The War on Housing, Posted by Vince

There is a “war on housing” brewing in Washington.  Homeownership seems to be under attack.  As 2010 NAR First Vice President Moe Veissi pointed out in his recent blog, ill-informed views on homeownership are appearing more and more in the media.

Last week, industry leaders, executives and policy makers gathered in Washington, D.C., for a housing conference sponsored by the Treasury to discuss the future of the housing finance system and the fate of Government Sponsored Enterprises (GSE’s) Fannie Mae and Freddie Mac.

The conference featured panels moderated by Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan, as well as breakout sessions that focused on topics from the “Role of the Private Sector and the Government in a Reformed Housing Finance System” to “Managing the Process of Transition to a New Financial System”.

I was assigned to participate in the breakout session entitled, “Aligning Private Market Incentives in the Housing Finance Chain”, moderated by FHA Commissioner Dave Stevens.  In recent weeks, long-term fixed rate mortgages have come under increasing pressure from pundits who believe this product is partly the crux of the nation’s housing finance problem.

During the session, I had the opportunity to briefly share NAR’s views regarding the importance of maintaining the 30-year fixed rate mortgage, which is an extremely safe mortgage product.

While some at the conference, advocated the need to support a mortgage market for all types of housing, in all market conditions, other speakers questioned the level of government support for the housing industry. 

What did they say?  Read more

Are you optimistic ‘bout the way that things are going?, Posted by Jim

“Are you optimistic ‘bout the way that things are going?
No, I never ever think of it at all.
Don’t you ever worry when you see what’s going down?
No, I try to mind my business.  That is not business at all…”

                                                          –excerpt from “DIALOGUE” by CHICAGO

On July 29th I testified before Congress – more specifically the House Financial Services Committee.  If it sounds familiar, it should.  Chaired by Congressman Barney Frank, the committee oversees many of the regulatory matters that affect members’ day to day lives.  Congressman Paul Kanjorski also serves on the committee. 

Both of these gentlemen have been allies to our industry and understand the necessity of having a sound real estate market if our economy is to grow again.  In other words, they realize that real estate and all that it encompasses is a significant part of the overall underpinning of our country’s financial well being.

My testimony revolved around the lack of available financing for small businesses.  For obvious (and real) reasons my testimony touched on the lack of liquidity in the real estate market and how that same bottleneck is making any form of sustainable recovery in the residential and non-residential sectors of our industry impossible. 

I pressed Congress to pass H.R. 5297, “The Small Business Lending Fund Act of 2010.”  While the House has passed this legislation and we commended them for doing so – the Senate is slow to move…

So what would the bill do?  Read more

Homeownership: My Personal Perspective, Posted byRon

It is late on a Sunday night and I am getting ready to go to sleep.  My daughter, Caite, is still at work, so we are “leaving the light on” so that she can find her way into the house.

Our house is the only home she has ever really known.  My wife Susan and I built it before she was born.  It has been the kind of home that was always “open.”  Everyone is welcome.  It has been a place where our family has witnessed and been an active part of life’s challenges, of life’s successes, and of life’s celebrations.  We are about 300 feet from Greenwich Bay, which opens into Narragansett Bay and, ultimately, the Atlantic Ocean.  It is in a place where the water and the land meet and embrace.  It is a fitting place for our home.

It has been a permanent place for our family.  It has been the primary location of most family celebrations: holidays, birthdays, and (on occasions) tragedies.  It is unique, as it is designed to look old and blend into a neighborhood where most houses were built between 1870 and 1910.  It also has seven star bursts.  There are seven wood fans that represent the rising and setting sun.  Every morning and every evening – seven days a week, every month, year after year – no matter where we are, it is our home.

We have stayed a long time in our family home.  For Susan, it is partly because she is a first generation American.  This house represents the deep routes of a person transplanted to the soil of this great country.  For me, it is about counter balance to my childhood:  almost every two years we moved…usually quite far. 

I was born in San Francisco in the Haight and my parents’ first house – mine too – was near the beach by Golden Gate Park.  A short time later, we were off on a new adventure.  Next stop Santa Clara, California;  Portland, Oregon;  Placentia, California;  Government Camp, Oregon; Vancouver, Washington;  Kansas City, Missouri;  East Greenwich Rhode Island and then Warwick, Rhode Island.  At 18, I left for college in Worcester, Massachusetts.  Ironically, I can remember each of the houses in which we lived with surprising clarity.  It is where my parents, brother and sisters engaged life. 

What is also true is that my grandparents’ houses, in the Bay area, were the constant homes I knew as child.  Every summer we would return “home.”  My mother’s parents lived at 167 King Street in Redwood City, California.  It was a great home full of great music and great mentoring.  I met my first REALTOR^® there.  He was my grandfather, John J. Brophy.  My father’s parents lived at 1735 Parrot Drive, San Mateo, California.  It, too, was a special place of great memories and great food.  These were the homes of life’s photographs and memories. 

Life’s lesson was clear for me:  Home maybe where the heart is; but it is great to always have a place called “home.”  — Ron Phipps, 2010 NAR First Vice President

A Gift of Love from the Heart, Posted by Moe

I have been reading a different philosophical bent on the housing market of late, and it just plain makes me mad.  No, it’s not about volume or pricing or foreclosures; it’s what some people have been saying about housing in America. 

I’ve read that some of these pundits believe the worth of the home purchase isn’t what it once was, and may never be a valuable asset. I’ve read that, in an uncertain economy, these brainiacs think buying a house is too much of an anchor on an individual or families mobility. Not a long term valuable assets? Too much of an anchor? What in the heck are these folks smoking? Are they nuts?!

These “chicken littles” are the same “sky is falling” addicts that would have you believe that…

Find out what the “chicken littles” are saying after the jump…

Read more

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.

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