The PIN Magazine December 2018

DECEMBER 2018 Vol. 05 | Issue 10

Success and Struggles since 1968 FHA

How Racism affects kids health

Jay Morrison CEO of Tulsa Real Estate Fund

HOME SECURE DOWN PAYMENT ASSISTANCE PROGRAM

Thousands of people each year dream of becoming homeowners. The Home Secure Down Payment Assistance Program may help that dream become reality.

• This homebuyer assistance program currently provides low to- moderate income families and individuals with a 3.5% Grant* that does not have to be repaid. The grant can be used towards down payment or closing costs. If their income exceeds 115% of the HUD Area Median Income then a silent second loan will be made instead of a grant that can be forgiven if payments on the 1st mortgage are made on time for 3 years. *Grant approval is determine by many factors including your FICO Score. Minimum FICO score is 620. Silent second loan forgiveness subject to 3 years of on time payments and other program guidelines/ limitations.

• Many times this allows homebuyers to purchase a home much sooner than they thought possible. The Home Secure DPA Program is available for the purchase of an owner-occupied single, duplex, triplex or fourplex family residence, approved condominium, or planned unit development located in the state of California.

• The program is available for purchases of both new and existing homes and is NOT limited to first-time homebuyers.

Contact me for more information: ERIC LAWRENCE FRAZIER MBA CA DRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com Email: eric.frazier@thepowerisnow.com Mobile: (714) 361-2105 | Office: (800) 401-8994 ext. 703 The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Department of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Department of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Department of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

HAVE YOU READ OUR PAST ISSUES YET? the power is now

magazine THE POWER IS NOW INC. Vol. 05 | Issue 10

Eric Lawrence Frazier, MBA President and CEO Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 eric.frazier@thepowerisnow.com www.thepowerisnow.com www.blogtalkradio.com/thepowerisnow

EDITORIAL TEAM

Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Daniel Mungai Managing Editor (800) 401-8994 ext. 707 daniel.george@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com

CONTRIBUTORS The Power Is Now Research Team

The Power Is Now Magazine

December 2018

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HEADQUARTERS The Power Is Now Inc. 3739 6th Street Riverside, CA 92501 Ph: (800) 401-8994 | Fax: (800) 401-8994 info@thepowerisnow.com www.thepowerisnow.com www.thepinmagazine.com

the power is now

magazine STATEMENT OF COPYRIGHT: The PIN Magazine™ is owned and published electronically by The Power Is Now, Inc. Copyright 2013-2018 The Power Is Now Inc. All rights reserved.

“The PIN Magazine” and distinctive logo are trademarks owned by The Power Is Now, Inc. “ThePINMagazine.com”, is a trademark of The Power Is Now, Inc. “Magazine.thepowerisnow.com”, is a trademark of The Power Is Now, Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now, Inc. Requests for permission should be directed to: info@thepowerisnow.com

the power is now

magazine

table of contents mortgage if you are self-

12.

The Power Is Now wishes you happy holidays and a prosperous 2019

employed

14.

Home prices rise modestly as more homes hit the Bay Area

18.

Californians reject Prop 10 in November ballot

20.

“Segregation Tax” is black American home owners $156 Billion

24.

A new dawn for buyers in Southern California

26.

Idora Park: Oakland, California

30.

Experian, FICO and Finicity to launch the new Ultra FICO Credit Score

34.

Jay Morrison, CEO of Tulsa Real Estate Fund

38.

Learn how you can get

The Power Is Now Magazine

42.

Another record low

unemployment rate in California

46. Bay Area named as the hardest working in America

50.

What fire evacuations mean

for a state that’s already facing a housingn crisis?

58.

New law does little to

guarantee support to discharged homeless people

64.

What A.I. hods for the

future?

72.

Achieving financial security

despite increased longevity December 2018

6

Editor’s Letter

D

ear esteemed readers

At the end of each year, I always like to reflect and give thanks for the amazing people around me. I built this business after seeing the lack of homeownership amongst minorities, and I am over the moon to see that my resources and services have helped so many people realize their dream of becoming a homeowner in 2018.

The Power Is Now real estate magazine is not just your average magazine. It’s an educational tool to help and support you as you face the market head on. As we enter 2019, I challenge everyone to live your best life and pursue your life’s passion –this is not a dress rehearsal.

One of our ongoing goals here at The Power Is Now is to make the homeownership dream a reality for you and your clients. If you haven’t signed up for any of our many homebuyers’ workshops, you are missing a lot. I created these workshops with homebuyers in mind. At each event, you will learn a lot of valuable information including the down payment assistance program, building credit, and budgeting. In the last 10 years, rents have been on the rise, which means it is the time to own a home. It’s time to take action, because The Power Is Now. I am excited to bring you another issue of the TPIN national magazine, in which we address all matters real estate, economy, mortgage, and lending. This is where we cover every detail without leaving anything out. On our cover this month, we feature Jay Morrison, the CEO of Tulsa Real Estate Fund, which is the first African Americanowned crowdfunding platform for revitalizing urban communities. Jay Morrison is a successful real estate broker and a key influence for young people.

Inside, we touch on the new FICO credit scoring system coming in 2019. The Ultra FICO model allows the consumer to be in control of their credit report by allowing you

The Power Is Now Magazine

December 2018

8

to link to your checking, saving, or money market accounts. You can find further information inside the magazine, as well as the benefits and the risks of this model.

We also delve into the results of Proposition 10, an initiative to curb the rapid increase of rent in California. Last but not least, learn how you can get a mortgage – even if you are self-employed.

There is a little bit of everything in this issue that will entertain, educate, and help you get on the road to success as an individual, agent, or broker.

I am exited about our realtor seminar at Ivar on December 6. This will be a two-session event. The first session will be led by msyelf, Eric Lawrence Frazier. I will go into detail and provide actual steps on how to close more deals with low to no money down. In the second session, Jamar James “the Digital Currency Guy” will hold a presentation about Bitcoin and its impact on real estate. This is an event that you do not want to miss. Come learn and enjoy.

The Power Is Now thanks you for your continued support and readership. Take a moment to share this magazine, because there is power in knowledge, and The Power Is Now. Have a prosperous month.

Eric Lawrence Frazier, MBA CEO The Power Is Now Inc.

Access The Power Is Now, Inc, Anytime, Any Place

Facebook @thepowerisnow

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Linkedin @thepowerisnow

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9

NEW MARKETING SESSIONS

Your voice is your brand!

Increase lead generation, and give you the POWER to close more deals!

Every Thursday 12:30 PM - 1:30 PM

Promote Your Listings Online

• Streamed live on Facebook, and are • These sessions provide real estate agents rebroadcast on BlogTalkRadio which is and brokers a powerful marketing syndicated to iTunes, TuneIn and many opportunity to access The Power Is Now other online radio platforms. During the Network of Agents nationwide and our show each agent and their listings are audience of prospective buyers and sellers featured for approximately five minutes that is 1 million strong and growing. to discuss why buyers should consider buying their listing(s). In addition, each agent will be given a post-show opportunity to launch a customized marketing campaign to get additional exposure.

ERIC LAWRENCE FRAZIER MBA CalDRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243

Mobile: (714) 361-2105 Office: (800) 401-8994 ext. 703 Email: eric.frazier@thepowerisnow.com Website: www.thepowerisnow.com

FEATURED STORY

The Power Is Now wishes you happy holidays and a prosperous 2019

H

APPY NEW YEAR’S!! We hope you have a wonderful holiday season, and we wish you a prosperous New Year’s. We have been busy the last few months preparing the monthly The Power Is Now magazine issue and keeping current with the real estate market changes that will affect the whole industry.

It is that time of the year again when most people are making preparations for celebrating their holiday. This is the time of the year when our inbox is filled with wishes and cheer from designers, galleries, museums, publishers, organizations, family, and friends from around the world.

It’s been a long, wonderful, and exciting year. We all have something to tell people around us and a lot of love and happiness to share with one another. It gets really exciting when people or loved ones around us send holiday greetings.

The Power Is Now celebrates with you on this wonderful and exciting holiday. As the holiday season begins to pile up with joy, happiness, and gifts, we pray you find fulfillment in your endeavors! Best wishes to you and everything you plan to do for the holiday and New Year’s.

You’ve been an amazing and wonderful audience and family.

Thank you for all the things that you have contributed to The Power Is Now. We hope that the holidays will bring you the kind of happiness that you deserve!

Don’t look now, but 2018 is quickly drawing to a close. It has been a very good year for the real estate industry in

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December 2018

12

California, and 2019 has the potential to be even better. We continue to expand our programs to provide useful information and real estate industry insight to our readers.

We look forward to keeping you informed on an ongoing basis, ensuring you are up-to-date on any new changes and services, and serving your financial needs in the coming year. We are looking forward to the challenges ahead in 2019, and we will have your back when it comes to real estate and financial matters, providing the best programs and services, and the best magazine and blog talk radio to our readers.

home is still the biggest part of the American Dream, but that it’s getting much harder for people who don’t already own a home or are first-time homebuyers. We are grateful we have the opportunity and privilege to partner with you to help you make it happen in the best possible way.

Our team sends holiday greetings to you and your family.

May your season be as meaningful to you as your continued patronage is to The Power Is Now. Wishing you a festive season and a happy, healthy, and prosperous New Year’s.

We are thankful for being able to represent our great community and industry in California.

Surveys find that owning a

www.thepinmagazine.com

13

REAL ESTATE MARKET INSIGHTS

Home prices rise modestly as more homes hit the bay area

F

or years, the Bay Area has been synonymous with overheated markets.

Driven by high salaries, an influx of employees in Silicon Valley and a lack of housing options, the nine-county area has seen home prices skyrocket far above the national average.

According to Business Insider, in June 2018 the median price for a home reached $900,000, meaning that an average family needs to make at least $187,000 a year to be able to afford to live in San Francisco. However, during the second half of this year, the Bay Area has experienced the biggest change in recent years, as home prices appear to be finally slowing down, sales start to drop, and inventory increases.

According to a CoreLogic report, sales for new and existing units decreased dramatically in northern California. Compared to September 2017, home sales dropped 19%, making this the slowest September in the last 11 years.

The Power Is Now Magazine

December 2018

Following the trends that started midsummer, September saw a slight decrease in home prices compared to the previous month.

CoreLogic also reported that the median price for new or existing condominiums in the Bay Area reached $815,000. While still a 9.3% increase from September 2017, it represents a decrease of 1.8% from the previous month.

It is the smallest increase in home prices since June 2017, when they rose 9.2%. The figure becomes more dramatic by comparing it to September 2017, when home prices had increased by 13.7 % from the previous year.

It seems that a combination of a high interest rate, high home prices, and higher home inventory has made it difficult for some buyers to make offers. Andrew LePage, chief analyst from CoreLogic, confirms: “Job growth and demographic trends have created plenty of housing demand, but the combination of higher home prices and increasing mortgage rates have priced out some buyers and prompted others to take a wait-and-see stance.�

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This is more evident in well-known hot markets, where the new buyers’ attitude is reflected in the influx of new home inventory.

While autumn traditionally sees an increase in supply, this year, there are more homes hitting the market than previously. According to a report published by Compass, a real estate brokerage firm, San Francisco saw a 28% increase in new listings compared to last year – the highest increase since 2014.

Another remarkable sign that the market is cooling down is the number of properties that have experienced price cuts. The same Compass report showed that price reduction jumped 37% compared to last year, and 18% compared to September 2016.

As the year draws to an end, there are more signs of change in the Bay Area real estate market. Buyers are less willing to pay for the astonishing prices found around Silicon Valley, and sellers have begun to adjust. The third and fourth quarter of the year typically sees price reductions and a slowdown in sales, though it remains to be seen if the trend will continue. For the moment, the market is heading to a more balanced scenario.

www.thepinmagazine.com

References: Cheng, J., Garfield, L. (2018, Jun. 8). “The income needed to afford a median-priced home in every San Francisco Bay Area county”. Business Insider. Retrieved form ttps://www.businessinsider.com/san-franciscobay-area-what-it-costs-to-live-2018-6 Olick, D. (2018, Oct 31). “San Francisco Bay area home sales suffer their slowest September in 11 years.” CNBC. Retrieved from https://www.cnbc.com/2018/10/31/sanfrancisco-area-home-sales-suffer-slowest-septemberin-11-years.html Lepage, A. (2018, Nov. 2). “California Home Sales Lowest for a September in 11 Years”. CoreLogic. Retrieved from https://www.corelogic.com/blog/2018/11/california-home-sales-lowest-for-a-september-in-11-years. aspx Pender, K. (2018, Oct 31). “Amid surge in inventory, Bay Area home prices rise more modestly”. San Francisco Chronicle. Retrieved from https://www.sfchronicle.com/ business/networth/article/Amid-surge-in-inventoryBay-Area-home-prices-13352027.php Coldwell Banker (2018, Nov 5) “Bay Area Home Sales Information”. Coldwell Bankerhttps://www.coldwellbanker.com/Coldwell-Banker-Brokers-of-the-Valley11107c/Avi-Strugo-426373a/blog/news-trends-10/bayarea-home-sales-information-1-12158 https://www.bayareamarketreports.com/trend/sanfrancisco-home-prices-market-trends-news

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DECEMBER

6

realtor seminar

3690 Elizabeth St. Riverside, CA 92506 Ph: 951-684-1221 | Fax: 951-684-0450 www.ivaor.com

Breakfast and Registration 8:45 to 9:15 AM

SESSION I 9:15 - 10:00 ERIC LAWRENCE FRAZIER, MBA, PRESIDENT THE POWER IS NOW INC.

SESSION II 10:00 - 10:45 JAMAR JAMES, PRESIDENT DIGITAL CURRENCY GUY

CLOSE MORE DEALS WITH LOW TO NO MONEY DOWN !

BITCOIN AND ITS IMPACT ON REAL ESTATE

In this session you will learn:

• • • • • • • • •

Fannie Mae and Freddie Mac First Time Homebuyer Programs How and why to finance a four-unit property with only 3.5% to 15% down HUD Approved DPA Programs - Zero Down Payment with 3.5% to 4.5% Grant CalHFA Zero Down Payment Assistance Programs 5% down to 1.5 million Non-Prime Loans No Tax Returns 10% down to 2.5 million Non-Prime Loans No Tax Returns ATR (Ability to Repay) Loans - No Income Documentation to 75% LTV Private Equity Loans for Investors to purchase or refinance One Time Close Construction Loans - FHA, VA, USDA

In this session you will learn:

• • • • •

Cash to Crypto, How, Where, and With Whom To Buy Bitcoin Bitcoin and how it is going to impact real estate?

The Process of Buying and Selling Real Estate With Crypto Currency Make Additional Income With Crypto Currency?

How To Attract More Home Buyers and Home Sellers Marketing Crypto Currency

CLICK HERE TO REGISTER ONLINE or go to THEPOWERISNOW.COM/REALTORSEMINARS/

ERIC LAWRENCE FRAZIER MBA

JAMAR JAMES

President and CEO CalDRE#01143484 | NMLS#461807 Office: 800-401-8994 x 703 Email: eric.frazier@thepowerisnow.com Website: www.thepowerisnow.com

DigitalCurrencyGuy.com TheMet - Suite 150 -1st Floor 555 Anton Blvd, Costa Mesa, Ca 92626

The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states.

The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

WANT TO BUY OR SELL?

IF YOU WANT A REALTOR WHO WILL GO ABOVE AND BEYOND FOR YOU WHETHER YOU’RE A BUYER OR SELLER LOOK NO FURTHER. I WORK HARD SO YOU DON’T HAVE TO!

Alexandra Trefry

REALTOR BRE # 01987453 (800) 401-8994 x 753 (707) 494-2028 alexandra.trefry@thepowerisnow.com

w w w . t h e p o w e r i s no w . c o m

REAL ESTATE MARKET INSIGHTS

Californians reject Prop 10

in November Ballot

W

hile home affordability remains an important issue across the U.S., no other state faces a worse situation than California. The Golden State is infamous for high rents, skyrocketing home prices and a large homeless population. In fact, according to an article published in Mercury News, the number of people living on the streets rose 13.7 percent from 2016 to 2017 – approximately 134,000 people Data from the Harvard Joint Center for Housing Studies shows that nearly 29% of Californians are severely burdened by The Power Is Now Magazine

December 2018

housing costs, meaning that they spend more than 50 percent of their income on living expenses. As an attempt to solve this problem, a rent control initiative was proposed on the November 2018 ballot; however, citizens voted heavily against it.

The controversial Local Rent Control Initiative, also known as Proposition 10, was rejected by 60% of voters in early November. Proposition 10 sought to repeal the 1995 Costa-Hawkins Rental Housing Act, which limits the power of cities to impose rental caps. The act enables landlords to raise the rent to market price for new residents, prevents cities from setting rental regulations to home units built after 1995, and frees single-family units and condos from rent control measures.

The campaign was marked as one of the most expensive in state history, as more 18

than $100 million was raised between opponents and those in favor.

Most of the opposition came from real estate associations, with The California Association of Realtors being the largest single donor of the $75 million raised by opponents to the initiative. They argued that instead of alleviating the housing situation, Prop. 10 would have worsened it.

According to UC Berkley professor Kenneth T. Rosen, rent control measures discourage landowners from renting their properties, and encourage the conversion of housing buildings into commercial use projects.

He also argues that rent control reduces the number of new construction projects and deepens the scarcity of inventory. According to Rosen, developers build apartment units expecting a profit, as they are responsible to their lenders and shareholders. Unlimited rent control means that developers may not be able to repay their loans; therefore, they will limit their projects to more profitable markets.

As Tom Bannon, CEO of the California Apartment Association, added, “The stunning margin of victory shows California voters clearly understood the negative impacts Prop. 10 would have on the availability of affordable and middle-class housing in our state.”

Supporters of the initiative included the AIDS Healthcare Foundation, a nonprofit organization, which contributed www.thepinmagazine.com

$23.2 million to the campaign.

Supporters of the failed proposition argue that the Costa-Hawkings Act has failed to address the issues of home affordability, and may have even worsened the situation.

For instance, Paola MartinezMontes, director of the Alliance of Californians for Community Empowerment, explained that around 82% of rent-controlled apartments in Santa Monica were affordable to low income families before the 1995 act was passed; only 14% remain affordable today.

This situation has not escaped the attention of local politicians. The new governor of California, Gavin Newsom, agrees that the state needs to solve the housing crisis. During his campaign, he promised the construction of 3.5 million new homes by 2025. As published in Los Angeles Curbed, Mr. Newsom expects to accomplish this goal by increasing tax credits to affordable housing developments and by backing propositions that are meant to finance housing construction. He also promised to hold cities that do not meet their construction quotas accountable.

While Prop. 10 was defeated in the polls, affordability remains a huge state issue. Although recent numbers suggest that market growth is slowing down and prices are stabilizing, homes and rent continue to be unaffordable for the ma jority of Californians. As rent control is not a feasible solution for the crisis, the only solution is the joint effort of state and

private companies to construct affordable housing.

Sources: Hill, A. (2018, September 9). “Housing, Homelessness and the California.”

Mercury News Retrieved form https:// www.mercurynews.com/2018/09/09/ housing-homelessness-and-thecalifornia-dream/ Harvard Joint Center for Housing Studies (2018) “Renter Cost Burdens, States”. Harvard University. Retrieved from http://www.jchs.harvard.edu/ ARH_2017_cost_burdens_by_state_ total Chiland, E. (2018, August 7) “Costa Hawkins, California’s rent control law, explained.” Los Angeles Curbed.

Retrieved from https://la.curbed. com/2018/1/12/16883276/rent-controlcalifornia-costa-hawkins-explained Associated Press (2018, November 6) “California Voters Reject Rent Control Expansion Measure.” Fox 40. Retrieved from https://fox40.com/2018/11/06/ california-voters-reject-rent-controlexpansion-measure/ Rosen, K. T. (2018) The Case for Preserving Costa-Hawkins: Three Ways Rent Control Reduces the Supply of Rental Housing. UC Berkeley. Fisher Center Working Papers.

Dillion, L. (2018, November 06) “2Voters reject Proposition 10, halting effort to expand rent control across the state”. Los Angeles Times.

Retrieved from https://www.latimes. com/politics/la-pol-ca-proposition-10rent-control-20181106-story.html Chiland, E. (2018, November 8) “California’s next governor wants to build 3.5 million new homes by 2025.” Los Angeles Curbed.

Retrieved from https://la.curbed. com/2018/11/8/18073066/californiagovernor-election-gavin-newsomhousing-plan

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REAL ESTATE MARKET INSIGHTS

A

recent Brookings/ Gallup study reveals residential property in predominantly-black neighborhoods is constantly undervalued.

For black American homeowners, owning a home rarely happens without the added hurdles; a fact they’ve long learned to live with. But there’s even more; having their investments in residential property undervalued time and again according to a new joint study from Brookings Institution and Gallup, is another fact they have to grow accustomed to.

“The devaluation of assets in black neighborhood: The case of residential property,” reports that homes occupied by owners are undervalued by the real estate market throughout predominantly black communities, and are also frequently sold or valued at lower prices, at an average of $48,000 per home. This amounts to $156 billion in

aggregate losses, what the report refers to as “segregation tax”.

Additionally, in predominantlyblack neighborhoods, homes of similar values and features were undervalued 23% less than those with a small population of black residents or no blacks at all. According to the researchers, although some ma jority black neighborhoods in their study showed classic features associated with lower property values, including higher crime rates, lengthier commute time, lesser access to better-scoring schools and highly-rated restaurants, their analysis reveals that the above factors only partially explain the undervaluation.

Even when it is taken into cognizance that housing stock in predominantly black communities are often older and with less space or fewer bedrooms than similar homes in the same market, it still does not account for the margin in housing values.

‘Segregation tax’ is costing black American homeowners $156 billion The Power Is Now Magazine

December 2018

“We believe anti-black bias is the reason this undervaluation happens, and we hope to better understand the precise beliefs and behaviors that drive this process in future research,” states the study.

Using the 2016 American Community Survey and Zillow, researchers Andre Perry, Jonathan Rothwell, and David Harshbarger determined and valued neighborhood demographics and property for the 119 metropolitan areas with predominantly black neighborhoods.

Expectedly, the systemic devaluation leaves black families considerably disadvantaged at wealth accumulation, leading to 20

challenges with paying for education, starting businesses or even retirement.

The report also discovered that communities with greater devaluation are segregated more and less upward mobility was provided for black children. On the other hand, black children born to low earning families had better incomes if they were raised in an area where black homeowners had theirs valued as every other and in line with the set market value.

Communities also pay the price.

Predominantly black neighborhoods consist of $609 billion in owner-occupied properties, 10,000 public schools, and over 3 million businesses across the nation. Communities are further penalized by the devaluation of these assets, as these businesses often make up the tax base for funding and sustaining local education and infrastructure.

Findings from this study highlights the effects of positioning U.S housing policies to favor www.thepinmagazine.com

homeownership and advocate the singlefamily home as a tool for creating wealth and strong families. Combined with a history of racist and exclusionary policies, redlining and housing covenants included, this policy choice has resulted in a significant disparity in homeownership between white and black Americans, and a wealth gap and shutting out black families from achieving a substantial long-term source of wealth creation.

Today, fifty years after the historic 1968 Fair Housing Act, from which the systemic civil and economic injustice was supposed to have been corrected, Fair Housing Act has failed. The gap has grown even wider, with only 42.3 percent of black Americans able to own homes and the wealth gap is so large that it appears that economic and wealth equality may never be full realized or achieved by African Americans. The American dream of homeownership is not the African American dream.

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Linda Larson Cal BRE # 01183012

Real estate Agent

Realtor | Clearlake O: 800-401-8994 x 7202 D: 707-257-1288 danon.burnside@thepowerisnow.com www.thepowerisnow.com www.applytobuynow.com

REAL ESTATE MARKET INSIGHTS

A New Dawn for Buyers in Southern California another home price boom is cooling down

A

fter years of steady home price increases, almost every market in the U.S. has experienced a slowdown. This is especially true in California, where a market shift seems to be happening. While the biggest media coverage has been given to the Bay Area – home of the hottest real estate markets in the U.S. since 2012 – Los Angeles county, Orange county, and Riverside county have also experienced a significant drop in home prices and sales.

The market was hit hard this year in comparison with September 2017. According to data collected by CoreLogic, Southern California experienced a 17.7% drop in home sales, making this September the slowest one in the last decade. Even considering that this September had less one business day, the drop would still

The Power Is Now Magazine

December 2018

be a considerable 15% .

The drop was also significant between August and September. The same data shows that prices came down 22% month over month, when prices typically fall just 10%. This represents the largest decrease in the last 8 years.

The trend carried over to October 2018, as the California Association of Realtors reported a drop in home sales for the sixth consecutive month. The area around the Los Angeles metro region fell on average 7.8%. The worst hit areas were the Orange, San Bernardino, and San Diego counties, which saw double-digit declines. For example, Orange county is reported to have experienced a drop of 11.3% from last year, while San Bernardino and San Diego experienced 11.4% and 13.2% drops, respectively. Los Angeles

24

county fell 6.4%, while Riverside experienced a 2.9% drop.

sales. As Steve White, president of the California

There was also an increase in home listings in comparison to last year. ReportsOnHousing, which tracks homebuyer activity in four counties in Southern California, recorded an increase of 28% (8,380) more home listings compared to September 2017.

are predicted to temper next year, interest rates

Association of Realtors, said: “While home prices will likely rise and compound housing affordability issues.”

Since new housing cannot account for the number of listings, one explanation comes from the fact that homes are taking longer to sell. For instance, homes in Los Angeles County are taking 37 days longer to sell compared the previous year. Likewise, Orange County saw an increase of 40% in home supply, causing homes to stay in escrow for 46 more days, for a total 111 days.

Home prices continue to rise – although more moderately. For instance, Southern California saw home prices climb 3.6% on average from last year. According to CoreLogic, the median home in Orange County reached $740,000 in September, a 4.2% jump from last year. Likewise, Riverside saw an 8.1% increase, while Los Angeles and San Diego experienced a rise of 3.5% and 7.5%, respectively.

Moreover, the California Association of Realtors predicts that home prices will continue to increase, albeit at a slower pace. They forecast that prices will rise by 3.1% next year across the state. In 2017, home prices rose 7%. These numbers show that a transition to a buyers’ market is taking place.

Resources https://www.corelogic.com/blog/2018/11/california-home-

Some warn that rising mortgage interest will continue to contribute to lack of affordability and low home sales. The association predicts that the mortgage rate for 30-year loans could increase to 5.2%, thus constraining already tight buyer’s pockets.

sales-lowest-for-a-september-in-11-years.aspx

At present, homebuyers are paying 14.2% more for their monthly payments compared to a year ago, and any further increase in mortgage and interest rates will likely reduce the number of

housing-cools-as-existing-supply-surges-28-homes-sit-for-

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https://www.cnbc.com/2018/10/30/southern-californiasuffers-its-worst-housing-slump-in-over-a-decade.html https://www.car.org/aboutus/mediacenter/ newsreleases/2018releases/oct2018sales https://www.ocregister.com/2018/10/22/southern-california6-extra-weeks/ https://www.dailybulletin.com/2018/10/30/home-salesstall-dropping-18-in-southern-california/

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REAL ESTATE MARKET INSIGHTS

IDORA PARK OAKLAND, CALIFORNIA

IDORA PARK N Oakland, California

Sylvia Young Realtor CALDRE # 01039092

The Power Is Now Magazine

December 2018

estled in a 17.5 acre square bound by 56th St., to the south, 58th St., to the north, Shattuck Ave., to the west and Telegraph Ave., to the east, sits the idyllic enclave of Idora Park.

This coveted North Oakland neighborhood, on the Berkeley border, is a mixture of circa 1920’s, 2 to 4 bedroom Spanish-Mediterranean and Tudor architectural style homes. Ranging from approximately 1,300 to over 2,000 square feet of living space, average sales price of these homes are $1,068,000.00, with an average of 20 days on the market. Adding to the neighborhoods charm is the fact that the power lines are buried underground illuminating the historic street lights from a bygone era. Five of the neighborhood’s homes are owned by a retired professional athlete.

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History For 26-years, from 1903 to 1929, Idora Park, was a trolley park that evolved from a rural setting for Sunday picnics, to one of the finest amusement parks in the San Francisco Bay Area.

Constructed in 1903 on the north shores of Temescal Creek in Ayala Park, Idora Park was a walled-in park that was leased by the Ingersoll Pleasure and Amusement Park Company.

Rodney Ingersoll erected the first ride there, known as a figure eight sky railway on the site in 1903. The park was famous for its Opera house.

Rides and other attractions were somewhat of an afterthought. The park had a zoo, an ostrich farm, animal shows, a dance hall, racetrack, an outdoor amphitheater, a Japanese garden, bear grotto, a main street called the Glad Way, penny arcade, photo gallery, shooting gallery, and 21 rides, including 5 wooden roller coasters. All of the coasters got bigger and faster as the years progressed.

In 1904, a 3000 seat a ballpark, with a double deck grandstand, was erected. The park had the largest roller skating rink west of Chicago. One of the park’s slide rides, Mountain Slide, sported a firework volcanic display on Saturday nights, as a grand finale to the park’s close. Admission to the park was 10¢. Rides cost 5 cents. Many of the rides were advertised as being the “largest” or the “first.” The park was open for 30 or more weeks per year.

After the 1906 San Francisco earthquake, food and relief supplies were provided and more than 2,500 displaced people found shelter in Idora Park. In 1919, after Oakland’s 159th Regiment returned from France, the park was opened to the fighting men at no charge.

Demise Popularity of the park declined and was eclipsed by the rise of the automobile and Neptune Beach in nearby Alameda. In 1929, Idora Park was razed.

After the depression, a variety of small storybook

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houses and worker housing apartment blocks were eventually constructed on the 17-acre site.

Today With a Walkscore of 90, and a Bikescore of 96, Idora Park’s proximity to Berkeley, Highway 24, and public transportation, makes it a highly sought after neighborhood in which to live.

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Please call for more details: ERIC LAWRENCE FRAZIER, MBA President & CEO Direct: (714) 475-8629 Office: (800) 401-8994 ext. 701 eric.frazier@thepowerisnow.com www.thepowerisnow.com The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender. Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

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STILL

LOOKING LET ME HELP YOU

BUY OR SELL!

SYLVIA YOUNG BROKER DRE # 01039092 O: (800) 401-8994 X 734 | D: (510) 821-2599 SYLVIA.YOUNG@THEPOWERISNOW.COM WWW.THEPOWERISNOW.COM

MORTGAGE MARKET

Experian, FICO, and Finicity to Launch the New Ultra FICO Credit Score

The new credit score is said to bring improved access to credit, giving the consumer more control, more flexibility, and more convenience in the credit scoring process. Lenders and FinTechs are set to pilot the program.

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ost Americans have been subjected to the FICO credit scoring system for a measure of their creditworthiness. The score has traditionally been calculated based solely on information from a person’s credit report. The precise calculation of the credit score has always been withheld by the credit reporting companies to protect against people manipulating the data.

FICO recognizes that there is more to creditworthiness than just what appears on a credit report. Thus, in collaboration with Experian and Finicity, FICO has devised a new scoring system that will help individuals build credit for the first time, or even to improve their ability to obtain credit, regardless of their credit history.

The Power Is Now Magazine

December 2018

Introducing the Ultra FICO score The new score leverages account aggregation technology and distribution capability from Experian and Finicity to help improves consumers’ access to credit by tapping into consumer-contributed data, such as checking, savings, and money market account data, that reflects responsible financial management activity.

With the Ultra FICO score, information about your personal finances can become a part of your credit score.

Maintaining a good balance in your bank accounts, having a longstanding history with a bank or a credit union, and maintaining a savings or money

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market account can boost your Ultra FICO score. The score also takes into consideration monthly bill payments for utilities, cellphones, and other minor bills that do not show up on credit reports.

Credit Access made easy with Ultra FICO Experian, FICO and Finicity estimate Experian, FICO, and Finicity estimate that the new score has the potential to improve credit access for the ma jority of Americans. It will become mostly relevant for people falling in the fair or poor credit score categories (scores in the upper 500s to lower 600s). Also, consumers who are relatively new to credit with a limited history or people with previous financial distress stand to benefit the most from Ultra FICO. “This changes the whole dynamic of the lender and customer relationship,” said Jim Wehmann, executive vice president, Scores, at FICO. “It empowers consumers to have greater control over the information that is being used in making credit risk decisions. It also enables a deeper dialogue between the consumer and lenders to help both parties make better financial decisions.

It’s a game changer.”

The program will launch as a pilot program in early 2019. This phase is designed to validate the score and assess the willingness of consumers to share financial data for a potentially higher score. Participants in this pilot program were sourced from across various lines of businesses. The model

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developed by FICO will be implemented through Experian and integrated into a lender’s existing operational workflow.

On the other hand, borrower data will be integrated with Finicity. The Ultra FICO score builds off of the framework of the base FICO score and is designed to reflect the same odds-to-score relationship so that the new score can be easily integrated into the lending strategies and origination/account management systems. The developers speculate that the Ultra FICO score will be broadly available to lenders by mid-2019.

“This approach allows Americans to benefit from positive financial behaviors,” said Steve Smith, CEO, Finicity. “We are proud to have created a new way for consumers to share financial information safely and securely so that a new Ultra FICO Score can be created.”

The need to change the FICO score The FICO score recognizes that the people who are just starting out may not have anything on their report, meaning they do not have a credit score. This makes it very difficult for them to obtain a new line of credit.

The Ultra Fico recognizes that many people make wise decisions with their banking and monthly bill payments, and that those decisions should be rewarded.

FICO estimates that the new Ultra FICO scoring system will give credit scores to about 15 million consumers who do not currently have any rating

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at all. It is estimated that about 70% of consumers with a good banking history, on-time monthly payments, and no negative balances in the last three months will see an improvement in their score.

Ultra Fico and your Credit Report The score will not be visible as a part of your credit report. The information used to calculate the Ultra FICO score is not the information that is reported to the credit bureaus. If the lender uses the Ultra FICO scoring system, they will be able to see the adjusted score that accounts for these new measures.

Note that FICOs score will still be partially based on credit reports.

However, factoring in the new information from bank and utility payments, original FICO credit scores may be significantly boosted. However, if your balances reflect negative activity, this may decrease your score.

a depository of information, more like a consumer reporting agency, bringing forth stringent regulation from FCRA, FACT, ACT and many others. There is also a huge possibility that FICO could be sued for discrimination, because it is one thing to match the size of a loan to someone’s financial capabilities, and another thing to imply that someone with a small savings account is somehow less creditworthy. Going from an algorithm-based system to a big data analytics company may prove to be a risky move in the long run.

conclusion This new score may cause frustration to lenders; there is a high possibility of a stream of litigations waiting ahead.

The request for data is blurring the lines between the perceived “risk� model and lender underwriting. FICO is taking a huge step towards becoming

The Power Is Now Magazine

December 2018

References: https://www.fico.com/ultrafico/ https://www.igrad.com/articles/how-the-newultra-fico-score-could-affect-you h t t p s : // w w w. e x p e r i a n p l c . c o m / m e d i a / news/2018/experian-fico-and-finicity-launchnew-ultra-fico-credit-score/

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ON THE COVER:

JAY MORRISON

JAY MORRISON

CEO OF TULSA REAL ESTATE FUND

J

ay Morrison is an American real estate broker, motivational speaker, and reality television personality. He is the current CEO of Tulsa Real Estate Fund. As an African American young man who grew up in poverty, Morrison was destined to become a statistic. He dropped out of high school and became a three-time felon by the age of 20.

However, he turned his life around and has become a much soughtafter celebrity real estate agent and multimillion-dollar real estate entrepreneur.

Life achievements Jay founded the Jay Morrison Academy in January 2014. The Jay Morrison Academy is an online wealth education institute that provides financial literacy for those who – like him – were not taught wealth creation at home or in the classroom.

After impacting tens of thousands of people through motivation and wealth education, Morrison went a step further and launched E-Z Funding, an investment platform that provides entrepreneurs with small business financing and the education resources needed to help them grow their business.

Morrison is the bestselling author

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of Hip Hop 2 Homeowners: How We Build Wealth in America; Lord of My Land: 5 Steps to Homeownership; and The Solution: How Africans in America Achieve Unity, Justice and Repair. He has also appeared as a real estate expert on NBC’s Today Show and Open House NYC, as well as a community leader/ social activist on CNN’s Anderson Cooper 360 and FOX’s Justice with Judge Jeanine.

Morrison’s passion for social awareness is shared by his talented fiancé, Ernestine Johnson, who helps mold many of the programs and services offered by the Jay Morrison brands. Not bad for a kid who started out selling cocaine in Somerville, N.J. For more information on Morrison, visit www.JayMorrisonAcademy.com.

Experience Jay Morrison earned the name “Mr. Real Estate” early in his career by defying the odds of growing up in poverty, becoming an 11th-grade dropout turned three-time felon by age 20, and becoming a multi-millionaire real estate developer, business owner, celebrity realtor, and national influencer before 30.

Jay is the founder and CEO of several organizations, including the Jay Morrison Academy, an international

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school of real estate and entrepreneurship; Tulsa Real Estate Fund, a crowdfunding vehicle that allows members of the community, institutions, and advocacy groups to own an equity stake in redevelopment projects; and United Africans in America, a community committed to justice, true equality, and socioeconomic repair for Africans in America.

This two-time bestselling author has earned the moniker “Young Malcolm” for his role in creating the infamous “Corner Class” were he teaches wealthbuilding strategies such as real estate and entrepreneurship on dozens of inner-city street corners throughout the country.

Jay is on a lifelong mission to bridge the wealth gap and repair his community by any means necessary.

From dealing drugs to real estate business Dropping out of school, growing up in a poverty-stricken

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household in Northern Jersey, and being a three-time felon didn’t stop Jay from achieving greatness in life. He may not have known at a young age how he wanted his life to turn out, but he knew that he would do anything to improve his situation. Therefore, at the age of 15, he began selling drugs on the streets.

“I grew up with an edge and a desire to make it out of my environment,” Morrison remembers. “One of the closest things in my environment was the street corners. It’s where we saw most guys become successful. You didn’t see too many businessmen from where we were from.”

This path led Morrison into three different arrests. He was released after his third arrest and eventually found a mentor, Pastor Antwon Thomas of Plainfield, New Jersey. Pastor Thomas persuaded him to apply for a job with his wife, who was a loan processor at a mortgage company. This is where Jay found success.

December 2018

About Tulsa Real Estate Fund Earlier this year, Atlanta-based real estate mogul Jay Morrison announced the IPO of the Tulsa Real Estate Fund, which is the first African-American owned regulation A+ Tier II crowdfund designed to revitalize urban communities across the United States. Tulsa Real Estate Fund is regulated and qualified by the SEC, which allows both accredited and non-accredited investors to collectively invest and own real estate projects all around the country that are unique, diversified and have a good rate of return to the investor.

The fund’s mission is to perform comprehensive redevelopment of both the people and the real estate in key urban areas.

This innovative fund allows socially conscious individuals and financial institutions the opportunity to invest in people and real estate in the local communities that matter to them the most.

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Ready to buy or sell?

Let me help you!

LEON TOWNSEND III MBA, Green and Notary Public DRE # 01979416 Phone: (800) 401-8994 x 733 Direct: (626) 372-9374 Email: leon.townsend@thepowerisnow.com Website: www.thepowerisnow.com

MORTGAGE MARKET

LEARN HOW YOU CAN GET

MORTGAGE IF YOU ARE

SELF-EMPLOYED

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ost people who are self-employed think that getting a mortgage is out of reach for them, but it doesn’t necessarily mean that you will have to forego the idea of owning your own home. Many self-employed people earn a good living; but without a regular paycheck to depend on, most of them may have a hard time trying to prove their income.

What most lenders are primarily focused on when it comes to lending is the ability of the borrower to repay the mortgage. They will assess if your income is high enough to pay for the mortgage, whether your income is likely to continue, and whether you have a proven track record of repaying your debts.

Work history For the self-employed people, wFor self-employed people, work history matters.

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Lenders will want to see that you have received a steady income for at least the last two years and that you have the necessary paperwork to prove it – especially if you are a 1099 worker. Assuming that you recently became selfemployed, and have a W-2 form from the same field, some lenders will make an exception to the two-year rule.

Work history also comes into play when lenders are determining the approval amount. Lenders will generally take an average of your earnings over the past few years to determine the mortgage amount you will be

December 2018

approved for.

Before the 2007 credit crunch, self-employed borrowers could apply for a “self-certification” mortgage. With the loans, borrowers were not required to prove their income using bank statements or pay stubs; rather, they simply told lenders what they earned. Applications for mortgages were fast-tracked through, with no checks being made.

Self-certifications aimed at freelancers, contractors, business owners, and people with several sources of income, were sold more widely. Abuse of the system led to the self-

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certification mortgage being dubbed “liar loans,” as borrowers were exaggerating their income in order to secure a larger mortgage.

This led to fast-track and self-certification mortgages being banned, making it much more difficult – but not impossible – to get a mortgage if self-employed.

Paperwork needed When applying for a mortgage as a selfemployed worker, you will need to provide documents including your business and personal tax returns for the past two years, a profit and loss statement or a 1099 form, business and personal bank statements, a list of your assets, a list of your debts, and a list highlighting all of your monthly payments.

In this case, it is helpful that you hire an accountant to help you prepare the necessary documents so you do not overlook or forget anything.

According to Fannie Mae, lenders will consider the demand of your business, its location, its financial strength, and whether the business is capable of continuing to provide you with the required income to support a mortgage.

Determining your income Determining precise income may pose an obstacle for self-employed workers. Selfemployed people often have multiple streams of income that may fluctuate; documenting all this income requires more paperwork.

Compare this to a traditional borrower, who receives a regular paycheck and has a W-2 tax form on which the employer reports the employee’s annual wages.

THE POWER IS NOW LIVE EVENTS

HOMEBUYER SEMINARS Are you on the path to homeownership? Learn all about our Homebuyer programs at our monthly seminars!

• Learn about the Housing Crisis in California • Learn about the Wealth Gap for Minorities • Learn about State of California Housing Finance Agency Programs • Learn about Zero Down Payment Programs • Learn about buying land & building a home with zero to low down payment Government financing • Learn how to buy a 4 unit apartment building as a first time home buyer • Learn about partnership strategies to buy your first home with friends and family • Learn about special financing programs for teachers and HUD Home for Sale

“A W-2 employee usually sees consistent wages from year to year,” says Scott Scribner, Realtor and board member of the National Association for the Self-Employed. “The self-employed borrower often experiences fluctuations in annual income, which can make it difficult for mortgage lenders to predict future income.”

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Credit score matters When trying to obtain a mortgage as a selfemployed worker, your credit score will matter a lot. When applying, you will have to make sure that your score is in top shape. If you can wait and pay off a significant amount of debt before applying, you should do it. It is equally important that you check your credit report carefully to ensure that there are no mistakes.

One of the big indicators of whether you will be approved is a low debt-to-income ratio. This is the portion of your monthly earnings that go towards paying your debt. Lenders prefer that you have no consumer debt and large cash reserves.

from qualifying for a mortgage, or qualifying you for a mortgage that is too low. Keep this in mind when claiming deductions on your taxes.

The application process and gaining approval for a mortgage as a self-employed worker may seem like a daunting task. However, it is not as complicated as you may think. As long as you have the right documentation, a high credit score, a low debt-to-income ratio, and a healthy income and cash reserves, securing a mortgage as a self-employed worker is very possible.

Tax deductions are risky As a business owner, you are familiar with business tax deductions and the impact they can have on your taxable income and your tax bill. Lenders will consider your after-deduction income when deciding whether to approve your mortgage application. Therefore, if you claim a lot of deductions when doing your taxes, it will actually lower your after-deduction income significantly, either preventing you

The Power Is Now Magazine

December 2018

Sources: https://www.totallymoney.com/mortgages/self-employed-mortgages/ https://www.thebalance.com/getting-a-mortgage-if-youare-self-employed-4164255

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BUYING OR SELLING? MEET YOUR NEW REAL ESTATE NEIGHBOR! Lanise’s knowledge of the ever-changing real estate market and its technology will provide you with an enjoyable and hassle-free real estate process. She is committed to continuing to build her record of quality service and establish an honest, long-term relationship with each one of her clients.

LANISE SPANN Realtor DRE # 01800507 Office: (800) 401-8994 x 713 Direct: (707) 297-0398 Email: lanise.spann@thepowerisnow.com

ECONOMIC MARKET

ANOTHER RECORD LOW

UNEMPLOYMENT RATE IN CALIFORNIA

T

he unemployment rate in California ticked down to 4.1% in September from 4.2% the previous month. That is the lowest rate in over 40 years, according to the State’s Employment Development Department.

The State’s payroll increased by a modest 13,200 jobs month-over-month, with most of the gains coming from the business, professional services, government, leisure, and hospitality sectors. Compared with

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December 2018

the same month in 2017, payroll was up by 2%.

The Bay Area boasted of a decreased percentage in unemployment rates, falling below 3% in eight of the nine counties.

The sole county above 3% unemployment, Solano, still has an unemployment rate that is under the statewide average. The San Francisco, Oakland, and San Jose metro areas all posted the lowest September unemployment rates since the ‘90s.

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Eight years of consistency The numbers released on October 19 show more than eight years of employment increases in the county of California – the second longest expansion era since World War II. Even the Central Valley, Rural Northern, and Inland Southern counties, which traditionally have at least 8% of their residents unemployed, are down several percentage points.

A decade after the global financial crisis sent the country into a tailspin, economists finally have a reason to cheer. However, they said that they may be overstating the health of the labor market. Wage growth, for example, is still subpar, with benefits and bonuses making up a growing percentage of total compensation.

The labor force participation rate, a rate that measures the percentage of the adult population with a job, is markedly below where it was 10 years ago. That likely means that discouraged workers are still sitting on the sidelines, waiting to be pulled back into the labor force by enticing wages.

“We love the unemployment rate being low,” said Clair Brown, a UC Berkeley economics professor, “but we are still waiting for wages to firm up and increase, especially in the lowerskilled tech jobs. The engineers are doing great, the other people could be doing better.’’

Employment remains strong Unemployment data shows that the economy has climbed back from the catastrophic recession.

Further, it shows an industry determined to rise amid the escalating U.S.-China trade wars, labor shortages and high housing costs that have left many residents in poverty.

“September’s jobs report indicates that California’s economy remains strong,” said Lynn Reaser, chief economist of the Fermanian Business & Economic Institute at Point Loma Nazarene University. “It will, however, face the headwinds of rising interest rates and the repercussions of trade tensions with China and also possibly Europe in the period ahead.”

Overall, in the third quarter of the year, employers added more than 90,000 jobs, compared with an average of about 55,000 jobs during each of the first two quarters of the year.

The state outpaced the nation in year-over-year job growth for the 79th consecutive month. This “is great news. It speaks to how far the California economy has come,” said economist Robert Kleinhenz of Beacon Economics.

Nonetheless, every gain is accompanied by a loss. September experienced significant losses too in the manufacturing, which was down 1,500 positions, and in construction, where 2,000 jobs were lost. The trade war between the U.S. and China has meant that factories are now paying more for Chinese-made parts.

Year over year, the manufacturing sector added just 400 positions, as industries such as apparel, electronics and auto parts continued to expand outside the country. Even though the construction industry was up 4% year-over-year, mortgage rates and high home prices have weakened the housing industry. New starts in construction and remodeling starting to slow down.

“Rising mortgage rates and worsening affordability of homes have sapped the housing

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industry,” wrote Sohn. A continued trade war could harm California’s international trade in aircraft, dairy, fruit, and electronic components, while “uncertainties will discourage employers from hiring workers and businesses from making long-term capital expenditures.”

The information sector, which includes telecommunications jobs, data processing, and motion picture recording, declined by 3,000 jobs in the month of September. Even though the health care and education industries shrank by 3,700 jobs in September, the sector has shown healthy growth of 2.9% year-over-year.

The booming Bay Area economy is perhaps the reason why California’s unemployment rate was driven down. The jobless rate is below 2.5% in San Francisco, San Mateo, Santa Clara, Marin, and Sonoma Counties.

“The word is out that there are good jobs to be had at decent wages,” Sohn said. “Businesses from Silicon Valley to Southern California are having difficulty finding workers. Fortunately, part-time workers, discouraged people, and those on disability are rejoining the labor force, alleviating labor shortages at least temporarily.”

The growth was mixed We cannot pinpoint that a certain region led to this growth. Regionally, the growth was mixed, according to UC Riverside economist Robert Kleinhenz. The September payroll expanded in San Diego county and the Inland Empire, while it declined in Orange county and Los Angeles.

The Inland Empire added jobs at a much faster rate (3.3%) followed by San Diego (2.0%), Los Angeles (1.2%), Ventura (0.9%), and Orange (0.5%) counties.

The Power Is Now Magazine

December 2018

Sources https://www.latimes.com/business/la-fi-california-jobs20181019-story.html https://www.sfchronicle.com/business/networth/ article/California-s-unemployment-rate-drops-torecord-13320933.php https://ktla.com/2018/10/19/californias-unemployment-ratedrops-to-4-1-another-record-low/ http://www.capoliticalreview.com/trending/californiaunemployment-rate-at-record-low-4-1/

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Loans To Fit

Your Life

A mortgage property tailored to your needs becomes an instrument that enables a whole new life. That’s why we offer a wide array of loan products to fit individual borrower situations, including first-time homebuyers, military families, and rural homebuyers. We also offer national programs for doctors and dentists, and many state housing programs.

Our Loan Programs Include: FHA:

• Credit scores as low as 580 • Manual underwrites • FHA - Approved condos OK

USDA:

CONVENTIONAL:

• Credit scores as low as 620 • Up to 97% loan-to-value • Financing for borrowers with 5 to 10 financed properties

• Credit scores as low as 600 • 100% financingn available

VA:

JUMBO:

NICHE PRODUCTS:

• • • • •

• Credit scores as low as 580 • Manual underwrites

Credit scores as low as 610 • Down payment assistance Debt-to-income as high as 49.99% • Conforming and High Balance Extended BuilLoan amounts as low as $100K and up to $3M der Rate lock Programs Available Up to 95% loan-to-value • Doctor/Dentist programs for Conforming and Interest-only options Non-Conforming loan amounts • Renovation Products available • Non-warrantable condo options • 80/10/10 Programs ERIC LAWRENCE FRAZIER MBA CalDRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243

Phone: (800) 401-8994 ext. 703 Direct: (714) 475-8629 E-mail: eric.frazier@thepowerisnow.com Website: www.thepowerisnow.com

The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Department of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Department of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

ECONOMIC MARKET

named as the hardest working in America

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he Bay Area has had a good reputation for a long time. It is no secret that there are a lot of hardworking people in the Bay Area.

According to a new study, San Francisco ranked as the hardest working city in America in 2018. Two other California cities, Fremont and Oakland, also ranked among the top 10 hardest working cities in the country. Another report, released in fall of 2017, ranked Bay Area workers as those who were happiest and enjoyed the best work-life balance.

The city with the most dedicated employees A new report from WalletHub ranked 116 American cities based on how hard their residents worked. The company used nine

The Power Is Now Magazine

December 2018

criteria, including number of hours worked per week, the employment rate, worker enthusiasm, commute, and leisure time.

Among the cities indexed, San Francisco ranked at the top of America’s hardestworking cities, with a total score of 78.52.

This was closely followed by Fremont City, with 78.28. Coming in sixth place overall was Oakland, with a score of 70.56. Other cities in the Bay Area included San Jose (11th), Los Angeles (12th), and Long Beach (16th).

For criteria related directly to work, Bay Area cities were ranked as follows: Fremont (1st), San Francisco (2nd) and Oakland (4th). This shows that Bay Area assuredly earn big points for its thriving job market, however, the study doesn’t specify unemployment. According to the latest report from the California Employment

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Development Department, unemployment in the region, specifically in San Francisco and Alameda counties, were 2.4% and 3.0%, respectively.

The state of the local job market The local job market did not fare well for criteria unrelated to work, with no Bay Area city placing above thirty-first. The Bay Area’s traffic condition, which seems to be worsening every day, is likely to play a big role in that. The average commute time to Silicon Valley has risen by 19 percent from 2010 to 2016, according to a report from Mercury News. The average Silicon Valley commuter spends 70 minutes getting to and from work each day.

Apart from being the nation’s hardestworking residents, Bay Area residents

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are also the most satisfied, according to a Glassdoor report released last fall. A separate report indicated that companies that are based in San Jose and San Francisco offer their employees the best work-life balance in the United States.

Source: https://blog.pacificunion.com/the-nations-hardestworkers-call-the-bay-area-home/ https://patch.com/california/la jolla/california-citiesnamed-hardest-working-america https://www.nbcbayarea.com/news/local/SanFrancisco-Among-2017s-Top-10-Hardest-WorkingCities-in-US-Report-451658363.html

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MOVING ON TO YOUR IDEAL PROPERTY?

CALL ME !

U O Y P L E H N I CA NICOLE BURNS Realtor BRE # 01359705 Office: 800-401-8994 x 712 Direct: 323-385-8940 Email: nicole.burns@thepowerisnow.com Website: www.thepowerisnow.com

ECONOMIC MARKET

WHAT FIRE EVACUATIONS MEAN for a state that’s already facing a housing crisis?

T

he death toll from the Camp fire in northern California continues to rise, with over 60 deaths and some 631 people missing so far. This is not only the deadliest wildfire in California’s history, but also the most destructive.

booms in technology and other fields have attracted residents from outside the states faster than new housing can be made available.

In the fire, some 11,862 structures were destroyed, including 9,700 single-family homes and 118 multi-family buildings. The affected residents of the county face a potential risk and the daunting task of having to find permanent housing in a state that is already facing a massive housing shortage.

The housing units lost to camp fire cannot be replaced

The town of Paradise was worst hit by the Camp fire, with at least 71 people killed and over 90 percent of the region’s housing stock destroyed. Most former residents of the town are now refugees.

Some of the victims have been staying in motels, shelters or with family and friends while attempting to find other permanent housing or even rebuilding their homes.

However, California ranks 49th in the United States in housing units per capita, making finding new housing difficult.

One factor for the poor housing supply is Proposition 13, which limits the amount of money that cities and counties can spend on new housing. Meanwhile, job

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December 2018

Since there has been an influx of people into California, there is no way that the current housing stock can accommodate the people who were displaced by the fires. According to Casey Hatcher, a spokeswoman for Butte County:

“

There is no way that the current housing stock can accommodate the people displaced by the fire. We recognize that it’s going to be some time before people rebuild, and there is an extremely large housing need

— Casey Hatcher, spokeswoman for fireravaged Butte County, Calif.

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While contemplating their next move, some of the people displaced have resorted to extreme measures. Suzzane Kaksonen, a former Paradise resident, is staying in a tent city in a Walmart parking lot in Chico after her 800-square-foot home was lost to the fire.

Further to the south, near the Los Angeles area, the Woolsey Fire has destroyed at least 35 homes. In a rather cruel twist, all these people whose homes have been burned down are living in a state where there is a growing housing crisis.

While the state’s population is expands, demand is outgrowing the supply, creating a slow-moving economic disaster. Further up in the hills among the gray pines, cottonwoods and walnut trees a town like Paradise was a perfect place only suffering the punishment of the state’s housing market.

relatives and some have been able to return home. However, it is estimated that upwards of 52,000 people were evacuated in response to the Camp Fire.

Right now, all these people require food, safety, and their homes. Eventually, new structures will have to be built, but that’s going to be difficult in a region that’s already facing a severe housing crisis.

The effects of the Camp Fire will linger in the hearts of the residents long after the embers die and the smoke clears. The search for a long-term refuge will just add to the many woes of the evacuees, many of whom are living in makeshift campsites while others contend with norovirus outbreaks in homeless shelters.

In Paradise, the median household income was $47,000, which is slightly below the state’s median income of $61,000. More than 70 percent of the residents living in Paradise, however, owned their homes.

Many of the people who lost their homes were retirees living on a fixed income or young families in search of a safe space to call their home.

We all want our homes back The people affected by the Camp Fire fled their burning homes and have since evacuated to nearby cities like Chico. It has not been exactly established the number of people currently displaced, as some of the people have taken shelter with their

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References https://www.vox.com/energy-andenvironment/2018/11/16/18098441/paradise-californiawildfire-housing https://www.foxnews.com/us/camp-fire-death-tolljumps-to-71-sheriff-says https://www.nytimes.com/2018/11/15/us/homelesscalifornia-wildfires-evacuees.html

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COMMUNITY DEVELOPMENT

A Snapshot of the Fast-Growing U.S. Older Population

Access to the internet Although seniors have consistently shown a lack of interest in technology adoption, this demographic is now more connected than ever. In fact, some groups of seniors, such as those who are younger, more affluent, and highly educated have reported owning and using technology at a rate similar to adults under the age of 65. That does not change

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December 2018

T

he growth of the U.S. population age 65 and older exceeds the growth of those under the age of 65.

Two reasons contributing to this are the lower birth rate and increased longevity. Below is a snapshot of the selected demographics, social housing, and economic characteristics of the 65 years and older population in the United States based on a survey conducted in 2016 by the American Community Survey (ACS).

the fact that there still remains a notable digital divide between the younger population and senior citizens in the U.S. What we are seeing now is a transformation of what people used to associate an older population with. For example, for the population age 65 and older who lived in a household, about 80% have a computer and over 75% live in a household with internet access.

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males and 22% of females ages 65-74 are still in the labor force.

Four in 10 seniors own a smartphone, more than double the figure reported in 2013.

This shows that seniors are embracing technology at a rapid pace. Smartphone ownership among seniors also correlates with household income and educational attainment. More than 80% of seniors with an income of $75,000 or more say that they own a smartphone, compared with 27% living in households earning less than $30,000 a year.

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Seniors still in the labor force Seniors are working more now than at any other time since the great recession, and today’s older workers are spending more time on the job, according to the Federal Bureau of Labor Statistics. More than 40% of workers over the age of 55 are working, and if not working, then actively looking for employment. Further, 30% of

Even so, some characteristics associated with the older population remain consistent.

More prevalent is the difficulty in walking or climbing stairs for all seniors. A notable 15% of the seniors between 65 to 74 had a difficulty with this. Along with over a quarter of those ages 75 to 84 and almost half of the seniors 85 and older. Also, about 69% of the seniors 85 years and over had at least one type of disability, compared with just 9% of the population under the age of 65.

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Social housing characteristics among seniors Most of the older population has been married.

The ma jority of females age 85 and older are widowed, whilst more than half of the males are still married. For seniors, the likelihood of living in a family diminishes with age, from 73% among people ages 65-74 to 48% for seniors 85 years and older.

conclusion After a meeting with the National Council of Senior Citizens, then-President John F. Kennedy encouraged all Americans to pay tribute to older citizens across the country. This was marked by designating May 1963 as Senior Citizen’s Month.

Since then, every president has issued a formal proclamation in May in support of senior citizens.

The month of May continues to be a month in which senior citizens are celebrated in America.

Homeownership rates were highest among the seniors ages 65-74. Homeownership was also high for the other senior age brackets, at 79% and 69% for those aged 75-84 and 84 years and older, respectively.

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December 2018

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LINDA LARSON

MLS # 01183012 Phone: (800) 401-8994 x 702 Direct: (707) 461-4271 linda.larson@thepowerisnow.com www.thepowerisnow.com

About 1552 Oak Wood Court Ct, Lakeport 95453 Price: $ $385,000 Lot Acres: 2,716 $/Acre: $141.75 Garage: 2/Detached

Prior owner had excesses as reflected in what she did or not do to house, but nothing like Sarah Winchester. A side from certain oddities this home has striking features expected of a custom built home. A ll exterior doors except for two are french doors all nicely trimmed out as well as the windows. Hardwood flooring throughout further accentuates the wood used to trim the windows, and doors. Vaulted ceiling in kitchen, living room, and eating area are tongue, and groove pine wood adding to the use of natural materials creating a rustic elegance. Front of the house is met with cement ramp leading onto a large covered cement patio the dimensions similar in size to the main floor of house without the kitchen footprint. Located on 20 acres which border Burger Lake where the water level rises or falls depending on time of year. Majestic Madrone trees only add to the magic of this private reserve setting. A mazing you can feel so far away, but minutes to Lakeport.

Preferred Lender

ERIC LAWRENCE FRAZIER, MBA CA BRE: 01143484 | NMLS 461807 Phone: (800) 401-8994 x 703 Direct: (714) 475-8629 eric.frazier@thepowerisnow.com www.thepowerisnow.com

COMMUNITY DEVELOMENT

New Law Does Little to Guarantee Support

to Discharged Homeless People T

he community departments, the local government and the Department of Health jointly issued guidance on discharging homeless hospital patients. The guidance explains the proper practice for groups or organizations that supervise the needs of the people while inside the hospital, including admission itself. The guidance report was drafted and drawn up by expert groups, including Homeless Link and The Health Inclusion Project Advisory Group.

According to California Health Report, a 58-year-old homeless man who suffers from problems related to a hernia has been in and The Power Is Now Magazine

December 2018

out of hospitals in Ventura County more times than he can count over the past two years. Each time he got treated and was released back onto the streets, he said it wasn’t long before his health started deteriorating again.

“I’d just sit there. I had no place to live,” he said. “I’d just hang out places and eventually the ambulance would come and get me.” It is now time to do something about these homeless patients.

The newly signed Senate Bill No. 1152 requires the State Department of Public Health to regulate general acute care hospitals, psychiatric hospitals, and special hospitals. The 58

existing law requires each hospital to make a written discharge planning policy and process stating the appropriate arrangements for posthospital care. These arrangements are to be made prior to discharge of patients, especially those who suffer adverse health conditions, and upon discharge if there is not any adequate discharge planning.

Beginning in July, the hospitals need to perform documentation stating that a certain shelter where homeless patients are being sent have beds for them before sending them into facilities. The hospitals must also offer homeless patients their main needs such as food, proper clothes, medicine, and even transportation upon discharge.

Essential Tools for Discharge Planning With readmission penalties that increased up to 3% this year and the newly added conditions to the Readmission Reduction Program, it is more important than ever to focus on discharge planning. Different public and private associations and establishments contribute to homelessness by discharging patients into the streets. Ending this practice to help put an end to homelessness.

The American Hospital Association panel found that the following discharge tools are shared in three cross-cutting themes: 1. Most appropriate post-acute care placement and setting 2. Reducing readmissions

Service Providers Face Challenges The real problem has something to do with the number of service providers who are willing to handle the increasing number of homeless patients who still need proper care and a housing facility after being discharged from the hospital. Service providers who are currently helping homeless patients are facing challenges.

One common challenge that they encounter is the budget that they are using to run. The local government payment model is either impractical or unsustainable, which is why these service providers cannot accommodate more specialized services. To be able to attain a better result in services that communities would welcome, higher payment rates could solve both problems at once.

Recuperative care centers for the homeless are still a relatively new concept. Almost 80 programs operate across the country and are run by a variety of nonprofits, according to a directory published by the National Health Care for the Homeless Council. California has 24 of these programs, more than any other state.

Looking beyond the new law, more people need to ensure that the neediest citizens in the country can receive care in clean, safe, wellstaffed places so they can heal quickly. Making more reasonable, sustainable, and realistic payment models can effectively help in the creation of emergency housing that many people desperately need.

3. Managing the patient transition from acute to post-acute care setting Hospital discharging tools are only used within general acute-care hospitals so that they will be able to inform the planning process for the transition of patients from an acute-care hospital to a post-acute care setting. The tool is required for use by hospital personnel so that they can assess a patient’s clinical and demographic characteristics, expected postacute care needs, and risk of hospital admission.

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References: https://www.theguardian.com/us-news/2018/may/04/losangeles-hospitals-homeless-patients-skid-row https://link.springer.com/article/10.1007/s10935-007-0095-7 https://leginfo.legislature.ca.gov/faces/billTextClient. xhtml?bill_id=201720180SB1152 http://www.calhealthreport.org/2018/10/03/new-law-littleguarantee-support-homeless-discharged-hospital/

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TECHONOLOGY INSIGHTS

DIGITAL MORTGAGE GROWTH IMPROVES CONSUMER SATISFACTION

T

he ways we connect, consume and create are changing, and the mortgage space is beginning to follow suit. Now, the entire mortgage industry seems to be clamoring for a digital mortgage. Why not? The goal of a digital mortgage is to make home financing simpler and easier for consumers and to make it compliant and profitable for lenders. Digital mortgages could not have come at a better time, since production expenses reached almost $9,000 per loan in the first quarter of 2018.

Borrowers are looking for a better borrower experience Buyers want a faster home buying experience. A monthly survey of home loans from mortgage software provided by Ellie Mae found that it, in March, it took an average of 41 days to close a mortgage. Moving to online originators would reduce that number significantly.

Quicken Loans, the largest loan lender in America, claims an ideal closing time of 30 days for users of the company’s digital lending platform. The costly manual effort required to gather credit reports, property details, and other personal data naturally invite greater investment in technology-based solutions.

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A 2018 study by the Federal Reserve Bank of New York found that technologybased lenders process mortgage applications about 20% faster than other lenders. By relying on a process that is automated and centralized, lenders are not limited by human errors or human capacity.

Lenders and buyers want to save money Customers gain financial and logistical benefits from a more efficient mortgage process.

The mortgage industry is competitive, so lenders are always looking for an advantage over their competition. Lenders with an automated process handle documents faster, offer lower rates, and help customers save on service and origination fees.

Lenders

can

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receive

incremental

time savings and cost reductions by incorporating individual technologies on a time frame that is comfortable for them. Automated processes can enhance speed, reduce costs, and improve quality.

Digital mortgage channels increase customer satisfaction Customer satisfaction with primary mortgage originators has increased in 2018, even as digital origination channels play a more significant role in the process, according to the J.D. Power 2018 U.S. Primary Mortgage Origination Satisfaction Study. The study says: “Improved digital offerings are helping mortgage originators build customer satisfaction.� The industry’s average satisfaction score was 758, up four points from last year.

Following are a few key findings from

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the 2018 study: Speed of contact is a critical driver of satisfaction: Waiting for contact from the lender after inquiring decreases satisfaction level. Overall satisfaction of customers who receive contact within one day is 869. The inquiry channel with the fastest overall contact times is online via smartphone or tablet.

Representatives play a major role in customer satisfaction: Three percent of mortgage customers rely on digital self-service channels in the origination process. Overall consummation is highest among customers who spoke only with their lenders in person or over the phone, followed by satisfaction among those who used a mix of personal and self-service tools. Followup contact after inquiring and confirmation of loan terms and payment add the greatest value to customer satisfaction?

Overall satisfaction improves as digital plays a larger role: Overall satisfaction with primary mortgage originators is up 10 points in 2018. On The Power Is Now Magazine

December 2018

average, customers use 3.1 different channels during the mortgage process, with phone usage at 72%, website usage at 69%, and email usage at 58%.

Conclusion If servicers keep doing the same thing they have always done, they will eventually lose market share to cutting-edge players – companies focused on the customer, digital transformation, and providing an optimal experience in the new way of doing business.

References: https://www.nationalmortgagenews.com https://www.forbes.com https://www.themortgagereports.com https://www.elliemae.com https://www.hsh.com

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TECHNOLOGY INSIGHTS

WHAT A.I. HOLDS R FOR THE FUTURE? The Power Is Now Magazine

December 2018

obots that have invaded the 21st century like a plague. So many people have questioned the invasion of technology, but how far are we willing to go with artificial intelligence? Science fiction is quickly turning into science reality. Robots have evolved rapidly over the past few years, and new ideas are being discussed regarding the ushering in of the era of killer robots.

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WHAT EXACTLY ARE KILLER Fear of wrong social priorities ROBOTS? Killer robots are fully autonomous weapons that are able to select and engage a target without human intervention. Armed drones likes those being developed in nations including China, Israel, South Korea, Russia, and The United Kingdom meet this definition.

It is questionable whether they meet international humanitarian law standards, including the rules of distinction, proportionality, and military necessity, while they threaten the fundamental right to life and principle of human dignity.

“

A group of researchers from Kyushu University in Japan used a trick and they changed a single pixel in a photo. This was just enough for AI to mistake cats for dogs, or airplanes for dogs now imagine a drone mistake a hospital for a military installation.

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What if the tables were turned? Is colonization by killer robots a possibility? It is important to debunk some of the risks and fears that we may be worried about for as long as killer robots exist.

Fear of misuse Over many generations, machines may evolve cognitive abilities. Along the way, some errors and problems will be found and eliminated through the process of evolution to create a human-level intelligence. While neuro-evolution might reduce the likelihood of unintended consequences, it does not prevent misuse.

As researchers and as a society, we have not yet come up with a clear idea of what we want AI to do or become. In our current society, automation pushes people out of their jobs.

This is not a scientific issue; it is a political and socioeconomic problem that only society can solve.

Fear of unforeseen Machines are known to have errors. But as AI designs get more complex and computer processors even faster, their skills improve, leading us to more responsibility, even as the risk of unintended consequences rises. It is unlikely to create a truly safe system.

Should we be worried about killer robots?

Imagine an artificialintelligence-driven military drone capable of autonomously patrolling the perimeter of a country, deciding who lives and who dies, without a human operator. Now do the same with tanks and helicopters. A UN conference in Geneva opted not to outright ban that type of drone. Not everyone shares the same sentiment, though. Tesla CEO Elon Musk signed a pledge against killer robots, promising not to participate in the development or manufacture of machines that can identify

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and attack people without human oversight.

fears, there is always the chance that things will

A group of researchers from Kyushu University in Japan changed a single pixel in a photo that was to be used by a drone. This was just enough for AI to mistake cats for dogs, or airplanes for dogs. Now imagine a drone mistaking a hospital for a military installation.

turn out differently next time. Such concerns about the development of AI deserve close attention as the technology continues to develop.

References https://qz.com/691286/ethics-bots-could-soothe-fearsDefence Images/Flickr

conclusion

https://edition.cnn.com/2017/11/14/opinions/ai-killer-robotsopinion-scharre/index.html

The problem with “end of the world� predictions is that they are difficult to disapprove. Even if history offers no foundation for the basis of such

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about-ai-taking-control-of-humanity/

December 2018

https://www.fastcompany.com/3069048/where-aremilitary-robots-headed

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RESEARCH

SUCCESS AND STRUGGLES Since the Release of the Report on Civil Disorder and Enactment of the 1968 FHA

D

o you have the right to peaceful protest?

You do – and it’s within the constitutional framework to speak out against your government, President, an unfair law, or any elected official.

Americans have faithfully exercised these precious rights throughout history, whether to challenge unjust laws, fight for civil rights, or simply voice an opinion.

public services, report noted.

From time immemorial, black Americans have been fighting for their right to fairness, their right to justice, and their right to freedom. Black Americans do not have much that they have been freely given. Most has had to come with a fight; in those fights, black people have made tremendous sacrifices.

Signed into law on April 11, 1968, the Fair Housing Act is vital to ensuring that everyone in America has equal access to housing. The terms of the law inform property owners, home sellers, real estate professionals, renters, and buyers that no one can be denied the right to housing on the basis of race,

Every fight that black people have fought and endured, has always sprung out from a feeling of powerlessness, in regards to the extremely high rates of unemployment and underemployment poverty, police brutality, and inadequate

Fifty years after the publication of the Kerner report, black neighborhoods in the U.S still yield examples of success but also demonstrate lags in educational attainment, income, wealth, and violent crime exposure, which are painful reminders of unrealized individual potential.

The Power Is Now Magazine

the

Kerner

Answering what can be done to prevent this in the future, the commission suggested that the federal government intervene to improve housing, education, employment opportunities and social services for African Americans.

What have we learned?

December 2018

color, religion, family status, disability, or national origin.

Despite the best intentions of the Fair Housing Act, housing discrimination and segregation still exists – in fact, it is deeply rooted in the law that vowed to protect all citizens “fairly and justly.”

This year’s commemoration of the Fair Housing Act’s first fifty years has raised awareness of the changes that still need to happen. Black neighborhoods that directly experienced riots are populated with residents who have lower incomes, lower education levels, higher unemployment and higher welfare usage than black neighborhoods that were not directly affected by riots.

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African Americans must take their ground The theme was taken up by Martin Luther King Jr. in 1966 when he came to Chicago in the first northern campaign in the civil rights movement, the Chicago Freedom Movement.

Over the next several months, King and local activists held nonviolent demonstrations outside real estate offices and marched into all-white neighborhoods.

The reception they received was often fierce and violent. Chicago Mayor Richard Daley negotiated with Dr. King and other activists, seeking to end the protests and prevent further disruption. Dr. King’s Chicago Open Housing Movement is often credited with laying the groundwork for the Fair Housing Act of 1968.

Black people remain far behind African Americans are much better educated than they were in 1968, but still lag behind white people in overall education attainment.

More than 90% of African Americans ages 2529 have graduated from high school, compared with just over half in 1968. More than twice as many have graduated from college as in 1968.

The substantial progress in educational attainment has been accompanied by a significant absolute improvement in wages,

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incomes, wealth, and health since 1968. African Americans are 2.5 times as likely to be in poverty as whites, and the median white family has 10 times as much wealth as the median black family.

The country has certainly seen much progress.

Many black Americans enjoy relatively high social and economic status; overt racism and efforts to exclude where they live, work, or attend school have greatly diminished.

conclusion What can the Realtor community do to make fair housing a reality? We must find a way to reach every member. This may be not an easy task, but it needs to start somewhere. We need to reach our members and leadership, our association executives, and our CEOs with the message that every person has the right to live where they want to.

References https://www.brookings.edu https://www.smithsonianmug.com https://www.michiganradio.org https://haasinstitute.berkely.edu https://www.epi.org

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RESEARCH

Achieving Financial Security Despite Increased Longevity O

ver the past 50 years, there has been a transformative and rapid change in aging, leading to higher life expectancy rates. People are regularly reaching and even surpassing the age of 100.

As a “modern population” given this chance, what can we do to maximize our opportunity? What are we doing to prepare ourselves for the extra years? A project called Sightlines has been launched to do research concerning this issue.

Are we headed in the wrong direction?

A report issued by the project provides insights on many trends, most of which indicate that we are headed in the wrong direction on this issue. Considering the amount of data collection methods and forecasting tools we have, it is easy to think that this cannot be the case. But the sad truth is that we are on the negative side of the situation.

The financial security domain was stated to be the most prominent negative trend among the other domains. It should not come as a surprise, as we have seen some mega shifts in age limits and life expectancy, while at the same time experiencing shifts in economic uncertainties and rapid economic changes. For younger generations, these trends are occurring at a higher rate compared to other generations. Ethnic communities, women and less-educated people are also experiencing these downward trends at a very high rate.

Financial security studies were conducted on different life stages for better understanding. Four areas were studied in depth: women’s financial decisions, homeownership, baby boomer debt and savings, and a prognosis of American’s retirement contribution.

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Expected outcomes The outcomes should help us in understanding more how longer living affects all of us. Through this research, we target to shape the decisions that we make on how to invest more for extra years. It will help in stimulating conversation concerning our financial security and ensuring that we take the necessary measures to secure a better future in our extra years.

Scholars, journalists, policymakers, and individuals with better insight to this matter should come together and provide us with the best way forward on how to tackle the situation. With all of us having a common goal – living longer and having financial security – more information should be available to the public to choose the best strategies to secure a better future. Go to our resource to download a copy of this report.

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References http://longevity.stanford.edu/wp-content/uploads/2018/10/SightlinesFinancial-Security-Special-Report-2018.pdf http://longevity.stanford.edu/2018/10/22/seeing-our-way-to-financialsecurity-in-the-age-of-increased-longevity-2/

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HEALTH IN CALIFORNIA

Racism affects young kids mental and behavioral health Children as young as seven years old can experience detrimental effects from racism. This is according to research done by UC Riverside. The study also suggests that ethnic-racial identity is a significant barrier against the negative effects of racism.

Effects of racism on young kids Children express their encounters with racism in different ways. Many children’s manifestations include depression, anxiety, substance abuse, and violence. Racism affects young children academically and mentally, and can cause them to take up violence or risky behaviors when provoked.

Lead author Aprile D. Benner said that the relationship identified during the research was of particular concern. In a statement to Refinery 29, they indicated finding long-term links between substance use, depression, anxiety, poor academic performance, hostility, The Power Is Now Magazine

December 2018

and aggression.

The study also suggested that humans can start to understand ethnicity and racial differences as early as before pre-school, and group themselves according to their ethnicity and races. At the age of ten, children can recognize even the subtlest signs and acts of racism.

Solution to racism According to previous research, efforts made to promote a sense of belonging and understanding in one’s racial group in the early years of development can help children 74

who are vulnerable to racism and discrimination.

Ethnicity and culture are elements in any child’s life, and parents and guardians should always acknowledge that.

Having learning materials and books in academic institutions could really help to prevent kids from being exposed to racism and discrimination. At schools, teachers should encourage children to talk more about their race or ethnicity so as to be more comfortable with their differences. Also, cultural events can be held that allow children to experience their culture through art, music, and food. Through doing this, children will be given a sense of belonging and pride in their race.

It is our responsibility make sure that all kids are secure in our society, and feel good about themselves regardless of their cultural backgrounds. Parents and society at large should make a positive impression on their children and all the kids in their communities, making sure they feel loved, valued, and validated by being given the support they need from the adults that are present in their lives.

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There is always help for depression or anxiety.

The National Depressive or the Manic Depressive Association hotline is 1-800-826-3632, and the staffers are always willing to help in all cases encountered regarding mental health

References https://www.refinery29.com/en-us/racism-effects-childrenkids-health http://www.calhealthreport.org/2018/10/29/study-racismaffects-even-young-kids-mental-behavioral-health/ https://news.ucr.edu/articles/2018/10/22/study-childrenyoung-7-suffer-effects-discrimination

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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.

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.

The Power Is Now Magazine

December 2018

76