Rep. Lofgren Introduces the 1031 Regulation Act of 2007

Bill Would Require 1031 Intermediaries to be Insured

Rep. Zoe Lofgren (D-San Jose) today introduced the 1031 Regulation Act of 2007, which requires qualified intermediaries in a 1031 exchange be insured by the Federal Deposit Insurance Corporation (FDIC) or under the Federal Credit Union Act (FCUA). The Act takes the role of the intermediary out of the hands of individuals who are abusing their position and places it in the hands of insured and reputable institutions.

“After hearing from many my constituents, including those who suffered considerable financial lose, I decided to introduce legislation to regulate 1031 exchanges,” noted Rep. Zoe Lofgren. “This bill will help ensure that the recent financials loses we saw in the Bay Area will not happen again. By mandating insurance coverage for 1031 intermediaries, we significantly reduce the risk of unscrupulous fly-by-night operators bilking consumers out of their assets.”

Congresswoman Zoe Lofgren is serving her seventh term in Congress representing most of the City of San Jose and Santa Clara County. She serves as Chair of the House Judiciary Subcommittee on Immigration, Citizenship, Refugees, Border Security, and International Law. She also Chairs the House Administration Subcommittee on Elections and serves on the House Homeland Security Committee. Congresswoman Lofgren is Chair of the California Democratic Congressional Delegation consisting of 34 Democratic members of the U.S. House of Representatives from California.