By Chris Polychron, 2012First Vice President-Nominee, National Assocation of REALTORS®
Hello, my name is Chris Polychron, and I’m new to the Leadership Team,currently serving as the NAR 2012 First Vice President-Nominee. Manners are important in the South, so since I’m a native Arkansan, I’d like to introduce myself.
I was born in Arkansas, but I’m also first generation Greek. My father had a barbecue restaurant, and I think that’s where I first started to learn what it takes to run a small business.
I still love to cook, when I get a chance. I’ve been married to my wife Janis for 44 years. She’s a wonderful person, an artist who brings much-needed balance to my life. Together we have two daughters and three lively grandchildren.
Before becoming a REALTOR®, I used to be a banker. I took up real estate because I thought I’d be good at it. The man who I went to for my first job didn’t think so. But I kept after him. Finally I said, “Where’s my desk, because I’m coming to work here whether you like it or not.” It turns out that kind of perseverance was just the ticket. It’s something I’ve needed over and over again in my 24-year career as a REALTOR®.
Another skill REALTORS® need is the ability to multi-task. Sometimes we have so many irons in the fire, it’s a wonder the whole thing doesn’t blow up. But it helps to stay calm and focused, which is exactly like hunting quail—a sport I greatly enjoy. You have to keep your eye on the target.
The bulls-eye I am focused on is ensuring that Home Ownership Matters to consumers and to our communities. Because the American Dream of home ownership is under attack like never before from policies that make it harder to buy and keep a home. We are working to defend the American Dream by maintaining tax advantages for home ownership, like the mortgage interest deduction; protecting private property rights; and ensuring consumers have access to mortgage liquidity.
This takes leadership. To be a leader, you have to do everything you ask someone else to do, and then some. With that in mind, I’ll be working hard this year helping our President Moe Veissi accomplish his goals for NAR. I’ll also be traveling around the country visiting with REALTORS® and hearing what’s on your minds.
I admire many of NAR’s leaders, especially our past presidents. Each one has contributed in his or her own way. Dick Gaylord brought in young people. Richard Mendenhall started the REALTOR® Relief Foundation. Ron Phipps inspired us during difficult times. And Moe is just getting started in what I’m sure will be a great year.
With that, I hope to get to meet each one of you personally. Until then, I’m always glad to hear from you, so give me a call or e-mail me at chrispolychron44@gmail.com. Go Razorbacks!
By Scott Louser, 2012 Vice President and Liaison to Government Affairs, National Association of REALTORS®
Over the past few months, have you heard the phrase, “REALTORS® are the heart of the deal?” When you hear it what does it mean to you?
This phrase that was first introduced by Moe Veissi when he became president of NAR, has rippled throughout the REALTOR® profession since then. For Moe, and for me, it communicates the very essence of what makes REALTORS® “tick” so to speak – understanding that buying and selling real estate isn’t merely a business; REALTORS® are at the very center of making people’s life dreams a reality.
Notice I say at the “very center.” Because as REALTORS®, that’s where we like to be most of the time, right? Not only are we central to what is likely the most important purchase a person will make in their lifetime, we’re an integral part of our community as well. In addition to our professional day job as REALTORS®, many of us are leaders in local community organizations, business groups, and in our schools, for example. In fact, I’d say REALTORS® are some of the most giving members of society out there. We do this not only because we’re good business people, we do it because we care deeply about our communities.
So for purposes of this blog post, I’d like to offer up a twist on the phrase, “REALTORS® are the heart of the deal,” by adding, “with a giving soul.”
Some of the most giving souls are REALTOR® Magazine’s Good Neighbor Award winners. For over 10 years, REALTOR® Magazine has honored over 100 REALTORS® who have made outstanding volunteer contributions to a community or cause. The most recent winners are, among other things, helping war-injured veterans during their rehabilitation, cycling thousands of miles to raise money for multiple sclerosis, and providing food and medical care to the homeless.
Now, other REALTORS® providing exemplary volunteer service can participate in the Volunteering Works program, which provides linkages between them and past Good Neighbor winners, who serve as mentors.
The five winning Volunteering Works applicants will receive a year of mentoring from a member of the Good Neighbor Society and a $1,000 grant to help improve and grow their community program.
Are you a REALTOR® at the heart of the deal — and a giving soul? Apply to the Volunteering Works program. The deadline for applications is Feb. 24, and I encourage you to submit your application. Thanks for all your valuable contributions – in your work as a REALTOR® and in your community. Good luck!
Like many REALTORS®, Scott’s also active in his community. He recently organized the debut of the award-winning documentary “Man in the Glass…the Dale Brown Story” in Minot, N.D., to provide help and hope to flood victims there. Proceeds from the event went to the United Way and have already helped 125 people.
By Steve Brown, First Vice President, National Association of REALTORS®
On December 17, Congress passed an extension of the National Flood Insurance Program, known as NFIP, until May 31, 2012. This is good news because NAR research estimates that each day of an NFIP lapse results in the delay or cancellation of 1,332 home sale closings nationwide.
Floods are a devastating problem with a huge impact, not only on the real estate business, but on human lives. Anyone who has experienced the personal loss and the accompanying life disruption of home flooding knows how debilitating this is.
It doesn’t matter where one lives to be affected by flooding. From 1990 to 2005, flood disasters were declared in every state—along rivers and lakes, behind levees and dams, anywhere snow melted or rain fell.
Because of the rising cost to taxpayers of post-disaster payments for uninsured properties and the lack of a private market for flood insurance, Congress created NFIP in 1968. The idea was to ensure that, through NFIP, homeowners and renters could access affordable flood insurance.
Today, 5.6 million property owners rely on NFIP in 21,000 communities where flood insurance is required.
Adding to the problem, private markets will not guarantee access to affordable flood insurance. The four large insurers that write virtually all the private flood insurance today do so only for “high net worth” owners and high-value property at an average price twice the NFIP’s.
NAR is committed to protecting the long-term stability of the NFIP and to ensuring that flood insurance rate maps are regularly and accurately updated. Reauthorizing the NFIP saves taxpayers both money and property. That’s because historically, NFIP has collected enough revenue to cover its cost or pay back a short-term loan from the U.S. Treasury with interest.
Without NFIP, there would be more uninsured and unmitigated properties, taxpayers would still be “on the hook” for disaster assistance to these properties. Also, there would be no premiums to pay down any remaining loan balance or collect interest.
And not only does the reauthorization of NFIP makes good sense economically, it also is another element in bringing stability to the housing market. The real estate consumer will feel more confident in purchasing a home knowing that the property can be reasonably insured. This in itself brings stability to housing values and prices.
Over the next six months, NAR will continue to push Congress for a five-year NFIP re-authorization bill to provide certainty and avoid further disruption to real estate markets. Your Calls for Action remain essential in getting the message to Congress to stop this ongoing uncertainty when it comes to housing policies. Keep on the lookout for upcoming activity, and be sure to let Congress know where REALTORS® stand.
By Steve Brown, First Vice President, National Association of REALTORS®
Winston Churchill once said, “All the great things are simple, and many can be expressed in a single word: freedom, justice, honor, duty, mercy, hope.”
I’d like to add another word to that list—home.
Throughout the ages, though the shape and fashion of home has taken many forms, it is a place all of humankind can relate to. In fact, the ever present hope of home has inspired us as a country and civilization since the founding of our nation. But the idea of home is not just an American value. The importance of home has driven nations throughout the centuries to both defend their lands and to liberate other lands so all could find a place to live securely.
Practically speaking, home provides one of the basic needs of all living beings, that is, it is a place of shelter. Still few would argue that it is far more than just a shelter. It is the stage, the set if you would, for each person to play out their life and all that comes with life, both the joys and the sadness. Truly the walls of home become a sacred place.
And so the Christmas story comes to mind, two soon to be parents seeking shelter find their home for a time in a stable that they shared with the animals. And then there was a star above them providing perhaps both hope and light.
Well, today we too need to look up a bit to see some of the stars—to see a few glimmers of light regarding homes in today’s fragile economy.
Existing-home sales rose 1.4 percent in October. They are 13.5 percent above the level of where we were last year.
In November, unemployment sunk to its lowest rate in nearly three years—8.6 percent. The decline was better than the experts predicted.
On the Friday after Thanksgiving—known as Black Friday and almost always the biggest shopping day of the year—a record 226 million shoppers flocked to stores and to the Internet, spending 6.6 percent more than last year.
And this month, spending on Christmas trees is projected to rise 3.1 percent this year. According to one research firm, Americans will spend $3.4 billion on Christmas trees alone. This would be the highest number since before the recession.
There are some real indications that the economy and home sales may indeed improve this coming year. Positive economic “lights” lead to a more stable residential market and an increase in home sales.
As Realtors, never let us forget how important our job is in helping others find their home. And as we face the year ahead, let us do so not with hype, but with genuine hope.
Happy Holidays to you all.
By Gary Thomas, 2012 President-Elect, National Association of REALTORS®
In 2011, all of you heard quite a bit about a devastating provision in the Dodd-Frank financial reform law called the Qualified Residential Mortgage or QRM.
There was quite a bit of activity before the August 1st deadline for a letter to be submitted to federal regulators.
After that, things have been kind of quiet. But don’t mistake that for inactivity. The regulators have been reading excellent comments about how this rule would devastate the housing market.
To keep the pressure up, we gathered the Coalition for Sensible Housing to plan strategy for the year ahead. The broad-based Coalition, forged by NAR along with 47 other organizations, focuses on the proposed Qualified Residential Mortgage (QRM) rule. Published on April 29, 2011, the proposed QRM regulation is a complicated issue that could hurt our businesses
It was a great meeting of minds. A lot of smart ideas were bounced around about how to keep the issue in front of elected officials, the media and the regulators.
Last week, there was a meeting of the Coalition for Sensible Housing to plan strategy for the year ahead.
The Coalition has made an impact. We have gathered support from 53 U.S. senators, who wrote and submitted a letter by the August 1st deadline. The letter expressed their intent on QRM and opposition to the larger down payment. In addition, 310 House members signed a similar letter. Regulators have received many comments and are currently digesting that feedback.
The issues surrounding QRM arose from the financial reform legislation. Congress sought to improve the quality of mortgage lending and restore private capital to the housing market. To discourage excessive risk taking, they passed the Dodd-Frank Act requiring that lenders securitize mortgage loans to retain 5 percent of the credit risk, unless the mortgage is a Qualified Residential Mortgage (QRM) or is otherwise exempt.
Unfortunately, the rule defining how the law should be enacted has been too narrowly written. Particularly troublesome are provisions mandating higher down payments—as high as 20 percent—with even higher levels of minimum equity required for refinancing.
Even if we succeed in eliminating the down payment rule, we still need to focus on the debt-to-income ratios and credit standards.
As proposed, the rule would disproportionally impact first-time and minority borrowers. In addition, the higher rates will slow home sales, lower home prices and likely slow the housing industry during what is a fragile stage of its recovery.
We’ve been working on the issue for some time now, and I wanted to let you know that it is still very much a priority for NAR. We don’t know when the final rule will come out, but we are continuing to push back—now and in 2012.
By Gary Thomas, 2012 President-Elect, National Association of REALTORS®
There was so much helpful and interesting information presented at Annual. Sometimes it can be a little overwhelming! Only now, a few weeks later, am I catching up on all of the excellent information. One item that is particularly valuable and worth taking a closer look at is the results of our recent survey, The 2011 National Association of REALTORS® Profile of Home Buyers and Sellers. It’s a useful picture of the latest trends in real estate.
What stood out to me was that home buyers are:
- Older
- Have higher incomes
- Are more likely to be married
Naturally, those who can afford to spend more are generally older and have higher incomes. In fact, the median age for overall home buyers rose from 39 to 43. The number of married couples buying homes rose 6 percent, while purchases by singles and unmarried couples were slightly down.
Most troubling though, is the fact that the market share for first-time home buyers fell to 37 percent in the past year—down from a record high of 50 percent in 2010. Although the high was in part due to a boost in sales from the home buyer tax credit, that’s still a decrease larger than what we’d expect, based on the average. Over the past year, repeat buyers made modestly higher down payments than the previous year, but their incomes were a full 11 percent greater.
We can conclude that there are still buyers out there, but qualifying for a loan is harder. This is due to an overly restrictive mortgage credit environment, in spite of plenty of affordable housing.
The survey tells us just how tight the credit market remains
It underscores concerns that the American Dream of home ownership may soon be out of reach for younger Americans. Tighter credit rules, along with legislative proposals to reduce or eliminate the Mortgage Interest Deduction and narrow the definition of the Qualified Residential Mortgage (QRM), threaten the housing industry during a fragile stage of its recovery.
The effect of QRM regulation would be to raise down payments to 20 percent to meet the requirements of a qualified residential mortgage. This would disproportionately affect first-time and minority borrowers.
But the impact of QRM regulation would go far beyond these two groups. Higher rates will slow home sales and lower home prices for all buyers at the very worst time.
With Social Security facing fewer contributing workers in the future, a house remains an important equity investment for young people. Now is not the time to raise new barriers to home ownership.
I was heartened to see that most buyers believe in the long-term value of home ownership. Seventy-eight percent of recent home buyers said their home is a good investment, and 45 percent believe it’s better than stocks.
After hearing the stories from members, as well as my own clients, it was so stark to see the impact of such tight lending standard quantified in the numbers. This means that we should keep our heads down, work hard, and know that there are still plenty of buyers looking for the right home.
By Moe Veissi, 2012 President, National Association of REALTORS®
Moe shares a huge victory for REALTORS® in Louisiana and the REALTOR® Party Initiative, where the two groups came together to permanently ban real estate transfer taxes in that state.
By Gary Thomas, 2012 President-Elect, National Association of REALTORS®
I have some great news to share with everyone! Last night Congress voted to restore loan limits and the maximum cap for Federal Housing Administration loans. Their action reinstates the loan limit at 125 percent of area median price up to $729,750 for two years and extends the National Flood Insurance Program until December 16th, with no lapse.
This is good news! Higher loan limits will make mortgages more accessible for hard-working middle-class families throughout the country. In fact, nearly two-thirds of buyers who will be helped by the loan limits extension have incomes below $100,000. On flood insurance, the extension until December 16th ensures no lapse, but we still need to push for Congress to pass the five-year reauthorization. Contact your representative to reauthorize NFIP for five more years.
Opponents of higher loan limits mistakenly argue that only wealthy borrowers benefit from the maximum cost limits. But in 2010, the FHA was used by 56 percent of all first-time homebuyers, and 85 percent of borrowers obtaining homes at the higher loan limits had incomes below $150,000. In addition, 60 percent of all African-American and Hispanic homebuyers used FHA.
The truth is that it actually depends a lot on where in the country the borrower lives. Geography often dictates what the price of “affordable housing” is. Last month’s reset to 115 percent impacted 669 counties in 42 states and territories, with an average loan limit reduction of more than $68,000. We support giving middle-class borrowers the same access to affordable mortgage financing, no matter where they make their home.
For example, many people think of California as a high cost state, and there are many areas where it is. San Francisco will benefit because many middle class homes bump up against the $729,750 limit. What many people don’t know is there are many counties in California that are not considered high cost and will benefit. Take Fresno County, for example, prices will go from $281,750 to $311,250 to qualify. As you can see, this really benefits consumers no matter where they live.
For a great analysis, see the video below.
Statistics for last year show a decline in mortgages for higher priced homes, in spite of historically low interest rates. This suggests that sales in the higher-priced portion of the markets were stymied relative to the lower price ranges during the period leading up to the change in the conforming loan limits. This negatively impacted our businesses at the very worst time.
Yet, not long ago, the effort to reinstate the loan limits was dead in the water. Several members of Congress let us know it would never happen. But we didn’t give up. We showed Congress what REALTORS® are made of—strength and grit! We sent out a Call for Action on both these matters, and we had an impressive response from members. And you know what? Congress listened! That’s why these Calls for Action are so important, and I thank you for your overwhelming response.
Those of you who answered the call helped make a difference, and I urge you to keep up the good work by continuing to respond when asked. And be sure to answer the call for action to reauthorize NFIP, if you haven’t already. Again, thanks for your help!
2011 NAR President Ron Phipps opens the 2011 REALTORS® Expo in Anaheim and announced that attendance exceeds expectations for this year’s conference.
By Vince Malta, 2011 Vice President and Liaison to Government Affairs, National Association of REALTORS®
In the video below, Vince Malta, NAR’s 2011 Vice President and Liaison to Government Affairs, welcomes REALTORS® to the 2011 REALTORS® Conference & Expo taking place this week in Anaheim. He also shares what he encourages members to become involved in, when they head back to their home states.
