NAR, along with the American Property Owners Alliance and the Minnesota Realtors® filed an amicus brief in support of the property owner’s entitlement to the surplus equity, arguing the state statute effectuates an unconstitutional taking of private property under the Fifth Amendment.

Other victory ruling: In May, our NAR President Kenny Parcell testified before a U.S. House panel about the FHFA’s new loan level pricing adjustments (LLPA) fee increase on borrowers with fair to good credit profiles. He stressed that the fees are unnecessary and confusing, especially when potential home buyers already face a lack of affordability and supply. We applaud the FHFA’s recent announcement rescinding a proposed LLPA fee on borrowers with debt-to-income ratios greater than 40%. It should be noted that good credit borrowers always pay less in fees, but the changes proposed would have their raised while lowering those with lower credit scores.

Finally, the Supreme Court also ruled in the Sackett v. EPA, to limit the scope of the Clean Waters Act significantly. In NAR’s estimation, this ruling brings more clarity to the rules and regulations on building on personal land under the scope of the Clean Water Act (CWA). This decision will directly impact ongoing litigation that NAR is part of related to an EPA rule defining Waters of the United States (WOTUS) under the CWA.