Irvine, (PressExposure) December 05, 2008 -- Lawrence Roberts, author of âThe Great Housing Bubble [http://www.thegreathousingbubble.com/],â believes the members of National Association of Realtors (NAR) should be subject to oversight by the Securities and Exchange Commission (SEC) due to the false statements they routinely make concerning the investment potential of residential real estate. Financial services professionals are strictly regulated as to the representations they can make regarding the financial performance of certain investments by the SEC. Roberts believes their activities should be similarly regulated since the false investment representations of the NAR contributed to the housing bubble.
Roberts proposes a series of changes to our current system of appraisal, lending and sales of residential real estate. He contends our system of property appraisal needs to be overhauled to rely on valuations based on a properties potential rental income rather than merely verifying and perpetuating irrational exuberance by using the comparative sales approach. Lending standards need to be tighter to ensure those who are loaned money to purchase real estate can comfortably afford the payments necessary to sustain ownership. The documentation standards of residential loans needs to be improved with both parties having more stringent civil and criminal penalties for lending outside of reasonable standards or committing fraud or misrepresentation on a loan application.
About the Author and Publisher
Lawrence Roberts, author of âThe Great Housing Bubble,â is known as the Housing Bubble Cassandra. He publicly predicted the housing price crash as the primary writer for the Irvine Housing Blog. From his unique vantage point in Irvine, Calif. â the center of the subprime universe â Roberts carefully documents in his book the conditions and practices that inflated the largest real estate bubble in history. He holds a Master of Science in Land Development from Texas A&M University, and he consultants to the land development industry.
Monterey Cypress Publishing is a small press specializing in real estate and personal finance related books, audio books, and video presentations.