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Report On Teleconference With National Consultant On Federal Political Situation

October 30, 2008



On October 14th we held a teleconference with a national lobbying firm to discuss the political environment under the anticipated changes in Washington in January.  This is to report briefly on those discussions for those who did not attend.


To explain, it is fully expected that the Democrats will increase their power in Congress and most likely Obama will be our new President.  We reported on this previously and nothing much has changed since the report.  We do, however, have more focus on the congressional situation.  Go here to see how the congressional situation is shaping up.  At the moment it looks as if the Democrats may not have a bullet-proof majority as you see.


We know the Democrats have not been friendly to our industry nationally and we know that our industry gets honorable mention in the Obama political platform as seen here.  So, we fully expect there to be some movement against us.


Here is what came from our discussion with the national consultant:

  1. Irregardless of who is President, either new President would sign any legislation against our industry.  So, there is no advantage or disadvantage for us either way from that perspective.

  2. An Obama administration might, however, be more inclined to issue executive orders that would not be favorable to our industry and that could be a problem.

  3. The issue from a national perspective has been around for many years and has been "managed" up until now -- with the exception of the military bill.  The national consultant seemed to believe that this would continue to be the case if the industry maintains their focus.  If the industry does not maintain focus, clearly there will be an industry problem.

  4. There is no representation for title lending on a national basis.  If you are interested in title lending, this is not good.  There is a group putting together a national effort and there may be other options to explore in the not too distant future in this regard.

So, the bottom line is while our threat level is somewhat elevated it is not "dire" at the moment.  Clearly, the focus for the next few months is at the national level.  That surely does not mean we can take our attention away from our local efforts, but we must be aware of both for the short term.  Many of those who attended the meeting were "cautiously optimistic" after the call.  Let's all hope they are right!

We will update our members with more information on this soon.