What is a PAC, and why does TNAMB need one?

Political Action Committees, better known as PACs, are an essential tool to for organizations like TNAMB who work closely with both lawmakers and regulators at the state level and engage in a high degree of lobbying. In a nutshell, PACs provide individuals – in our case mortgage brokers -- with the opportunity to pool their resources in order to have “a seat at the table” when issues affecting our profession are discussed.

The way a PAC works is simple. Donations are collected from individuals (no corporate contributions are allowed) and placed in an account controlled by TNAMB’s PAC committee and overseen by the Board of Directors. The committee and the board use the funds to make strategic donations to key candidates. The activities of a PAC are carefully regulated by state law.

In today’s challenging and ever-changing political environment, elected officials on every level are keenly aware of the activities of political action committees in our state. PACs make their jobs easier by providing access to an organized group that is in position to speak with a unified voice on behalf of a given profession. For this reason, political donations that go through a PAC carry much more “bang for the buck” than contributions from an individual donor, who is much less likely to get an opportunity to speak face to face with a large number of lawmakers.

 
PACs are an important cog in the wheels of government, and not just for the campaign contributions they generate. Lawmakers are called upon to make decisions affecting every conceivable field or profession, and it’s impossible for any elected official to be an expert on every issue. They welcome the opportunity to get guidance on issues from those who are directly involved, and that’s where organizations like TNAMB and their well-organized PACs come in.

A well-organized and well-funded PAC can make the difference between failure and success when legislation or new regulation is being considered affecting the mortgage broker profession. No one can predict the future, but it’s a safe to say that many decisions will be made on the state government level involving the lending industry and the mortgage broker profession. Every decision may not go the way we want it to. But TNAMB’s new PAC will ensure that we have input and an opportunity to state our case when those decisions are made.