Getting Positioned for November Elections, Posted by Vince

I just returned from Annapolis, Maryland, where a group of NAR RPAC Trustees were analyzing the November 2010 Congressional races.  While this election is more than three months away, the trustees will be carefully monitoring each Congressional race and deciding the level of support that REALTORS® will be providing in the form of independent expenditures.   It is this constant monitoring and planning that will help ensure that REALTORS® and our issues are well-positioned in the 2010 Elections.

The importance of our meeting was underscored during what we did during our break.  We were able to visit the Maryland State House, the oldest state capitol still in continuous legislative use and the only state house to have ever served as the nation’s capitol.   It was also the site for one of the most historic events in American history.

On December 23, 1783, General George Washington voluntarily resigned his military commission to the Continental Congress at the State House in Annapolis, an act that many scholars regard as a turning point in U.S. history.  As the Revolutionary War was winding down, Washington’s popularity was so great that many tried to seduce him into becoming king.  But Washington renounced them all, gave up his commission, and with it secured our nation as a government of the people. 

As I stood at the very spot where George Washington turned over the power of the military and gave it back to the people, I am reminded of the responsibility we all have as citizens of our country, not only in voting, but also in fighting for our causes and becoming actively engaged in the upcoming elections.

Remember, we are all members of the REALTOR® Party.  As you decide on who you’ll support this fall, I hope you’ll ask the candidates what their positions are on maintaining mortgage interest deductibility, their plan to reform Fannie Mae and Freddie Mac, and other issues that will help us sustain our housing recovery.

Later this year, check Realtor.org/GovernmentAffairs to see who RPAC is supporting.

After all, George Washington gave us all a tremendous gift, and with it a tremendous responsibility.  I say we use the gift and own up to the responsibility.  Vince Malta, 2010 NAR Vice President and Liaison to Government Affairs

Find Your Home, Posted by Jim

“I have found me a home…Yes, I have found me a home…You can have the rest of everything I own…‘Cause I have found me a home… The days drift by, they don’t have names, none of the streets here look the same…There are so many quiet places…and smilin’ eyes match the smilin’ faces…Yes I have found me a home…”  Jimmy Buffett

I purchased my first home in 1976.  I was 22 at the time and was “pushed” by my parents to buy.  Admittedly, I was scared.  After all, it required a financial commitment the likes of which I had never made before. 

But when I walked into my first home, those fears all but disappeared, and I immediately felt pride, security and a sense of “having made it”.   That feeling of accomplishment never goes away – no matter how many times you move or buy.  That is the best part of homeownership.

After painting my new home, cleaning up the yard to my liking (mowing the grass in two directions to create a letter “X” in the grass is the best) and washing my own car in my own driveway, I sat on the porch and had a cold beverage.  When I think back, I can easily remember that feeling as though it was just yesterday.  It is – and should be – an emotional feeling we carry with us forever.

Recently, my son and daughter purchased homes.  Both houses needed work, and my kids dug right in.  And, just like me, they have both expressed their pride in ownership in ways that one could only do when you own your own home. 

Everyone should have the opportunity to find their home – a place of peace, somewhere you can go for solace, to be with your family and to feel secure and proud of the life you have created. 

As usual, Jimmy Buffett got it right.  He didn’t sing about his mortgage or the money he would make on a home.  He sang about quiet places, smilin’ eyes and smilin’ faces.  That’s the true value of homeownership. 

I’m currently looking for a new home.  When I find it, everyone will know.  I’ll smile more, feel more pride and know, once again, that the American dream that REALTORS^® work so hard on each day means as much to us as it does to that client, customer or family we just helped – Jim Helsel, 2010 NAR Treasurer

REALTORS® are The Heart of the Market, Posted by Brooke

I’ve been a REALTOR® for over two decades.  I’ve seen market ups and market downs.

So why do I love being a member of the NATIONAL ASSOCIATION OF REALTORS®?  Why do I keep doing what I’m doing?

The reasons are simple and awesome.  NAR fights for my business.  NAR just helped get the closing deadline on the homebuyer tax credit extended as well as helped get the National Flood Insurance Program renewed.  Pretty impressive.

Furthermore, NAR provides members with top-notch resources and networking and educational opportunities that I can’t get anywhere else.  Every REALTOR® is also held to a strict Code of Ethics that keeps us at the top of our profession.  I can’t beat that.

On a personal level, I don’t look at what I do as just selling homes in Texas.  I work with people to help them build the lifestyle they want.  I help them make decisions that will change their lives for the better.

Houses aren’t just products to me.  They are the four walls that hold the people and the memories we love the most.  Houses are where we build our lives, entertain our friends, and care for our families.

For 24 years, I’ve helped people make life-changing decisions about where to live.  In turn, it’s changed my own life.  That’s why I love being a REALTOR® and exactly why REALTORS® truly are The Heart of the Market!

Now I want you to share why you love being a REALTOR®.  Go to www.TheHeartoftheMarket.com and describe in 100 words or less why you love being a member of NAR and how it’s made a difference to your clients and to your community.

Selected stories will be featured in The Heart of the Market online “Gallery.”  Within two business days, you’ll be emailed a link to your story that you can post on your own Web site, Twitter or on Facebook account.  That way you can build your brand and advertise your business in your own community.

In a few weeks, you’ll also receive an “I Love Being a REALTOR®” pin.

At NAR, we’re working on an enormous amount of initiatives to put REALTORS® On the Rise in 2010.  In fact, you could say that members are the heart of everything we do.  I guess that’s just another reason why I’m proud to be a member of NAR.  – Brooke Hunt, 2010 Vice President and Liaison to Committees

REALTOR® Future: Authors or Objects?, Posted by Ron

I just spent the last few days traveling for the Leadership Team out West, first to California’s Legislative meetings and then to the Resort and Second Homes Meeting at Lake Tahoe, Nevada.  It was a special trip and very inspiring.

In each of my public presentations, one message was central:   The future will be written, and we REALTORS® have a choice:  We can be authors of our future, or the object of the future.   In other words, we can engage and write our future or we can be spectators.

 For the past several years, we have “involved” ourselves by providing solutions to the housing crisis.  However, now, there is a new approach REALTORS® across the country are embracing:  action and engagement.  

Maybe it was wishful thinking (or blind optimism) that led us to believe that the market would self correct and mortgage money would be available to credit worthy consumers.  After the bailout of the “Too Big to Fail” banks, REALTORS® assumed that these companies would step up and begin to provide the life blood to our market – mortgage money.   We also assumed that the government would step in and solve the problems.   I’m not sure why we believed that everyone else would step up and make it right, but we did.  And, to be fair, steps were taken, but it has not been enough and it is not right.

The change for us to be more active is a good one.  We are relying upon ourselves – our hands and our ingenuity – to figure out the solution AND take control, rather than allowing some else to resolve the problems.

Your NAR leadership team is working within this new understanding and focus.  We are no longer stepping.  We are marching and running.

Specifically, we are working to create channels of communication between REALTORS® and the big banks.  Right now the five largest banks are responsible for 73 percent of all of the mortgages written in the United States.  While that fact may be disturbing, particularly considering that 30 years ago the top five banks were responsible for 25 percent of mortgage lending, it does have value.  We only need to communicate with those five to resolve many issues in the market. 

We have decided we need to be authors of our relationship with these banks.  It is easy to blame, but creative problem solving requires focus and discipline.  These are skills, traits that REALTORS® know well.  We are working to write and define the “new normal.”

Some people suggest that leadership should not tell you what we are attempting to do, but rather tell you after the success has happened.  I disagree.  By sharing our agenda, we make sure that we are representing you.   It is also a way to make leadership accountable.  Most importantly, sharing gives you the responsibility and the opportunity to work together to come up with effective solutions. 

After all, who has a better vantage point  than you, the neighborhood REALTOR®?  So, please, share your thoughts and ideas with us.

This initiative is a reach.  We are looking to redefine the flow and availability of mortgage money.  But our industry cannot operate without it.  We need to ensure that the global financial system has a steady, competitive, reliable, and available source of mortgage money. 

The American Dream, when realized, is a great thing for American families.  While re-thinking what people can afford is appropriate, re-thinking cannot be allowed to eliminate homeownership entirely from the national consciousness. 

As authors of our future, we must insure that the American dream is the right size, but still very much a real part of the American experience. — Ron Phipps, 2010 NAR President-Elect

Pitching In, Posted by Vince

I’m a crazy baseball fan.  One of my hobbies is authenticating professional baseball bats.  While I attended REALTOR® meetings this week in Washington, D.C., the city was abuzz with talk of Stephen Strasburg, the 21-year-old phenom pitcher who debuted his awesome skills at the Washington Nationals stadium on Tuesday night.  He was everything the city hoped he would be.  He struck out 14 batters and threw over 100 mph.

Strasburg had a lot of pressure riding on him as he walked out onto the field before a sold-out crowd.  Similarly, REALTORS® have faced enormous pressure this year, too.

Thousands of potential homebuyers signed contracts in good faith this year so they could take advantage of the Homebuyer Tax Credit.  These people followed directions and put contracts down on homes before the April 30^th deadline.  However, approximately 75,000 people may have trouble closing on those homes by the June 30^th due date because of hang ups with appraisals and distressed sales.

Loan officers are up against a wall right now trying to process a huge amount of applications in less than three weeks.  That’s why NAR is urging the government to extend the closing deadline for the tax credit.  Senators Harry Reid (D-NV), Johnny Isaakson (R_GA), and Chris Dodd (D-CT) introduced an amendment yesterday that would extend the deadline to September 30^th.

Even though Washington is thrilled about how Strasburg could transform the Nationals franchise, everyone knows a baseball team isn’t about one player.  That’s why NAR is asking for members of Congress, regulators, and the Administration to work as a team with the real estate community and be flexible on the June deadline.

Mind you, we’re not asking for an extension on the entire tax credit, just on the closing deadline.  We’ve taken some criticism for this.  Some are saying we shouldn’t meddle in government business.

What we’ve asked for isn’t meddling at all.  It’s pitching in.  We’re doing our part as advocates for consumers and the real estate industry team.  Our goal is to see every REALTOR® be as successful as possible this year and to see elligible consumers take full advantage of the tax credit.

In order to do that, we’re asking the government to be flexible.  If this helps stabilize the housing market and get the economy going in addition to helping more members thrive in 2010, I’m ready to pitch in and support it!

The boon of the tax credit isn’t just that one million more Americans bought homes.  The real gold mine is that it helped stabilize falling home values all across America.  Without the tax credit, economists projected a further 5 – 10 percent decline.  But today, home values are largely stable.

Thank you, REALTORS®, for supporting the tax credit and getting the American economy moving again! 

I’ve always known there’s a lot to be learned from baseball. – Vince Malta, 2010 Vice President and Liaison to Government Affairs

WHAT IN THE HECK WERE THEY THINKING???, Posted by Moe

Ever have a bad dream that just doesn’t stop? It just keeps repeating itself. You don’t want to close your eyes cuz you know what’s coming!!!  For REALTORS^®, that recurring bad dream is Congress letting the National Flood Insurance Program expire. What the heck were they thinking?

REALTORS^® have been urging Congress to pass a comprehensive National Flood Insurance Program (NFIP) reform bill all year long. We conducted a Call for Action in April. I had the privilege to testify at Congressional hearings about the importance of the program to the real estate market and the general economy. Recently, we urged action during our midyear hill visits with this issue being one of our top talking points. Yet once again, Congress left town on the holiday weekend without reauthorizing the NFIP and the Section 502 Rural Housing Program. As a result, thousands of transactions have come to a stop, again. What the heck were they thinking?

 How do we rid ourselves of this bad dream?

Let me give it a shot – we let Congress know, again, and again, and again if necessary….. Anything that holds up the sale of a home, for whatever the reason, hurts our communities, stifles our economic healing, and halts real estate’s fragile recovery. Regardless of your location, rebuilding our markets in every corner of America is in every REALTORS^®’ interest, but more importantly every taxpayers’ interest, every homeowners’ interest, every renters’ interest, every property investors’ interest, everyones’ interest. What the heck were they thinking?

You may ask yourself – there are no floodplains in my market, so why should I care? That’s a fair question. Let me give that a shot too – Lenders from every corner of our nation hold up capital when the market is uncertain. When the NFIP isn’t in place it gives lenders a reason to pause.  It makes them more concerned about this short term band aid approach that it destabilizes the financial mortgage markets even more. See, every mortgage has some phrase or clause that requires the borrower to keep the asset (home) insured. If there is no insurance, the lender has the right to foreclose on existing loans, or not make the loan at all, for new ones. Now, you and I know today, or anytime for that matter, the lender doesn’t want your property back. With this uncertainty that you will be unable to insure your home, the lenders are even more reluctant to lend. This hurts home sales everywhere. It hurts all of us! What the heck were they thinking?

To make matters worse, Congress has also abandoned the Section 502 Rural Housing Program.  The housing program provides zero-down payment mortgages to eligible families in rural area of every state. Many of these families signed contracts before April 30 and plan to utilize the homebuyer tax credit. If this program is not restored soon, they will lose their opportunity for home ownership. What the heck were they thinking!

I’m a lot ticked, can you tell? Yesterday, NAR sent you a Call for Action urging Congress to extend the NFIP and Rural Housing Program immediately. Please, now is the time for the REALTOR^® Party to speak with one voice, to urge Congress to renew both NFIP and the Rural Housing 502 program and do it now!.Give our lobby in DC the strength of numbers they need. What the heck were they thinking?

Tell everyone you know, post this, tweet it, Facebook it, or write your own version! Get folks mobilized, you can do it! Go to REALTORACTIONCENTER.com “Call for Action: Congress Abandons Critical Housing Programs – Again” spend a few seconds and do a couple clicks and let Congress know how important this is for our citizens!

Direct your clients to these sources for more information: FEMA, FHA, Fannie Mae, Freddie Mac and the VA. Remember REALTORS^® are the Heart of the Market! — Moe Veissi, 2010 NAR First Vice President.

Honoring Those Who Serve Our Nation, Posted by Moe

This upcoming Memorial Day weekend our nation again commemorates those men and women who serve or have served our nation during combat. I was privileged to start my salute early on.

Last Thursday, I had the rare opportunity to testify on behalf of our 1.1 million members in support of the Veterans Home Loan Guarantee Program.

Like you, I am a strong believer in the value of homeownership, but let me just say this particular program has special meaning for me. As the father of a soldier currently serving in Iraq, I am so very proud that the VA is there to make good on the promises our nation made to our enlisted women and men when they joined the military through this entitlement.

The VA Home Loan Guarantee Program, created under the GI bill, encourages private lenders to offer very favorable home loan terms to qualified veterans.

Today, the VA has guaranteed nearly 19 million loans to American veterans, with a total loan volume of just over one trillion dollars. Because of programs such as the VA Home Loan Guarantee Program, the homeownership rate for veterans is significantly higher than the national average – as high as 80 percent.

I had the good fortune to meet with Chairwoman Stephanie Herseth Sandlin (D-S.D.) as well as the top Republican on the subcommittee Congressman John Boozman (R-Ark.). They both thanked me for the work you do! The work all REALTORS® do on behalf of veterans.

And I thanked them for their help to veterans who may have been victim to the subprime loan crisis. Listen to this, the Veterans’ Benefits Improvement Act of 2008 made changes to VA’s home loan refinancing program. Because of this Act, many veterans have been able to refinance toxic loans into safe, affordable VA loans if their non-VA loan is in distress.

I also spoke about NAR’s toolkit that promotes the VA Home Loan Guarantee Program. One if not the only informational piece of this very important topic. Last fall, the National Association of REALTORS partnered with the Veterans Affairs Department to produce “Unlocking the Future”, a VA Toolkit for REALTORS and homeowners. This comprehensive informational DVD and brochure complete with videos and Frequently Asked Questions, provides REALTORS® with all the information they need to successfully guide a veteran through the home loan process.  Yea, it’s a great informational piece for the vet as well. If you don’t have this valuable tool, please go online to realtor.org.

I was heartened after my testimony to talk with a representative of the American Legion, and other veteran organizations. After hearing about our toolkit, the Legion said they want to promote our VA Toolkit by writing an article in their publications with more than 2.5 million circulation. It is times like these when you plainly see how REALTORS® make a positive difference in our communities, in people’s lives, and especially for those who serve our country in combat.

For me, I can’t think of a better way to kick-off the Memorial Day weekend than to take pride in REALTORS® support of a program that is proven to be a huge benefit to those who have so bravely served our country.

Oh by the way! When there is such a hue and cry about the concerns in government programs, this one, supported by so many REALTORS® nationwide, has proven beyond a doubt that it works and works well. The foreclosure rate in VA loans is a strikingly low 2.46 percent compared to subprime 15.5 percent and even prime loans that are a full ¾ of a percent higher than VA loan foreclosure rate.  REALTORS® ARE TRULY THE “HEART OF THE MARKET”

PS  Remember, men and women in the military have an additional year to take advantage of the first time home buyers credit!!– Moe Veissi, 2010 NAR First Vice President

Citizens United v. FEC, Posted by Vince

At the 59 ½ Minutes program at the 2010 Real Estate Summit, I gave an update on the work NAR is doing in response to the Citizens United v. Federal Election Commission case.  I wanted share my update here on the blog as well.

On January 21st, the U.S. Supreme Court ruled on the case Citizens United v. Federal Election Commission.  An interest group called Citizens United was prohibited by the FEC from using corporate contributions to finance the distribution of a film about then United States Senator and presidential candidate Hillary Rodham Clinton. The movie was critical of Senator Clinton’s capability and qualifications to serve as president.  Citizen’s United planned to distribute the film to coincide with several presidential primaries.

Prior to the ruling, corporations were prohibited from using corporate treasury funds to publicly express support or opposition for federal candidates.  Corporations could only make such communications through their Political Action Committees (PACs).  If corporations, labor unions and other interest groups, including NAR, wanted to support candidates directly, they were required to form PACs.  PACs can be funded only by contributions from individuals.

The Supreme Court took the extraordinary action of overruling two of its prior cases.  It held that corporations and labor unions have a First Amendment right to use their treasury funds to distribute to the general public communications supporting or opposing candidates for federal office.

This decision has obvious implications for NAR and RPAC.  As you may know, RPAC seeks to advance the REALTOR^® legislative agenda by supporting candidates for Congress that understand and support NAR’s legislative objectives.  Now, under the Citizens United case, NAR could decide to use its own treasury funds – dues or other financial resources – to finance those communications. 

President Vicki has appointed a Presidential Advisory Group, chaired by Cathy Whatley, to consider the implications of this case for NAR and RPAC, and how NAR can best implement this new opportunity to advance our legislative agenda.  The PAG has met once and will meet again to formulate recommendations.  One aspect of the PAG’s deliberations will include evaluating a member survey about how NAR might make use of such political communications.  I urge you to complete the survey if you receive it.

As a REALTOR® Party member, I wanted you to be updated on this important development in campaign financing law.  Look for further updates on Realtor.org/GovernmentAffairs.  –  Vince Malta, 2010 NAR Vice President and Liaison to Government Affair

Passing with Flying Colors, Posted by Ron

With school getting ready to break for the summer, my thoughts drifted to when we were all in school.  You have your first semester grades (or as they say in New England ‘marks’), then your second semester grades at the end of the academic year.

Your national association also has an academic year with two semesters.  Some things don’t change, do they? 

Our year begins after the annual conference each year and then runs through the subsequent conference.  So, the 2010 leadership year began November 17, 2009 and will end November 8th in New Orleans.  So, as most of the academic world is finishing their years with ‘commencement,’ we are between first and second semester.  The Midyear Meeting is our half way point.  (Future NAR leaders like to suggest that the practical leadership year is the August Leadership Summit to the next leadership Summit… That, however, is from future leaders who want to start before the leadership race has begun).

At the risk of offering our NAR report card, here is how I see the first half of the year.  Not sure if it is just this May’s meeting, but we had one of the best governance meetings ever.  I would say an A plus. Critical issues were discussed, engaged and decided.  What was most impressive is that the discussions were focused most on the issue and generally overlooked the personalities involved.  It would be fair to say that is a change from what has happened in the past.  Part of the reason that the meetings went so well is that the real work of deliberation took place in the Presidential Advisory Groups, Standing Committees, and sub committees.  This is where it is supposed to happen.  The executive committee and the board of directors ultimately make the decisions, but the real work happened where it should.  The net result was that we had a very efficient and productive board of directors meeting.  It was very encouraging to see intense debate at the committee level that produced a superior outcome. 

One of the things that our report card should acknowledge is our organization’s ability to be, to use Moe’s word, ‘nimble.’  When you look at the progress of the REALTORS® Property Resource, the evolutions of House Logic, the phenomenal  growth of Real Estate Today radio show and the  REALTOR® University conversation, you cannot help but recognize the organization’s ability to be a mover, rather than a reluctant, recalcitrant follower.  From our earliest days in school one is always told to lead, follow or get out of the way.  This organization is leading.  Here we get an A not only for effort, but for results.

We also witnessed the election process at its best.  Bill Armstrong and Mike McGrew ran in a contested election to be the 2011 Treasurer of the association.  A majority of the members of the Board of Directors voted for Bill Armstrong.  He will be our 2011 Treasurer.  The race was professional and intense.  Seeing the post race character of these fine individuals was a privilege.  They represent our competitive spirit and the honor of REALTORS® across the country.  They both make us proud.

Vicki Cox Golder arrived in Washington, DC to run the Executive Committee May 13 and 14, as well as the Board of Directors meeting on the 15th.   She did an amazing job this entire semester, but arrived in DC, only 2 weeks after having hip replacement surgery.  It is nothing short of awesome.  At the Real Estate Summit we shared news of Vicki’s absence withthe observation that she now has a steel hip to match her steel will.  In truth, she is more of a renaissance leader than our tribute suggested.  She is the embodiment of Jim Rohn quotation:

 “The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful, but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly.”

It is really a privilege to have such a great teacher on the journey through the 2010 leadership year.  Overall, while the market has not had the grades we would like recently, I am very proud to say your association’s first semester grades are passing with flying colors. – Ron Phipps, 2010 NAR President-Elect

Vote, Act, Invest! Posted By Vicki

On Saturday, we wrapped up our 2010 Midyear Legislative Meetings & Expo in Washington, D.C.  If you’ve been following our blogs, and the Midyear Live page, you’ll know that we pretty much clogged the halls of Congress this past week on a wide range of issues.

While I am proud of the work we did this past week, it won’t take long for lawmakers to forget our issues and move on.  If we want to make a difference we need all of our members to keep the drumbeat going in the weeks and months ahead.

I’ve written many times about the need to get involved in the REALTOR^® Party.  Now, we are launching an exciting new campaign to get more of you to join us in every aspect of our political advocacy.

The theme is Vote, Act Invest!  I pledged my support during the meetings in Washington, D.C.  Here is what we need you to do this year: 

VOTE for candidates at the local, state, and national levels who support the REALTOR^® Party.

ACT on all Calls for Action.  We just launched a CFA on Sunday to prevent new tax burdens from being put on real estate.  I urge you to answer it now.  If you are a broker, I also urge you to join the Broker Involvement Program. 

INVEST in your business by giving to the REALTORS^® Political Action Committee.

For more information on the REALTOR^® Party and all of our efforts to stabilize the real estate market, visit the Realtor Action Center.

We’ve already raised our voice this year on a broad range of issues, including strengthening FHA, extending the National Flood Insurance Program and stabilizing the commercial real estate market.  Now, we need you to keep our voice ringing in the halls of Congress to ensure that real estate and our businesses “On the Rise” in 2010.  – Vicki Cox Golder, 2010 NAR President

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