National REIA’s December REIA Now call delivered several significant legislative, regulatory, and industry updates affecting real estate investors across the country. The session featured policy strategist Kevin Coughlin and attorney Jeff Watson, who provided status reports on property tax legislation, wholesaling reforms, seller financing progress, and renewed scrutiny on Subject-To transactions. Below is a factual breakdown of every major update discussed.
Ohio House Bill 186: 10% Property Tax Increase for Small Investment Properties
Kevin Coughlin opened with a critical update on an amendment added late to Ohio HB 186, which shifts property tax relief toward owner-occupied homes by raising property taxes on one-, two-, and three-unit investment properties by 10%.
National REIA is urging housing providers nationwide to take action through VoterVoice while the governor considers a veto. Coughlin emphasized that similar proposals are emerging in at least seven states, and investors should expect additional attempts to rebalance tax burdens onto rental housing as states explore property tax reform.
Key takeaway: Any state evaluating property tax relief may do so at the expense of rental property owners. Investors need to be organized and present at their state capitols.
National Trend: Wholesaling Legislation Tightening Across States
Jeff Watson reported that Ohio recently enacted Bill 155, updating the state’s wholesaling laws and establishing new disclosure and penalty structures. Ohio now requires:
Written disclosure before the purchase contract is executed (Note this is proposed for Missouri)
Seller acknowledgment that the buyer may assign the contract
Awareness that closing may occur with someone other than the contracting buyer
The law includes a three-tier penalty system, ranging from forfeiture of earnest money to enforcement actions, and—most significantly—classification of undisclosed wholesaling activity as a Deceptive Sales Practice, allowing the Attorney General to pursue attorney fees and double or treble damages.
Watson noted this reflects a national regulatory trend, beginning in Illinois and now visible in Oklahoma, South Carolina, and other states.
Key takeaway: Wholesaling laws are tightening nationwide. Investors must understand and comply with state-specific rules, as enforcement risk is increasing.
Subject-To Transactions Facing Renewed Scrutiny
Watson outlined two developing issues involving Subject-To (Sub-2) transactions:
1. Arizona Attorney General Lawsuit
The Arizona AG has filed suit against investors, title companies, and attorneys, arguing that Sub-2 transactions are “inherently illegal.” The case could influence regulatory behavior in other states.
2. Lenders Deploying AI to Detect Unapproved Transfers
A major technology vendor working for Freddie Mac, Fannie Mae, Ginnie Mae, and other national lenders has been tasked with scanning mortgage portfolios using AI tools to identify possible Sub-2 transfers.
The algorithm flags two factors:
✔ Property transferred into a trust
✔ A durable power of attorney recorded with the servicer
If both conditions appear, lenders will manually audit the file and may accelerate the loan for violation of due-on-sale terms.
Watson emphasized that this is happening nationally, not state-by-state, and that investors should reassess how they structure Sub-2 deals.
Key takeaway: Lenders are using AI to aggressively identify unauthorized transfers. Sub-2 strategies that relied on trusts and POAs are now at significantly higher risk.
Seller Financing Coalition: Major Federal Progress Expected in 2026
In contrast to the warning-heavy updates, Watson shared encouraging news on the long-running effort to reform Dodd-Frank restrictions on seller financing.
Congressman Andy Barr (KY) and Congressman Vicente Gonzalez (TX) are leading a bipartisan push to reintroduce the Affordable Homeownership Access Act in early 2026.
House Financial Services leadership has indicated support, giving the bill a stronger pathway than in previous attempts.
Senator Ted Budd (NC) is being approached to sponsor a companion bill in the Senate.
Once reintroduced, National REIA will issue a coordinated VoterVoice Call to Action seeking co-sponsors.
Key takeaway: Seller financing reform has momentum not seen in more than a decade, with bipartisan support and a clear strategy for advancement.
Note: Jeff Watson will be at MAREI in January to talk about Seller Financing at the Monthly Meeting at at a Saturday Workshop – See Calendar.
Market Signals: Rising Consumer Distress & Multifamily Concessions
Other national indicators discussed:
Credit card, auto loan, and student loan delinquencies are rising.
Auto repossessions are accelerating faster in Europe but are showing stress signals in U.S. markets as well.
Multifamily vacancies are increasing in several regions, including Florida, Ohio, and Kentucky.
Concessions—rare in recent years—are returning across many markets.
Watson emphasized that tenants are becoming financially strained, and landlords who manage communication and maintain strong tenant relationships will outperform during the adjustment period.
Key takeaway: Investors should prepare for softer rent demand and more tenant-related financial risk through 2025.
Legislative Engagement: Why Now Is the Time
With Congress out of session for the holidays, both speakers encouraged investors to engage directly with their representatives:
Attend district-level fundraisers or town halls
Introduce yourself and your business
Mention upcoming advocacy efforts, including seller-finance reform
Watson stressed that these small events often grant more meaningful access than formal visits to Washington.
Replay Available
The full one-hour update contains detailed commentary, Q&A, and explanations of the legislative landscape. You can watch the complete replay below.
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