Change that Makes Us Stronger, Posted by Brooke
By now you’ve heard that FHA has made some changes to its program. FHA’s reserves are in danger at the moment, and the changes it has made will sustain the program for years to come.
I know that sometimes change doesn’t go over well. But in this instance, the changes are much better than expected and will keep FHA strong for the future of our business.
You can read about all of the modifications here, but let me highlight a few:
–NAR urged HUD to keep the down payment minimum to 3.5 percent. We’re thrilled they listened to us!
–Borrowers with FICO scores lower than 580 will now have to make a ten percent down payment. But most lenders are adhering to credit scores around 620 anyway.
–The upfront mortgage insurance premium will increase to 2.25 percent from 1.75 percent. In addition, FHA will still permit financing of these premiums. This is another Realtor® victory!
–Borrowers will only be able to accept seller concessions up to three percent, instead of the previous six percent.
As far as seller concessions go, my experience is that the average concession is rarely higher than 4.5 to 5 percent without decreasing the required 3.5% downpayment for the borrower based upon normal closing costs. But this change will be open for public comment, and NAR will be urging for an increase.
Yes, these changes will prevent some would-be buyers from owning a home right now. But they will keep borrowers safer in the long-run by weeding out those who may not be ready to purchase a home yet. In addition, FHA was facing strong pressure from the Administration and Congress to make even stricter modifications. NAR policy leaders met with FHA in December and helped influence less dramatic changes.
FHA has been a mortgage savior for the housing market in recent years. Homebuyers have been seeking help from the program in record numbers. I hope you’ll read about the changes and educate your clients on them.
I also hope you’ll let your clients know they have exactly 83 days from today to put a contract on a house and be eligible for the homebuyer tax credit.
By supporting programs like FHA and the homebuyer tax credit in the last year, Realtors® are jumpstarting the housing market and the nation’s economy in unprecedented ways.
Stay positive and keep up your stamina. I expect we will be sprinting to the finish come April. – Brooke Hunt, 2010 NAR Vice President and Liaison to Committees
“A Call to Action”…Is It Part of Your Business Plan? Posted by Jim
Last week the NAR Public Policy meetings were held in Washington, D.C. This year our membership, and more specifically our residential brethren, stepped up to bat for those in the commercial sector of our industry and pushed to make certain that NAR will use significant efforts to help make sure that the “second shoe to drop” in our economy doesn’t do just that. Wisely, and with little effort, we had consensus on the need to make sure that the commercial practitioner survives in a very difficult period.
It is estimated that the commercial broker, in today’s market, is suffering from as much as a 90 percent loss in business over 2007’s figures. That number is staggering to me and also confirmable by many of our fellow members.
Chief lobbyist Jerry Giovaniello and his staff are great and spend countless hours working on commercial legislative and regulatory issues for our members. Carried interest, the TALF extension, protection of our capital gains tax levels, leasehold improvement tax law, and a myriad of other matters have always been on their radar screen. We’ve been well protected through the Government Affairs division and their efforts. Many thanks go to them for their continuing efforts!
There are two projects the Government Affairs staff are working on that I want to bring to your attention. First, they have been working with Congressmen Paul Kanjorski (D-PA) and Kenneth Calvert (R-CA) to gain 79 signatures from members of Congress on a letter that will go this week to Treasury Secretary Tim Geithner and Fed Chairman Ben Bernanke.
This bi-partisan endeavor implores these agencies to place more effort into assuring that there won’t be a collapse of the commercial real estate industry – not just for those that toil in brokerage of commercial real estate but for our clients including buyers, sellers and everyone with mortgages coming due in the next 18 to 24 months. It is estimated that the mortgages could go into default equal $1.3 trillion dollars!! Another staggering number.
Secondly, as I mentioned in my podcast in December, we’re still planning a Call for Action for when the Senate takes up the tax extenders bill that might make changes to how carried interested is taxed. This will be an important CFA for commercial practitioners to respond to. Remember, whether you are a pure commercial practitioner, a residential REALTOR® or a “resi-mercial” REALTOR® as many of our members are…please take a moment to respond to NAR’s CFA. Commercial real estate’s life may just depend upon it.
Like most, I’m looking forward to spring. By my calculation we have 52 days until spring “officially” arrives. Green grass, baseball, boating, golf and warmer days to sell that property you listed isn’t so far away.
Keep working hard – it always pays off. My best to all of you. – Jim Helsel, 2010 NAR Treasurer
Who will win BIG? Posted by Vicki
By now, you know that one of my goals for 2010 is to have 6,000 brokers signed up for the Broker Involvement Program. A member recently asked me why I thought brokers were so important to our advocacy.
If you take a look at NAR’s the last call for action (on the tax credit), the impact of the BIP is pretty compelling. Of all the members who responded, nearly one quarter came through the Broker Involvement Program. And, several of those brokers have response rates over 50 percent.
Now, we realize that agents won’t respond on every issue. But, in most cases, we have found that members are more likely to respond when they are asked directly by the broker. That’s why getting more brokers enrolled in the program so vitally important.
To help achieve our goal in 2010, we have announced friendly contest called the REALTOR Party BIG Competition. Here’s how it works…
We are setting up BIG teams of REALTORS in every state. Teams will be asked to identify brokers who can participate in the program and will submit that information online at RealtorActionCenter.com. NAR will follow-up with state teams to schedule one of our BIP speakers to meet with that state’s brokers.
Each month, the BIG team will receive a report summarizing where they stand relative to their goal, which related to the overall number of agents and brokers in that state. At the Annual Conference, I will announce the winners.
I’m really excited about this contest, and I ask that you help your state teams meet their goals. If you are an agent, talk to your broker about participating in the program. And, if you are a broker, please join. For more information, visit RealtorActionCenter.com.
This contest is just one of many ideas that came to us from members – just like you. I want to give a special “thank you” to Bill Arnold, a fellow REALTOR in Arizona, who brought this idea to me. If you have an idea that can make NAR more effective, please let us know. We want to hear from you! Vicki Cox Golder, 2010 NAR President
Designing the Future: NAR’s Public Policy Agenda, Posted by Vince
This week NAR will conduct a Town Hall Meeting with REALTORS® from across the country to discuss the results of our annual public policy survey. At the meeting, we will rank the legislative and regulatory policy issues that affect our members and industry.
The survey asked members their opinion of various public policy issues. The over 30 issues included: Mortgage Interest Deduction, Capital Gains Exclusion on Principal Residence, Short Sales, Home Valuation Code of Conduct, Small Business Health Coverage, Commercial Real Estate Lending, Available and Affordable Property Insurance, and Conforming and FHA Loan Limits.
This week the survey results will be posted on Realtor.org/GovernmentAffairs. As soon as our 2010 Public Policy Agenda is finalized, we’ll also post it on the Government Affairs page.
Town Hall meetings like these represent the best of what NAR stands for. We exist for one reason: To make our members more successful. With that being said, the motor of NAR’s public policy agenda is YOU — our members.
What do you believe are the most important policy issues that the National Association of REALTORS® needs to focus on in 2010? Form your own Town Hall below and get the conversation going!
And stay tuned to the President’s Report this week for more news on the Town Hall and other NAR issues. – Vince Malta, 2010 NAR Vice President and Liaison to Government Affairs
Life, Liberty and the Pursuit of Leadership
Being a leader at the National Association is a true privilege, an awesome experience, and a genuine challenge.
At this point, my term as President-Elect is almost one quarter over. While time accelerates when you get older, it leaps into supersonic speed when in leadership. It is noteworthy that my term as President (2011) will be over in 21 months, November 2011. Every second, even the exasperating ones, of this experience is worth it. In every sense of the word this is a privilege. Our organization is special with a high purpose, professional members, talented staff, and a mission beyond our self interest. It is one of those rare places where the people around you, not only encourage but also ‘make’ you into a better person and leader.
One of the reasons this is true is that ‘the leadership team’ really is a team. We work together. We discuss, disagree, deliberate, and decide. I am truly fortunate as the team I work with is very collaborative: Vicki Cox Golder, President; Moe Veissi, First Vice President; Jim Helsel, Treasurer; Dale Stinton, CEO; Charles McMillan, Immediate Past President; Brook Hunt, Vice President of Committees and Vince Malta, Vice President of Government Affairs. This group listens, analyzing and then reacts. Decision making is cautious and reflective. Yet decisions are made.
It is a demanding and challenging route to become an NAR officer. My experience is typical as I began campaigning in my home region in 2003, to become President in 2011.
The campaign process to become a Congressman, United States Senator, or even President, is shorter. It causes me to pause when I hear talented future NAR leaders talk about running to be President or Treasurer in 2021 or later. What is good about our process is that it ‘vets’ candidates. With the political process, the nominating process, and the Board of Directors review, one has been thoroughly researched and qualified. It is in many ways an endurance process. It is in the end worth it.
Each member of the leadership team has to balance NAR work, professional work, family, home, exercise, and prayer/reflection. Most of us still work in our core business.
I am typical in that I still work with sellers and buyers. This week, I listed two properties and am getting ready for two closings next week. (Thank God). Obviously, in our family business I have backup and support. My wife Susan Martins-Phipps and my sons Ian and Matt cover what I cannot. One advantage of being involved in the business is that you really know what is happening in the field. That helps when speaking for Realtors®, particularly in Congress. It would be fair to say that balancing this is very difficult.
One of the reasons it is challenging is you must exercise personal triage. You cannot do everything, so you are forced to choose. How do I balance my work load with my NAR responsibilities, and still have time for family, exercise, religion, etc? I will share that it is a daily deliberation.
In the end, the pursuit of leadership is nothing short of great: a great experience, a great opportunity, a great challenge, and a great journey. Thank you for letting me travel this path. – Ron Phipps, President-Elect 2010
Relief for Haiti, Posted by Vicki
I’ve received numerous calls during the past week, asking how REALTORS® can support the relief efforts in Haiti. Later today, I will be sending an e-mail to all members with information on our efforts, but I thought it was also worth posting here, in case you miss my e-mail.
First, NAR has partnered with Lowe’s to make two sizable donations related to the relief efforts. For more information on that, please read our news release.
http://www.realtor.org/press_room/news_releases/2010/01/donate_relief
Additionally, we have once again opened the REALTORS® Relief Foundation to accept donations from REALTORS®. Every penny you donate will go directly to the cause, so please consider making a contribution today. Even the smallest amount can make a big difference.
https://secure.realtor.org/RelFundTrack.nsf/Contribution?OpenForm
On behalf of NAR, I thank you in advance for your help. Once again, REALTORS® are proving that our compassion and dedication to rebuilding communities truly has no bounds . – Vicki Cox Golder, 2010 NAR President
Have You Noticed The Change?
We recently upgraded our blog to give you more organized access to the information, a cleaner look and feel, and an address that’s easier to remember.
You may also notice that we’ve rearranged a bit. You will now find “Leave a Comment” at the top of the blog post, under the title.
Want to see what everyone is talking about, or simply get more exposure? We’ve added a “Recent Comments” section in the right column that lists the 5 most recent comments and their authors. Readers can click on a commenter’s name to go right to their Web site. So keep the discussion going—and don’t forget to add a link to your site.
Finally, our new address is:
http://voicesofrealestate.blogs.realtor.org/
Take a look around and let us know what you think!
My Holiday Wish for NAR in 2010, Posted by Ron
We celebrated Thanksgiving a month ago and are about to step over the threshold into 2010. As I get older, it seems like the holidays are closer and closer together and the years get shorter. This one is no exception. It is simply unbelievable that we are already here at 2010.
In truth, this topic was suggested. It is a great topic, but as a Realtor®, we both know how hard it is to ‘stay in the lines.’
This topic is particularly thought provoking, because 2009 was a year with accomplishments and brutal challenges. As an association, that is together, we logged an amazing number of successes: a permanent ban on banks in real estate, extension and expansion of the homebuyer’s tax credit, launching our consumer website HouseLogic.com, the establishment of the Realtors Property Resource (RPR), delivery of the Right Tools, Right Now initiative, extension of the higher conforming loan limits and the selection of the Game Changers winners. By any measure this is a bold and impressive list of accomplishments.
On the other hand, it has been an extremely challenging year for us as individual Realtors®. Yes, sales statistics show improvement in most markets, specifically more sales, but prices continue to correct.
What has changed is the work required between the sales agreement and closing. It has increased exponentially. 30 years ago when my real estate career began, the signing of sales agreement would lead to closing 99 percent of the time. Now, that percentage is closer to 80 percent, especially this past year. In every instance, the challenge has been financing. 30 years ago 90 percent of the work and time required in a transaction was prior to sales agreement. Once it was signed the details were clerical. Today, 60 percent of my transaction time is spent on pre-qualification, search, and negotiation. 40 percent of my time is now spent on inspections, FINANCING, APPRAISALS, conflict resolution, title search issues, closing logistics, and last minute lender requirements. In the digital age, how has the process become so ‘inefficient?’
So, my wish for the association is that our members engage the tools and the information that are in front of us. And that we look forward, patiently, to the future of our association and our industry, particularly with things like RPR on the horizon.
We have been through the worst of the economic storm. We thought this was going to be a 10k endurance event; it has become an economic marathon. We know there is finish line, but we still cannot see it. We are really ‘digging down deep’ to get there.
This business challenge has evidenced itself in the mindset and the health of Realtors®.
We are told that” what does not kill us, makes us stronger.’ We are now strong enough.
We as people and as professionals are ‘can do’ individuals and team members. We are positive and confident, but mature. We are also pragmatic and goal oriented. (We are also tired and the stress has evidenced itself in the overall health of many of our members).
There is a life lesson, not just an economic lesson, for us: Marathons are completed one step at a time. They are about endurance and persistence. Results driven Realtors® are not very patient. We want it yesterday. It is coming tomorrow; or rather we will get there tomorrow.
This market is changing and improving. 2010 will be the year of improved sales activity, but also an improvement in average price. It will be a true turning point.
All the best, brother and sister Realtors®. Our best days are before us. – Ron Phipps, 2010 NAR President-Elect
My Holiday Wish for NAR in 2010, Posted by Brooke
The holidays bring about thoughts of family. Some of us are blessed to have family to spend this special time of year with, others may not be as fortunate. Tonight while spending time with my family, my brother, sister and I had a moment to reflect on how our family has expanded exponentially with our circle of friends. Friends are an important part of most families, and we are not exceptional in that regard.
In September 2001, our state convention was to be held in Dallas, Texas. It was only a few days after September 11….a day etched in the minds of all Americans. We debated on whether or not to cancel the convention. But we decided to move forward, as all Americans were concluding that moving forward was what we could do best.
Our numbers were down, mostly because there was no air travel at the time and Texas is a pretty big place. We have always held a Prayer Breakfast on the Sunday morning of our convention, but that particular day was one that no one in attendance will forget. You see, in the midst of a crisis, unprecedented in my time, we all realized that while we left our own families to do the work of REALTORS®, we were actually with our extended REALTOR® family.
That may sound corny to many reading this, but when I am in a tough fight I cannot think of anyone I would rather have standing with me than my family. When times are tough, I can count on those who I trust. Times have been tough for most of us this past year. But when the going got tough, NAR did not hunker down and tighten up….as a matter of fact NAR opened the door of opportunity to all of our members with the Right Tools Right Now program, offering member benefits like never before.
When business was a challenge in many parts of the country, members also made their voices heard on Capitol Hill, and we saw the tax credit not only got extended, but also expanded to help in the recovery of the housing market.
The “all real estate is local” message is being heard across this country and the consumer is finally getting the message. The NAR public awareness campaign continues to send a positive message to consumers and is again one of the best values for REALTOR® membership we could ask for.
As an individual, I could not achieve any of this on my own. I know it is a collaborative effort on behalf of nearly 1.2 million REALTORS®. You are my other extended family (thank you all for not expecting holiday greeting cards from me). With you, I know I can stand proud and firm going into 2010, and I wish you all the same feeling this year.
While I work at selling homes to my clients, I know there are other people working daily with Congress and the regulatory groups to make my business better. My part in the family circle could seem small, but it’s very important. I contribute to RPAC, which an investment in my business, and answer the NAR Calls to Action, which are a mere click of the mouse. Time: Two minutes maximum. Results: Priceless!
You see, this IS my family…my business…and my future. I intend to take control of all three and I invite you to do the same. Saying you are a REALTOR® is more than just a “trademark”, consider it your family crest!
Wishing you all a prosperous 2010!– Brooke Hunt, NAR Vice President and Liaison to Committees
My Holiday Wish for NAR in 2010, Posted by Vince
Happy Holidays! I’m Vince Malta, the 2010 NAR Vice President and Liaison to Government Affairs. As one of the newer members of the NAR Leadership Team, I’ve come to be even more convinced that member involvement is essential to getting the housing market and the economy back on track. Here are a couple of things that never would have happened this past year without the hard work and commitment of members:
- Extending and expanding the homebuyer tax credit
- Banning banks from getting involved in the real estate business
- Watching the Broker Involvement Program soar to nearly 3,000 members
These are tremendous successes that REALTORS® accomplished in a very challenging year. As we look to the future and dream about the year to come, my holiday wish for NAR is one that I share with NAR President Vicki Cox Golder.
She wants to further the reach of REALTORS® on Capitol Hill and urge more members to join the Broker Involvement Program. This program gives brokers the opportunity to send personalized NAR Calls for Action to their agents under their own name and logo.
When brokers send out messages to their own agents, we see the CFA response rate rise significantly. Vicki doesn’t want just 4, 000 brokers or even 5,000 brokers involved in the program. By the end of 2010, she wants 6,000 brokers signed up! That will greatly increase our influence in Washington. Brokers, if you have not registered for the Broker Involvement Program, you can do it today by going to RealtorActionCenter.com.
The challenges and opportunities in 2010 will be great. As Congress concludes its debate on health care reform, the reformation of Fannie and Freddie, real estate taxation, commercial real estate, and regulatory reform will take center stage. We need your involvement, your commitment, and your ideas to once again meet the challenges we have with each of these monumental issues.
Now, I have a question for you. When you look back at 2010, what will you want to see as our greatest accomplishment? Go ahead and tell us below on the blog. – Vince Malta, 2010 NAR Vice President and Liaison to Government Affairs
