Congressman Alan Grayson successfully introduced an amendment exempting timeshare companies from the Mortgage Reform and Anti-Predatory Lending Act of 2009 (H.R. 1728). The amendment passed the House Financial Services Committee with full bipartisan support.
The American Resort Development Association (ARDA) estimates that, in 2007, the timeshare business in Florida created or supported 171,500 full- and part-time jobs, $6.6 billion in salaries, wages and related income, and $2.7 billion in tax revenues.
H.R. 1728 will impose a number of new requirements on lenders aimed at curbing predatory mortgage lending. Congressman Grayson supports the bill, but believes timeshares will be squeezed out and thousands of jobs in Central Florida will be lost without the protection of his amendment.
Congressman Grayson said, “I support mortgage reform, but timeshares should not be included. Thousands of hard-working people rely on timeshare companies for a job. My amendment will prevent a deathblow to the Central Florida timeshare industry. If people default on their home loans, they lose their houses. If people must surrender their timeshare, they only lose an opportunity to take a vacation.”
Timeshare sales are already heavily regulated by the State of Florida. People who buy timeshares currently have ten days to rescind the purchase and loan, for any reason.
As drafted, H.R. 1728 would give homebuyers a three-year window to rescind their purchases. It would also prevent same-day sales which industry experts estimate account for more than 90 percent of all timeshare sales. The American Resort Development Association (ARDA) applauds Congressman Grayson for introducing the successful amendment exempting timeshares.
“H.R. 1728 would have mandated unnecessary and burdensome requirements on our ability to provide purchase financing to consumers in Florida. I want to applaud Congressman Grayson for recognizing that there are comprehensive state rescission and consumer protection laws already in place. Congressman Grayson is a true champion of Central Florida’s vacation industry and his leadership is appreciated,” said Howard C. Nusbaum, President and CEO of the American Resort Development Association.
