On Tuesday and Wednesday, I had the opportunity to speak to two very different audiences on the same topic:  Leadership.

The first audience was the Equal Opportunity & Cultural Diversity Forum, which hosted an open discussion on how we can foster a new generation of leaders.

I conveyed a few pieces of advice to this group.  First, I encouraged them to be patient – change in any organization takes time.  Second, I invited them to volunteer and build relationships with staff by offering to help with anything and everything. 

Finally, and most importantly, I shared a piece of advice that has proven to be most valuable to me:  Don’t take things personally.  Leadership can be tough, and there is a good chance that people are going to say things that hurt your feelings.  If you take it personally and quit, no one benefits.  The best course is to get over it, and move on!

On Wednesday, I had the chance to speak to the class of new NAR Directors.  I noted how much the face of leadership had changed since NAR was founded in 1908. 

I shared with them a story about a board meeting I attended at my local association years ago. I came into the room and noticed an extra chair at the table, and so I moved it.  Soon the chair re-appeared, and I moved it again.  When the chair re-appeared a third time, I left it there, frustrated.  When our president began the meeting, she explained that the chair was there to remind us whom we serve.  That’s where the average member sits. 

I am proud that we have so many new members who want to be engaged in leadership.  Looking at the REALTORS^® in those meetings, I feel confident that we will see many new and dynamic leaders in the years ahead.

I see the future of our organization and our industry, and I couldn’t be more proud of the legacy we are building.  – Charles McMillan, 2010 NAR Immediate Past President

This past week, I traveled to Washington, D.C., to testify on behalf of REALTORS^® at two congressional hearings.  Although the issues were quite different, the message was the same – the federal government must work with us to keep homeownership both affordable and accessible for America’s families.

When doctors take the Hippocratic Oath, they pledge to first “do no harm.”  It’s important that we take the same approach to addressing issues in the market.

It’s no secret that the Federal Housing Administration has taken on some additional risk filling the gap left by the private market.  But, that is the role it was designed to fill, and without it, our current recovery in the real estate markets would not be possible.  While it’s important to manage those risks, we must be careful not to go overboard and disenfranchise those that FHA was created to help.

Just yesterday, I told members of the House Financial Services Subcommittee that we believe FHA has made necessary changes to manage current risks.   More importantly, I told them that REALTORS^® do not support legislation that would raise the downpayment or measures that would otherwise increase costs for potential buyers.

I encourage you to read my testimony and share your thoughts on the important role that FHA plays in your market.

Of course, simply NOT doing harm is just the first step.  Like good doctors, we must also be able to diagnose problems and fix them – before they become major ailments.

That’s exactly what we are trying to do on the issues of affordable property insurance.  The fact is, there are many areas of our country who do not have access to affordable property insurance.  While this may not seem like a national problem, it most certainly is.  Every area of our nation is prone to natural disasters, and when catastrophe occurs, we all foot the bill for the clean-up.   

On Wednesday, I was part of a panel that shared views with Congress on how we can implement a more proactive approach to property insurance for natural disasters.  Again, I urge you to read my testimony and help us educate REALTORS^® in your state about the risks and costs that we all face on this issue.

There is a good reason why our reputation as REALTORS^® is right up there with America’s doctors – we care as much about the people we serve as they do.  That’s a credit to you – our members.  I am grateful to President Vicki Cox Golder for assigning me to this important task, and am so proud to represent her, and you, on the Hill or wherever I go. – Charles McMillan, 2010 Immediate Past President

Wednesday afternoon, I had the honor of presenting one Habitat for Humanity family with the keys to a brand new home – a home that the REALTORS® built.

Now, I have participated in Habitat for Humanity builds many times. Last year, at our Conference & Expo in Orlando, I had the honor of presenting a Bible to the proud new homeowners. But this year was the most special experience I have ever had.

You see, the family we helped have a unique appreciation for what it means to be homeowners. Abdi Farah, his wife, Amran Abdi, are originally from Somalia and spent their early years in refugee camps. Her father moved to the United States in 1993, and works for the U.S. Postal Service. He has been a proud homeowner for ten years.

As new U.S. citiens, Abdi and Amran wanted to have a home of their own to raise their three young children. Thanks to all of you, they now have that opportunity.

As I said at the ceremony yesterday, people might think that in these tough economic times our members wouldn’t want a portion of their conference registration to go toward building a home. But, that’s the difference between REALTORS® and everybody else. Helping people achieve the dream of homeownership isn’t just our job, it’s our passion.

I have never been more proud to represent you as your President. And, on behalf of NAR, I thank everyone who helped to make this family’s dream a reality. – Charles McMillan, 2009 NAR President

A few weeks ago, the news media was all abuzz with opinion pieces stating that the $8,000 first-time homebuyer tax credit had run its course, and the prospect for extending the credit was very uncertain.

However, in the past couple of weeks, we have seen the tide shift, as several Members of Congress and the White House have said they are considering extending the credit into 2010. In fact, an article in today’s Washington Post, “White House Faces Pressure on Jobs,” makes several references to the credit and indicates that Congress is working behind the scenes to develop legislation that would include an extension.

Why the change?

Well, as it turns out, recent data on home sales and jobs show just how tenuous the economic recovery currently is. After four straight increases in home sale, the August numbers were down slightly. As time runs out on the current tax credit, those numbers could dip further. We need to keep the credit going until enough inventory is cleared to return us to more normal market conditions.

On Wednesday, NAR testified before the U.S. Small Business Subcommittee, and again emphasized that the tax credit is our best tool for sustaining the housing recovery. With more than 350,000 home sales attributed to the credit, it’s clear that it is one of the most successful economic stimulus provisions.

Of course, our testimony is just one way we are reaching out to Congress. Members, like you, are hitting home with the message, too. So far, more than 140,000 REALTORS® have sent letters to Congress on this issue through our most recent Call for Action. That’s a record for NAR, and it clearly has made a difference. If you haven’t responded, please visit the Action Center today and let your Representatives and Senators know how important the tax credit is to your clients.

With your help, I am hopeful that we will get an extension before the deadline – and perhaps have one more “win” to celebrate when we meet at the REALTORS® Conference & Expo this November. – Charles McMillan, 2009 NAR President

In the classic movie, Mr. Smith goes to Washington, Jimmy Stewart’s character is appointed to fill a U.S. Senate seat and when faced with the reality of politics, he doesn’t back down.

Well, I may not be serving in Congress, but as your NAR President, my job is to represent you on critical issues. No matter how tough the challenge, you can count on me not to back down.

I just returned home to Texas after a full week in Washington, D.C., where I continued to press regulators on a few vital issues.

Last Wednesday, I met with FHA Commissioner Dave Stevens (a former REALTOR®) to discuss implementation of components of the Home Valuation Code of Conduct. We asked that FHA, Fannie Mae and Freddie Mac, adopt a consistent frequently asked questions document to address implementation concerns and codify that document with existing appraisal policy.

Commissioner Stevens agreed that requiring two appraisals in declining markets adds little benefit to underwriting and likely increases the cost of the transaction to the consumer. He also directed staff to work with the GSEs and New York Attorney General on our FAQ idea.

On Friday morning, I had a chance to meet with Freddie Mac’s new CEO Ed Haldeman, and HVCC was also on our agenda. Mr. Haldman agreed to work with FHA, Fannie Mae and the Federal Housing Finance Agency on a common set of FAQ’s. In fact, he promised that he would get back to me within two weeks with a status report.

The meeting with Freddie Mac was a great opportunity to talk about a few other hot issues.

Specifically, I thanked Freddie for coming out with guidelines that do not allow servicers to reduce commissions on short sales deals.

Mr. Haldeman also said that Freddie is willing to give waivers on their condo guidelines and he said they will be more vigilant in communicating with lenders on this issue.

We also learned that the Treasury Department and GSEs are working on guidelines related to short sales and the making Home Affordable program. We expect to see them in the next 30 days. Mr. Haldeman also agreed to emphasize the importance of short sales over foreclosures in discussions with the Treasury.

In Washington, D.C., progress can often be slow, but I am confident that the REALTOR® voice is the leading voice on policies that will define the future of our industry and our business. I urge you to get involved. Together, we can end 2009 on a high note, United Toward Tomorrow. – Charles McMillan, 2009 NAR President

Last week, I had the opportunity to sit down for an interview with NAR’s 2010 Leadership Team. Although the team officially takes office in November, the Summer is an opportunity for them to get together and prepare for the coming year – and to get to know each other a little better – before they meet with association leaders in Chicago later this month.

Although I’m not part of the 2010 team, I’ve worked with every member of the team for several years, and I know them very well. I wanted to give you, our members, a sneak peak at what this new leadership team is like, and what you can expect to hear – and see – from them later this year.

The very first thing that struck me about the team is the incredible diversity in their experiences – and how that is going to help them make the best decisions for members.

As 2010 President Vicki Cox Golder noted: “Not a single one of us has the answer to all of the questions.”

As anyone who has served in leadership will tell you, having different opinions and perspectives ALWAYS leads to better decisions. So having a national leadership team where all areas of the business – land, title, commercial, etc. – are represented is a great service to the members.

For example, 2010 Vice President & Liaison to Committees Brooke Hunt believes that her experience as a sales agent, “being in the car, being in people’s homes, day in and day out” is a great complement to the team.

As CEO Dale Stinton said, “Everybody’s different; everybody has their own point of view. We trust and respect each other.”

I was also struck by how driven the incoming team is – and how passionate they are about serving the members. As 2010 Vice President & Liaison to Government Affairs Vince Malta put it: “We’re type A plus…and, that’s good for the members.”

Although the entire team spends about two-thirds of the year away from home on travel, they all agreed that meeting with members face-to-face is the most incredible experience.

So, what exactly is the team focusing on in 2010? In short – anything and everything that will help us in our businesses!

It should come as no surprise that laws and policies that can help the real estate market are high on the list of priorities. And, as Moe Veissi, 2010 First Vice President says we also need to keep creating new initiatives that help members in the business – like the Second Century Initiatives, and Right Tools, Right Now.

2010 Treasurer, Jim Helsel, also applauds NAR for doing more to communicate with commercial practitioners and for stepping up our visibility worldwide, with a new Senior Vice President for International. These are two areas where we can expect to see even more from NAR in the year ahead.

Perhaps our 2009 President, Charles McMillan, summed it up best, when he said, “This 2010 leadership is going to be responsible for the rise of our members, of the real estate consumer, and confidence in the economy of this nation.”

I couldn’t agree more, and I think you also are going to see a great push to get more new faces into leadership. As 2010 President-Elect Ron Phipps noted, “None of us would be here if we weren’t asked. Someone specifically came to us and said, I think you could do a good job. “

All in all, the spirit of the group is truly remarkable. How they work together is a credit to incoming President Vicki Cox Golder, who is one of the most prepared members I have ever worked with. She always welcomes input and ideas and is a true pleasure to work with. I couldn’t be more excited about this team and the future of our organization.

You’ll be able to watch my full interview with the 2010 Leadership Team, and get a closer look at the theme and goals for 2010, right here on the President’s Report a little later this month, so please check back at the end of August.

In the meantime, I encourage each and every member to get involved now. Call your local, state and national association and ask to be a part of the team that builds a brand new day for real estate in America. Now is our time to shine. – Dick Gaylord, 2009 Immediate Past President

Earlier this month, I blogged about my meetings with the New York Attorney General’s Office, the Federal Housing Finance Agency, and Fannie Mae to share our concerns about the Home Valuation Code of Conduct. I also mentioned the ongoing problems in my latest President’s Podcast.

It looks like our persistence on this issue is paying off. Fannie Mae and Freddie Mac recently issued new guidance to all lenders on the Home Valuation Code of Conduct. Specifically, they have advised lenders to use appraisers who have clear experience in the geographic area. They also made is clear that appraisers are not prohibited from talking to real estate agents.

We have e-mailed all members about this development, but I wanted to post it on the blog, as well, to make sure everyone is aware. Just go to Realtor.org/HVCC for the details.

This is a good first step, but we realize that we need to do much more to ensure that appraisals are being handled properly and don’t inhibit the market. NAR will continue to work on this issue in the weeks and months ahead and keep you updated on our progress.

I thank all of you for sharing your concerns and stories – especially those who responded on this blog. Keep the comments coming, and please share these updates with your colleagues. – Charles McMillan, 2009 NAR President

I just returned to Texas after a whirlwind trip to the east coast, where I met with the New York Attorney General’s office and officials from the Federal Housing Finance Agency and Fannie Mae. The topic: appraisals, and specifically the concerns and perspectives that you, our REALTORS and appraiser members have raised about the implementation of the HVCC.

First and foremost, I want to thank all of you for sharing your comments on the Voices of Real Estate blog this past week. Steve Brown’s entry, “All’s Not Quiet on the Midwestern Front” has received more than 120 comments – all of them very insightful. In fact, your thoughts were so important to the discussion that we shared them directly with the staff from the New York Attorney General’s office as prime examples of the problems we are seeing. We also shared the results of a recent survey of members, which highlights the overall impact of appraisal challenges on the mortgage transaction.

Those of you who have met me know that I don’t pull any punches. So, let me give you my honest assessment of my meetings:

1. All of the officials we met with wanted to hear about our experiences, and they conceded that there are problems.

2. All agreed that we can and should immediately address gaps in communication and education to help resolve how the HVCC is being applied.

3. How we resolve other more fundamental problems is not yet clear and will likely require a longer-term effort.

So what’s next?

First, in the weeks ahead NAR will be working closely with everyone in the industry, including Fannie Mae, Freddie Mac, the Appraisal Institute and government officials, to clarify the HVCC and how it should be applied. As many of you noted in your comments on this blog – pointing fingers is not the solution, we have to work together to improve the process for everyone.

Second, NAR is working with Congress to move legislation that would place an 18-month moratorium on the Home Valuation Code of Conduct, so that we can consider how best to modify the HVCC and to resolve additional concerns that many of you have raised about it and other appraisal issues in the current environment.

As always, we will keep you posted on our efforts on this blog and on Realtor.org. I encourage you to check out our HVCC Myths and Facts for more information. We also will be updating our FAQ to answer many of the questions you have raised in your e-mails and posts.

Of course, we encourage you to continue to share your thoughts and experiences with us whenever you can. With your participation, we will move the housing market forward, “United Toward Tomorrow.” – Charles McMillan, 2009 NAR President

According to NAR research, the percentage of first-time homebuyers has risen from roughly one-third of all buyers in January to just under half in March and April. Why the sudden jump??

The answer is simple: those buyers have an $8,000 incentive, in the form of a tax credit, to buy now.

We’ve heard from a lot of members lately who would like to see the tax credit expanded.

I recently asked our Chief Economist Lawrence Yun what the impact on the market would be if Congress extended the credit through 2010 and offered it to all homebuyers. According to Lawrence, those changes could result in 800,000 additional home sales this year, raising the total from 5.4 million to 6.2 million. That would certainly take a big bite out of inventory and help stabilize prices.

And, that’s not all…

When you consider that for each home sold in the United States $62,000 is pumped into the national economy, the resulting impact of expanding the credit could be nearly $50 billion. That’s what I call a true economic stimulus!

NAR is working with members of Congress to introduce legislation that would expand and extend the credit. We will keep you posted on those efforts in the months ahead.

In the meantime, we would love to hear your stories about how the tax credit is helping consumers in your local markets. Post your experiences right here on the Voices of Real Estate blog, and we’ll share them with lawmakers. Help us tell Congress to give credit where it is due – to ALL homebuyers. – Charles McMillan, 2009 NAR President

Scientist Hugh Miller said: “Problems are only opportunities with thorns on them.”

We have a great opportunity right now to get the housing market back on track. Affordability is at an all-time high, thanks to low prices and record low interest rates. And, for the first time in a long time, consumers are actually returning to the market. With Spring home-buying season around the corner, we have a real chance to increase momentum in the market.

Yet, standing between us and this great opportunity for business are a few remaining thorns. Perhaps the biggest one is mortgage credit.

Sure, Congress raised the loan limits, purchased troubled loans from big lenders, and we even handed money to financial institutions and encouraged them to dole it out. One might say that large banks are awash in government money and support. So, why isn’t that money making it into consumers’ pockets?

We know that many banks have made underwriting so restrictive that good-credit buyers can’t get a loan. In many cases, they also have shut down their warehouse lending arms, making it all but impossible for small and mid-sized lenders to access funds. And, some of the largest banks are using pricing and market power to limit the flow of funds. In other words, while REALTORS® are working to help the economy, lenders are doing everything they can to boost revenue and avoid the costs of increasing capacity.

A couple of weeks ago I sent a letter to Treasury Secretary Geithner, Federal Reserve Chairman Bernanke, FHFA Director Lockhart, and FDIC Chairman Bair, asking that they get together and resolve this problem now. Our message is clear: The “buck” should not stop with big banks. – Charles McMillan, 2009 NAR President