Volume 1 Issue 6

2014 Leadership of the DAOR

Downey Association of REALTORS 12073 Paramount Blvd - Downey, CA 90242 562 861-0915 - Fax 562 923-9995

Executive Directors: Mireya Ruiz, President Jason Cierpiszewski, President-Elect Carrie Uva, Vice President Esther Lee, Treasurer Jeanette Baumann, Executive Vice President Directors: Mario Acevedo Michael Berdelis, Immediate Past President Maria Cibrian Sossi Gabriel Ericka Saenz Ruben Sarinana Vicki Spearman Miriam Villanueva DAOR Chaplain: Ruben Sarinana

www.DAOR.com Monday - Friday 9am-5pm Saturday 9am-1pm 24/7 text support :

Text DAOR to 55469 Volume 1– Issue 3

T[\l_ of Cont_nts:

CAR State Directors: Mireya Ruiz, Carrie Uva & Jason Cierpiszewski Affiliates In Action Committee Tom Ramirez, Chairperson Awards Committee Larry Kooiman, Chairperson Budget & Finance Committee Nubia Aguirre, Chairperson DAOR YPN Laura Dominguez, Chairperson

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Grievance Committee Dan Nevarez, Chairperson

4,5,6 Mi^-Y_[r El_]tion R_sults, Wh[t w_ N__^ to Worry @\out in 2015 & [ List of Who P[i^ Th_ 2014 R@F

LCRC Trustees John Lacey, Chairperson Local Government Relations Sandra Carnett, Chairperson Membership/MLS-Technology Committee Remoun Said, Chairperson Nominating Committee Russell Skersick, Chairperson

7 Sign Up To B_ On @ D@OR Committ__ in 2015

Professional Standards Committee Bev Baumann, Chairperson REALTOR Community Relations Committee Rowena Dominguez

4,5,6

Scholarship Committee Diane Sanchez

DAOR Staff Jeanette Baumann, EVP - evp@DAOR.com

Susie Gonzales, cs@DAOR.com

8 Th_ @thl_ti] C[r__r of Bry[n Cl[y [n^ [ F_w Pi]tur_s 9 2015 Du_s, R_^u]_^ for [ll M_m\_rs of D@OR

Customer Care Department Nelly Palma, mls@DAOR.com CeCe Robles, education@DAOR.com Hilda Inzunza, cs@DAOR.com Membership Department Julie Sartor, julies@DAOR.com Fausto Navarro, communications@DAOR.com

1,2,3 R_[l Est[t_ Fr[u^, Sp_]i[l From M[ur__n Ro^rigu_z, L@ D_puty City @ttorn_y & Import[nt L[w Enfor]_m_nt Cont[]t Inform[tion From D_t_]tiv_ Ern_st Munoz

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Pl_[s_ fin^ on p[g_ 10 links to “join” D@OR’s F[]_\ook, Twitt_r, Instigr[m, You Tu\_, [n^ Vi_w 2014 Pi]tur_s on Pi][sso.

types one may encounter are: short sale fraud, loan origination fraud, identity theft, forged documents related to theft of equity, loan modification, and rent skimming. You may say to yourYou may be asking yourself, self that you protect yourself what exactly is fraud? You may pretty well and that this can have heard of the term, According to the most recent FBI never but may not be fully Mortgage Fraud Report, the hapfinancial impact of loans aware of all the implicap e n originated with fraudulent tions of it. You also may o application data have been more t be asking yourself, how y o u ; than $10 billion annually. does fraud affect me? As w e l l professionals who conduct busi- we are here to help guide you to ness in the real estate indus- make sure that you are in the try, it is crucial for us to be best possible situation so that aware of the dangers of fraud. this does not become a reality.

Recently at the DAOR It is very October 2014 Membercritical for ship Luncheon, Detecall parties tive II Ernest Munoz, involved in of the Los Angeles our trade Police Department, to know spoke on the subject and underof fraud and how stand the REALTORS速 can prorules and tect themselves from laws percriminals.

Detective taining to Munoz is a member of the real the Commercial e s t a t e Crimes Division and is industry. a part of the Real EsAs crimitate Fraud Unit. Denals inevitective Munoz has had tably beextensive experience c o m e Detective II Ernest Munoz, investigating cases rem o r e LAPD Real Estate Fraud Unit with lating to the type of clever and DAOR President, Mireya Ruiz business that REALdevious at TORS速 conduct on a daily basis. defrauding our community, it is During his visit, he provided ever more important that you many important tips and precau- stay up to date on the laws and tionary statements in order that issues pertaining to the real esour members wouldn't fall victim tate industry. This is the case to the type of individuals that because the more you know, the Detective Munoz investigates. better off you are at protecting your security. Remember that There are many types of fraud a you should never stop learning, REALTOR速 might encounter. and you should keep yourself 1. Some of the most common up-to-date on information to

Real Estate Fraud

help protect your business. It is important for REALTORS速 to conduct business with individuals whom they feel are in good standing and who are in compliance with the law.

The best advice one may provide is to use common sense and do everything you can to protect yourself from malicious entities.

By abiding by the law and remaining diligent toward your business, you may significantly decrease the chance that you may be a victim of fraud.

According to the most recent FBI Mortgage Fraud Report, the financial impact of loans originated with fraudulent application data have been more than $10 billion annually. This figure is significant because California remains among the top states in the nation for mortgage fraud and other types of white collar crime.

Some of the most prevalent schemes that resulted in cases opened by the FBI included loan origination schemes, title/escrow/ settlement fraud, real estate investment, short sale, commercial real estate loan fraud and foreclosure rescue. The result of increased levels of fraud related to the real estate industry is a renewed d e d ica tion of resources by the FBI and other law enforcement agencies to combat the criminal threat of fraud and theft.

Identity fraud and loan modification fraud are two specific

types of fraud that REALTORS® and their clients must watch out for. While identity fraud may seem straight forward, there are in fact multiple facets that comprise this type of criminal activity. Identity fraud consists of a person taking personal information like your name, Social Security number, or financial account number and using it for an unlawful purpose. The problem with criminals who commit identity fraud is that they do not discriminate who they victimize. Criminals who commit this type of behavior will target anyone, and they know no bounds. Please be aware that this type of fraud can hit anyone and at anytime, so it is imperative for you to take special

million Californian’s and 13.1 million adults in the United States fell victim to identity fraud in 2013. The penalty for someone who willfully conducts t h i s b e havior Rationalization will be Justification of s u b dishonest actions, ject to c r i m in a l prosecution Opportunity Pressure a n d Ability to carry out motivation or incentive fines. misappropriation of cash To commit fraud or organizational assets As you c o n precautions. This is especially duct your everyday business, true for REALTORS® As you please keep in mind that there conduct business everyday are individuals out there who with people’s sensitive inforare actively seeking to steal mation. As technology grows and defraud people’s identity and improves to make our and financial information. As lives both convenient and effiREALTORS®, business people, cient, we must also be aware and individuals, it is crucial of the potential negative efthat we do all that we can to fects that it can have on secuprotect our most valuable rity. According to the Califorassets. nia Department of Justice, 1.6

The Fraud Triangle

FRAUD

It is not only important to keep your data safe from criminals, but to make sure that you follow all the rules and procedures prescribed by law. Keeping information safe from criminals is only half the battle, it is incumbent upon you to make sure that you follow the law to the fullest extent when conducting business. This is an important subject matter because there are many instances where real estate agents do not follow procedure and are then the subject of an investigation by a law enforcement agency. According the IRS, the number of investigations for mortgage and real estate fraud have decreased slightly from FY 2014 to FY 2013. While the number of cases being investigated trends downward, it should not represent that the IRS or other law enforcement agencies will not investigate cases of fraud with any less tenacity.

As you

move

about

your

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every day business, something important to keep in mind is to keep you and your client’s information confidential. _________________________ The following is an article to DAOR Members from Maureen Rodriguez Los Angeles Deputy City Attorney Rent Skimming (602.9 PC) Rent skimming is the crime of entering into a contract for the rental of a property and collecting rents therefore, when they have no authority to do so.

How can real estate agents and brokers prevent rent skimming?

Frequently conduct visual checks and inspections of the vacant & abandoned properties to ensure that they are secure from squatters or persons illegally residing in the property.

Photograph the condition of the property and take notes regarding your physical checks of the location.

If you do discover that someone is illegally residing in the property tell them that they are trespassing, they don’t have consent to be on the property, they must leave immediately and notify the local law enforcement agency.

Gather as much information as possible: Make note of vehicle license plate numbers; obtain any phone numbers; write down details of the occupant’s story.

If the occupant says they have a lease, ask them where it was negotiated, how and to whom they pay rent and get a copy of the lease. If the occupant refuses to give you a copy of the lease, write down the names of 3. the parties that appear on

the lease and all the terms of the agreement.

If the persons are victims of rent fraud, they can make a police report for grand theft if they gave money to the suspect (s) to rent or lease the property. But they must also be told they are trespassing and must leave the location or face arrest.

Your role as agent for the bank or vacant homeowner must insist that the local law enforcement agency complete a Trespassing report and notify the parties occupying the property that they must leave or go to jail the following day.

If the responding officers say it is only a civil matter, be persistent and if necessary request the response of their supervisor to complete a police report as it is a crime and trespassing laws must be enforced. Also avoid citizen’s arrests if offered by the police, as the trespass laws are much more effective and civil remedies are inadequate.

Be prepared to provide good credible contact information of the homeowner, REO asset manager or other bank /lender representative that can provide proof of legal title. Case law holds that the law enforcement can’t be held liable acting on behalf of the legal title holder.

For additional legal advice contact Maureen Rodriguez, Los Angeles Deputy City Attorney (818) 374-3300

From Detective Munoz, Important Information on Law Enforcement Contacts

Los Angeles Police Department- Real Estate Fraud Unit (213) 486-6620 Los Angeles County Sheriff’s Department Real Estate Fraud Team (562) 946-7217 Los Angeles County District Attorney’s Office Real Estate Fraud (213) 580-3322 LA County DA, Bureau of Investigation Real Estate Fraud Unit (213) 580-8728 County of Los Angeles Department of Consumer Affairs (800) 593-8222 Real Estate Program- Investigations Unit (213) 974-1452 Glendale Police Department Financial Crimes Unit (818) 548-3101 Pasadena Police Department Forgery/ Fraud/Identity Theft Detectives (626) 744-4522 Long Beach Police Department Forgery/ Fraud Detail (562) 570-7330 Beverly Hills Police Department Detective Bureau (310) 285-2100 Orange County District Attorney’s Office Investigations Unit (714) 834-3600 San Bernardino County DA’s Office Bureau of Investigation (909) 891-3519 Riverside County DA’s Office Bureau of Investigation (877) 723-7779 California Bureau of Real Estate Investigations (877) 373-4542 California Department of Business Oversight (213) 576-7613 The State Bar of California Enforcement Unit (213) 765-1000 Attorney Complaints Hotline (800) 843-9053 California Secretary of State, Notary Public Section (916) 653-3595 Federal Bureau of Investigation (310) 477-6565 HUD-OIG (FHA loans) Fraud Hotline (800) 347-3735 Fannie Mae Fraud Hotline (800) 732-6643 Freddie Mac Fraud Hotline (888) 995-4673

Mid-year Election Results With many issues affecting our state and communities, voters turned out to the polls to make sure their voices were heard. On November 4, 2014, there were many issues and candidates that were on the ballot. Many pundits say that this year was an especially unusual year in terms of voter turnout. According to the Los Angeles Daily News, only 29.9% of Californians and only 25.2% of Los Angeles County residents actually turned out to vote on November 4.

This is a significant decrease from both the 2010 and 2012 elections where voter turnout was much more significant.

Voter turnout played a major role as candidates campaigned for elected office. There were many races in which candidates battled over redrawn legislative districts. In our area two gentleman campaigned to win the newly redrawn 32nd Senate District seat. This District covered a wide area of Los Angeles County as well as one city in Orange County, totaling 19 cities in all. Both candidates put on impressive campaigns raising a staggering $2,000,000 combined. This race was very close, and it was an understandably important race as both political parties were involved.

In October, Mr. Mendoza and Mr. Guerra both participated in a open forum where they discussed the major issues affecting our state. This race was very tightly contested as Democratic voter registration in this district outnumber Republican registrations 2:1. Tony Mendoza came out to be the victor with 52% of the vote over Mario Guerra with 48% of the votes cast.

Tony Mendoza who will be our next State Senator will be sworn in this December 2014. The California Legislature will then begin the 2015 legislative year on January 3, 2015.

Our current Assembly Member Cristina Garcia who represents the 58th Assembly District, ran unopposed this year winning 100% of the vote, she was re-elected for a second term. Ian Calderon who represents the 57th Assembly District was re-elected to the Assembly for a second term in a tightly contested race against Rita Topalian. Ian Calderon won 51.4% of the vote compared to Rita Topalian’s 48.6%. Our current U.S. Representative Lucille Roybal-Allard was re-elected to the House of Representatives with 61.5% of the vote. Some of the major legislative races included Young Kim vs. Sharon Quirk-Silva, Janet Nguyen vs. Jose Solorio, and Bobby

Shriver vs. Sheila Kuehl. Young Kim came out on top with 54.6%, Janet Nguyen with 58.1% and Sheila Kuehl with 52.9% of the votes cast. The results of this election produced an outcome that many pundits did not expect.

The Republicans were able to pick up three seats in the California Assembly and one in the Senate. By the Republicans picking up seats in both houses, the Democrats have lost their supermajority in the California Legislature. This is significant because although the Democrats still hold a strong majority in both houses, the two parties will at least have to work with each other on the issues that affect us all.

At the federal level, there were many more significant changes that transformed the makeup of Congress. Shifts at the Congressional level garnered many developments that have the potential to affect policy and law. During this election season, the Republicans gained a majority in both Houses of Congress.

The Republicans gained eight seats in the U.S. Senate, and twelve seats in the House of Representatives. As a result of this, many political strategists believe that there will be even more political infighting and partisan division. With political division at near record levels before the 2014 elections, it is not improbable to conclude that this next Congress will not be any different. Many also believe that this incoming Congress will be amongst one of the most conservative in history, thus, perpetuating the problem of polarization and infighting. Political strategists are pessimistic that there will not be any major legislation that will pass especially when it comes to housing policy. It is doubtful that any sort of legislation that is controversial or contentious will come to pass during these next two years. An issue that will come up which affects residents and realtors is taxes. It is also doubtful that the new Congress will be able to tackle tax reform or any real-estate tax provisions. All of these

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issues require a deep willingness of both parties to work with one another and be able to compromise; and that is not the type of political climate that we are in right now.

The unsavory political climate that we are currently in has in large part helped contribute to the 2014 elections.

Right now President Obama is in the 6th year of his Presidency. A second term President typically has a few implications that have historical precedent. Especially within the last three decades, it is not a typical for the electorate to be unhappy with the President and his party. This can partly explain how the new Republican majority garnered so much support across the country.

Now that the election season is over, legislators are now gearing up for their next legislative session. This means that legislators will get back to the business of writing laws and affecting policy. C.A.R. and N.A.R. are also coming prepared as they have specific goals and agendas in mind to positively affect the real estate industry.

The 2013-2014 legislative session was ultimately a success for C.A.R. and N.A.R. The state and federal REALTOR associations would like to have another successful year as many new and old issues will need to be discussed and debated by the legislature. The 20132014 legislative session was one the most successful sessions in which the Legislature passed most of C.A.R.’s sponsored bills. The current make up of the California Legislature still makes it conducive for C.A.R. to work with legislative members to work on and pass bills that will positively affect our communities. As we prepare for the next legislative year, it is important to remember to hold accountable the legislators who we elected to office. The issue of housing affordability will be a major point of contention during this next legislative session. The argument is not necessarily with housing affordability itself, the point of dispute is over how do residents pay for affordable housing. C.A.R. is opposed to any effort by legislators to increase the burden on property owners.

Looking Forward to 2015 As 2014 comes to a close, lets take a strategic look at our accomplishments of 2014 so we may look at where we are headed for 2015.

The year 2014 produced many great results for California during the 2013-2014 legislative year.

The State Legislature passed many Bills including eight C.A.R. sponsored Bills in 2014. This year was a very productive year both in terms of the amount of Bills that were passed and the quality of Bills. Through collaborative efforts and increased diligence, C.A.R. and N.A.R. was able to fulfill many of its missions and goals at both the state and federal levels. None of the 5. great accomplishments achieved by C.A.R.

and N.A.R. could have been achieved had it not been done without the continued effort of individual REALTORS and the grassroots movements.

Individual REALTOR members are the backbone of the legislative process. REALTORS are on the top of the grassroots movements in California. Our success at the state and local levels begins with you. By contributing to the REALTOR Action Fund, you will literally have a voice in the legislative process.

Your contribution not only ensures that your voice will be heard, but that REALTOR interests will be heard and protected in Washington D.C. and Sacramento. By making sure that our state and federal associations have enough resources to discuss the major issues that affect all REALTORS, we know that every effort will be put into protecting REALTOR rights.

Some of the biggest issues that will potentially affect REALTORS are mortgage interest deduction, point of sale taxes, transfer taxes, recording fees and service taxes. These are just some of the major issues that will affect every REALTOR across this country. In order to help protect your rights as realtors, we must remain diligent and stay on top of all the issues that affect everyone.

As 2014 comes to a close, lets remember and build from our accomplishments. This coming year we can look forward at what is ahead of us. By staying up to date on the issues and remaining informed, we will be successful in our missions and goals. As 2015 approaches us, lets be sure to have a successful and productive year.

LOS ANGELES COUNTY VOTER REGISTRAR SECRETARY OF STATE

REALTOR ACTION FUND One of the most important services organized real estate provides is representation in the halls of government. REALTOR速 Action Fund (RAF) raises money to advance the goals of our REALTOR速 political action committees (PACs) at the local, state, and federal levels of government. RAF supports and/or opposes candidates for elected office who understand, or don't understand, REALTOR速 Issues.

Members of the DAOR who contributed toward the RAF, were included in a sweepstake to win $600 -two winners were pulled GRACE LIN, CENTURY 21 REALTY MASTERS & SANDRO RAMIREZ, LEIVA GROUP REAL ESTATE - seen in photo.

Below are the DAOR who contributed to the REALTOR Action Fund.

Mario Acevedo, Patricia Aguero, Julian Alcala, Mey Alvarez, Lucrecia Amparo, Griselda Arenas, Juan Manuel Arenas, Michael Aspeitia, Gilbert Ayala, Marcella Barba-Olmos, Arturo Basulto, Jeanette Baumann, Jami Berdelis, Mel Berdelis, Michael Berdelis, Rita Berdelis, Gabriela Bermudez, Victoria Burkhardt, Goldene Byma, Linda Cabourne, Jaime Carranza, Kirk Cartozian, Griselda Ceballos, Jason Cierpiszewski, Raffael Cursaro, Juan Carlos Duarte, Marco Estrada, Christopher Foster, Jackie Funk, Cassie Gallegos, Fernando Gomez, Junior Gongar, Rafael Gonzalez, George Gordon, Chuck Gugliuzza, Minerva Gutierrez, Eric Herrera, Julia Higueros, Vicki Holland, Don Jervis Jr, Silivia Jojola, Tamara Kardashian, Larry Kooiman, John Lacey, Janet Lau, Robert Lee, Ruben Leon, Chris Limon, Grace Lin, Winnie Long, Marina Martin,

Armando Martinez, Patrick McCallum.

Joe Medina, Maribel Membreno, Theresa Oliver, Alexander Phyffer, Teresa Pulido, Sandro Ramirez, Hector Rendon, Steve Roberson, Bertha Rodriguez, Adrian Rolon, Mireya Ruiz, Remoun Said, Juan Sisniega, Vicki Spearman, William Thompson, Lora Urban, Scott Urban, Juanita Urzua, Rosie Urzua, Carrie Uva, Luis Valdes, Mark Velasco, Miriam Villanueva, Martha Washington, Penny Watson, Shirley Williams, Jeff Worthy 6.

DAOR 2015 Committees are now Forming . Please take a look at what committees DAOR has, and get involved. There is no other profession that volunteers, and helps others like a REALTOR®.

YPN - DAOR’s Young Professional Network will schedule events to help members gain industry knowledge and networking opportunities. [Annual commitment = 3-4 committee meetings & 3-4 events to attend.]

GRIEVANCE - The Grievance Committee meets to review filed complaints from other agents or the public, and determines what violations were made. [Commitment = Training Class (online or live) and 6 -9 meetings] 7.

LGR -The Local Governmental Relations Committee will meet to discuss problems with community in regards to sign ordinances, presale inspections, and community development. [Commitment = 3-4 meetings ] MEMBERSHIP - MLS/ TECHNOLOGY - Any discussion pertaining changes to the Membership, its services, and technology through the MLS , this committee also makes suggestions to CRMLS, and may be testers for services.

[Commitment = 3-4 meetings ] RCR - REALTOR® Community Relations Committee meets to schedule events and programs to celebrate homeownership and the community in which we work.

[Commitment = the RCR committee is the busiest committee of DAOR. There will be 4-5 meetings, small fundraisers (raffles) and events (like REALTOR® Community Week)]

SCHOLARSHIP - Scholarship Committee reads and chooses the receipts of the DAOR scholarship .

Committee will also be involved in promoting real estate as a career to high school students. Commitment = 3-4 meetings, and 1-2 events.]

The DAOR is as strong as their volunteers, leaders and staff.

Please email evp@DAOR.com With your choice of committee(s) - thank you !!

Facts about California Volunteers *25.1% of residents volunteer, ranking them 35th among the 50 states and Washington, DC. *31.9 volunteer hours per resident. *7.39 million volunteers. *938.0 million hours of service. *$20.8 billion of service contributed. *48.7% of residents donate to charity. *7.4% of residents participate in public meetings. *24.4% of residents over age 55 volunteer.

Hey REALTORS速 Closing Gifts are the new approach to stay in your clients' minds. We all know the purpose of a gift is a sincere acknowledgement of appreciation, closing gifts are a great way to help you build your business. A unique closing gift can keep your name engraved in clients which is the foundation to future referrals and we know REALTORS速 businesses succeed on referrals. That's why here at the Association store we have great looking gifts. We have beautiful key chains and a photo frame, go the extra mile and take them somewhere to have the clients name engrave.

"HAPPY HAPPY HOLIDAYS: DAOR"

Hilda cs@DAOR.com 562 861-0915

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