CELEBRATING BLACK HISTORY MONTH Page 128
LLOYD AUSTIN MAKES HISTORY AS THE FIRST AFRICAN AMERICAN DEFENSE SECRETARY IN U.S. Page 124
FEBRUARY 2021 Vol. 08 | Issue 2
KAMALA HARRIS:
nytimes.com
“WHILE I MAY BE THE FIRST WOMAN IN THIS OFFICE, I WILL NOT BE THE LAST” Page 76
HAVE YOU READ OUR PAST ISSUES YET? the power is now
magazine CENTRAL EDITION Vol. 08 | Issue 2
Eric Lawrence Frazier, MBA Publisher Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 eric.frazier@thepowerisnow.com www.thepowerisnow.com EDITORIAL TEAM Sheila Gilmore Editor in Chief (800) 401-8994 ext. 711 sheila.gilmore@thepowerisnow.com Daniels George Managing Editor (800) 401-8994 ext. 712 daniels.george@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager goldy.ponce@thepowerisnow.com
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CONTENTS
FEBRUARY 2021 POWER LENDING Pg. 20. Tackling the Problem heads on: Bringing A Lasting Solution to affordability crisis in America in 2021. Pg. 22. Creating a more secure and consumer friendly closing process where everyone is involved.
POWER TECHNOLOGY Pg. 24. Real estate technology adoption in a post-pandemic world.
feature story POWER GREEN Pg. 8. The Road To Recovery- Biden Will Have To Win back international trust Through The Paris Climate Accord. Pg. 10. Humanity Is waging war on Nature. U.N Chief calls for a Carbon free future.
POWER ECONOMICS Pg. 12. The Year 2020 in Review: Covid 19 and The Trump Administration. Pg. 14. Joe Biden’s economic Agenda: Americans could use more jobs right now!
POWER REAL ESTATE
Pg. 26. Martin Lutherking Jr.
IN OUR CENTRAL EDITION: Pg. 33. Hybrid, Multi-Cloud Data Centers On The Rise In Secondary Markets, by Steve Peterson. Pg. 37. The Texas Housing Market post COVID-19, by Johnnie Morine.
IN OUR EAST COAST EDITION: Pg. 43. New Jersey Home ownership trends, by Jerel Washington. Pg. 47. Appreciation rate trends and housing market data, by Emerick Peace. Pg. 51. Florida Real Estate market forecast 2021, by Adriana Montes.
Pg. 16. What a Democratic-controlled Congress could mean for renters struggling amid the pandemic. Pg. 18. Reshaping The Housing Industry: Why Pg. 57. Think You Found a Better Mortgage Fannie Mae and Freddie Mac Need to be a Quote? Think Again and Consider all Costs, Single Utility. by Yvonne McFadden.
IN OUR WEST COAST EDITION:
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Pg. 61. 5 weird reasons why you are likely not going to get a mortgage in 2021, by Peggie Simons. Pg. 65. Thinking about refinancing in Arizona? Read this first, by Kamesha Keesee. Pg. 69. Follow this simple guideline on How to ensure a stress free closing, by Ameer Elahee. Pg. 73. Sometimes “No” Isn’t The Final Answer When it Comes to Getting a Loan. Be Patient and Keep At It!, by Ruby Frazier.
Pg. 76. Kamala Harris: ”While I may be the first woman in this office, I will not be the last”
Pg. 82. Here are some ways through which the the Mortgage Industry Already Protects Consumers, by Julius Cartwright. Pg. 85. Educate and Innovate: This is how we get the real estate industry back on track, by Jenny Gonzalez. Pg. 87. Didn’t get approved for a loan? Do not worry, here’s how a realtor will help, by Danon Burnside. Pg. 89. 5 trends to watch out for in 2021, by Denise Matthis. Pg. 92. The Bay Area Housing Market: Projecting the future of Bay Area Housing Market, by Kenneth Session. Pg. 95. Pre-Approvals vs. Pre-Qualifications in the Home Buying Process, by Robert Langston. Pg. 98. LA Real Estate Trends: Market data and Appreciation rates, by Briana Frazier. Pg. 103. You think you are ready to buy a home? May be You are not!, by Adrian Bates. Pg. 107. This Trend Shouldn’t stop in 2021: Virtual tours for hot housing market, by Success Money. Pg. 109. Affordability Issues Expected to Dampen Home Price Gains, by Joe Fischer.
POWER LEGAL Pg. 112. The CFPB Missed a chance to fix the QM Rule. What does this mean for real estate industry?. WWW.THEPOWERISNOW.COM
Pg. 114. Feds intervening in FHA loan fraud case.
POWER MORTGAGE Pg. 116. The Housing Inequality Question: To reduce racial wealth inequality, we need to expand the down payment assistance programs. Pg. 118. This is the reason why Refis Continue to Dominate Mortgage Apps.
POWER HEALTH Pg. 120. Communities of color are supposed to be getting money to reduce pollution? Where is it?. Pg. 122. Children’s Hospitals Grapple With Wave of Mental Illness: Are we doing enough to protect our children?
POWER COMMUNITY Pg. 124. Lloyd Austin makes history as the first African American Defense Secretary in U.S. Pg. 128. Celebrating the National Freedom day in an African American Style. Pg. 130. The Black History Month: Remembering Gone Heros- Abraham Lincoln, Malcolm X and Frederick Douglass. l
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FROM THE EDITOR It’s February already! Can you believe that we are in the
second month of 2021? Is it just me, or does 2021 already feel like we are in a dice game? And we are just holding the dice in our hands, whispering in our hearts, “Please be good to me this time! Give us a good year! Be nice!” With 2020 finally gone and now history, it is time to focus on the positive energy I already feel in 2021. It seems like it is going to be a good year, and I think we all are making plans to make it count. This February is special to us as a country, but more so to the African American Community. First of all, it is the month when we celebrate Black History Month and secondly, it is also the month when we celebrate three heroes who fought for our freedom; Frederick Douglass, Abraham Lincoln, and Malcolm X. What could be more special than that! This month’s issue celebrates Black History Month and where we are as a community today. Black History is a daily occurrence and is constantly evolving. Many things have changed and many challenges that face the black community since Salvery have remained the same. We cannot forget who we are, we must celebrate what we have accomplished so far and look closely at where we are now going. We have a new administration and I am very happy about it. The Biden-Kamala administration is off to a rocky start but my prayer is that they will get it together and unite the country. This election, like Barack Obama’s, represents another barrier-breaking feat for the African American community. We also have a new secretary of defense and he is from the African American Community. Lloyd Austin enters our country’s history books by becoming the first African American Defense Secretary! At the rate we are going I am confident that 2021 will be a barrierbreaking year! On the cover is Kamala Harris, the 49th Vice President of the United States. We decided to look back on her journey and how far she has come. She is an extraordinary woman and living inspiration to many people, especially our young girls. Read more about Kamala, her political journey to become one of the most influential people in our country. This month’s issue also talks about Biden’s uphill task to
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return the country back on track with its allies from where it was four years ago. Just how hard will it be? Find out only on this issue. Through our economic lens, we look back to what year 2020 was. We review the successes, the heroes, mistakes, and the failures of the Trump Administration. We tell you what went wrong and how we can prevent it from ever happening again. In addition, Read more to find out what Biden has planned for this country and what his plan is for the millions of Americans who have lost their jobs. Of course, this issue cannot be complete without bringing you the latest market updates from our VIP Agents. We focus on the Bay Area, and we will tell you why you need to invest in this lucrative market right now! I am pleased to say that this is one of the most resourceful magazines you will ever find. Here, you will find valuable information as a buyer, that will help you in your journey
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to homeownership and as an investor we will help you build wealth in real estate. As such, please take a moment to read and share our current issue. Like us on Facebook and follow us on Twitter and let us continue to support each other in all our undertakings. Through all the challenges the real estate industry faces, we need to be flexible and adaptable in order to remain relevant and competitive. It is with this note that I send you sunshine, warmth, and summer fun for your entire family. Remember “we are at our best and we maximize our success when we act now�. The Power Is Now!
ERIC L. FRAZIER MBA President and CEO The Power Is Now Media, Inc.
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THE ROAD TO REC
BIDEN WILL HAVE TO WIN INTERNATIONAL TRUST TH PARIS CLIMATE ACCORD
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oe Biden is being elected as the President of the US state, and his election could potentially reduce global heating in a manner that brings the Paris Climate across even closer. Joe Biden policy had a target of reaching net-zero carbon emission by 2050; he also had plans to carry out a $1.7tn investment in green recovery from the coronavirus crises. This is meant to reduce the emissions in the US for three decades by an equivalent of 75 gigatonnes. Climate Action Tracker has made calculations that show that there would be enough reduction in UN emission to avoid temperature rise by at least 0.1C by 2100. Although this sounds remarkable, Biden’s proposals are sure to face a level of opposition from the state level as well as from Republicans. There might also be legal challenges to his proposals, which would be decided by a conservative supreme court. The US might be the world’s biggest economy, but it takes the second position when it comes to greenhouse gases. Donald Trump reversed plans to put in place by Barrack Obama to decrease the emission of greenhouse gasses; he also turned down the Paris agreement on climate change, which was meant to limit nations to global heating below 2C. This agreement was meant to limit the rise of temperatures to 1.5C, and due to Trump’s 8
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stance of the agreement, the US was isolated from major economies and might have lost international trust. In recent times, China, South Korea, and Japan have endorsed a net-zero emission target. Hopefully, if Biden’s pledges were duly followed, it would lead to a historic tipping point on the climate. US and china’s pledges are more than enough to decrease the global heating to at least 2.3C or a 2.4C by the century’s end. That counts for 25-40% of the determination required to reach the goal of the Paris agreement, which is 1.5C.
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
COVERY
N BACK HROUGH THE isn’t impossible to realize the policies Joe Biden endorsed during his campaign for the presidency. A clear stance by the US on climate issues will have a much greater impact than just emission reduction globally; it will also have a multiplier effect on many economies.
Joe Biden has made promises to join the Paris Agreement once again and also make investments in low-carbon technology; this would help the US drastically cut down on emissions within the decade. This decision would boost the international climate action but might cause the nation to divide. Biden would struggle with pushing his plans forward, and although some states have signed up to strong climate action, others are still facing legal challenges in a bid to do so. Although Biden is sure to face opposition from many businesses as well as Republicans who have been emboldened during Trump’s four years in office, it WWW.THEPOWERISNOW.COM
This would be the US directing the world in a direction that’s vital; the whole world will be expanded if the US, China, and the EU are able to work together. This is because it goes beyond domestic emission but touches on the US position as a world leader. US stance would push other countries to also take action towards the goal. Biden intends to act towards the Paris process and commit the Nation to a zero net emission goal while still focusing on 2030 goals will help make up time for the years lost under Trump’s administration and prevent climate destabilization. The Paris Climate Accord has become more than just an agreement; it is about putting the US back in the game rather than having the nation watch from the sidelines. Achieving the Paris Agreement’s 2050 aspirational goal will help raise ambitions for countries.
Reference https://www.theguardian.com/us-news/2020/nov/08/ joe-biden-paris-climate-goals-0-1c l
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HUMANITY IS WAGING WAR ON NATURE
U.N Chief calls for a Carbon-free future The past year was an extreme year in terms of hurricanes, wildfires, and heatwaves. In addition to reports which highlighted 2020’s weather and the growing fossil fuel extraction that could potentially trigger global warming, it seems that humanity was facing a new war. The UN chief has warned that war again humanity that’s unprecedented in history draws near and could destroy our future before we have completely deciphered the risk.
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his message from Antonio Guterra was promptly followed by a global upheaval and the COVID-19 pandemic that led to governments shutting down countries for many months. There were also wildfires, storms, and hurricanes all around, which were enough to scar the globe. Guterres has stated that humanity is choosing to wage 10
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war on nature, which is quite suicidal because nature is one to strike back. Guterres states that natures have begun the process with force and fury with biodiversity slowly collapsing, a million species standing a chance of getting extinct. Ecosystems are also being lost right in front of us, and it is our activities that have led to this chaos. He states that we are also the solution to our
problem. The UN chief stated some of the wounds inflicted by humans on the natural world. Some of them included the overfished ocean, cutting down forests, spreading the desert and losing wetlands, air pollution, and the continuous human infectious diseases that come from animals. Guterres had formally spoken on these
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
dangers, but this was one time he used strong language. He has made it quite clear that the only way to mitigate these issues is by making peace with nature. He states that this should be a top priority for everyone globally. The UN chief states that future generations are more likely to suffer from the actions being taken today. It’s a moral test, and we can’t lock in policies using vital resources to burden our future generations with a large debt on a broken plant. He states that at the heart of the problem is inequality because even in the richest countries, the poorest and most vulnerable citizens end up facing the attack most. He states that greenhouse gas emissions were about 62% higher than in 1990, and 2020 has been recorded down as one of the warmest years on record. This is despite the La Nina cooling effects. Despite the COVID-19, the US emissions are set to begin again. However, the UN chief has
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struck a note of hope with many countries like China, the EU, and the President-Elect, Joe Biden, adopting a net-zero emission target by 2050. With renewable energy now considerably cheaper than cool and electric vehicles gaining pace, Guterra believes that 2021 is a sort of leap year, and the leap is towards carbon neutrality. He states that the best ally is a sound economic alliance, and it is time for governments and investors to switch to the green size while there’s still time. The UN Chief looks forward to the UN Cop26 climate talks when nations will come together to make a decision towards a globally green economy. He expects governments to affirm their Paris agreement plans to reduce greenhouse emissions within the next decade. Governments would need to transform pledges into policies and targets with timelines to give businesses and the financial sector the confidence need to invest in net zero-emission.
The UN chief also calls for several nations to put a price on carbon emission while cutting off investments in fossil fuels. Coal power plants shouldn’t be built anymore, and fossil fuel subsidies should be phased out. He states that taxes should not be placed on incomes but rather on pollution. He has stated that another crisis to be addressed is the biodiversity crises, and there are many opportunities available to stop plundering and begin the healing. Although there is no vaccine to cure the warming of climates, there is an antidote for it. Plans are also being made to provide developing countries with financial assistance so that a global consensus can be reached on the net-zero emission goal. The goal is to benefit all sections of society and, therefore, effectively to cut off inequality.
Reference https://www.nbcnews.com/news/world/ u-n-chief-calls-humanity-end-war-naturego-carbon-n1249698
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THE YEAR 2020 IN REVIEW: COVID-19 AND THE TRUMP ADMINISTRATION
2020
is a year most of us would wish to forget, but that’s kind of impossible. The year cannot be forgotten for all it featured. The level of unprecedentedness we experienced in 2020 is something we’ve never seen before. 2020 was uniquely unprecedented not because it was a pandemic year— pandemics have been there even before— or that a US president was almost impeached— or that there were widespread marches for racial justice nationwide— or that there was a US disputed election. All that we saw in 2020 have been occurring even before. Therefore, what made 2020 the most unprecedented year is that all those events happened in the same year. Having made it out of 2020 alive, having a lookback is certainly worthwhile. Moreover, reflecting on what we got right and wrong last year is a perfect way to prepare for a fresh start this year.
of troubled times. Troubled times in America begun when COVID-19 cases and a few deaths were reported on the US soil forcing President Trump to declare the disease a national emergency later in February, sending the economy into freefall. By the end of May, America’s death toll from the virus had crossed the 100,000 mark and was spreading rapidly. So, how did the Trump administration handle the situation? First, when the virus was reported, the Trump administration dubbed it the “China virus,” with its approach to the situation consisting of little more than attempts to contain it through positive thinking with the president’s take in March being “It’s going to go away, hopefully at the end of the month. And, if not, hopefully it will be soon after that.”
So much happened in 2020, but we can’t highlight all of it. We will thus focus on the COVID-19 situation and the Trump administration in general throughout 2020.
Moreover, according to a May 2020 publication on Theregreview.org, the Trump Administration’s management of the pandemic was hampered by misallocation of authority “along three different but interacting dimensions.”
COVID-19 and how the Trump Administration handled the situation. In times of trouble, America, like any other nation, looks up to its leader (the president) for leadership that will successfully usher them to the other side
According to the publication, the Administration’s management was marred by overlapping authority and failure to capitalize on this overlap’s potential to safeguard against shirking and inaction. The management also lacked a fundamentally crucial
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tool— the ability to coordinate the efforts of public and private actions to fight the crisis effectively and efficiently. The publication notes that since the arrival of the virus on US soil, it was unclear who was supposed to be in charge. Initially, the US Department of Health and Human Services (HHS) Secretary was to take the lead. Then President Trump appointed his vice, Mike Pence, to lead the Administration’s response. Shortly after, the President handed over authority to develop and implement at least some aspects of the federal response to Jared Kushner, who happens to be his son-in-law. From this, you can note that neither the Vice President nor Mr. Kushner had any meaningful disease-related expertise. On the other hand, the Trump administration did a good job addressing the economic needs of businesses and Americans facing financial challenges caused by the pandemic. Early on March 6, 2020, Trump signed an $8.3 billion COVID-19 relief bill to help cushion the US from the pandemic’s impacts. Later on March 18, 2020, he signed the $104 billion economic relief package, and on March 27, 2020, he signed the $2 trillion stimulus package, which is the largest in American history. Moreover, on April 24, 2020, Mr. Trump signed an additional $484 billion relief bill to help small businesses meet some of their expenses and stay afloat. Finally, on December 21, 2020, Congress passed a bipartisan $900 billion package to provide pandemic relief and a $1.4 trillion spending bill to fund the government. All these funds and programs played a significant role in keeping most American small businesses afloat and putting money in the pockets of most of the Americans who had lost their sources of income. 2020 was a strange year that featured so many political, economic, and social events, some of which were damaging while others were life-changing. How did we handle that? What could have been done better? These are the questions that everyone should answer as we look forward to a better 2021 while still preparing for the worst. Work cited. https://www.theregreview.org/2020/05/19/camacho-glicksmantrump-administration-pandemic-response-structured-fail/. https://www.usatoday.com/in-depth/news/politics/2020/12/28/2020trump-biden-racial-justice-election-covid-rbg/3822810001/. https://www.economist.com/united-states/2020/12/28/disharmonydisease-and-defeat-for-donald-trump.
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he COVID-19 pandemic wreaked unimaginable havoc on America’s economy in 2020. Millions lost jobs, businesses were declared bankrupt and shut down, and most economic activities were brought to a halt due to the pandemic’s impacts. The Joe Biden administration is set to inherit an economy completely battered by the pandemic’s impact in 2020. It wouldn’t be wrong to say that America’s economic future was on the ballot back in November 2020. Stepping into 2021, the pandemic is still with us. Despite having unveiled various COVID-19 vaccines, the pandemic impacts are going to be felt for longer than we would imagine. The ongoing economic recovery process is expected to take more time to attain the pre-pandemic levels. With the current state of America’s economy, there is a dire need for a good plan that will rescue the economy. The kind of plan America needs right now is beyond the stimulus bill signed into law by Mr. Trump towards the end of last year. So, what kind of plan do we need? We need a plan that will put the pandemic situation under control to pave the way for an effective economic recovery. We also need a plan that will present more job opportunities to Americans equitably. Fortunately, Joe Biden has a plan known as Build Back Better. The plan aims to create millions of ‘good-paying jobs’ to give America’s working families the tools, choices, and freedom they need to build back better. But wait, the pandemic situation needs to be contained. To achieve this, Joe Biden laid out a seven-point plan that will get the pandemic under control 14
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JOE BIDEN’S
ECONOMIC AGENDA: AMERICANS COULD USE MORE JOBS RIGHT NOW! THE POWER IS NOW MAGAZINE | FEBRUARY 2021
and allow an effective reopening of the economy. The plan aims to utilize advice from scientists and experts, fix personal protective equipment issues, and plan for effective and equitable distribution of treatments and vaccines, among others. Currently, the American job market has suffered more severely during the pandemic period compared to the Great Recession. The American job market began to recover in May 2020 and lost momentum towards the end of the year, with economists predicting the unemployment rate rose to 6.8% between November and December 2020, marking the first increase in the unemployment rate since April 2020. Joe Biden’s administration aims to combat the current job crisis in America by investing in infrastructure and green energy. According to Biden’s plan, this could help create employment opportunities in the long run, including one million jobs in the auto industry and 10 million clean energy jobs. According to the plan, “More than three million WWW.THEPOWERISNOW.COM
people in the United States are already employed in the clean energy economy. But that is only the beginning of what is possible if we harness all of our talent and creativity. If executed strategically, our response to climate change can create more than 10 million well-paying jobs in the United States that will grow a stronger, more inclusive middle class enjoyed by communities across the country, not just in cities along the coasts.” The plan further states that Biden will “launch a national effort aimed at creating the jobs we need to build a modern, sustainable infrastructure now and deliver an equitable clean energy future.” With a new administration and a new plan, we look forward to things getting better socially, environmentally, and economically throughout the country.
Work cited. https://edition.cnn.com/2021/01/06/economy/december-jobsreport-preview/index.html. https://joebiden.com/build-back-better/.
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WHAT A DEMOCRATIC-CONTROLLED CONGRESS COULD MEAN FOR RENTERS STRUGGLING AMID THE PANDEMIC.
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n estimate has put America’s rental arrears at about $70 billion, with one in five adults being behind on their rent payments after months of widespread unemployment and business shutdowns. This clearly demonstrates the miserable state of the struggling renters amid the persisting pandemic period. Could the situation improve under a Democrats-dominated Congress? With Democrats gathering a majority in the US Senate, several relief programs targeted at struggling renters amid the pandemic— including a right to counsel for those facing eviction and a larger share of funds for back rent— stand a better chance to come about. “Democrats have a rare opportunity to directly and swiftly end the eviction crisis and prevent severe harm to renters and landlords nationwide,” said Emily Benfer, a visiting law professor at Wake Forest University. Democrats’ efforts to protect both renters and tenants were visible even in early 2020. One perfect example is the recent deal on another stimulus package struck in December 2020 by Democrats and Republicans after months of negotiations. The stimulus package extends the national eviction ban through January 2021 and allocates $25 billion for rental assistance, representing only a sliver of what Democrats were pushing for.
fees. Another $75 billion fund would be allocated to help homeowners avoid foreclosure. The stimulus package would also ban evictions nationwide for 12 months. Meanwhile, Vice President Kamala Harris introduced a bill when she was a senator in July 2020 that would introduce a ban on all evictions and foreclosures for 12 months. The bill would also renters who are 18 months behind to come up with their missed payments and bar rent increases and late penalties in the meantime. Elsewhere, a study in New Orleans established that more than 65% of tenants with no legal representation were evicted, compared with less than 15% of those who had a legal representation in court. The Harris’s bill has also come to the rescue of this situation. Under the plan, renters facing evictions would be guaranteed a right to counsel, something housing advocates have been pushing for a long. “Unlike most eviction prevention measures, the bill includes AG subpoena and enforcement authority and guarantees tenants the right to legal counsel,” Benfer said of Harris’s plan.
Moreover, as the President of the United States of America, Joe Biden is also in a position to help renters through executive action, where need be. In other words, there is a lot of hope and trust in Back in May 2020, Democrats laid out a vision for the new administration to make the situation better a stimulus plan, known as the Heroes Act, which President Joe Biden declared he would support. The across the nation. stimulus plan would allocate $100 billion for rental Work cited. assistance, which would allow tenants to use that https://www.cnbc.com/2021/01/06/a-democratic-controlledmoney for up to six months of back rent and late senate-could-bring-more-relief-for-renters-.html. 16
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RESHAPING THE HOUSING INDUSTRY: WHY FANNIE MAE AND FREDDIE MAC NEED TO BE A SINGLE UTILITY.
Fannie Mae and Freddie Mac have been under the conservatorship of the FHFA for 12 years now. Being under conservatorship means that all the major aspects of the agencies’ operations, processes, and pricing are scrutinized and approved by the FHFA, making the market a de facto regulated duopoly. However, experts feel that time has come to reshape the housing industry through reshaping the housing finance system for the long term. The best way to do this is by releasing the GSEs from their captivity and promoting their evolution by combining both of them into one housing finance market utility.
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or years now, much of the debate over the final disposition of the GSEs focused on the systemic risk the entities posed to taxpayers. On the other hand, other proposals suggested establishing a more competitive market with more than just two credit guarantors. However, the main obstacle for a market with more than one credit guarantor is that they tend to amplify rather than reduce systemic risk. This is because the mortgage 18
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banking industry is volatile while the firms are entirely dependent on the mortgage business’s performance. The two attributes promote steep competition that worsens in case of a financial crisis. The two entities should compete on price, product, or service. But due to the FHFA limits and credit policy, GSE-eligible mortgages are homogeneous, THE POWER IS NOW MAGAZINE | FEBRUARY 2021
leaving little room for product differentiation. During the mortgage boom, large originators cut into GSE market share as they were marketing their own versions of Alt-A and subprime mortgage securities under their own label. This led to high risk-layered GSE products such as expanded approval loans. Further, large originators imposed a lot of pressure on the GSEs to reduce guarantee fees in return for market share that undercut pricing for credit in that period. ARE THE TWO ENTITIES IDENTICAL? The two entities feature a lot of similarities in many aspects. On the service aspect, the two GSEs compete to deliver highly automated underwriting and collateral valuation services. These tools would come to dominate the secondary market largely by improving the mortgage process’s efficiency while managing risks. Meanwhile, these tools, combined with GSE mortgages partially shaped by the Qualified Mortgage rule, have become massively commoditized. This leaves any real competition by the GSEs attached to the edges of product or service. Therefore, that leaves price rates or the guarantee fees and adverse market delivery fees charged by the entities as the competitive factor. However, these competitive factors have also been effectively eliminated by the FHFA’s strict management. On the other hand, another distinguishing factor between the GSEs that was removed by the FHFA was the benefits the entities had on the secondary market from the implementation of the Common Security Platform. The entities no longer issue distinctive versions of MBS as was the case before; instead, each entity issue universal mortgage-backed security. Moreover, the two GSEs feature three virtually identical business lines for single-family, multifamily, and capital markets, and their credit risk transfer initiatives are also identical. This brings us to the question; is there a need for two carbon copies of these entities? WWW.THEPOWERISNOW.COM
WHAT WOULD IT LOOK LIKE TO RELEASE AND MERGE THE ENTITIES? It’s evident that the conservatorship period has maintained market discipline, managed risk, and provided the required stability and liquidity to mortgage markets while maintaining profitability for each entity. What would it look like to release the GSEs? Recapitalizing and releasing the entities could be a viable option but under specific strict conditions that require a strong, capable, and vigilant regulator. However, in the end, this scenario would pose greater systemic risk compared to a regulated monopoly as competition with less regulatory intervention would eventually result in extra-normal risktaking under the right market conditions. Some would argue that a monopoly is fundamentally inefficient, discourage innovation, and could put mortgage originators on the receiving end. However, some would counterargue that innovation is not as critical with GSE mortgages’ commoditization as it would be in other industries such as technology. Also, the GSEs in their current state are not the exact perfect examples of efficiency. Combining the two entities into a single housing finance market utility would achieve the objectives sought after for a long since the establishment of both firms. The FHFA has also proven its ability to modulate GSE pricing to adhere to changes in the credit profile of GSE mortgages and has the potential to continue doing so even with the recapitalizing, releasing from conservatorship, and merging of the entities into one private firm the entities have offered an enormous service over the year as stabilizing forces that made homeownership affordable to all in America. The next level in their evolution process is within reach, and the time has come for that to be done. Work cited. https://www.housingwire.com/articles/making-fannie-maeand-freddie-mac-into-a-single-utility/.
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TACKLING THE PROBLEM HEADS ON:
BRINGING A LASTING SOLUTION TO THE AFFORDABILITY CRISIS IN AMERICA IN 2021
2020
showed us that America has big issues that need to be tackled as quickly as possible. The year shed light on a number of issues like the inequalities made even worse by the pandemic, climate crisis that needed to be urgently put a stop to, and an affordability crisis in the country. The national unemployment rate was volatile in the past decade, and so has the economy of the country; these two factors had led to the affordability crisis in the country. This crisis depended on both the income of people and how much income was spent. The coronavirus further compounded the 20
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affordability crisis as lesser homes were being listed for sales despite the influx of buyers. This has led low-cost houses to up their prices and led to an affordability issue. One crisis that has become a central part of American economic life is the escalating cost of living. Without a solution, this is bound to get worse in the foreseeable future. If that is to happen, the inequality in the country is bound to exacerbate, households will become even more fragile, and productivity will be smothered completely, and families’ dreams of security will be far out of reach. The price of homes represents the most part of the affordability crises; metro areas like Seattle, THE POWER IS NOW MAGAZINE | FEBRUARY 2021
$6,000 if the family had already put down the typical 20%. Although the housing cost crises in these locations are the most obscene in the country, the affordability crises cover the whole country and are continually driven by the stagnant wages in the country, the restrictive building codes, and underinvestment in construction. There are several other trends facilitating this rise in housing costs that continually compound the affordability crisis in the county. The trend lately has been home prices rising much faster than wages amongst 80% of metro regions in America. This problem has extended to rural areas in the country in places where income has not grown since the post-recession period. Areas like North Carolina, Irion Country, Texas, and Bertie Country were hit by the affordability crisis in the country. One effect this affordability crisis has had on the United States is turning the country is making it into a country of renters. Homeownership rate has fallen back, especially millennials. Due to the high costs, millions of younger families have chosen to keep renting, which is delaying the millennial wealth accumulation.
the Bay Area, and Boston have recently witnessed severe supply shortages. This has led to prices soaring in these areas despite the recordlow mortgage rate in the country. This has made it next to impossible for millions of middle and low-income families to purchase homes located centrally. The median asking price for single-family houses in San Francisco currently lies at $1.6; this would put the monthly payment at about WWW.THEPOWERISNOW.COM
The renting sector is not left out of the whole process either, the cost of renting has risen faster than the income of renters in past years, and there are also uncomfortable bills renters have to deal with every month. The affordability crisis in America is amenable to policy solutions. Child care, education, and health care should be considered public goods and, therefore, not require a high interestrate. When other aspects are simplified and provided at a far lower cost, American’s income will be less spent on bills and can be directed toward homeownership. There should also be residential construction in the country to also provide enough supply to meet the demand of houses in the market; this will balance out the demand for supply and return home prices to normal. There is also a deep need for investment in rural communities around the United States, so they’re not left out of the country’s future. The present approach to rural development needs to be overhauled, and a new framework needs to be put in place to encourage migration to these areas, which will then promote economic opportunities for the country. Reference https://www.theatlantic.com/ideas/archive/2020/02/great-affordability-crisisbreaking-america/606046/ https://www.americanprogress.org/issues/economy/reports/2020/09/21/490411/ path-rural-resilience-america/ l
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CREATING A MORE SECURE AND
CONSUMER-FRIENDLY CLOSING PROCESS
WHERE EVERYONE IS INVOLVED
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hether you’re buying a home for the first time or you’re a seller, the closing process can be quite overwhelming. People usually want to close the sales of a home as soon as they can, but there’s usually a lot of steps to take, expenses to take care of, and documents to put in place before the deal is made official. The closing process can be quite tiring, and the buyer or seller might feel removed from the process at some point; this calls for a more secure and consumer-friendly closing process that involves everyone and facilitates a smooth transition of ownership.
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OBTAINING TITLE INSURANCE
Closing agents will want to carry out a title search to ensure that you’re the legal owner of the property. If there are claims against the property, carrying out a title search on the home should uncover them, and they need to be resolved in time for the sale to proceed. While buyers might be carrying out home insurance, there is a need for sellers to obtain title insurance to protect their property against events that might affect their home like unpaid bills; this helps to smoothen the closing process for both parties. Title insurance usually comes in two types: a policy for the owner and the lender; both parties can agree to share the cost for the policies.
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
HOME INSPECTION
Although this isn’t necessary, buyers might choose to request a home inspection so as to uncover any hidden problem that might be ailing the property. Normally, an inspection is slated to take place after the buyer’s offer is accepted. Sellers should make sure that repairs are taken care of in the house to avoid it affecting the value of the home. Sellers need to clean out the home before the inspection and make sure it is in stellar condition. The inspection usually covers the safety, quality, and functionality of the home. Buyers and sellers should work out an agreement about the repairs; buyers may prefer that sellers remedy problems found in the house before closing or demand a price reduction to take care of repair costs.
CARRY OUT LENDER APPRAISAL
When a buyer is borrowing some money to purchase a home, the mortgage lender might choose to carry out a professional appraisal. This is to make the lender confident about the money being lent to the buyer and that the amount is in line with the value of the home. This also helps the lender appraise the home in case the house needs to be repossessed. Sellers should make sure the home is not overpriced and is in stellar condition before the lender appraisal is carried out. If the appraisal shows the house is below the sales price, buyers need to either challenge the appraisal or ask sellers to lower the sale price.
THE FINAL WALK-THROUGH
This usually takes place a day before the closing is completed; the buyer and their agent usually take a final walk through the property to make sure everything in the house is in perfect order. Buyers will check if repairs were taken out, and the building is damage-free. Sellers should make sure all possessions are moved out of the property before the final walk-through. If there are major appliances negotiated into the deal, sellers should make sure they’re working and in place before the final walk-through.
FINALIZING SALES ON THE CLOSING DATE
The closing date is when the closing process is completed; there’s a lot of paperwork to be signed, including deeds to the property. If there are documents not properly understood by both parties, there should be an attorney available to explain the documents. The closing usually takes place either in the office of the escrow agent or that of the attorney; attendance should be made mandatory for both parties. After signing, buyers should make arrangements for properties to be moved into the home as soon as possible. Reference https://www.opendoor.com/w/guides/house-closing-process-for-seller
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REAL ESTATE TECHNOLOGY
ADOPTION IN A POST
PANDEMIC WORLD
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he effects of COVID-19 on the housing market are significant and will leave a long-term change in the way the industry operates. Although this change may be disruptive and uncomfortable for some, it triggered a rapid and widespread adoption of real estate technologies that we’ve never seen before. All real estate players such as agents and brokerages are now taking serious reconsiderations towards technological platforms, tools, and services they need to effectively run their businesses in the ever-changing market today. The growing need for technological innovation is now a requirement for businesses to survive and thrive, especially in the current unprecedented and volatile times. Agents have learned the aspect of leaning on technology’s power to stay afloat and focus on running their businesses. In recent years, we’ve seen sweeping changes such as the emergence of virtual brokerages, increased investments in operating system technologies, and catalyzation of remote working tools, driving innovation and reshaping the whole real estate landscape. As we step into 2021, the competitiveness in the broker business is growing rapidly more than ever, and reliance on real estate technology will determine those who will get through this successfully. However, to be truly and fully modernized and automated beyond the time-consuming and manual processes that have been holding down the real estate industry for ages, there’s a need to look beyond the trendy apps and the isolated point solutions. This next level of technological evolution in the real estate industry is about extending technology and automation to establish effectiveness across the whole process of buying and selling while driving growth simultaneously.
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SIGNIFICANCE
The emergence of AI-powered tools and solutions has significantly helped automate many of the tiresome processes that divert agents’ focus from revenuegenerating activities. AI-powered tools can be the keystone to optimizing efficiency, cutting expenses, and generating real value for agents this year and beyond. AI can also help realtors automate the whole process of nurturing, concierge, tagging, and following-up. In other words, it can be the intelligent virtual assistant always helping realtors to work smarter. Utilizing AI-powered chatbots also comes with benefits such as handling prospective clients’ requests who ask questions through the website. Since chatbots are fed with information over time, they become smarter and perfect the art of responses enabling them to boost conversation and support more closed deals. When the right time arrives, the user is notified and can step in to offer the services that only a human can do. Human significance. It’s also important to note that no matter the kind of technology in place, it will never replace the human physical interaction and connection clients need. Home-buying and selling processes are emotional, meaning clients want to like and trust the agents who are working for them. No amount or level of real estate technology can clone the power of real human connection. The real estate technology only enhances the experience for both the client and the agent while ensuring the agent is fully focused on the client’s needs and the crucial details. So much good than bad occurred in 2020 due to the pandemic, and the real estate wasn’t sparred. But from all the havoc came the positive change and innovation the real estate industry needed direly. All real estate players should harness this change and embrace technology’s power to support effectiveness and focus on perfecting irreplaceable client service skills. Work cited. https://www.housingwire.com/articles/real-estate-technology-adoption-in-apost-pandemic-world/
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MARTIN LUTHER KING JR. M
artin Luther King- a prominent figure in the African American Community. He was not just a social activist but a hero to many. A minister who played a crucial role in the liberating African Americans from the yolk of inequality until his assassination in 1968. As we continue to celebrate the lives of Malcom X, Abraham Lincoln and Fredrick Douglass, it is important that we pay special homage to this hero during this years’ Black History Month. King was a man of faith, and that faith could be seen in his actions. He saw a world of endless possibilities and he made sure that the African
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American descents had the opportunity to experience these possibilities. Dr. King sought equality for all humans, especially the African American, the economically disadvantaged and all the victims of injustices through peaceful protests. King was the lifeblood driving the Montgomery Bus Boycott and the 1963 March on Washington. This march is particularly monumental as it helped bring about such landmark legislation as the Civil Rights Act and the Voting Rights Act. In 1964, he was awarded the Nobel Peace Prize. But who is Martin Luther King?
A LIFE WELL LIVED‌
King was born on January 15, 1929 in Atlanta, Georgia. He was born the second child of Martin Luther King Sr. a pastor and Alberta Williams King, a former schoolteacher. He grew up with his siblings Christine and Alfred Daniel in the Sweet Auburn neighborhood. The neighborhood was known to be home to some very prominent African Americans in the country. He went to school at the segregated public schools and at the age of 15, King was admitted to the Morehouse College. Here, King studied law and medicine. And even though King never intended to join the seminary,
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
After graduating from Morehouse in 1948, King joined the Crozer Theological Seminary in Pennsylvania. He earned a Bachelor of Divinity degree and also won the prestigious fellowship and was elected the president of his predominantly white senior class. He would later enroll in a graduate program at Boston University, he completed his coursework in 1953 and he earned a doctorate degree in systematic theology in 1955.
MONTGOMERY BUS BOYCOTT
King, his wife and his four children had been living in Montgomery for less than a year when the city became the epicenter of the burgeoning struggle for civil rights in America, propagated by the landmark Brown V. Board of Education decision of 1954. In 1955, Rosa Parks, the secretary of the WWW.THEPOWERISNOW.COM
local chapter of the National Association for the Advancement of Colored People (NAACP) refused to give up her seat for a white passenger on a Montgomery bus and was arrested. The boycott that followed that saga would continue for at least 381 days and the protestants chose Dr. King to be their leader and spokesperson. The chaos emanating from the protests put a heavy strain on the public transit system and the downtown business owners. At the end of this case, Martin Luther King had become a voice to reckon with. He had entered the national spotlight as an inspirational proponent of peaceful protests. This meant that he also had a target on his back, he became a target for white supremacists, who in fact firebombed his family. Fast forward to 1958, there was an assassination attempt on King. Izola Ware Curry walked into a Harlem department store where King was busy signing books, she found King and asked, “are you Martin Luther King?” When King replied “yes” she stabbed him in the chest with a knife. King however l
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he changed his mind under the influence and mentorship of the then Morehouse’s president, Dr. Benjamin Mays, a very popular and influential theologian. Mays was also known well for his open condemnation of racial inequality.
survived, this time more energetic than ever before “The experience of these last few days has deepened my faith in the relevance of the spirit of nonviolence, if necessary social change is peacefully to take place.” Formation of the Southern Christian Leadership Conference and the March on Washington What had happened before that is, the Montgomery Bus Boycott and a series of other protests emboldened the young minister and in 1957, King and other civil rights activists, most of them fellow ministers founded the Southern Christian Leadership Conference (SCLC) This was a group dedicated to achieve full equality for the African American community through non-violent protests. In fact, the SCLC motto was “Not one hair of one head of one person should be harmed.” He remained in this organization until his death. As a leader of the SCLC, King travelled all around the country and the world preaching his non-violence agenda. King worked with other civil rights and religious group leaders to organize the March on Washington for equality and freedom. It was a peaceful political rally meant to reveal the injustices that African Americans continued to face across the country. The rally attracted some 200,000 to 300,000 participants and it is widely regarded as the watershed moment in the History of the American Civil Rights movement. It also played a critical role in the passage of the Civil Rights Act of 1964. Today, because of the struggles Martin Luther King endured, we remember him most of all as a man of peace. He is heralded as the prophet of non-violence, holding on to a belief so powerful that we consider him truly self-actualized. His teachings of non-violence continue to impact and
inspire movements for freedom and justice. Even though Dr. King was a peace advocate, he was also a complex man. Although a Christian preacher, he never shied away from speaking what was right to power as the leader of people who had been long afflicted and thirsted from justice and full rights to citizenship. “It all boils down to the fact that we must never allow ourselves to become satisfied with unattained goals. We must always maintain a kind of divine discontent.” – Rev. Dr. Martin Luther King, Jr. These words are perhaps what rattled power brokers of America. They made him a soft target for assassination. Despite all the lessons history has taught us as people, we often find ourselves looped, continuing to make the same mistakes or even following the same patterns. Even though Dr. King fought so hard for racial equality, polls indicate that racial tensions still exist in the country, it could even be worse than that of Summer 1964. Were King alive today, few might argue whether he would be an advocate for reparations, considering his words in 1967, “Again we have deluded ourselves into believing the myth that Capitalism grew and prospered out of the Protestant ethic of hard work and sacrifice.” The fact is that capitalism was built on the exploitation and suffering of Black slaves and continues to thrive on the exploitation of the poor—both Black and White, both here and abroad. Dr. King did his part, it is up to me and you to fight and make sure that his legacy lives on. I love one of his quotes “The evils of capitalism are as real as the evils of militarism and evils of racism,” we have a chance of making this nation great. One of the ways is acquiring knowledge. Equip yourself with knowledge, knowledge is power, and the power is now!
Sources; https://www.nytimes.com/1964/06/12/archives/martin-luther-king-and-17-others-jailedtrying-to-integrate-st.html https://www.proquest.com/blog/2014/Are-We-Still-The-Same-After-All-These-Years.html http://theievoice.com/divine-discontent/ https://www.history.com/topics/black-history/martin-luther-king-jr https://www.voa.org/blog/celebrating-black-history-month-by-honoring-martin-luther-kingjrs-legacy https://www.glsen.org/blog/remembering-dr-martin-luther-king-jr-during-black-historymonth
Frazier Group Realty Inc. 3739 Sixth Street Riverside, CA 92501
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Steve Peterson HYBRID, MULTI-CLOUD DATA CENTERS ON THE RISE IN SECONDARY MARKETS In modern days, gone are the days of a physical server on work premises and the multiple applications enhancing every day operations. Since the onset of the pandemic and office workers abruptly forced to work from home, a rapid transition from the traditional methods of managing IT to a new era characterized with growing demand for flexible, and reliable data centers that brace multiple cloud providers has been recorded.
T
ypically, hybrid cloud refers to the combination of cloud and on-site data hosting and processing. Conversely, multiple-cloud is used to refer to an organization that relies on more than one cloud provider such as Amazon’s AWS, Microsoft’s Azure or Google Cloud to handle various different workloads. Depending on their specific needs, firms increasingly rely on a widespread network of applications, multiple-cloud services, and some on-site data hosting to do business. Consequently, the growth of data center firms is increasing to meet the demand.
WWW.THEPOWERISNOW.COM
“Some companies are thinking about what’s possible with hybrid cloud but haven’t yet implemented, others are activating a plan, and others are deeply integrated,” said Coresite Vice President Network, Channel & Enterprise Ben Green, speaking on a Bisnow webinar. Coresite is a data center REIT that operates facilities across the U.S. amounting to 4.6M SF. The pandemic has played a significant role in rushing small to medium-size businesses to date center services. “COVID has changed everything,” said Edward l
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Dryer, senior technology strategist at Steadfast. “In the preCOVID universe, organizations were going strategic long-term financial planning, compliance, operational efficiencies ... in 2020, it’s just been a mad scramble for everyone to figure out how to get access to the resources whatsoever.” Steadfast is a firm that offer managed IT infrastructure services.
STRIKING THE BALANCE
Currently, most firms are trying to achieve the right balance between on-site and cloud solutions, and determine which cloud providers are the best for different computing needs. Ray Parpart, who is the director of data center strategies and operations at the University of Chicago, indicated that the institution has transitioned to cloud, software-as-aservice solutions for its administrative part. On the other hand, workloads such as large-scale, date-heavy research trials are mostly handled by the institution’s large onpremise date centers. “We do a significant amount of on-premise still, significantly on our research side,” Parpart said. “But we’re definitely in a hybrid and leveraging Azure, AWS, Google.”
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However, Papart also noted that the large-scale research trials may run a limited test through the cloud before conducting the final versions using the university’s own facilities. Moreover, leading hospital systems are also using both onsite and cloud solutions while targeting to deliver the best clinical experience possible. “There are clinical applications that sit better in the cloud,” said Andy Balazs, manager of data centers and disaster recovery at University Hospitals, a nonprofit medical complex with 150 locations throughout the Cleveland metro area. “Our administrative systems today are mostly on-premise, but as we look at it now, it’s strategic: is it the right way to deliver information to our clinicians and our patients?” The demand for flexible services that are responsive to the dynamic business needs is growing across all business fields. Moving forward, the data industry will continue to record massive growth of data center firms.
Work cited. https://www.bisnow.com/oakland/news/data-center/hybrid-multi-clouddata-centers-on-the-rise-in-secondary-markets-106442.
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Host:
MAURICE WATKINS, M.A.
Speakers: ERIC FRAZIER MBA CAROLYN SUNSERI
THE TEXAS HOUSING MARKET
POST-COVID-19
Johnnie Morine
WWW.THEPOWERISNOW.COM
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any Texan housing market experts foresee a slowdown in the housing market, but there is no way to tell how much and how long the effect will last. Before the coronavirus, the Texas housing market was one of the leading real estate markets in the country and had previously had five breaking records on a number of home sales as well as median prices. The home building industry in Texas has been solid over the years, with Texas having the highest number of building permits since 2019. Many economists are using the housing sector as a measure for the economy as a whole because the housing sector affects many job opportunities like that of builders, laborers, and several other professions. It also affects the moving companies and the furniture stores, which indicates that if the housing market experiences a boost, so will the economy. However, housing market experts foresee a slowdown in the showing of homes, which have begun to take a virtual turn.
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The coronavirus has had an effect on everyone’s life globally; there have been restrictions and new measures put in place to help people stay safe and healthy. Texans are also trying to adjust to the stayat-home order and, at the same time, trying to cover rising expenses. The coronavirus has caused a drastic cut in many people’s income, with unemployment rates soaring in the country. As a result, many housing and real estate agents state that it’s difficult to guess what the effect of the crises will be on the value of homes and also home sales.
pixabay.com
Permits for new construction is also expected to drop due to the coronavirus effect. Many regions like Houston that depend strongly on the energy industry for employment will see a drop in the sales of homes as well as home values than any other region in Texas, and experts foresee that such regions will take the longest time to recover from the effect of the COVID-19.
is clear in Texas. However, the physical home show has slowed down, and more people are making a commitment towards virtual showings. It would be difficult for the value of homes to go down drastically, but the result of Texan jobs post COVID-19 will determine how the Texan housing market turns out.
This is already apparent in Houston, where a fewer number of people are choosing to place their home in the market, but luckily, there’s been an improvement in the value of homes in the region. Although research shows that there’s been a decrease in the listing of single-family homes, the prices of these homes have significantly increased by 3.6% and are still looking up.
Because of the stay-at-home order, more Texans are choosing the safe alternative of putting their homes up for listing. It is quite convenient, and it is widely accepted that online tours save time and cost in terms of transaction fees as well as offering bundled services. This rapid growth in digital real estate has significantly softened the negative effect of the COVID-19 on the state revenue and losses made in the construction sector job market. It is also hoped that this trend will begin to stimulate growth in the housing market as people adapt to the new norm.
One thing that’s for sure is that different regions’ housing market is sure to react quite differently. Although predictions see the Houston housing market being hit very hard, Midland Odessa is expected to turn out worse than Houston. This is because they have a smaller economy, which makes them quite volatile because of their lack of diversity. Areas that weren’t doing well before the COVID-19 would turn out worse, especially those close to the Mexican border. One thing
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A SHIFT TOWARDS DIGITAL REAL ESTATE
Reference https://www.texastribune.org/2020/04/07/coronavirus-texascools-real-estate-market-experts-dont-know-how-long/ https://www.prnewswire.com/news-releases/texashousing-market-posted-strong-numbers-in-summer2020-as-the-digital-real-estate-economy-nearly-tripledstatewide-301137127.html
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
YOU DESERVE TO LIVE SAFE FROM SEXUAL HARASSMENT.
Sexual harassment by a landlord or anyone related to your housing violates the Fair Housing Act. If you receive unwelcome sexual advances or are threatened with eviction because you refuse to provide sexual favors, you may file a fair housing complaint. To file a complaint, go to
hud.gov/fairhousing or call 1-800-669-9777 If you fear for your safety, call 911.
FAIR HOUSING IS YOUR RIGHT. USE IT. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.
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NEW JERSEY HOMEOWNERSHIP TRENDS
Jerel Washington
HOME SALES ARE INCREASING IN THE NEW JERSEY HOUSING MARKET
More and more people in New Jersey are becoming homeowners; this is made apparent by the rise in home sales in the city. Pending sales have made a recovery. Although the housing market hasn’t completely recovered from the coronavirus effect WWW.THEPOWERISNOW.COM
on the economy, it is clear that buyers are making their way back to the market, which can be taken as a positive sign for the New Jersey housing market.
Most people expect a crash in the housing market, but this is highly unlikely due to the high demand for homes. MORE PEOPLE ARE MOVING TO NEW JERSEY
It is unclear what the long-term impact is, but more people are choosing to move to New Jersey. This is because of the record low rates and stimulus activities the previous year. Due to the rise in home sales, vacancies continue to pop up in the city. Although it is noteworthy that the coronavirus negatively affected the New Jersey market, which makes this season the best time to purchase a property as it would be at a discount and at a l
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t the beginning of this year, there was a report from Mashvisor about the effect of the pandemic on the New Jersey real market. This has shown the New Jersey housing market being slowed down by the COVID-19 despite the fact that the New Jersey governor declared real estate as an essential business. Many local buyers are waiting to see how the coronavirus will affect the economy locally and nationwide before they make a move to buy a house. Many sellers are scared that home prices would drop soon and are therefore pulling their homes out of listings. Below is some New Jersey homeownership trend we’ve come across.
THERE IS A RISE IN THE DEMAND FOR THE SUBURBS
Suburban towns have seen an increase in home sales as more people are moving down; the demand for these suburban homes are about 25% higher than the numbers before the pandemic. The pandemic has really distorted the way people live, and due to the restrictions and measures put in place for the indefinite future, this has made many people move to the suburban to get more space than the city can offer. Suburban homes are roomier and sprawling when compared with the small, chic city space. This has also affected businesses who are moving to the suburbs as well to keep up with their customers.
SUPPLY REMAINS LOW
Although there were new listings in previous months, the supply of homes continues to be 44
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lower than it was in 2019. This is, however, a trend that can be found around the country. Although there are new buyers in the housing market because of the record low mortgage rates and the lifting of some COVID-19 restrictions, sellers are not quite ready to put their homes up for listing once more. Most potential home sellers nurse a fear of the COVID-19 and how it would affect the economy in the coming months.
A CRASH IN THE NJ HOUSING MARKET IS UNLIKELY
Most people expect a crash in the housing market, but this is highly unlikely due to the high demand for homes. There are many forecasts about home values in New Jersey dropping in the first quarter of 2021, but it won’t be by much. The local economy in New Jersey will significantly affect the value of homes; factors like unemployment rates, COVID-19, and GDP shrinking play a great part in how soon the economy recovers and how the New Jersey
market turns out.
INCREASE IN DEMAND FOR RENTAL PROPERTY There has been an uprise in the demand for rental properties in recent years; this is because of the drop in homeownership. This makes it clear that buying a New Jersey rental property is a good investment for most looking to buy a home. Although the COVID-19 effect on the housing market is unpredictable and might cause a drop in the value of such properties, the New Jersey housing market has proven resilient in previous years and will always make a rebound. Reference https://medium.com/mashvisor/howis-the-nj-housing-market-2020-doingaff37a440c7d#:~:text=With%20low%20 supply%20and%20demand,2%25%20 less%20than%20list%20price https://www.forbes.com/sites/ forbesbusinesscouncil/2020/11/23/ new-jersey-and-new-york-cityreal-estate-trends-for-businessowners/?sh=52e5ab426e75
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rate much lower than it was in previous years.
EMERICK A. PEACE
#320004 240-882-0198 EmerickPeace@KW.com Your #1 Referral Source for Phenomenal Service in Washington, DC & Maryland
APPRECIATION RATE TRENDS AND HOUSING MARKET DATA Emerick A. Peace
FACTORS THAT AFFECT APPRECIATION TRENDS Price appreciation of property happens when there is an increase in the value of a property over time. Let’s say you purchase a house now for $100 and sell it for $1000 in the next decade; the profit you get from reselling the property is your price appreciation. This appreciation value or trend is dependent on several factors such as the location, future development WWW.THEPOWERISNOW.COM
plans, demand and supply, and the physical structure of the property in question. The property owner can impose an appreciation rate by renovating and repairing some things on the property. HOUSING MARKET DATA You don’t just walk into a city or town and find houses of your choice; that includes the physical structure and location. For real estate investors, things like location and physical structure are crucial in dealing with the housing market; even more crucial is the rate at which the property is appreciated, when, and how it appreciates. Therefore, the latest trends, research, data, and housing insights are known as the housing market data. This information enables any investor to know when, how, and where to buy properties and predict the price appreciation of their properties relative to the location’s sustainability. This information on the future housing market in a particular location will enable you to understand if your deal is good enough.
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ne of the real estate goals is to get a positive return on the investment when it is sold later. It is a no brainer to invest your money in something that wouldn’t yield even a 1% increase. Although there are times it happens that people lose so much from their investment, it is as a result of inefficiencies and happenstance that were unprecedented. But we are considering the profits, that is what investments are for. And at such, we’d talk about appreciation rate trends in the real estate market, which is an increase in the value of a real estate property over some time.
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RELATIONSHIP BETWEEN VALUE, COST, AND PRICE The cost and price of a property can affect the property’s value but cannot determine it. Let’s say you want to sell your property at $1500(perhaps the house’s actual cost is $1200), and your buyer doesn’t like the foundation or roofing of the house, maybe even the interior decoration. He can price the house at $800, lowering the value of the house. As the investor, you can either choose to sell it off or retain it for a better bidder. The buyer’s pricing doesn’t determine the value of the house in this case. MARKET VALUE To determine the property’s market value — the price a property is likely to be sold in a competitive or open market— an appraisal is needed. An appraisal is an estimate regarding the value of a property at a given date. It is widely used in the real estate market to make decisions regarding transactions. The market value becomes a yardstick to discuss the cost of a property in real estate dealings.
Appreciation rate trends and housing market data is an essential criterion in real estate business. Both work together in guiding the investor in decision making: knowing if a deal is good enough, why a deal is important, and what to gain from a deal in the long run. While the appreciation rate is dependent on housing market data for an informed decision, the housing market data is dependent on the demography of the locale for predictions.
References https://www.neighborhoodscout.com/tn/real-estate https://corporatefinanceinstitute.com/resources/ knowledge/valuation/price-appreciation/ https://www.google.com/url?client=internal-elementcse&cx=partner-pub-7178868422353721:7848419215&q= https://www.cmhc-schl.gc.ca/en/data-andresearch&sa=U&ved=2ahUKEwi1op_e37buAhWtShUIHVoK A7IQFjAIegQIAhAB&usg=AOvVaw3Bbj5IcNFvcDJD9Tc-zDwX https://www.investopedia.com/articles/realestate/12/realestate-valuation.asp
Every Other Friday
10:00 AM - 11:00 AM
Promote Your Listings Online CALL ME FOR MORE INFORMATION ERIC LAWRENCE FRAZIER MBA (714) 361-2105 eric.frazier@fbol.com www.thepowerisnow.com
YOUR VOICE IS YOUR BRAND! INCREASE LEAD GENERATION, AND GIVE YOU THE POWER TO CLOSE MORE DEALS!
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Adriana Montes
FLORIDA REAL ESTATE MARKET FORECAST 2021
T
he coronavirus disrupted the world, and many top countries’ economies, including the US, suffered a huge blow. The real estate market wasn’t left out of the impact, and there were many uncertainties in the housing market and how it won’t turn out. However, 2020 broke many records as the price of homes continues to rise all over the country. Many people have predicted that the real estate market will become the pillar of support for the US economy. Despite many people getting laid off, there have been many house hunters across the nation, causing a high percentage of home sales in the previous year as well as the value of home sales rising due to the high demand facilitated by record-low rates. All
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of this was facilitated by the pandemic, and although prices of homes were already on the rise before the pandemic, there was rapid acceleration after the pandemic hit, and Florida real estate market wasn’t left out of the mix. After the 2008 real estate market crash, Florida has grown into one of the leading real estate markets in the country. Although Florida was one of the top real estate markets in the first quarter of 2020, it was affected by the coronavirus in the second quarter of the years, and closed sales dropped significantly. It is not quite clear where Florida stands with respect to COVID-19; there are some positive trends in the real estate market, and below are some Florida real estate market forecast for 2021.
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THERE’LL BE AN INCREASE IN THE POPULATION The Florida population continues to grow steadily and is expected to grow in 2021 significantly. Most of the increase would be due to migration from other states and other countries. The number of people immigrating from Spain, Latin America, and Cuba has increased recently, and this has led to Spanish being spoken in over 20% of households in Florida. This shows that the demand for rental properties would see a rise in 2021. THERE’LL BE A INCREASED DEMAND FOR REAL ESTATE The real estate market was affected early in 2020 because of the coronavirus, but the market has, however, begun to recover slowly from the pandemic’s effect on it. The sales of single family unit homes have increased compared to the previous years. With the low mortgage rates not expected to rise in the future, it is expected that the demand for homes will continually increase as 2021 progresses. HOME VALUE WILL CONTINUE TO RISE Although there has been an apparent growth in the demand for real estate, home inventory remains low, and this is due to the uncertainties that come with the COVID-19. When combined with an increase in demand, the low inventory state will lead to the value of homes increasing daily. Past data supports this, and this trend is expected to continue throughout the year 2021. IT WILL BE A SELLER’S MARKET IN 2021 Many people are wondering who the Florida real estate market will favor in 2021, and all data shows that the 2021 real estate market will favor the sellers. This is due to the low home supply, which gives sellers the lead in all negotiations, and there are bound to be multiple buyers for each home. This trend is expected to continue throughout the year, except home listings increase significantly in the year. A HIGHER DEMAND FOR AIRBNB RENTALS Recent studies in Central Florida has shown that the short term rental properties generated a lot of money for the state in 2018. However, this industry was affected by the coronavirus, but as restrictions are being eased, things are expected to pick up in this sector. Florida has the best attractions and, alongside that, friendly laws that will keep the demand for these short-term rental properties high throughout the year. Real estate investors are investing in Airbnb properties and are forecasted to enjoy an impressive Airbnb occupancy rate throughout 2021.
Reference https://www.mashvisor.com/blog/florida-real-estate-market-forecast-2021/ https://cflpropmanagement.com/how-will-florida-real-estate-fare-in2021/#:~:text=According%20to%20the%20National%20Association,the%20sale%20 of%20existing%20homes
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THE POWER IS NOW MAGAZINE | FEBRUARY 2021
Install smart home technology, upgrade your computers, put in a home theater, improve your home office and remote learning environment, set up a home security system... There’s no end to what you could do!
Is your house asking for a
HOME TECH UPGRADE? HOM E EQU ITY LI N E OF CR E DIT as low as
2.99
% apr
for the first 12 months
as low as
4.25
% apr
after
Sign up for autodebit & SAVE!
ERIC [FirstLAWRENCE Name] [LastFRAZIER Name] MBA Vice [Title]President and Mortgage Advisor Office: 261-1634 ext. 703 Branch(800) Name Fax: (314) [XXXXXX] 264-0211 NMLS#: NMLS#461807 [(XXX)] [XXX-XXXX] eric.frazier@fbol.com [FirstName].[LastName]@fbol.com
11010 Limonite Ave. Miraloma CA 91752
firstbanks.com 800-760-BANK
*The Annual Percentage Rate (APR) is a variable rate based upon an index and a margin. The APR will vary with the Prime Rate (the index) as published in the Wall Street Journal. The variable rate APR will range from Prime + 0% to Prime + .425%, depending on the applicant’s credit score. This variable rate is based on auto-debit of payments from a First Bank checking account. If not auto-debiting payments from a First Bank checking account, add .75% to the rate. The APR may increase or decrease but will not exceed 18% nor will fall below 4.25% except during the 12 month promotional period. During the promotional period the rate will be based on applicant’s credit score with either Prime - 0.26% or Prime + 0.34% and both promotional rates requires auto-debit of payments from a First Bank checking account. As of September 1st, 2020, the APR ranges from 4.25% to 4.425% and the promotional rate is 2.99% or 3.59%. Rates are subject to change. This promotional rate is available only for consumer checking account clients of First Bank who do not have a HELOC with First Bank as of August 31st, 2020. Offer available for applications accepted during September 1st – September 30th 2020. No closing costs on lines up to $1,000,000 for standard documentation; third-party fees to be paid by borrower for loans over $1,000,000. Member FDIC
THE POWER IS NOW
MAGAZINE
WEST COAST EDITION
THINK YOU FOUND A BETTER MORTGAGE QUOTE?
Think Again and Consider all Costs Yvonne Mcfadden
WWW.THEPINMAGAZINE.COM
This always works against them as most of these costs will not be waived whether the lender adds them to the mortgage quote or not. Although many lenders tend to leave out these costs, they will definitely apply, which might cause a problem for you in the future. This is why it is best to consider all costs before you choose the best mortgage quote, and below are some of the costs you should consider and look out for in a mortgage quote before you choose the best mortgage quote for you.
FINAL APPRAISAL FEE
Although appraisers carry out home appraisals on new constructions, the first appraisals are never carried out when the home is completely built. Therefore, the appraisal is termed subject to final completion, which requires the appraiser to return to carry out a final appraisal to ensure the house has been completed before closing. There’s a small cost for this final inspection and should be reflected in the fee worksheet. Whether a lender discloses this information on their worksheet or not doesn’t change the fact that they apply. l
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etting a mortgage is always a meticulous process that most buyers go through carefully and consider many options to ensure they get the best mortgage quotes to meet their needs. Many people tend to contact several lenders to compare mortgage quotes and see which one is better. Most home buyers tend to prefer a lower mortgage quote, which they feel is their best option. However, this is not always the case. Many mortgage lenders tend to leave out several costs when creating a mortgage quote, so the quote doesn’t seem all that scary and convince the homebuyer to go with them.
This is another fee that should reflect in the worksheet and, therefore, be added to the mortgage quote. It applies to newly-built homes in various areas and is usually stated in the sales contract. These costs apply whether a mortgage is obtained or the buyer chooses to pay with cash, and when a lender omits this cost, it gives buyers the wrong projection.
HOME INSPECTION
This is separate from the appraisal fee as lenders usually demand this fee so as to get an inspector to thoroughly check out the house and confirm that the prospective house to be bought is structurally sound and is completely livable. The figure to be paid usually depends on the location and the type of house being inspected.
CREDIT REPORT FEE
Another fee to check in your fee worksheet is the credit report fee. Lenders usually go through the process of procuring your credit report by themselves and use their defined risk analysis model to confirm if you’re creditworthy. The fee for this would be reflected in your mortgage quote and sometimes affect your interest rate.
DOCUMENT PROCESSING FEE
The loan estimate usually costs lenders time and money, and therefore, there is a charge for this. This fee usually includes administrative fees and several other costs. It varies according to lenders, and many times they are not set in stone. This means that the borrower could negotiate this fee, but there are times when the lender doesn’t separate the fee from the loan price and rather adds them together as one to make it nonnegotiable. These are the main costs to look out for in a fee worksheet, and other fees include the real loan, title fees, the loan origination fee, which might be the largest fee you would be paying in the closing costs, and several more. Ensure that these fees are clearly stated in the mortgage quote, or you might end up getting an inaccurate mortgage quote and thinking it’s a better choice.
Reference http://www.mortgagenewsdaily.com/channels/ community/931031.aspx https://www.creditkarma.com/home-loans/i/fees-whenbuying-home
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SUBDIVISION DUES
Peggie Simmons 5 WEIRD REASONS WHY YOU ARE LIKELY NOT GOING TO GET A MORTGAGE IN 2021 Everyone seems to be getting a mortgage; this is because of the record low rates in 2020. Mortgages are one of the easiest things to get when you have your papers in order, but people still harbor fears of being rejected when they apply for a mortgage. There are several varying reasons why people get rejected for a mortgage, but it is always an unpleasant experience. With the influx of people getting mortgages in 2021, people are hoping that the trend carries on to 2021, but that might not be the case. Below are some weird reasons why you might not be getting a mortgage in 2021.
You would think that being self-employed would increase your chances of getting a mortgage, but that isn’t always the case. It might be exactly why your application gets rejected in 2021. Being selfemployed does not guarantee your income, and with the volatility of the economy, it is hard to trust that you would have enough money to pay back the loan. This gets worse if your business is less
than two years old as it doesn’t show you have a track record needed to give the bank confidence that you would be able to service the loan.
MORTALITY RATE IN THE COUNTRY
Due to the coronavirus and how contagious it is, lenders might have concerns about giving out loans when there’s a high mortality rate in the country. Lenders might want to wait till the vaccine has l
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YOU’RE SELF-EMPLOYED
been distributed, and there is a low mortality rate. Your lender might reject your application because they want to avoid the risk of deteriorating health soon after the loan is accepted.
YOU DON’T MATCH THE LENDER’S PROFILE
Another weird reason why you are likely not going to get a mortgage in 2021 is that your profile doesn’t match the one the lender is looking for. Some lenders are looking to attract a certain type of borrower that you just don’t match, and this would lead to your application getting rejected by the lender. The preference could be based on location, race, or income level; it is best you work with a mortgagee advisor that will direct you to the right lender that’s more probable to favor you when reviewing your mortgage application.
INADEQUATE DEPOSIT
Many times, the problem isn’t with your credit report or the applicant’s profile but simply because the house isn’t worth it. With the rise of buyers in the industry, the price of homes has continued to rise. When collecting a loan, you bear in mind that if you can’t pay the loan back, the bank or lender is entitled to repossessing your home and selling it offers to get back the home. The rise of home values isn’t sustainable, and prices of homes are bound to return to normal soon. The lender might be worried that the property isn’t worth the price and won’t be beneficial in recouping the loan if you can’t meet up with loan payments. You can avoid this by comparing the house’s current and potential value on platforms such as IQ; this would help you decide if the house is simply overpriced and would depreciate in the future.
Reference https://www.stephaniemurray.mortgage/blogs-events/blogs/ top-10-reasons-people-get-rejected-for-a-mortgage/ https://www.moneyadviceservice.org.uk/en/articles/whymortgage-applications-are-declined
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A common reason why you might not be getting a mortgage in 2021 is that your deposit is simply not enough. Most lenders require you have a percentage of deposit available for the home before your application would be reviewed. With the economic volatility, enough deposit guarantees the lender that you have enough and will be able to service the loan once it is given to you. If you don’t have a deposit in place, chances are you might have problems servicing the loan when you should.
THE HOUSE SIMPLY ISN’T WORTH IT
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THE POWER IS NOW MAGAZINE | FEBRUARY 2021
THINKING ABOUT
REFINANCING IN ARIZONA?
READ THIS FIRST
Kamesha Keesee
WHEN SHOULD I REFINANCE?
There are several reasons why homeowners choose to refinance. However, the most common reasons are:
• A DROP IN MORTGAGE
The most common reason why homeowners choose to refinance their mortgages is to secure a lower interest rate. This is the case that we’re experiencing currently with the historically low mortgage rates. So, if you’re thinking about
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refinancing, now is the best time. Moreover, when you secure a lower mortgage rate, you also lower your mortgage payment.
• IN CASE OF A NEW MORTGAGE PROGRAM. You can also refinance an Adjustable-Rate Mortgage (ARM) into a new Fixed Rate Mortgage (FRM), or when combining a first and second mortgage or when paying off a balloon loan.
• DEBT CONSOLIDATION.
Refinancing is a good option when you have sufficient equity and you want to pay off consumer debt by combining all debts into one lower monthly mortgage payment. This could also significantly reduce the short-term deficits in a budget.
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efinancing in Arizona could feel like the next step for anyone who has been through the journey of owning a home. Refinancing has never been a bad path to follow. However, if you’re planning to plan in Arizona, here are some answers to some questions you might have.
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SHOULD I REFINANCE OR GET A HELOC TO MAKE HOME IMPROVEMENTS?
For a homeowner who’s looking to make some property improvements without tapping into their savings or investment account, his two main options are either get a Home Equity Line of Credit (HELOC), or do a cashout refinance. To decide which one to use, there are three main factors you should consider; the timeline, costs or fees needed to obtain the loan, and interest rate.
• TIMELINE.
You need to consider the period of time you plan to keep your home. This will help you determine how long you’ll need to pay back the loan. Also, you need to consider the kind of property improvement you need to make. HELOC is ideal for short-term goals and essentially feature adjustable rates that can change every month. On the other hand, a cash out refinance is best for securing long-term financing, especially if it comes with a
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Contrarily, if you need the money on long-term basis and your current loan is at 4.875%, it may not make financial sense to pass up an offer on a blended rate of 5.75% with a new 30-year fixed mortgage. There would be a considerable savings over several years if variable interest rates went up for a long period of time.
lower payment.
• COSTS/FEES.
Consider the closing costs for each loan. Also remember to compare the shortterm closing costs with the long-term total of monthly payments to determine which option is the best.
• INTEREST RATE.
Interest rate is the first thing a borrower considers as everyone wants to have the satisfaction of locking at the lowest rate possible. However, when it comes to property improvements, the interest rate may not be as vital as considering the level of risk that you’re willing to accept. If your current loan is at 3.455%, and you only need the money for 4-6 months until you get your bonus, it’s not as important if the HELOC rate is 4%, 6%, or even 10%. This is because the majority of your mortgage debt is still fixed at 3.455%.
In other words, choosing between a full refi and a HELOC typically depends on the risk level you’re willing to accept over the period of time that you need the money.
HOW LONG SHOULD I WAIT BEFORE I REFINANCE AFTER PURCHASING A HOME?
Most lenders require one to wait for a period of 8-12 months, but there may be exceptions. Consider checking with your lender at your time of initial application to ensure there are no short-term penalties for refinancing within the first 12 months. At this point, you may be in a better position to decide whether to go ahead and refinance or not. If you’re planning to refinance, now is the best time to do so with the current low interest rates. Don’t be left behind. Work cited. https://www.azlendingexperts.com/ mortgage-101/refinance-process/
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
THIS VETERAN HAS EXPERIENCED ENOUGH.
HE SHOULDN’T HAVE TO FIGHT HOUSING DISCRIMINATION BECAUSE OF HIS DISABILITY. Sergio lost his leg and his hearing while serving our country overseas. Now back home, he was ready to start a new chapter in his life. But when he found the perfect apartment, the landlord refused to make a reasonable accommodation to allow his service dog in a “no pets” building. Then Sergio learned that the Fair Housing Act protects people with disabilities. He contacted HUD and filed a complaint. Today, Sergio is feeling right at home. If you believe you’ve experienced housing discrimination, please contact
hud.gov/fairhousing 1-800-669-9777 50 YEARS OF OPENING DOORS. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.
Ameer Elahee
FOLLOW THIS SIMPLE GUIDELINE ON HOW TO ENSURE A STRESSFREE CLOSING
I
f you’re thinking about closing, it apparent that you’ve walked through all the other hurdles of getting approved for a mortgage, hunting for the right home, and negotiating the best deal. The last thing standing between you and achieving the American dream of homeownership now is the closing, which can be tiresome and tense. But if you plan well and conduct some legwork, your closing can be stress-free. Below are some steps that will guide you to achieve a smooth closing.
1. SET A SUITABLE THE CLOSING DATE.
For your closing to be stress-free, the closing date must be in line with your situation. Talk to your title company to set a closing date that aligns with the end of your lease or the date the sale of your existing home will close. If you don’t want to skip work, set a suitable date and time such as an evening or on a weekend. If you are tight on funds, set your closing on a time when your finances will be available such as on end month. It’s also recommended to ask your title company the form of payment they accept whether cash, bank transfer or by cheque, so as to get the payment ready before the closing day.
If you’re using a mortgage, you should acquire a title insurance policy. The title insurance policy is not to protect you but rathe it protects lender in case the seller wasn’t the owner of the home or someone else made a claim on it. To protect yourself, you can acquire an owner’s title policy from the same firm that sold you the title insurance. The owner’s title will protect you against losses from fraudulent claims against your ownership and errors during previous sales. In some cases, sellers initially pay for the owner’s title policy.
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2. GET A TITLE INSURANCE.
3. GET A HOMEOWNER’S INSURANCE.
When looking for a homeowner’s insurance, ensure you compare policies to make sure coverage will start from your closing date. An annual insurance policy should cost between $500 and $1000, depending on factors such as your home size, age, and amenities. For a lower premium, opt for a high deductible or get you policy from the same firm that insures your car. Moreover, if your home is in an area prone to natural disasters such as earthquakes, floods or hurricanes, get a separate insurance to cover your home from those disasters.
4. REVIEW YOUR GOOD FAITH ESTIMATE AND HUD-1 SETTLEMENT SHEET.
The Good Faith Estimate (GFE) that you received from your lender shows your estimated closing fees. Some of the fees shown on your GFE can’t change while others can rise by up to 10%. Before proceeding to close, compare the numbers on your GFE and your HUD-1 settlement sheet. In case you notice any increases, consult your loan officer on the matter.
5. CONDUCT A FINAL WALK-THROUGH.
Before the closing date arrives, schedule an appointment to walk through the home one last time. During the walk through, ensure the repairs you requested have been made, look for other major changes since you last viewed the property, ensure the seller left everything as they promised, ensure no unnecessary items were left behind, and ensure all the electronic and appliances are functioning correctly. If you uncover any problems during the walkthrough, talk to the seller to correct them and reschedule the closing if you have to. If they can’t repair them, negotiate a discount on the sales price toc over the cost of the needed repairs.
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When you observe the few simple tips discussed above, you can be sure to have a stress-free closing and your transition to homeownership will be smooth. Work cited. https://www.houselogic.com/buy/house-negotiating-closing/7steps-stress-free-home-closing/.
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THE POWER IS NOW MAGAZINE | FEBRUARY 2021
Do you know
Peppermint Ridge? We provide a community of loving homes and empowering support services for individuals with intellectual and developmental disabilities.
We
support and encourage our residents to live their
lives and fulfill their dreams by fully embracing their indvidual abilities and interests. With 24-hour specialized care and staffing, we provide comfortable, secure homes and recognize that everyone feels a sense of belonging when they have familiar places in which to spend time with family and friends.
There
is a true sense of family at Peppermint Ridge. Of the 94 adults who
live at The Ridge, 38 have lived here for more than 20 years, with 10 of those calling The Ridge home for 40 years or more. Residents have the opportunity to flex their muscles of independence while developing rich lives of their own away from their loved ones. About 30% of our residents have no family, so other Ridgers and our staff have become their family.
Many
caring companies, organizations and individuals in
the community enjoy getting to know The Ridge by helping on small projects, hosting fundraisers, lending a hand at events, volunteering in our office, and assisting residents in activities such as arts and crafts, pool days, horseback riding, music and piano lessons, and exercise classes.
825 Magnolia Ave • Corona CA 92879 • 951.273.7320 www.PeppermintRidge.org • Tax ID: 95-2409851
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Ruby Frazier SOMETIMES “NO” ISN’T THE FINAL ANSWER WHEN IT COMES TO GETTING A LOAN. BE PATIENT AND KEEP AT IT!
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ou want to buy a home, but you do not have the minimum credit score required by lenders. You approach a lender and the answer you get is a bold ‘NO.’ What do you do? Do you give up? Or do you keep pushing hoping one day a door might open for you. Answer that before you proceed reading. The following is a true story dated August 10, 2016, that was published on Mortgagenewsdaily.com by Ted Rood, a mortgage lender with the Federal Savings Bank and specialized in buyer education. The story is about a couple, Carey and Jan (not their real names for privacy protection) who bought a home with no down payment, and a credit score of 586, and disclosed a hidden old meth lab on the property.
“Jan sounded down when she called me last February. She and her husband Carey were both 100% disabled US veterans, and had endured great hardships during and after their service. They were trying to buy a home for their family using VA financing. Several lenders had already declined their loan, citing their credit scores, some collections/charged off accounts, and a 6-year-old short sale on Carey’s prior home. WWW.THEPOWERISNOW.COM
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Once Jan and I finished our initial conversation, I dove into their credit. Sure enough, Carey’s mid score was 586, just as the lenders said. They told Jan they required scores of 620 to 640 for VA loans, a sizable deficit from Carey’s current score. My bank, however, only required a 600 mid score, which I was optimistic Carey could reach. We reviewed their credit report, which showed several credit cards with balances exceeding 70% of the credit limits. Since available revolving credit constitutes 30% of credit score criteria, it was likely reducing those balances would boost his score. I ran the report through my credit vendor’s score simulation, which predicted minimal balance reductions would boost his score over 600. Jan started to get excited, but I cautioned her; it wasn’t time to start packing boxes yet. Carey and Jan paid down three accounts by a total of $400, then got me the prior statements and account activities since the statements. Step one complete, balances where we want them! I submitted the documentation to our credit vendor, who did a rapid rescore with Experian, Equifax, and Transunion (as most credit vendors can). Two days later, we had our answer: Carey’s mid score was now 602! VA, somewhat surprisingly, does not place minimum score requirements on borrowers. Lenders, however, must document that borrowers’ scenarios fit VA underwriting guidelines. One-way lenders avoid closing loans they fear might default is to add restrictions to VA’s guidelines, including minimum scores of 600, 620, or even 640. Lender requirements added to agency (FHA/Fannie Mae/Freddie Mac/VA/USDA) criteria are called overlays. Those overlays are the reasons one lender might say VA loans require 640 credit scores while another says 600. In Carey’s case, we now hit the “magic” 600 credit score, but their loan was far from approved. The next step was running it through Desktop Underwriter (DU), an automated underwriting program. I didn’t expect a DU approval, given their credit history/marginal scores, but did hope for the next best thing: a “Refer/Eligible” (R/E). Fortunately, that’s what we got. Just as lenders can place minimum score requirements on VA loans to limit defaults, many also only accept loans that DU (or the alternate underwriting engine Loan Prospector) approves. The ideal finding is “Approve/Eligible” (A/E). An A/E means DU has approved the loan; the underwriter must only document the items requested (barring any inaccurate, incorrect, or omitted loan details). The Refer/Eligible approval for Jan and Carey meant their loan MIGHT meet VA guidelines, subject to a complete review by our underwriter, who would then approve or deny the loan (as opposed to DU issuing the approval). This process is called manual underwriting; many lenders don’t offer it, but mine (and others) do. Manual underwriting was Carey and Jan’s best shot at home ownership for some time, since a DU approval would require many months of credit improvements. Before I submitted their loan to underwriting, I made sure Jan and Carey were 74
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thoroughly prepped. We’d need many letters of explanation. Their debt ratios couldn’t exceed VA’s guidelines of 29% of gross income for housing expense and 41% for total debt ratios (unlike loans with A/E findings). We’d have to pay outstanding collections off, and prove their timely rental payment history. They both agreed: some documentation and effort would be well worth it to achieve their goal of buying a home on acreage near Carey’s family. Leaving their woefully inefficient New England rental home (they were spending nearly $1000/mn on heating costs!) was an added benefit. Patience is a virtue, and fortunately Jan and Carey, their awesome agent and the home’s seller all realized that. They set realistic time frames for loan commitment and closing. Jan and Carey wrote the numerous letters of explanation. My resourceful processor made sure our underwriter understood all the loan’s details, and the underwriter patiently explained exactly what she needed for loan approval. Jan paid off their collections, and provided canceled rent checks (adding letters from their landlord documenting the months they paid in cash). She was a trooper during the process; it’s critical I point out her cooperation, assistance, and timely responses were huge factors in getting their loan closed. Our loan was virtually approved by the time we got the appraisal back. Their new home was fairly unique, a very large ranch home on 25 acres, with an adjoining 2 acre parcel included, with a sales price of $318,000. I wondered if there were nearby comparable sales, but the VA appraiser found them; the home’s value met the sales price. It appeared we were home free, until our last challenge popped up. When the appraiser inspected the home, the seller mentioned (probably thinking he was providing helpful information): “They took out the trailer where that guy got arrested for cooking meth before we bought the extra parcel.” The implications of that statement may merit a future article, but suffice to say they meant considerably more effort by everyone prior to final loan approval. (Hint to home sellers: If your property is likely meth contaminated, don’t forget to list it on the seller’s disclosure)! By early May, Carey and Jan were in their new home. They returned to the Midwest, and their family has ample room to roam and grow. They haven’t been through a winter there yet, but I’m sure the monthly heating bills will be far less than $1000! Lenders’ score requirements for VA borrowers vary widely. Many won’t manually underwrite loans. Thankfully, Carey and Jan didn’t give up before we met, and it was a privilege to help them purchase their dream home. If you’re in a similar situation, don’t lose hope if a lender or two says you don’t meet their loan criteria. Ask why not, and if the reason is a lender overlay, rather than a VA guideline, look for a lender without that overlay. Remember, patience is a virtue, Jan and Carey proved that!” Work cited http://www.mortgagenewsdaily.com/channels/community/646296.aspx.
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KAMALA HA KAMALA HARRIS: “WHILE I MAY BE THE FIRST WOMAN IN THIS OFFICE, I WILL NOT BE THE LAST”
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t is official; Kamala Harris is the 49th Vice President of the United States in the Democratic administration of President Joe Biden. She joins history books by becoming the first female, first black, and first South Asian to hold the office of the Vice President of the free nation. Even before stepping out into the limelight, Kamala was already making headlines as a barrier-breaking prosecutor before being elected to the United States senate. Kamala Harris, 55, was born and raised in Oakland California. Apart from being a former senator, she is also a former attorney general of California and a former San Francisco district attorney. The culmination of her historic run with the President-elect Joe Biden first began when she announced her own run at the presidency- on Martin Luther King’s birthday in 2019. Here, Kamala pitched herself as a history-making candidate, venerating Shirley Chisholm, the New York Congresswoman who also made history by becoming the first woman to seek Democratic Party’s nomination for the presidency. Through the media appearances that Kamala has made, admirers of this icon have learned plenty about her political ideologies, stances, and values.
FAMILY AND BACKGROUND
Kamala’s father was Jamaican, a teacher at Stanford University, and her mother was a cancer researcher. She studied political science and economics at Howard University (B.A., 1986). In 1989, she earned her law degree from Hastings College. Between 1990 and 1998, Kamala worked as a deputy district attorney in Oakland where she earned a reputation for being tough. She would go for the hard cases such as gang violence, drug trafficking, and sexual abuse cases. With this, Harris climbed up the ladder becoming the district attorney in 2004. In 2010, Kamala was elected the attorney general of California, an election she won by a very small margin of less than 1 percent. With this victory, Kamala became the first female and first African American to hold an office of that caliber. She has been described as a progressive prosecutor arguing that it is possible to fight crime and also be tough on the deep inequities and inequalities in the criminal justice system. She would later establish her political independence by rejecting pressures from the Obama Administration to settle a nationwide lawsuit against mortgage lenders for unfair practices. In 2012, after pressing California’s case, she won a judgment five times higher than what was originally offered. Her motivation as a prosecutor stems from the belief that she could best change the
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system from within, a message that would later become the cornerstone of her pitch as a presidential candidate. The voters would entrust her with the responsibility of changing the system because she knew it “from the inside out.” In 2012, Kamala gave a memorable address at the Democratic National Convention which effectively raised her profile. Two years down the line, Kamala married attorney Douglas Emhoff. Her efforts from the beginning of her career as a prosecutor to finally becoming the California AG caught the eyes of many, especially in her democratic party. Considered a rising star, Barbara Boxer recruited her to run for the U.S. Senate seat. By early 2015, she announced to the public her intentions to run for the Senate seat, and while on the campaign trail, Kamala repeatedly called for immigration and criminal justice reforms, increases in the minimum wage, and protection of women’s reproductive rights. In 2016, she overwhelmingly won the elections.
HER SENATE YEARS
Her election to the chambers was significant as she was the First Black woman there in more than a decade. Her years in the senate positioned her as a firm politician. Though brief, her time as California’s junior senator set her apart and this can be seen from the fierce and intensive interrogation of the Trump Administration officials and nominees, for instance, Brett M. Kavanaugh during his confirmation to the Supreme Court and Attorney general 78
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Jeff Sessions during a Senate Intelligence Committee Hearing. More recently, Kamala sought to align herself more with the Democratic Party’s left-wing, initially supporting Senator Bernie Sanders’s “Medicare for all” bill before shifting her position during the presidential campaigns. She was also very vocal in the proposal to raise the federal minimum wage to $15 an hour and also the proposal to revise the country’s bail system. In a response to the brutality in the police administration, Kamala was very vocal when it came to the issue of racial injustices and defended the racial justice legislation. She supported the motion to overhaul policing and make lynching a federal crime.
PRESIDENTIAL CAMPAIGNS
Ms. Harris announced that she was seeking the Democratic presidential nomination in 2020 and from the very beginning; she was seen as one of the most promising and leading contenders. This was evident especially during the primary debate where she had a contentious exchange with the president-elect, Joe Biden over his opposition to school busing in the 1970s. And even though her support from the beginning was very promising, by September 2019 her campaign was in trouble leading to her withdrawal by December. It is also important to highlight that her influence, insofar as the campaign trail was concerned was ideological. For example, she was the first candidate to suggest requiring federal preclearance for state abortion restrictions.
And despite her withdrawal, she continued to maintain a high profile becoming the leading advocate for social justice reform following the killing of George Floyd. Her position in matters to do with race and police misconduct was heavily criticized by some people who argued that she had the opportunity as the attorney general to investigate police misconduct but she never did. Others felt that her efforts to embrace the reforms in the justice system were nothing but a political maneuver to capitalize on the increasing issue of public popularity of social change. Over the past year, racial
THE POWER IS NOW MAGAZINE | JANUARY 2021
RELATIONSHIP WITH BIDEN
To stave off any doubts about their relationship, Mr. Biden’s campaign released a document about Ms. Harris that included a section that talks about the two politicians partnering, noting that at the time when she was serving as the attorney general of California, Biden’s son, Beau was the attorney general of Delaware.
The relationship between Ms. Harris and Biden was a tense one. Remember, during the party’s debates, Kamala attacked Biden on the issue of busing as an issue of integrating public schools. She claimed what Biden did was hurtful, and it was more so paining to hear Biden speak so positively about some segregationist senators.
“The two grew close while fighting to take on the banking industry,” one bullet point read. “Through her friendship with Beau, she got to know Joe Biden.”
“There was a little girl in California, who was part of the second class to integrate her public schools, and she was bused to school every day, and that little girl was me.” Kamala.
Sources; https://www.nytimes.com/2020/08/11/us/politics/kamala-bio. html https://www.biography.com/news/kamala-harris-facts https://www.britannica.com/biography/Kamala-Harris
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injustice was a trending topic in the United States and many Democrats called on Joe Biden to select an African American woman as his running mate. Biden chose Kamala and in November, she became the first Black woman to be elected vice president of the United States.
Cornelius Jackson
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urchasing a home is one of the largest investments one can make in life. The transaction of buying a home involves large sums of money where if someone takes advantage of you, they can walk away with substantial amounts at your expense. Fortunately, there are numerous mortgage rules in place to protect consumers against irresponsible and dishonest lenders. Although there is no sure way to eliminate risk completely, consumer protection laws present better odds to home buyers. Some of the mortgage rules that protect consumers are discussed below.
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1. FAIR LENDING. The mortgage industry is regulated by certain laws that prohibit lenders from any form of discrimination to consumers in the mortgage lending arena. The Equal Credit Opportunity Act (ECOA) made it illegal for lenders to practice any form of discrimination against borrowers based on one’s race, color, religion, nationality, sex, marital status, age. It also prohibits lenders from discriminating a borrower whether all or part of the borrower’s income comes from a public assistance program, or whether the borrower has in good faith exercised a right under the Consumer Credit Protection Act. Moreover, the Fair Housing Act prohibits discrimination in residential real estate transactions based on one’s race, color, religion, sex, handicap, familial status, or nationality of origin. The ECOA and Fair Housing Act laws apply throughout the loan process, from the time of inquiry until the time you finish paying the loan.
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
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HERE ARE SOME WAYS THROUGH WHICH THE MORTGAGE INDUSTRY ALREADY PROTECTS CONSUMERS
2. MORTGAGE DISCLOSURE LAW.
The Consumer Financial Protection Bureau (CFPB) issued a major regulation referred to as ‘Know Before You Owe’ that requires lenders to provide clear and accurate disclosures to borrowers during the lending process. The regulation requires lenders to disclose two major documents or forms to consumers; the Loan Estimate which highlights the key loan features, risks and costs of loans, and the Closing Disclosure which indicates all the costs of the mortgage transaction. The two documents are designed to be used together to help consumers understand the information in the documents, compare between different loan terms and prevent surprises for consumers during closing. Moreover, the CFPB regulation requires lenders to give consumers ample time to go through the forms and make decisions.
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3. ADDITIONAL PROTECTIONS.
Other regulations that protect the consumer include; •
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Originators are prohibited from directing consumers to a particular loan on the basis that that loan would make more money to the originator. Kickbacks are also prohibited.
It’s important you understand the mortgage laws that protect you to avoid falling for dishonest lenders who will end up costing you money for nothing. The mortgage industry is flooded with lenders, some genuine and others fraudulent. Understanding what you’re entitled to is key to achieving a successful homebuying process. Work cited. https://www.fdic.gov/consumers/assistance/protection/ mortgages.html
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EDUCATE AND INNOVATE: THIS IS HOW WE GET THE REAL ESTATE INDUSTRY BACK ON TRACK
Jenny Gonzalez To understand the significance of innovation in the real estate market, let’s look back at a few things we’ve achieved through innovation.
The COVID-19 pandemic has wreaked massive havoc all over the place, and the real estate industry wasn’t spared. And to get the industry out of this mess, we need to change things. We need new methods and techniques for doing things, and above all, we need to approach things differently. To achieve that change, we need to educate and innovate new ways, systems, and channels that will help us get past this pandemic period and facilitate the return of normalcy in the industry. WWW.THEPOWERISNOW.COM
These are just a few of the many incredible things we’ve achieved so far through innovation. How about when we encourage more innovation? What would it be like? Your guess is as good as mine. The real estate market would improve in all aspects: from effectiveness, efficiency, to safety and profitability. How can we facilitate innovation? There are various ways companies can promote innovation. One of the ways is to educate the real estate players on the importance of innovation. Show everyone what innovation can do, and that will put them on the same page for more innovation. Another way is to provide an innovation-friendly environment. With a good environment, all the innovative minds in that environment will begin to sprout. In that way, we can ensure the consistency of innovation for a better future. nytimes.com
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echnological inventions are constantly reinventing the real estate industry. We can all agree that if it were not for the various innovations such as virtual home tours during the pandemic era, the US real estate market would suffer unimaginable destruction. This asserts that innovation should be the keystone aspect for the industry to get back to the pre-pandemic levels of activities. Remember, as they say, “Modern problems require modern solutions.”
1. Making real estate transactions is now faster and easier than ever. This was made possible by tech startups such as DocuSign and the Zillow Dotloop who introduced the ability to e-sign documents and took the transaction process online. 2. When hunting for home nowadays, you don’t have to get out of your comfort zone since you can sign up and attend a virtual tour as long as you have a good internet connection. Thanks to innovation. 3. Making smarter decisions has also been made easier due to the availability of more data acquired through Artificial Intelligence (AI) and Machine Learning (ML). These innovations easily gather and analyze data that is turned into actionable insights that help real estate players to make smarter decisions. 4. Property management has also been made easier for agents through the use of innovative property management technologies such as AIpowered Chatbots, Voice bots and Virtual assistants.
Work cited. https://www.fool.com/millionacres/real-estate-market/real-estate-innovation/. https://appinventiv.com/blog/technologies-disrupting-real-estate-sector/. l
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DIDN’T GET APPROVED FOR A LOAN? DIDN’T GET APPROVED FOR A LOAN?
DoDo not worry, willhelp help not worry,here’s here’show howaa realtor realtor will
Danon Burnside HOW CAN A REALTOR HELP YOU? LOW CREDIT SCORES. Remember, when you get denied a loan due to low credit scores, it doesn’t o one likes to be certainly mean you have low credit reports. Sometimes there may be errors in told “no.” Rejection your credit reports that led to a low credit score. A study 2013 federal Trade hurts. And having Commission survey revealed that one in four Americans said that they spotted your application for a loan errors on their credit reports. declined is particularly A realtor can help you to easily identify any errors on your credit reports. In devastating, because it throws your entire dream case of any errors on your credit reports, it would take about 30 days or more to get them removed. However, there’s a way around this. If you let your lender of homeownership into take care of the legwork, it would take fewer days to get the error removed. And doubt. Still, just because since realtors are very conversant on such issues, they can connect you with one lender rejects your good lenders who can take over the process for you. loan application doesn’t mean you’ll never be able “Lenders are able to do what’s known as a rapid rescore, which can get errors to buy a home. So, if you removed within five to seven business days,” says Richard Redmond, mortgage didn’t get approved for a broker at All California Mortgage in Larkspur and author of ‘Mortgages: The loan, its recommended that you talk your realtor. Insider’s Guide.’
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Realtors can help you in ways you can’t imagine.
There are numerous apparent reasons why one may not get approved for a mortgage. Some of them include: low credit scores, high debt-toincome ratio, insufficient down payment, and a recent change in one’s financial situation such as loss of job.
HIGH DEBT-TO-INCOME RATIO. When you get denied a loan because of your debt-to-income ratio, do not give up. That just means that you income from your income-generating streams isn’t high enough to settle your debts. However, you should remember that debt-toincome ratio varies across different lenders. “It’s very common to be turned down by one lender and then be able to get approved by several others,” says Redmond. “Different lenders have different debt-to-income requirements.” This means that you can try another lender. But you can take your chances and approach any lender. To avoid wasting more time, this is where you need your realtor. Realtors are conversant with these lenders and they know their terms and conditions to go get approved for a mortgage. Therefore, a realtor is your best chance of getting to a lender who will accept your debt-to-income ratio. When you don’t get preapproved for a loan various reasons, do not give up since that’s not the end of it. Consult your realtor and they may know a thing or two on how to get around it.
Work cited. https://www.thebalance.com/should-you-talk-to-a-lender-first-or-a-real-estate-agent-1798260
Denise Matthis
5 TRENDS TO WATCH OUT FOR IN 2021 VALUE OF SAN DIEGO HOMES WILL RISE
SERIOUS MARKET UNCERTAINTIES
San Diego remains one of the top-rated cities to live in; this is because it offers residents income growth and job opportunities. This has led to an increasing growth in the population size and the rise of home values in the city. As many more industries jump into high gear in this location, there is money flowing in and jobs to be gotten. With these results, it is expected that there will be more people moving into the area to get jobs. A
There are many events going on around the world, including unemployment rates going through the roof in San Diego, major shutdowns of businesses and schools because of the pandemic. With all of that, including protests and riots, it’s going to be an interesting year in the real estate industry, and the market would be quite uncertain throughout the year. WWW.THEPOWERISNOW.COM
2020 ended with San Diego’s real estate inventory reaching the lowest it has ever been, and this would affect the value of homes as the low supply would lead to the rise in the price of homes. Experts predict the values of San Diego will rise by 4.3%, and rentals will outpace homes with an increase of 8.6%. Homes that are priced at $2 million have a high rate of pending sales, and it is bound to keep going up as the year progresses.
MORE PEOPLE WILL BE MOVING TO SAN DIEGO
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f you live in San Diego, then you know that it is one great city that offers you lots of activities, places to go and many jobs as well. However, for those who would like to move down to San Diego or are looking to buy a home, there are major changes coming your way. Some of these changes are advantageous, and there are others that could turn out to be challenging for you. Listed below are five trends to watch out for in 2021, and if you pay close attention, you might be able to use these trends to your advantage throughout the year.
THERE WOULD BE A SHIFT IN GROWTH
Many investors are invading San Diego on a search for profitable industrial properties; this would have an effect on job growth as well as the housing needs. Most investors can be found in the last-mile distribution, and this is advantageous to the needs of logistic companies and retailers but doesn’t leave much room for growth opportunities as it used to be. However, there are many more opportunities available in San Diego, and there might be lots of growth to be found in the East Village.
THERE WILL BE AN ISSUE WITH AFFORDABILITY If there’s anything that might be holding the city back, it would be the lack of affordable homes. The decrease in supply has led to a steady increase in
home values; this leaves few affordable homes for the majority. The median price of homes is set at $500,000, while the median income in the city is set at $63,400. Having an affordable home option will raise interest in new businesses and rising professionals and will encourage sales of home in the region. However, there are fund programs that most people with steady jobs but have low incomes can try out. The programs offer different levels of loans based on your credit score and are based on the home buyers being able to cover the closing cost of a home and the required down payment.
Reference https://medium.com/@sdrehunter/5-san-diego-real-estatetrends-to-watch-in-2020-2021-870784b2d4be https://www.sandiegorealestatehunter.com/blog/san-diegoreal-estate-trends-i-am-seeing/
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rise in population also means a boom in the retail section; this would encourage many entrepreneurs and investors to make a move to the city.
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Kenneth Session THE BAY AREA HOUSING MARKET: PROJECTING THE FUTURE OF BAY AREA HOUSING MARKET A PEEP INTO THE BAY AREA HOUSING MARKET According to C.A.R., Bay Area’s housing price growth in November was the largest price increase in California. Although the pandemic has taken a significant toll on other economic sectors (services, retail, etc.), technology has continued to thrive. San Francisco is a city mainly driven by tech; therefore, the urgent demand for vacancies has doubled as many people are working from home. There is an urgent need for more offices as so many transactions have been taken online. According to a Mercury News, the San Francisco Bay Area boasted an increase in growth during the pandemic as highincome-earning tech workers who were steadily employed leveraged on the lockdown by saving their money (which may have been used for traveling and other leisure activities) and purchasing real estate properties.
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IT IS DIFFICULT TO OWN A HOUSE IN BAY AREAS NOW Why affordability may not be a problem of homeownership in Bay Areas, availability is. Considering the popularity of San Francisco and the rat race for accommodation, it is almost a task for someone to find a house of their choice. This is because there is an increase in demand for houses, so the competition for who owns and rents a place automatically skyrockets, leaving little space for neophyte investors and homeowners to tussle.
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
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APPRECIATION RATES HAVE WORSENED HOUSING OPPORTUNITIES FOR LOWINCOME EARNERS The extreme competition for housing units has hiked prices, making it even harder for low-income earners to meet up with the cost of living in the area. Even if they manage to secure a place for the meantime, with the increase in demand and consequent increment in the cost of living and properties, they may not be able to maintain their standard of living in the area and might be forced to migrate to where their finances can be accommodated. THE POST PANDEMIC FATE OF THE BAY AREA HOUSING The pandemic has dealt a big blow to the real estate Bay Area housing market. Considering the population in San Francisco and other Bay WWW.THEPOWERISNOW.COM
Areas, people may go low on cash due to the lockdown, which is a direct effect of the changes in the means of income generation. That means there may be: Areduction in the price of houses: since many people are out of jobs, some others have a slashed income due to company policies to carry along as many workers as possible. When many people cannot afford the prices of houses and rents, supply will decrease and leave the seller with no other option than to reduce the price. A growth of income inequality: this is because many workers whose work thrived remotely (working from home) may see the need to remain that way; there’ll be little or no difference in their income rate. Whereas people whose job requires physical contact might be needing some help to get on their feet, pay their rents, and even get an
office. These jobs are reliant on income, so, therefore, there will be an unequal rate of income generation for these parties, who may have had it all working out for them previously. THERE IS HOPE However, there are signs that the economy will be stable, as many people who have made so much money from home might decide to go into the real estate market. This will create more homes and more jobs in the Bay Area housing market for the residents. Investors will buy properties at a cheaper rate and make a better profit when the property appreciates later. References https://www.noradarealestate.com/blog/sanfrancisco-real-estate-market/ https://www.mercurynews.com/2021/01/02/ borenstein-the-radical-shift-in-bay-areahousing-jobs-and-transit/ https://www.urban.org/urban-wire/bay-areashousing-crisis-four-charts https://www.kqed.org/news/11818184/bayarea-housing-post-pandemic-whats-in-store
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PRE-APPROVALS VS. PRE-QUALIFICATIONS IN THE HOME BUYING PROCESS
Robert Langston
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WHAT EXACTLY IS A PRE-QUALIFICATION?
The first step to take in the home buying process is getting prequalified; it gives you the right estimate of the amount you can loan. A mortgage prequalification is a way to learn how much you can borrow based on your financial information right now as well as the mortgage options open to you so that you can make the right choice to fit your needs and goals. To get prequalified, one usually needs to provide the bank with a complete picture of what their finances look like, including income, additional debts as well as assets. When you provide this vital information, the bank or lender reviews the information and then gives an estimate of just how much to expect as a loan. There’s no cost involved when getting a pre-qualification, and the whole process is simple and quick; it can usually take place online or on the phone. Remember that getting pre-qualified does not involve credit reports getting analyzed or a comprehensive look into the borrower’s ability to buy a home. This step only provides you with information about your needs and the right mortgage option to provide you with it.
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If you’ve tried buying a house before, then you have probably been told that there is a need to get pre-qualified or preapproved for a mortgage before you begin the search for a property. They’re not wrong on both counts; these steps are integral to the mortgage application processes and need to be completed in time. The problem however, is that most people tend to confuse the two together and use them interchangeably; we’ll be stating the key differences between the two and the role they play in the home buying process.
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WHAT EXACTLY IS A PRE-APPROVAL?
Getting a pre-approval helps you to confirm if you’re worthy of a loan without a need for a purchase contract. It is the second process in the home buying process and needs the real estate buyer to complete their mortgage application. The lender will then take the time to verify the information received and also perform a credit check to verify your qualification. Once all your information checks out, you would be sent a preapproval letter, which is an offer to get a loan. A preapproval is good for 90 days and will expire if not utilized at the appropriate time.
When you go through the preapproval process, it gives you an idea of the interest rate to expect, and you get to know whether the lender will be giving you the opportunity to lock in an interest rate. Some lenders charge a certain fee when you apply for a pre-approval, and unlike a prequalification, which is simple and free, a pre-approval could cost you hundreds of dollars. A pre-approval gives real estate buyers an advantage in the real estate market because it takes you one step closer to getting yourself a mortgage and buying a home. HOW LONG DOES A PRE-APPROVAL OR PREQUALIFICATION TAKE? Both processes play different roles in the home buying processes and, therefore, take different time to complete. Getting pre-qualified is the first 96
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process and is pretty quick; it takes less than a day and could easily be completed in just an hour. A pre-approval, on the other hand, takes much longer to complete as more information is needed, including a verification process. Getting a preapproval usually takes much longer and can take up to ten business days or more before the process is completed.
WHICH IS THE RIGHT CHOICE FOR ME?
If you’re buying a home for the very first time, you’re sure to find a pre-qualification quite helpful. It can help you establish a budget and also give you an estimate of how much you can borrow. However, when it gets to making an offer on a home, the value of a preapproval cannot be overestimated. Its value is even more apparent in a competitive market because it gives you an edge and presents to the seller that you’re serious since you have verified your creditworthiness and your finances are in order.
Reference https://www.bankofamerica.com/mortgage/learn/mortgageprequalification/#:~:text=Unlike%20prequalification%2C%20 preapproval%20is%20a,can%20be%20preapproved%20to%20 borrow. https://www.investopedia.com/articles/basics/07/prequalifiedapproved.asp
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
L.A. REAL ESTATE TRENDS: MARKET DATA AND APPRECIATION RATES
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eing a socio-culturally rich country and thrives independently due to active commercial engagement from people of different spheres, housing in Los Angeles is a hot cake. There is an increase in the demand for houses, contributing to the expensive accommodation cost in this area. In November, the Los Angeles Metro housing market had a year-over-year increase of 30% in single-family home sales. Compared to October 2020, sales dropped by 9.2%. The Los Angeles metropolitan region’s median home price remained at $630,000, a slight drip of 0.4%
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from October, but it is 14.5% higher compared to November of 2019. These statistics and more show that the Los Angeles real estate market is a balanced market where buyers and sellers have a healthy balance. THERE IS A MODESTY IN THE APPRECIATION RATE OF LA REAL ESTATE The strong demand and tight inventory keep on pushing the prices of houses in LA, resulting in a modest appreciation rate overtime. The modest forecast hovers around 5% for the next year. This is a sure game for any homebuyer and seller, as there is a persistent increase in the value of properties bought and
sold in LA. There is a fair share of profits between the buyers and the sellers. THE RIGHT PLACE TO INVEST IN LOS ANGELES Considering the economically robust nature of California (which is the 6th largest economy in the world) driven by its many tech innovations and opportunities and production activities and more, more people concentrated on this area. The strong market advantage it has over other places makes it a sort of economic hub and the right place to do a real estate investment as there’ll be a competitive market.
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Briana Frazier
WHAT PANDEMIC WILL DO TO LA REAL ESTATE MARKET As the lockdown thrives, a lot of works are taken online. That means many people will not use their offices, restaurants will be shut down, and some workplaces that require physical contacts like gym centers and saloons will be closed. An implication of this is that many people will not be able to realize as much money that is needed to finance personal needs and organizational goals, causing them to cut down on rents of places they are not using and sell-off some properties to earn a living. This will be a massive opportunity for the investors to buy as many properties as possible, amassing much wealth and restricting the flow of income to some point. The housing prices might be in the hands of a rich few, and it may probably be high for the next months if the lockdown persists. THIS IS THE RIGHT TIME TO INVEST Appreciation values will increase drastically in the next decade as the economy tethers between growth and collapse following the lockdown. People would save up to buy properties, and others would sell to have more and launch new businesses. The tussle between buyers and sellers will increase the cost of houses and other properties. UNCERTAINTY WILL FAVOR BUYING AND SELLING As a business hub, the lockdown has affected it a great deal. Looking at the prospects, LA’s residents will be uncertain if to sell their properties or hold on to them for a longer time. As the lockdown continues and the need for money increases, people would sell their properties under duress to meet financial needs. There will always be readily available buyers. This may continue as the lockdown lingers and may cause the economy to dwindle, encouraging more homeownership by wealthy investors. References https://www.noradarealestate.com/blog/los-angeles-realestate-market/ https://www.lamag.com/lalifeandstyle/real-estate-losangeles-pandemic/ https://www.neighborhoodscout.com/la/covington/realestate
YOU THINK YOU ARE READY TO BUY A HOME?
MAY BE YOU ARE NOT! Adrian Bates
WWW.THEPOWERISNOW.COM
YOU MAKE INADEQUATE MONEY
Although you might think that you have just enough money to buy a home, most of the time, you don’t. Calculate the money first and see what the overall cost looks like and if you can actually afford it. Buying a home requires upfront money, and more money will keep going out till the deal is closed. Before you choose to buy a house, ensure that you have enough to not only make a down payment but can also afford the closing cost while still having an emergency fund to fall back on. If you can’t efficiently cover these costs, maybe you shouldn’t buy a home now.
YOUR DEBTS ARE MUCH
Even if you have enough money to buy a home and cover the ongoing and closing costs, you also need to check your debts, and if they’re a lot, then it might be wise to take a step back. If you find your cards maxed out, then you should get your bill in order before you consider becoming
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ll around the country, many renters are beginning to notice a trend of people buying a home and considering buying one too and becoming a proud homeowner. Buying a home for the first time is a liberating experience and a big decision that significantly affects your future and your finances. Buying a home is not a short term commitment, and there is a need for a strong financial standing before you make the decision. However, this is not all there is to buying a home, and many times, people purchase homes when they’re not ready for it. This is a hard truth for several people to swallow, but we’ll be stating seven signs that show that even if you think you’re ready to buy a home, you may not be.
a homeowner. Lenders usually want your total debt load to fall below 36% of your total income. If you have a lot of debts, then you should change your spending habit, and when your credit score is improved, you might have a better chance of buying a home.
NOT ENOUGH SAVINGS
Although you might have enough savings to cover a down-payment for the house, that’s just one hurdle you’ve been able to pass. When you buy a home, you will need savings to take care of it if there’s a need to carry out repairs. Having savings help you avoid falling into debt when an unexpected expense pop up; buying a house requires being prepared for the unexpected. You also need to prepare for additional expenses that you may not have considered beforehand but are not totally unexpected; this includes moving, furnishing, and decorating the new home. You will also be required to pay for property taxes, and all these expenses would be taken out of your savings.
usually ask many questions about your debts, loans, payments, and many other aspects that could take a lot of time to resolve. If you also have no credit history or just a little, it could turn out to be an issue for you as it simply shows no pattern of good credit and therefore, doesn’t make you reliable.
YOU’RE SKEPTICAL ABOUT THE HOME YOU WANT
Many people just want a home but aren’t sure the kind of home they want; knowing what you want helps narrow down the choices. You need to figure out what kind of home best suits your need and will make the transition from apartment living much easier. Bear in mind that the different types of homes come with varying responsibilities and upkeep costs; find out what the different types of homes have to offer and know which type is ideal for you before buying a home.
When you have bad credit issues, it shows that you might have some kind of financial issues. This could range from simply skipping payments on a couple of bills to having too much debt on your credit report. Before you make a decision to buy yourself a home, you need to take a close look at your credit report and see if your credit is in order. Lenders
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POOR CREDIT ISSUES
Reference https://www.forbes.com/ sites/trulia/2016/08/31/7warning-signs-yourenot-ready-to-buy-ahome/
THIS TREND SHOULDN’T STOP IN 2021: THIS TREND SHOULDN’T STOP IN 2021: Virtual hothousing housingmarket market Virtualtours tours for for hot Success Money
On the other hand, we shouldn’t forget that COVID-19 is still going to be in out midst this year. So this means that 2021 is going to be more like last year, although with a little relieve as the vaccine enrollment continues.
So how will the market in 2021 cope with these mixed situations? The apparent answer
is that the market will cope with the circumstances the same way it did last year. When social distancing was imposed last year, operations in the real estate market continued through virtual means. Every aspect in the market was now delivered virtually— from virtual house tours, to virtual closings, and other homebuying transactions. MAXIMIZING ON THE USE OF TECHNOLOGY. Moving into 2021, this trend should not be abandoned. In fact, we should strive in 2021 to fully maximize on the real estate technologies to push the industry forward. Besides being in adherence to the recommended public health measures to combat COVID-19, the trend of virtual tours has proved to be of massive significance to the operations of the real estate market. Virtual tours proved to have many benefits, such as saving time, cutting costs, generating reliable leads, and increased convenience. As a realtor looking to continue your operations in 2021, you must be ready to keep up with the hot seller’s market. This means that you must be willing WWW.THEPOWERISNOW.COM
to maximize on the latest technologies in the real estate market such as virtual tours. Doing it right. However, maximizing on the technological trends might not be enough to get you to where you want to be. You must be able to do it right. Utilizing the technologies in the right manner will get you to where you want to be by the end of 2021. How do you do it right? First, you have to give your clients a complete picture of the home. Get a professional photographer who will do clean work. Let the photographer do a video tour, capture quality pictures of the home including drone and twilight shots. Let them take good quality pictures of every corner of the home and finish off with compelling images of the neighborhood where the home is located. Also, make sure the photographs taken are compatible with the 3D program you’re going to use. Also, remember to include photos of the home during the spring and summer months to attract more appeal from buyers. Additionally, don’t forget on the extras that will make the home more appealing to the eye. Remember to include extra things such as the home’s floor plan, a list of all recent upgrades, and little-known features of the neighborhood. Conclusively, don’t forget to publish and market the tour on multiple channels. Publish the tour on platforms such as multiple MLSs and social media platforms. This way, you stand better chances of succeeding in the competitive and hot 2021 real estate market. Work cited. https://www.ocregister.com/2021/01/02/maximize-virtual-toursfor-hot-housing-market-in-2021/. l
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he real estate market in 2021 is expected to be much more like last year. Experts say that data indicates the 2020 hot seller’s market is likely to continue through the summer of 2021 and cool off a bit from fall towards the end of the year. This means that real estate market in 2021 will continue experiencing high demand for homes, low housing inventory and low interest rates.
AFFORDABILITY ISSUES EXPECTED TO DAMPEN HOME PRICE GAINS Joe L. Fisher
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here are usually concerns about the affordability of a home because housing is the largest expense in the budget of many people. Many average households in the country usually devote a quarter of their income to taking care of their housing expenditures, while low-income households spend half of their income on housing. This therefore shows that the changes in house prices can significantly impact a household’s wellbeing. There have been many reports about the increase in house prices, which has made housing affordability a major concern in many areas. Affordability sums up several issues like housing WWW.THEPOWERISNOW.COM
prices, housing quality, income distribution, and many household’s abilities to get enough home loans. There are many varying factors that have affected the supply of new homes in the market, and it also plays a role in housing affordability as a low supply of homes clearly leads to an uprise in the price of homes. This sometimes makes people go for a lower housing quality to be able to afford a house. Home prices have been reported to rise by about 1.1% in November; this research was carried by CoreLogic and was reported on its Home Price Index. There has been an over 8% increase for the year over year gain, and this l
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Although the pandemic has led to high levels of financial insecurity, there are many households that have maintained employed and succeeded in keeping the income stabilized. Such households are motivated by the low rates to purchase new homes, and this has led to a rise in demands. Downpayment requirements continue to soar due to the price of homes, and this has aggravated affordability issues, which efficiently removes low-income households out of the homepurchase market and leaves them in the renting section. Frank Nothaft is the chief economist for the CoreLogic company, and he has stated that the demographic tailwinds fell into place due to the millennials and Generation X who are driving the housing demand. The value of homes that were previously low-priced rose one and a half times faster than homes that were previously higher-priced. This is because of the fact that many buyers purchasing
homes for the first time are more likely to search for homes that fall into the lower price range. However, CoreLogic forecasts that there will be a slow-down in buyers’ demand and more supply in the housing market this year. This means that the home price growth will slow down in 2021’s first quarter and will be at 2.5% by November. However, if there is a stimulus action, it could encourage a rise in home buyer demand from the low and middle-income families. This would only support the growth of the home price. Surprisingly, the housing market performed well in 2021 despite the effect of the COVID-19 on the economy. The economy is expected to be revitalized this year, which would help keep the demand and the home price strong throughout the year. The national home price continues to rise, but there has been variability in the local market, especially in Phoenix and New Jersey. New Jersey saw an increase of 3.2% in home price growth, which is smaller than average; this is because most residents are moving out and seeking less-densely populated areas that would offer more space.
Reference http://www.mortgagenewsdaily.com/01052021_ corelogic_hpi.asp https://pubs.aeaweb.org/doi/ pdf/10.1257/089533004773563494
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is higher than the 7.3% increase which was posted in October. CoreLogic has made it public that there has been a consistent growth in the price of homes since the previous years and home sales finished the year much higher than they did in 2019. Even as the sales of home increase, the supply of homes have decreased as demand continues to rise. This could be a result of the COVID-19 pandemic, which might have deterred many home sellers from putting their homes up in the market.
CFPB ISSUES NEW QM DEFINITION AND SEASONING PROVISIONS. WHAT DOES THIS MEAN FOR THE REAL ESTATE INDUSTRY?
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he CFPB was previously thought to have missed a perfect chance to fix the QM rule once and for all. But this doesn’t mean they were not going to do it. On December 13, 2020, the Bureau issued two relatively welcome surprises. One, along with discarding the debt-toincome (DTI) ratio limit, the Bureau expanded its proposed general Qualified Mortgage (QM) to include loans up to 2.25 percentage points over the average prime offer rate. Mortgage lenders are allowed to adopt the new QM as early as 60 days from the publication of the rule (which is likely by late February 2021), though compliance will become mandatory from July 1, 2021. Secondly, the Bureau will begin allowing loans to season into a QM after 36 months of timely payments, as long as the loan isn’t sold more than once during that time and is not securitized. Elsewhere, the CFPB issued a separate final rule, confirming once and for all that the GSE Patch, which is a temporary QM category for loans eligible for purchase by the GSEs, would expire on the mandatory compliance date of the agency’s rule revising the general QM definition. Since 2014, in general terms, a closed-end residential mortgage loan could only constitute a QM if the borrower’s DTI did not exceed 43%, or if the loan were GSE-eligible. Since the GSE Patch was set to expire on January 10, 2021, the CFPB promised to rethink the 43% DTI requirement and offer a smooth and orderly transition to a post-Patch QM. Also, the Bureau decided to loosen up several of its proposals due to the public comments it received.
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The new general QM and its compliance protection will apply, under the final rule, to a covered transaction with the following characteristics: • T he loan has an annual percentage rate (“APR”) that does not exceed the average prime offer rate (“APOR”) by 2.25 or more percentage points; • The loan meets the existing QM product feature and underwriting requirements and limits on points and fees; • The creditor has considered the consumer’s current or reasonably expected income or assets, debt obligations, alimony, child support, and DTI ratio or residual income; and • The creditor has verified the consumer’s current or reasonably expected income or assets, debt obligations, alimony, and child support.
WHAT DOES THE FINAL RULE MEAN TO CREDITORS?
The final rule provides creditors significant flexibility and room for innovation in considering and verifying the factors described above. However, the CFPB provides for a safe harbor if the creditor follows the verification standards in specified single-family underwriting manuals of Fannie Mae, Freddie Mac, the Federal Housing Administration, the Department of Veterans Affairs, or the WWW.THEPOWERISNOW.COM
Department of Agriculture. A creditor even may pick-and-choose among those agency standards. If an agency updates its standards from the versions in the final rule, a creditor still may rely on the updated standards so long as they are substantially similar. Determining what constitutes a “substantially similar” version may cause problems in future. However, a creditor does not have to follow those safe harbor agency standards, so long as it complies with the rule’s obligation to verify the amounts on which it relies. Moreover, under the final rule, a creditor is required to maintain policies and procedures for how it takes into account, pursuant to its underwriting standards, income or assets, debt obligations, alimony, child support, and monthly DTI or residual income in its abilityto-repay determination. The creditor also must retain documentation showing how it considered those, including how it applied its policies and procedures. The final rule’s commentary clarifies that the required documentation may consist of the creditor’s underwriting standards, plus an underwriter worksheet or a final automated underwriting system certification for each loan, along with any applicable exceptions. Work cited. https://www.consumerfinance.gov/rules-policy/finalrules/qualified-mortgage-definition-under-truth-lendingact-regulation-z-seasoned-qm-loan-definition/.
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WHERE WILL THE NEW GENERAL QM RULE APPLY?
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ocuments unsealed by a US District court judge on January 04, 2021 have shown that the US government has intervened a New York short-sale fraud case by filing a civil suit. The complaint unsealed by Judge Margo Brodie in the Eastern District of the New York alleges that the defendants engaged in the short sales of properties that had FHA-backed mortgages, which is in violation of the False Claims Act. The law suit seeks treble damages and civil penalties. The defendants who were mentioned in the complaint as allegedly engaging in fraud
with co-conspirators are Iskyo Aronov, Ron Borovinsky, Michael Konstantinovskiy, and companies they owned or controlled. Court records however show that summons were issued to all the three defendants on January 05, 2020. According to the U.S. Attorney’s Office for the Eastern District of New York and court filings, the new complaint intervenes in a lawsuit originally brought in 2016 under the qui tam provisions of the FCA, which allow entities with evidence of wrongdoing to sue on behalf of the federal government and share in the recovery.
The defendants are faced with accusations of misleading mortgage companies into approving short sales at fraudulently depressed prices when the properties in question were actually being resold at a large profit. In a short sale, properties can be sold for less than the balance of the mortgage if the sale price represents a fair market value. “As alleged, these defendants fraudulently obtained homes at depressed prices at the expense of a taxpayer-funded program designed to assist borrowers seeking the American dream of homeownership,” said Acting U.S. Attorney Seth DuCharme in a
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press release on January 04, 2021. “This office is committed to protecting the integrity of the FHA insurance program from those who try to enrich themselves through predatory mortgage fraud schemes.” However, for some of the defendants mentioned in the suit, this wasn’t the first time. Aronov and Konstantinovskiy were also named in an indictment unsealed in 2019 alleging their involvement with coconspirators in another short-sale fraud. Work cited. https://www.nationalmortgagenews.com/news/fedsintervening-in-fha-loan-fraud-case.
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FEDS INTERVENING IN FHA LOAN FRAUD CASE
THE HOUSING INEQUALITY QUESTION:
for down payment assistance. Fortunately, there are plans to introduce a new, refundable and advanceable down payment tax credit of up $15,000, which would be offered to targeted first-time homebuyers at the closing table. The Biden-Harris campaigns were mostly centered around improving racial equality and addressing the homeownership issues. As the new administration, the team needs to address significant operational and design challenges that exist before tabling the tax credit plan in Congress. The best way to do this is by determining how to operationalize the advanceable feature of the credit, which is similar to asking the IRS to deliver individual tax refund checks to tax payers on a date of their choosing, while relying on an obsolete technology and insufficient staff resources.
TO REDUCE RACIAL WEALTH INEQUALITY, WE NEED TO EXPAND THE DOWN PAYMENT ASSISTANCE PROGRAMS
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compelling argument has emerged that the housing sector, and specifically on the down payment assistance should be used at the forefront to end the historic economic and racial equality gap. On a keen observation, this argument is very sensible. Let’s face it, home equity accounts for a quarter of the total US household net worth. This means that policies that significantly reduce the 30-percentage point Black-White homeownership gap could also help diminish a large part of the racial wealth gap. Consequently, extending sustainable homeownership opportunities to more people of color is not only a way to improve racial equity, but also a good means of increasing economic growth. According to recent study by Morgan Stanley, equalizing Black-White homeownership levels over the next 10 years would produce more than 5 million more homeowners of color, create nearly 800,000 new longterm jobs, and generate up to $400 million in additional tax revenues relative to current trends. Heightening need for down payment assistance. More than twice as many African-American families (19%) as White families (9%) have zero or negative net worth. This makes it extremely difficult for many African-American families to afford a down payment for a first home and demonstrates the growing need 116
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Date from various agencies reveal that emergence DPA programs has been on the rise recently with DPA agencies increasing nationwide. With its popularity rising, the DPA sector suffer three major problems which the Biden administration should aim to combat. First, the emergence of varied program structures and borrower requirements across agencies and jurisdictions raises the costs while limiting the interests of regional and national lenders from scaling their DPA operations. Secondly, many DPA programs lack transparency. Only few state agencies and
national providers report detailed performance of DPA-linked mortgages compared to non-DPA loans. Lastly, there is inadequate funds to make a real impact on the racial homeownership/ wealth deficit. Fortunately, there is a chance to rectify all these. First, we can achieve greater standardization and transparency among the DPA programs by requiring the gateways (that is the GSEs) to the secondary market to adopt common rules and reporting requirements for loans that they offer assistance.
EXPANDING FUNDING Administrative actions by the relevant authorities should expand lender take-up and increase the pool of available down payment assistance. This would significantly reduce the, massive minority homeownership and weal gaps. Additionally, the Biden administration along with the FHFA could allocate several billion dollars in new DPA resources using existing authorities and take advantage of the Temporary Payroll Tax Cut Act of 2011 (TCCA) which is set to expire in October 2021. The law imposed an annual 10-basis point fee that would remain in effect for 10 years on new single-family mortgages purchased or guaranteed by Fannie Mae and Freddie Mac to pay for a two-month extension of the 2010 temporary payroll tax cut. The law also prohibits the GSEs from passing this fee down to lenders, investors or borrowers. Instead, it requires them to absorb the cost as a reduction to their respective bottom lines.
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However, the real issue here is how the new tax credit will be integrated into the existing network of over 2,500 active programs in over 1,300 public agencies that are currently offering down payment assistance (DPA) at the local, state, and national level, transacting more than $1 billion per year.
Work cited. https://www.housingwire.com/articles/reducing-the-racialwealth-gap-by-expanding-down-payment-assistance/.
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THIS IS THE REASON WHY REFIS CONTINUE TO DOMINATE MORTGAGE APPS
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he last report of the Mortgage Bankers Association (MBA) in 2020 revealed that refinancing represented almost threequarters of application activity in the week ending on December 18, 2020, while purchase applications dropped. During the same period, MBA’s Market Composite Index which measures the volume of mortgage loan applications recorded a 0.8% increase on a seasonally adjusted basis from the previous week and was up by 1% on an adjusted basis. Moreover, the Refinance Index surged by 4% from the previous week and was 124% higher than the same time the previous year. Additionally, the refinance share of mortgage activity surged by 74.8% of total applications from 72.7% the previous week. On the other hand, the seasonally adjusted Purchase Index plunged by 5% from the previous week and
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was 7% lower when unadjusted. Purchase activity was also 26% higher than during the same week the previous year. “Mortgage rates are closing the year at record lows. The 30-year fixed-rate - at 2.86 percent - is a full percentage point below a year ago,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Last week’s increase in refinance applications was driven by FHA and VA activity, while conventional refinances saw a slight decline. Overall refinance activity was 124 percent higher than in 2019, as borrowers continue to seek lower monthly payments or different loan terms.”
“Purchase applications decreased for the second time in three weeks, as both conventional and government applications saw a drop-off. Despite the decline, purchase applications remained 26 percent higher than the same week a year ago, and the average loan balance reached another record high,” Joel says.
More people are opting to refinance for their homes due to the historically low mortgage rates. No one wants to be left behind from this once-in-alifetime opportunity.
“There are still signs of relative strength in the housing market as 2020 ends,” he adds. “However, housing affordability will be worth monitoring next year. The lower loan size
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In the same period, home prices and the average balance of all loans were surging. FHA share of total applications rose to 11.5% from 11% the previous week. The VA applications increased from 12.1% to 13.8%, while the USDA retained the previous week’s share of 0.4%. The average contract interest rate for 30-year-fixed rate mortgages (FRM) with balances not exceeding the conforming limit of $510,400 rose by 0.01% to 2.86%, with points remaining unchanged at 0.33%, while the effective rate was 2.95%. On the other hand, rates for jumbo 30-year FRM with balances above the conforming limit dropped by 0.02% to 3.10%, with points falling from 0.33 to 0.2 and the WWW.THEPOWERISNOW.COM
effective rate at 3.19%. For 30-year FRM insured by the FHA, the average rate was 2.90% with 0.32 points, representing a drop from 2.96% and 0.42 points the previous week. Elsewhere, 15-year FRM had average rate fell to 2.43% from 2.49% the previous week. Points dropped to 0.28 from 0.29, positioning the effective rate at 2.50%. For five and one adjustable-rate mortgages (ARMs), the rate rose to 2.71% from 2.58%, with points rising 0.36 to 0.48, putting the effective rate at 2.89%. On the other hand, ARM’s activity share surged to 1.9% from 1.8% of total applications.
Work cited. http://www.mortgagenewsdaily.com/12232020_applications_ forbearance.asp.
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segment of the market - particularly for entry-level and first-time buyers - continues to be impacted by rapidly increasing home prices and tight inventory.”
WHERE IS IT?
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alifornia has been the leading face for environmental regulations in the country. This state was the first to pass air pollution control policies and has continued to advance environmental regulations around air toxins, emissions controls, and water; this paved the way for further Federal regulations, which has preserved residents’ health for many decades. California continues to take it one step further by reducing greenhouse gas emotions before the deadline set for 2020. Although this state is one of the leading voices when addressing climate change issues, it has been quite unsuccessful in helping the local communities that are more affected by these environmental issues. In 2012, California passed Senate Bill 535, which directed that 25% of the proceeds made from the cap and trade program should be diverted to projects that would be advantageous to the communities most affected by the apparent lack of resources and pollution. Investment in these projects was supposed to be for the improvement of the public health, quality of life, and also to increase the economic opportunity in the most affected communities in California. The state hoped to achieve this while also reducing the pollution that led to climate change. Although all these promises sound good, the state has been quite slow to actually take action to the effect of this promise. After the bill was passed, it took five years before the list of communities that were eligible to benefit from these investments was released. These chosen communities were picked out with the use of empirical tools that took measurements of the level of pollution levels in each area in California. The socio-economic 120
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The main problem these communities face is that focus is being placed on measuring the level of pollution in the area. This is quite unnecessary as it is already clear that these communities have a high level of pollution. These communities really need adequate funding to efficiently fight pollution issues, and they are yet to receive the funding to begin this action. One step towards achieving this would be solving the issue of racial inequity. The census tract found that areas with Latinx residents were more polluted even after other factors like poverty, education, unemployment, housing costs have been adjusted. About 20% of the pollution burden can be predicted based on the number of Latinx residents in the area. This shows that there is an absolute lack of investment in Latinx neighborhoods. This is because the Latinx residents are underrepresented in the government, which has compounded their issues and continue to lead them to be exposed to pollution. CalEPA acknowledged in recent years the apparent impact of environmental pollution on colored Californians, but there is yet to be any real action being taken to fix this problem. While documenting this problem is a vital step, there is a need to take action and also seek investment in the community to help mitigate the harm that these communities face every day with every single breath of theirs. Reference https://www.calhealthreport.org/2020/12/15/communitiesof-color-are-supposed-to-be-getting-state-money-to-reducepollution-where-is-it/
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COMMUNITIES OF COLOR ARE MEANT TO BE GETTING MONEY TO REDUCE POLLUTION?
vulnerability of the population residing in the area was also noted before the list was released. Because of how long it took the state to choose these communities, many of them haven’t received any funding from the government that would help to combat the pollution issues in the community. San Ysidro is one of the neighborhoods that has been affected by climate changes; residents of this community continue to face high unemployment rates and housing issues. Air pollution is rampant in the area, and the state was ranked amongst the worst communities for auto-traffic pollution. Many organizations in San Ysidro are continually striving to fight the environmental issues, and one of these organizations received some funding from the cap and trade program to help fight the pollution in the area.
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CHILDREN’S HOSPITALS GRAPPLE WITH
WAVE OF MENTAL ILLNESS: Are We Doing Enough To Protect Our Children?
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he COVID-19 has affected the lives of people all around the globe. Restrictions and safety measures put in place to tamp down the spread of the virus have imposed a complete alteration of the psychosocial environment in the affected countries and has the potential of affecting the mental health of both adolescents and children. Although the isolation measures bring families opportunities to bond and also promote personal growth, there are disadvantages to these measures that might severely outweigh the benefits offered. Anxiety and the lack of physical peer contact could affect the lives of adolescents and children, especially those with existing mental issues or those who have disabilities or mental trauma.
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The endeavors being made by the government to curtail the virus included online learning for many children leading to the cancelation of extracurricular activities. This has taken a toll on many children who are struggling to cope with the present situation. Figures from the government show that the number of children brought to the hospital for mental health issues has significantly risen by 24%, and so has the number of preteens and youths, which is by 31%. Hospitals have also reported a rise in the number of depression and suicidal issues amongst children, especially those who attempt to overdose. These intensive mental health care issues only THE POWER IS NOW MAGAZINE | FEBRUARY 2021
Before the advent of the coronavirus, there were already millions of kids diagnosed with a mental health condition, and the forced isolation seem to cultivate loneliness and depression amongst these kids, which only adds to the difficulties already in play. Another psychologist, Terrie Andrews, who is the Administrator of behavioral health at Wolfson Children’s Hospital in Florida, states that although we are all social beings, teenagers are at a point where their peers are their grounding mechanism. When this is taken away from them, it could affect them in
many ways. The question then becomes if we’re doing enough to protect our children. A child’s mental health can get worse if there is family conflict, which is common during the pandemic due to the chaos. Many people are cut off from their peers, and families can no longer get away from each other as they are forced to isolate together. This can lead to an increased level of stress in situations that are already tensed. Although there is a need for distance, children still require a form of social interaction as it is part of their mental health care. Facilities should devise ways to do this while still keeping the children safe. One way to successfully achieve this is by creating smaller pods to be able to carry out group therapy. Children at the Cincinnati Children hospital are provided with toys that are wiped clean afterward to play with. The main cure
for this mental illness remains interaction; it works as much as a medication. Forming a therapeutic connection has become difficult with the need for masks, which makes it hard to judge a person’s emotions by reading their faces. Online meetings don’t work for most, as patients find it hard to build trust with therapists over the internet. There’s just a bond that can only be developed physically, which technology can never replace or offer to you. However, virtual platforms will have to work for now. Although being away from friends can be a tough adjustment, families would have to find an effective way to help their children adjust to the new lifestyle and also find ways to ease tensions at-home and keep up virtual communication with friends around the globe. Reference https://khn.org/news/article/childrenshospitals-grapple-withwave-ofmentalillness/
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serve to aggravate issues already plaguing the system. Some of these children can’t get a begin the psychiatric unit because the number of beds was reduced to still curtail the spread of the virus. Jason Willis, who is a psychologist, states that it won’t be long before a sort of tsunami heats the service system, which would be overwhelmed with the need for mental health care for kids. He empathizes that this might just be the tip of the iceberg.
"It's an honor and a privilege to serve as our country's 28th Secretary of Defense, and I'm especially proud to be the first African American to hold the position," Austin tweeted after his confirmation. "Let's get to work."
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he United States Senate confirmed Lloyd J. Austin III as the Defense Secretary on January 22. This puts the first Black American in charge of all military action of the Pentagon by a nearly unanimous vote of 93-2. Shortly after his 124
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confirmation, Lloyd was sworn in by Tom Muir, the acting director of Washington Headquarters Services. Austin in a tweet said that it was an “an honor and a privilege” to serve in his position as the defense secretary, noting that he was “especially proud” to be the first African American to hold such a position. The Pentagon reported that Austin, immediately after taking the office, assumed his roles and was part of an intelligence briefing and meetings with his Deputy, David Norquist, and the Joint Chiefs of Staff Chairman Gen. Mark Milley. THE POWER IS NOW MAGAZINE | FEBRUARY 2021
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LLOYD AUSTIN MAKES HISTORY AS THE FIRST AFRICAN AMERICAN DEFENSE SECRETARY IN U.S.
Mr. Lloyd, 67, will oversee 1.3 million active servicemen and women who make up the
national military. The approval by the senate meant a second cabinet official, and another crucial member of his national security team after Avril Haines was confirmed on Wednesday as the first woman to serve as the director of national intelligence. The Senate Armed Services Committee advanced Lloyd’s nomination while also approving a requisite waiver that was WWW.THEPOWERISNOW.COM
necessary due to a law requiring active-duty members to wait for at least 7 years before serving as defense secretary. Austin retired from active duty just 4 years ago and during Trump's tenure, Congress had to issue a waiver again for James Mattis in 2017. This made Senators hesitant to approve another waiver in such a short period of time. The Senate Majority Leader, Mitch McConnell said that the Senate should “pause and reflect” after giving waivers for both the presidents. "The law that we keep waiving actually exists for a good reason," McConnell said. "Civilian control of the military is a fundamental principle of our republic." Earlier, Lloyd had tried to stave off the tension during his confirmation hearing, "Let me say at the outset that I understand and respect the reservations some of you have expressed about having another recently retired general at the head of the Department of Defense," Austin stated. "The safety and security of our democracy demand competent civilian control of our armed forces, the subordination of military power to the civil.” This Austin said, while also noting that he would surround himself with well-abled peoples to make policy decisions.
KEY BACKGROUND
Lloyd culminated his career serving as the 12th Commander of the U.S. Central Command from 22nd March 2013 to 30th March 2016. He was responsible for military strategies and joint operations throughout the Middle East and Central Asia. Lloyd also served as the Combined Forces Commander,
where he oversaw the military campaign to defeat terrorist organization ISIL in Iraq and Syria. Lloyd is a native of Thomasville, Georgia. He attended the United States Military Academy at West Point, graduating in 1975 with a commission in Infantry. During his nearly 41 years in the Military, Lloyd has commanded units almost at every echelon, with notable duties in Panama, Iraq, Germany, Afghanistan, and in the United States. He also has the extraordinary distinction of having commanded troops in combat at the 1-, 2-, 3- and 4-star levels. After his first assignment with U.S. Army Europe, General Austin was assigned to the 82nd Airborne Division at Fort Bragg, N.C., where he commanded a company and served as an assistant brigade operations officer. General Austin then commanded the second company in Indianapolis, IN before earning a Master’s Degree from Auburn University and serving as a Company Tactical Officer at West Point. After that, he was assigned to the 10th Mountain Division at Fort Drum, NY where he served as Battalion operations officer and brigade executive officer. He later commanded 2nd Battalion, 505th Parachute Infantry Regiment, 82nd Airborne Division including deployment for Operation SAFE HAVEN in Panama. He returned to the 82nd Airborne Division and Fort Bragg where he served as the division operations officer and later commanded the 3rd Brigade. From July 2001 to June 2003, l
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General Austin served as the Assistant Division Commander for Maneuver for the 3rd Infantry Division, helping to spearhead the invasion into Iraq in March 2003. Under his leadership, the division conducted the historic maneuver from Kuwait to Baghdad and seized the capital city in a record 22 days. From September 2003 to August 2005, he served as the Commanding General, 10th Mountain Division including deployment and command of Combined Joint Task Force-180 in support of Operation ENDURING FREEDOM, Afghanistan. From February 2008 to August 2009, he served as the Commanding General, Multi-National Corps – Iraq (XVIIIth Airborne Corps) during the period when the surge forces were drawing down. Later, he served as the Commanding General, United States Force – Iraq, from September 2010 until December 2011, overseeing the responsible transition of all U.S. military forces and equipment out of the country by the December 2011 deadline. From February 2012 until March 2013, he was the Vice Chief of Staff of the Army. Other significant assignments include Chief, Joint Operations Division, J-3, Joint Staff (Pentagon); Chief of Staff, United States Central Command; and Director of the Joint Staff (Pentagon). Since retiring from active military service on 1 May 2016, General Austin founded and is the Owner and President of Austin Strategy Group, LLC. On June 8, 2016, he was elected to the United Technologies Corporation Board of Directors, effective September 1, 2016. He joined the Board of Directors of NUCOR Steel in September of 2017 and Tenet HealthCare in May of 2018. General Austin achieved a number of notable “firsts” over the course of his career. He was the first African American general officer to command a U.S. Army Division in combat (10th Mountain Division/ Combined Joint Task Force-180). He was the first African American general officer to lead a Corps in combat (XVIIIth Airborne Corps/Multi-National Corps-Iraq). He was the first African American general officer to command an entire theater of
war (U.S. Forces-Iraq). He was also the first African American to serve as the Vice Chief of Staff of the Army and as Commander of U.S. Central Command. He holds a Bachelor of Science degree from the U.S. Military Academy (USMA), a Master’s Degree in Education from Auburn University, and a Master’s Degree in Business Management from Webster University. He received the Lifetime Achievement Award from the Auburn University Alumni Association in 2012 and is a member of Auburn University Board of Trustees. He was recently named a USMA 2017 Distinguished Graduate Award recipient. He is also a member of the Carnegie Corporation of New York’s Board of Trustees.
FUTURE PLANS AS SECRETARY OF DEFENSE
The week to his confirmation, Austin appeared before the senate armed services committee and was asked how he would address right-wing extremism and white nationalism within the military, and in particular where officials investigate the involvement of current and former service members in the violent attack on the US Capitol. Austin said that he was committed to rooting out domestic extremism, telling the senators that: “The job of the Department of Defense is to keep America safe from our enemies. But we can’t do that if some of those enemies lie within our own ranks.” The president nominated Austin in order to help build the American legacy and to also restore relationships broken with allies during Trump’s administration. He is also expected to orient the defense department towards confronting threats that range from potential future pandemics to climate emergencies and refugee crises. “In my judgment, there is no question that he is the right person for this job at the right moment, leading the Department of Defense at this moment in our nation’s history,” Biden said as he announced his nomination of Austin for the role last month. He called Austin the “definition of duty, honor, and country” and a leader “feared by our adversaries, known and respected by our allies”.
Sources: https://www.theguardian.com/us-news/2021/jan/22/lloyd-austin-former-general-confirmed-biden-defense-secretary https://www.forbes.com/sites/tommybeer/2021/01/22/lloyd-austin-sworn-in-as-first-black-defense-secretary-in-us-history/?sh=5a16943c19cc https://edition.cnn.com/2021/01/22/politics/lloyd-austin-senate-vote-confirmation/index.html https://www.academyofdiplomacy.org/member/lloyd-austin/ https://www.latimes.com/politics/story/2021-01-22/senate-confirms-retired-gen-lloyd-j-austin-for-defense-secretary
CELEBRATING THE NATIONAL FREEDOM DAY IN AN AFRICAN AMERICAN STYLE pixabay.com
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National Freedom Day is a holiday in the US that was set aside to celebrate the freedom all Americans enjoy. More precisely, the holiday commemorates the day in 1865 when the then-president Abraham Lincoln signed what came to be the 13th Amendment which ended tradition of slavery. The holiday which is celebrated every February 1, remains unpopular among many Americans. How much do you know about this day? Let’s learn some history. American lobbyist, Richard R. Wright who is also a former slave, was 9 years old when President Lincoln signed the 13th Amendment. As a lobbyist, Richard believed that there should be a day when the freedom of all Americans should be celebrated, and more specifically the freedom of the African-Americans. Richard invited both national and local leaders to meet in Philadelphia to formulate plans to set aside February 1 of each year to commemorate the signing of the 13th Amendment on February 1, 1865. A year after Richard’s death in 1947, both houses of the US Congress passed a bill to make February 1 the National Freedom Day. The holiday proclamation was signed into law on June 30, 1948 by the thenPresident Harry Truman.
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WHY IS THE DAY IMPORTANT? National Freedom Day was established with the aim of promoting goodwill, fairness, and equality. February 1, 1865 marks the day when the Black community was recognized, granted freedom, and their dignity restored. Celebrating this day allows everyone to take a moment to appreciate all the freedoms we enjoy daily consequently putting a positive spin on one’s day. Recognizing the freedoms we have makes living in America a unique opportunity and a blessing. CELEBRATING THE NATIONAL FREEDOM DAY The day is marked with various festivals on different towns across the country. The tradition of wreath-laying at the Liberty Bell to celebrate the day has also been practiced for decades. But as we all know, this year is not business as usual. With covid-19 still in our midst, social distancing is important in fighting the pandemic. Therefore, it’s best to spend sometime with family and friends learning the history of the day. Also, remember to take some time to reflect on the freedoms that the US honors and appreciate the goodwill of the country.
Work cited. https://nationaltoday.com/national-freedom-day/.
THE BLACK HISTORY MONTH: REMEMBERING GONE HEROES ABRAHAM LINCOLN, MALCOLM X AND FREDERICK DOUGLASS
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he month of February marks America’s Black History Month, also known as African-American History Month. It’s as much about showcasing black history as it is about celebrating black excellence. It also marks a time for remembering, recognizing, and cementing the nation’s longstanding and under-represented black history, and a time to honor the role and achievement of the people of color. When it comes to pioneers in African-American history, some are pioneering heroes known to all for their great contributions, such as Abraham Lincoln, Malcom X, and Frederick Douglass.
Alice Coachman
Claudette Colvin
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Origin of the Black History Month. Black History Month wouldn’t exist if it were not for an individual known as Carter G. Woodson, the guy behind the Negro History Week in Washington D.C., in February 1926. Woodson was the second African-American after W.E.E Du Bois to receive a PhD in History from Harvard. To Woodson, black experience was too significant to be simply left to a small group of scholars. He believed that his role was to use black history and culture as a weapon in the struggle for racial equality. Woodson’s goals were to use history to prove to white America that blacks had played significant roles in the creation of America, and to increase visibility of black life and history at a time when very few newspapers, books and other materials recognized the black community without dwelling upon the negative. Woodson started by pushing for establishment of Negro History Week in 1926, which later came to be officially recognized as Black History Month in February 10, 1976 by the then-President Gerald Ford who called out upon people to “seize the opportunity to honor the too-often neglected accomplishments of black Americans in every area of endeavor throughout our history.”
HOW TO BEST HONOR BLACK HISTORY MONTH IN 2021 The best way to honor the Black History Month this is by simply getting to know more about the great black men and women. Let’s all shine a long overdue light to the unsung heroes and heroines who deserve to be honored for their contribution to the world as we know it today. Their selfless and tireless actions and accomplishments transformed the world in their time and beyond. For that, we deserve to know their names, their stories, and learn how they contributed to solving societal and political challenges and recognize the esteemed place they hold in not only black history, but general history. Like Morgan Freeman put it, “Black history is American History.” If you want to learn more about the major events that shaped Black history from the decision of 1857 through the civil rights movement and on to the death of Toni Morrison in 2019, here is a New York Times selection of articles and historic times front pages that you can use.
Work cited. https://www.history.com/topics/blackhistory/black-history-month. https://nmaahc.si.edu/blog-post/knowingpast-opens-door-future-continuingimportance-black-history-month. l
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However, black history was shaped by many more unsung heroes than we know. Do you know about Alice Coachman, Claudette Colvin, or Shirley Chisholm? If these names don’t immediately ring a bell, you’re not alone. History taught in American schools focuses mostly on Americentrism; therefore, the contributions of many great black people receive little or no recognition. But it’s up to you to find out about them.
HOME OWNERSHIP by Eric Lawrence Frazier MBA Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own. Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time. Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable. Real Estate you own is not like staying at your parents house where you know can’t stay forever. Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family. Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned. Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand. Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.
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It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections
Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire. It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it. It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time. It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.