Tentative U.S./Canada Lumber Pact a Bad Deal for Consumers
The U.S. and Canadian governments announced last week that they reached agreement on a framework for a negotiated settlement to the current dispute over imports of softwood lumber. This managed trade framework would involve quotas and export taxes, essentially setting a minimum price for lumber. NAHB opposed the negotiations between the governments because quotas and export taxes lead to market price spikes and volatility. NAHB is currently reviewing the details of the complex framework, which was publicly released on Friday, April 28.

While the negotiations were still underway, NAHB launched a media blitz in an effort to show that a managed trade deal would drive up housing costs. NAHB Executive Vice President and CEO Jerry Howard was quoted in the Wall Street Journal, Associated Press, the Dow Jones Commodities Service, the Miami Herald and the Deseret Morning News. In addition, he appeared in virtually every major Canadian broadcast and print outlet. If the settlement is finalized and results in new trade barriers limiting Canadian lumber shipments into the U.S., NAHB will help builders seek lumber sources from other countries and promote the use of alternative building materials wherever practical.  Additional details on the tentative settlement can be found in the May 1 issue of Nation’s Building News, or contact Jason Lynn at 800-368-5242, x8307 for more information.

House Panel Holds Hearings on Multifamily, Insurance Issues
The House Committee on Financial Services Subcommittee on Housing and Community Opportunity held two hearings last week on issues of interest to NAHB. On April 25, the panel focused on H.R. 5039, the “Saving America’s Rural Housing Act of 2006.” The measure would preserve and revitalize the Section 515 multifamily rental housing portfolio. NAHB has worked closely with the sponsors of the recently introduced bill and hopes to provide additional input as the legislation makes its way through the committee process later this year.  NAHB submitted a written statement to the subcommittee outlining our support for the reform effort, and also offered suggestions to enhance the bill.  NAHB lobbyists will continue to work with members of the subcommittee to strengthen this important legislation and work towards passage of H.R. 5039.

On April 26, the housing subcommittee held a hearing entitled, "Title Insurance: Cost and Competition."  This hearing focused on practices within the title insurance industry, specifically on recent reports of illegal kickbacks and limited competition, as well as an ongoing Government Accountability Office study on title insurance cost structure and regulation.  While the committee does not seem close to introducing legislation at this time, Rep. Michael Oxley (R-OH), the chairman of the full Financial Services Committee, noted that Congress may have to address this issue since HUD and state insurance commissioners do not have the resources to properly oversee the industry.  NAHB will continue to monitor this issue closely. To view H.R. 5039, click here and type the bill number in the box in the center screen. For more information on the House hearings, contact Scott Meyer at x8144. [return to top]