Rep. Lofgren Introduces the 1031 Regulation Act of 2007

Press Release

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."

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