The coronavirus has wreaked havoc on Americans’ health as well as the health of our economy over the past several months. The real estate industry is certainly no exception. Due to challenges and unpredictability ahead, combined with record unemployment and cost-cutting layoffs, many Americans have put their plans to purchase a home on hold.
At the pandemic’s onset, new home sale listings dropped by as much as 70 percent in some markets but the April numbers suggested some recovery was underway. Web traffic to real estate portals like Zillow plunged by almost 40 percent. Further, nearly 4 million homeowners are in the midst of forbearance plans – delaying payments on their mortgages – making up almost 8 percent of all mortgages.
While challenges presented by the coronavirus introduce uncertainty, a competitive real estate market and an environment that rewards fair competition and promotes collaboration within the industry will help foster a faster recovery.
Today, key industry partnerships and collaborations between mortgage service providers or banks, fintech and realtech developers offer products and services that bridge the gap between the huge swaths of available data and informed consumer decision-making. These innovations empower home buyers or sellers to make more informed decisions, at a time when few can afford to spend more or sell for less than they should based on constantly fluctuating home markets. A prime example is how Amrock, one of the nation’s leading title insurance, property valuations, and settlement services providers, has focused on developing innovative solutions, such as their eClosing platform, to improve the real estate experience for all parties involved. Because of the rapidly evolving and highly dynamic nature of the industry, partnerships have become key to finding innovative ways to use data to provide the best product for consumers.
Regrettably, such ingenuity and the necessary B2B collaboration faces challenges that predate the current pandemic raddled housing markets. The real estate industry and those who rely on it all pay the price for the increasing onslaught of litigation abuses by the hands of legal profiteers seeking to exploit our courts and our industries for financial gain.
Fortunately, on June 3, the Texas 4th Court of Appeals issued a decision offering hope that the trend of increasing abusive litigation, particularly that within the real estate industry, may not be so inevitable.
This ruling marks a milestone for homeowners who pay title insurance, which protects both real estate owners and lenders against loss or damage occurring from liens (mortgage loans, home equity lines of credit, easements), encumbrances, or defects in the title or actual ownership of a property. Critically, title insurance offers buyers and sellers the assurance they need to buy, sell, and reinvest, all critical components of a recovery.
The Texas 4th Court of Appeals follows a March 2018 decision by a Bexar County, TX, jury who awarded HouseCanary, a software developer, nearly three-quarters of a billion dollars after mistakenly believing Amrock allegedly stole their trade secrets. In truth, Amrock had hired HouseCanary on a $5 million contract to develop an automated valuation model (AVM) mobile application for use by appraisers in the field – a key development in streamlining the real estate buying/selling process. AVMs are formulas that are used to appraise real estate property based on key variables like historical price data, tax assessments, sales history and past lending transactions. However, after HouseCanary had failed to deliver a functional application after more than a year and no clear progress, Amrock sued for breach of contract, and built their own AVM for appraiser use.
The facts of that case – and the weakening standard of what makes up a trade secret – painted a distressing picture for the future of American innovation.
In an effort to cover their inability to develop the application they were hired to produce, HouseCanary countersued – alleging Amrock had stolen their trade secrets and used proprietary information in the development of their own AVM. After ignoring key facts and employing several faulty legal arguments and highly questionable calculations, HouseCanary was able to convince the jury that Amrock had misappropriated their trade secrets – and that such information was valued at $235 million dollars – more than 100 times HouseCanary’s total revenues for all product sales during the period in question.
Beside the fact that the ruling was 150 times the value of the initial $5 million contract, there is another piece of fundamental misinformation the entire ruling hinges on: HouseCanary had no trade secrets or any proprietary information – hence their inability to produce the mobile AVM application Amrock contracted them to create.
This was confirmed by four HouseCanary executives-turned-whistleblowers, who, alarmed by the massive damages figure, testified that “there was never a working version of the App,” and that HouseCanary had deceived Amrock by “representing that the App was more functional than it actually was.” In a then-anonymous email to Amrock CEO Jeff Eisenshtadt, former HouseCanary Director of Appraiser Experience Anthony Roveda wrote “housecanary never had any proprietary anything…”
The original 2018 decision, as it stood before June 3, established a dangerous precedent for the future regarding what was classified as protectable “trade secrets,” which deterred innovation and the partnerships needed to provide the best product for consumers.
As the nation emerges from the coronavirus pandemic, the government – from policymakers to judges – have a duty to provide stability, create meaningful policy, uphold our justice system, and provide clarity where needed. The Texas appeals court decision to overturn Amrock v. HouseCanary sent a loud and clear message that this kind of frivolous litigation has no place in our courts – providing a reassuring and much-needed signal to innovators and developers that collaboration remains welcome here in the United States.
President Trump has signed an executive order that aims to tackle U.S. prescription drug spending, but won’t implement it until the public, including private sector drug makers, can comment.
The order pegs the prices of certain drugs covered by Medicare to the lower prices paid in other developed countries, whose governments impose strict price controls.
The order might save the federal government some money — at least temporarily — but at great expense to patients and long-term scientific progress.
History shows that adopting government price-setting inevitably stifles medical innovation and reduces patients’ access to lifesaving drugs. This move is particularly dangerous and baffling in the middle of a pandemic.
Trump is well-intentioned. But when it comes to healthcare policy, it’s not the thought that counts. Americans can only hope the president rescinds this order, which will have harmful long-term effects.
Right now, Medicare pays 80 percent more for drugs than government health insurers in other developed countries, such as the United Kingdom and Japan. So, the administration wants to tie Medicare reimbursements to the significantly lower prices in those countries.
It’s no accident that drugs are cheaper abroad. Many foreign nations have heavily socialized healthcare systems that regulate drug prices. If pharmaceutical companies don’t accept pitifully low reimbursement rates, foreign government officials simply ban firms from selling their medicines at all.
Pegging Medicare reimbursements to those artificially suppressed prices would, in effect, impose price controls here. That might have some superficial appeal — after all, who doesn’t like the idea of cheaper drugs — but price control schemes never end well.
Government price-setting invariably restricts patients’ access to novel therapies. Right now, 96 percent of all new cancer medicines invented worldwide between 2011 and 2018 are available in America. That’s because our country has a relatively free-market drug pricing system that gives firms a chance to earn back their research and development costs.
Contrast that with the United Kingdom and Japan, where patients have access to just 71 percent and 50 percent of those cancer drugs, respectively. In these countries, drug companies stand little chance at recouping their R&D costs and earning a profit on many drugs. So, they often stay away.
Even if drug companies do enter those markets, foreign patients often wait months — or years — to receive new drugs. While Americans typically have immediate access to breakthrough cancer therapies, patients in Japan wait 23 months, on average, after a drug’s initial launch before gaining access.
Imagine if the 44 million Americans on Medicare — 15 percent of the U.S. population — had to wait an extra year and a half before they could take a new immunotherapy. That horrific consequence explains why, in this case, most congressional Republicans don’t back the president on his executive order.
The administration’s plan would also decimate medical innovation. It takes several billion dollars and over a decade to create just one new drug. The existing pricing system incentivizes companies to make those research investments — and the results have been nothing short of miraculous. Cancer death rates have plummeted more than 25 percent over the last quarter-century, mostly thanks to new treatments.
In fact, in 2019, American life expectancy increased for the first time in four years. One of the key causes was better cancer treatments.
I applaud Trump’s effort to reduce drug prices. But there are ways to do so without bringing foreign price-setting to our shores.
He already got one way right. In the same ceremony, Trump signed another executive order to target middlemen in the drug supply chain called pharmacy benefit managers. These negotiators set the prices for drugs that end up on insurers’ list of covered treatments and on the shelves of local pharmacies.
The instinct to reform the practices of PBMs was spot on. PBMs receive significant rebates from manufacturers for adding a drug to an insurer’s formulary. But they don’t disclose those rebates or use them to lower patients’ costs at the pharmacy counter.
Requiring them to pass along savings directly at the point of sale will help achieve the president’s desired reduction in drug prices without costing Americans access to lifesaving cures.
Additionally, the administration could stop the unfair trade practice of banning an American medicine unless it’s sold at an artificially low price. That would stop developed countries from benefiting off the backs of American taxpayers, who foot the bill for new drug development.
Government price-setting would snuff out future medical breakthroughs while limiting patients’ access to existing drugs. The savings aren’t worth the cost in American lives. Let’s hope the administration decides to reverse course on its new executive order.
Technologies such as the Electromagnetic Launch System (EMALS) support the U.S. military
With the nation’s attention largely focused on the coronavirus, less noticed are threats to our national safety and security that are both long-running and evolving throughout the world — on land, sea, air, and increasingly in cyber and outer space. Losing sight of these threats would be a grave mistake.
Now more than ever, our nation’s leaders must double down on strengthening our military and embracing innovation to protect America and project power when necessary in an unstable, dangerous world. To do so effectively, it is critical that we invest in and equip our men and women in uniform with the most technologically advanced tools and weapons of war available.
Make no mistake, global competitors like China and Russia and rogue states like Iran and North Korea are working diligently to enhance their military capabilities in the hopes of eroding America’s competitive edge.
Fortunately, President Trump has made re-establishing our military strength and global position in the world a national priority after years of neglect during the Obama administration. He has insisted that while the Department of Defense pursues and invests in next-generation technologies, it must do so with taxpayers’ money in mind. And with a defense-wide review underway, expect even more fiscally-minded reforms to materialize over the next several years.
For example, the Ford-class aircraft carriers currently under production are poised to significantly expand our military capabilities, improve the quality of onboard life for our deployed sailors — and exploit the benefits of cutting-edge technologies. The USS Gerald R. Ford (CVN-78), the first of the Ford-class, returned to sea in January and has now completed aircraft compatibility testing, flight deck certification, and other critical milestones in making the carrier battle-ready.
Mr. Trump has paid keen attention to these new carriers — and he has continuously addressed costs associated with their production. In fact, earlier this year, the Trump administration doubled down on its commitment to the Ford-class by convening the “Make Ford Ready” summit to ensure CVN-78 meets its cost targets moving forward.
These modern carriers are equipped with the latest technologies that ensure our troops will be able to protect our nation at a moment’s notice, whether in the Strait of Hormuz or the South China Sea. They are faster, more lethal, more durable and more technologically advanced than any other carrier ever put to sea by any country. And one key advantage which will improve performance, save money and protect American lives (or take the enemy’s when needed) is the carrier’s electromagnetic launch system technology, which was conceived, developed and produced here in the U.S.
The Electromagnetic Aircraft Launch System — EMALS — had its initial skeptics, Mr. Trump among them. But its subsequent performance has spoken for itself. Because the system replaces old, steam-based catapult systems developed in the 1950s, the carriers are able to launch the full complement of planes in the Navy’s air wing. This includes the critically important lightweight and heavyweight drones that are increasingly being used in reconnaissance and battlefield operations. And unlike incumbent catapult systems, EMALS is designed to accommodate future aircraft that come into production in the years ahead.
By replacing the complex and large system of steam pipes on the carriers, this new catapult system delivers a 25 percent reduction in the number of crew members needed to operate and maintain the system. The Navy has estimated this will amount to almost $4 billion in savings from operating costs over the ship’s expected 50-year lifespan. And in line with Mr. Trump’s commitment to establishing greater cost discipline for large DOD contracts, more cost savings have been realized through the negotiation of multiple ship production contracts for EMALS.
The second and third Ford-class carriers are already seeing 16 percent to 27 percent production cost savings respectively. Manufacturing, supply chains, production schedules and jobs are becoming stabilized. As the current crisis has put in stark relief, reliable supply chains are critical, and negotiated, multi-carrier contract buys ensure the stability of U.S. jobs and equipment. For taxpayers, this means significant cost savings without compromising our ability to deliver the most modern equipment available to support our warfighters.
Predictably, however, our competitors are now racing to develop similar technologies. For example, China has reportedly commissioned its own electromagnetic catapult system for its aircraft carriers to allow them to launch more advanced planes and other weaponry. Yet, with America’s new carrier class moving further into subsequent production phases, and our allies wanting to benefit from U.S. military innovations like EMALS, we now have a huge advantage that the United States can and should fully embrace to ensure our military supremacy. Any global competitor seeking similar technologies with ill intent will not go unchecked.
These types of cutting-edge and innovative investments are critical in rebuilding our nation’s military. They also are firmly aligned with Mr. Trump’s commitment to ensure that our military professionals receive far more technology at less long-term cost to taxpayers. Our nation cannot afford to fall behind.
ATR today released a coalition letter signed by 70 groups and activists in opposition to the Pelosi drug pricing proposal to create a 95 percent tax on pharmaceutical manufacturers.
As noted in the letter, this bill calls for a retroactive tax on sales that is imposed in addition to existing against income taxes:
Under Speaker Pelosi’s plan, pharmaceutical manufacturers would face a retroactive tax of up to 95 percent on the total sales of a drug (not net profits). This means that a manufacturer selling a medicine for $100 will owe $95 in tax for every product sold with no allowance for the costs incurred.
The tax is used to enforce price controls on medicines that will crush innovation and distort the existing supply chain as the signers note:
“The alternative to paying this tax is for the companies to submit to strict government price controls on the medicines they produce. While the Pelosi bill claims this is “negotiation,” the plan is more akin to theft.”
This proposal will create significant harm to American innovation to the detriment of jobs, wages, and patients, as the letter notes:
”[The Pelosi] proposal would crush the pharmaceutical industry, deter innovation, and dramatically reduce the ability of patients to access life-saving medicines.
The full letter is found here and is below:
Dear Members of Congress:
We write in opposition to the prescription drug pricing bill offered by House Speaker Nancy Pelosi that would impose an excise tax of up to a 95 percent on hundreds of prescription medicines.
In addition to this new tax, the bill imposes new government price controls that would decimate innovation and distort supply, leading to the same lack of access to the newest and best drugs for patients in other countries that impose these price controls.
Under Speaker Pelosi’s plan, pharmaceutical manufacturers would face a retroactive tax of up to 95 percent on the total sales of a drug (not net profits). This means that a manufacturer selling a medicine for $100 will owe $95 in tax for every product sold with no allowance for the costs incurred. No deductions would be allowed, and it would be imposed on manufacturers in addition to federal and state income taxes they must pay.
The alternative to paying this tax is for the companies to submit to strict government price controls on the medicines they produce. While the Pelosi bill claims this is “negotiation,” the plan is more akin to theft.
If this tax hike plan were signed into law, it would cripple the ability of manufacturers to operate and develop new medicines.
It is clear that the Pelosi plan does not represent a good faith attempt to lower drug prices. Rather, it is a proposal that would crush the pharmaceutical industry, deter innovation, and dramatically reduce the ability of patients to access life-saving medicines.
We urge you to oppose the Pelosi plan that would impose price controls and a 95 percent medicine tax on the companies that develop and produce these medicines.
President, Americans For Tax Reform
James L. Martin
Founder/Chairman, 60 Plus Association
Saulius “Saul” Anuzis
President, 60 Plus Association
Chair, Alabama Center Right Coalition
President, AMAC Action
President, American Business Defense Council
President, American Commitment
Executive Director, American Conservative Union
President/CEO, The American Consumer Institute Center for Citizen Research
Lisa B. Nelson
CEO, American Legislative Exchange Council
Vice President of Policy, ALEC Action
President, Americans for a Balanced Budget
President, Americans for a Strong Economy
President, Campaign for Liberty
President, Center for a Free Economy
Andrew F. Quinlan
President, Center for Freedom & Prosperity
President, Center for Individual Freedom
Executive Director, Center for Innovation and Free Enterprise
Peter J. Pitts
President, Center for Medicine in the Public Interest
Senior Fellow, Center for Worker Freedom
President, Citizen Outreach
President, Club for Growth
President, The Committee for Justice
Vice President, Competitive Enterprise Institute
Executive Director, Conservatives for Property Rights
President, Consumer Action for a Strong Economy
Fred Cyrus Roeder
Managing Director, Consumer Choice Center
President, Council for Citizens Against Government Waste
Executive Director, Digital Liberty
Co-Chair, Florida Center Right Coalition
President, Frontiers of Freedom
President, Galen Institute
Director of Healthcare Policy, Goldwater Institute
The Honorable Frank Lasee
President, The Heartland Institute
Vice President, Heritage Action for America
Rodolfo E. Milani
Trustee, Hispanic American Center for Economic Research
Founder, Miami Freedom Forum
Mario H. Lopez
President, Hispanic Leadership Fund
President, Independent Women’s Forum
Heather R. Higgins
CEO, Independent Women’s Voice
Resident Scholar, Institute for Policy Innovation
President, Iowans for Tax Relief
Vice President of Policy, The James Madison Institute
The Honorable Paul R LePage
Governor of Maine 2011-2019
President, Less Government
Director, Lone Star Policy Institute
Chair, Maine Center Right Coalition
CEO, The Maine Heritage Policy Center
President, Maine State Chapter – Parents Involved in Education
President, Market Institute
Jameson Taylor, Ph.D.
Vice President for Policy, Mississippi Center for Public Policy
The Honorable Tim Jones
Leader, Missouri Center-Right Coalition
CEO, Montana Policy Institute
President, National Taxpayers Union
The Honorable Bill O’Brien
The Honorable Stephen Stepanek
Co-chairs, New Hampshire Center Right Coalition
The Honorable Beth A. O’Connor
Maine House of Representatives
The Honorable Niraj J. Antani
Ohio State Representative
Executive Director, Ohioans for Tax Reform
Honorable Jeff Kropf
Executive Director, Oregon Capitol Watch Foundation
CEO, Pelican Institute for Public Policy
Executive Director, Property Rights Alliance
President, Rio Grande Foundation
James L. Setterlund
Executive Director, Shareholder Advocacy Forum
President and CEO, Small Business Entrepreneurship Council
David Miller & Brian Shrive
Chairs, Southwest Ohio Center-right Coalition
Executive Director, Taxpayers Protection Alliance
President, Tea Party Nation
Director, Right on Healthcare – Texas Public Policy Foundation
President, Trade Alliance to Promote Prosperity
Executive Director, Wyoming Liberty Group
by Peter Roff • Independent Journal Opinion
Throughout his career, Vermont’s Bernie Sanders has championed postal reform. He wants to save the United States Postal Service and its hundreds of thousands of public employee union jobs, by broadening the scope of its activities.
It’s an interesting idea, which is probably why the American Postal Workers Union was an early presidential endorser, and a bad one. Allowing the USPS to transact non-bank financial services opens the door to competition in areas private business has shown it can handle quite competently, thank you very much.
It’s inevitable a full range of banking services would eventually follow, free of the encumbrance of the onerous Dodd-Frank requirements and the overly invasive Consumer Financial Protection Board the massive new banking law spawned. The idea is already out there. More than one policy wonk has hit on it as to provide services to what folks have taken to calling the under-banked. Continue reading
By Rich Lowry • RealClearPolitics
The ride-sharing service is synonymous with the new efficiency and convenience enabled by information technology, and is anathema to regulators and entrenched interests everywhere. Add to the list of its critics the presumptive Democratic presidential nominee.
Hillary Clinton didn’t mention Uber by name but warned about the disruption caused by it and other companies in the so-called sharing economy. Her husband wanted to build a bridge to the 21st century; Hillary worries about the downsides of “advances in technology and expanding global trade.” Continue reading
by George Landrith • Breitbart
Trial lawyers trying to hold parts of the legal system hostage to make money is nothing new. It always happens the same way: a few creative lawyers figure out how to exploit legal loopholes; then abuse those loopholes to enrich themselves at others’ expense until someone stops them. Along the way, they come up with all sorts of creative justifications for what they are doing, claiming it’s actually positive and beneficial. Behind the scenes, they convince or pay off special interests to lobby for delays in changing the law that would close their loopholes and stop the cash flow.
Fortunately, conservative Members of Congress and state legislators can usually be counted on to lead the charge to dismantle the trial lawyers’ schemes. One of the last great examples was the passage of the Private Securities Litigation Reform Act (PSLRA) 20 years ago, over the objections of the lawyers and a Democratic president’s veto. That law reined in the frivolous securities litigation that was doing nothing but lining lawyers’ pockets. Today, this has been replaced by a new threat. Continue reading
Frontiers of Freedom is a strong supporter of property rights (including intellectual property rights). Property rights encourage individuals and businesses to innovate and invest in new ideas and technologies. We all win when property rights are respected. So where can you find your favorite movies and shows online and be sure that they are not illegal pirated copies?
The Motion Picture Association of America has launched a new search engine called “Where To Watch” (WhereToWatch.com). This new tool gives consumers a free, simple, and comprehensive way to search every known legitimate platform for movies and TV shows. No more searching 35 different places to find what you’re looking for. It is all at one simple-to-use website. And its free. We encourage everyone to use this tool. Not only will you protect yourself from unsavory and illegal websites that plant viruses on your computer and invade your privacy, but you’ll be supporting and encouraging your favorite artists, actors and film studios to continue making the entertainment that you love. Continue reading
Ride-share services benefit consumers, but the taxi commission doesn’t want to give us a good deal.
The regulatory knives are out for Uber and Lyft, two ride-sharing services that make life easier for consumers and provide employment opportunities in a stagnant economy. Why are regulators unhappy? Basically, because these new services offer insufficient opportunity for graft.
Services like Uber and Lyft disrupt the current regulatory environment. I have the Uber app on my phone. If I need a car in areas where Uber operates, it looks up where I am using GPS, matches me with participating drivers nearby, and in my experience gets me a Town Car in just a few minutes. It’s the comfort of a limo service, with the convenience of a taxicab. I get a better service, the driver gets a job, but now there’s competition for those entrenched companies. Continue reading
And why individual creators of content are now having such a difficult time protecting their work-product.
This video of recording artist Maria Schneider testifying before Congress explaining how difficult it is to protect her work and the real costs of piracy is compelling.
One of the most important parts of the Constitution is one of the least recognized. While American’s appreciate the importance of free speech and free elections, few realize that America may well have become the world’s unmatched economic superpower because the Founders wisely authorized Congress to protect intellectual property rights. This, in turn, provided the incentive to innovate and create. Continue reading