SEPTEMBER 2018 Vol. 05 | Issue 7
Aubry L. Stone CEO for the California Black Chambers of Commerce September is National Sickle Cell Awareness Month Christina Kimble the New Face of OC Realtist
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 6
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
September 2018
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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
online homebuyer’s seminar • Learn about the state of housing and the Wealth Gap • Learn about Zero Down Payment Home Loans on 1 to 4 units • Learn about Down Payment Assistance Programs with state, county and city • Learn about partnership strategies to buy your first home • Learn how to buy a 4 unit home as a first time home buyer Presented by: Eric Lawrence Frazier, MBA
CalBRE # 01143484 | NMLS # 461807 www.thepowerisnow.com eric.frazier@thepowerisnow.com Ph: 714-475-8629 | F: 800-261-1634
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the power is now
magazine
table of contents 12.
misinterpretation of loan
September is National Sickle
quality
Cell Awareness Month
16.
42.
Irvine, a hidden jewel in the
heart of Orange County
20.
Angeles
26.
face of OC Realtist
The time to buy is now. Don’t
wait for opportunities in Los
The housing market is
making a slow come back
Christina Kimble, the new
46.
Home renovations could get
much more expensive. This is why
50.
FHAF Director Mel Watt
under investigation for sexual
28.
Aubry L. Stone, CEO for the
misconduct
California Black Chamber of Commerce
30.
Mortgage application rates
hits the lowest as interest rates continue to rise
38.
54.
HUD housing reform could
potentially split families apart
58.
Neighbourhood Assistance
Corporation of America
Wells Fargo ordered to pay
$2.09B to settle allegations of The Power Is Now Magazine
September 2018
6
JUMBO LOAN PROGRAM
It’s time for a really big deal! BENEFITS • Loans up to $2,000,000 with 700+ FICO • Very competitively priced jumbo mortgage rates • Significant price improvement for purchase money loans SPECIAL FEATURES • Qualify using primary wage earner’s middle credit score • Non-owner occupied investment properties OK • 100% gift funds for down payment & closing costs OK • Non-permanent resident aliens OK
Call me for details: ERIC LAWRENCE FRAZIER MBA CalDRE: 01143484 | NMLS 461807 The Power Is Now Inc. CA BRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com
Email: eric.frazier@thepowerisnow.com Mobile: (714) 475-8629 Office: (800) 401-8994 ext. 703 Fax: (800) 401-8994
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.
Editor’s Letter
D
ear esteemed readers
I truly hope that everyone is having a prosperous September already. Fall is right around the corner, soon, the year will be long gone; but here at The Power Is Now, we’ve had an amazing time as we are continuing to grow and with the growth, we are constantly working towards changing homebuyers into homeowners. A lot has been happening lately and I feel obligated to share a few things with you. First, I am pleased to announce that Christina Kimble is the new president for the OC Realtist, the National Association of Real Estate Broker chapter in California. The Power Is Now is a resource hub for you and therefore, with the OC Realtist, we are committed to keep you up to date with the current happenings in real estate in the Orange County. Find out more information about the OC Realtist and our president here in our September issue. Secondly, September is the Sickle Cell anemia math. Here at The Power Is Now, we want to bring awareness to the disease. Did you know, Sickle Cell is actually not a disease? It is a generic issue for the African-Americans and in this issue, we shed more light on the issue. With a lot of ongoing debate about the Property Tax fairness Initiative else known as Proposition 5 and Affordable Housing Act, Proposition 10, it is easy for one to get lost and confused. Both proposition seem good and worthwhile for the county. But is good, good enough? Could it be that these propositions are made to look appealing superficially but only meant to benefit only a small group of people? It is important to be fully aware of what you are voting for or against. We take a look at these propositions keenly and analyze the pros and cons of each so that when it is your time, you will be able to make the right choice. Remember, just one vote casted matters a lot! On to other news, HUD as we know it keeps making housing reforms, but over the recent past, most of the reforms made by HUD seems to repeal the American dream of Homeownership and this time comes another reform that could split families apart. The reform, known as Rent Reform seeks to eliminate some old rent policies which HUD considers counterproductive and expensive. How are these reforms affecting lives? Remember that we’ve had these rent policies for over a long time now and everything seem to be working just fine. Change is inevitable and I like what HUD is doing but could the agency have gone a little far this time? This reform adds more rent to people living in the public housing, meaning that most poor families will be unable to afford housing. This enhances the
The Power Is Now Magazine
September 2018
8
chances of families being separated. This special coverage can only be found in this issue, find out more. Ten years after the worst crisis in America, now most investors have a reason to smile as Wells Fargo was ordered to pay 2.09B to compensate for the loss. Good news at last! In addition to that, the Director of FHFA, an institution that oversees the performance of Freddie Mac and Fannie Mae, Mell Watt, is under investigation for allegedly harassing a female worker. Housing market this year and probably the next has not shown any signs of slowing down. According to a survey by houzz, the home renovations could get even pricier this year, we will show you some perks to make sure that you don’t get trapped in this. More to that, for quite some time now, the mortgage rates have been dropping and last month, the application rates hit the lowest percentage. On the other hand, the interest rates showed no signs of dropping but kept an upward surge. What does this mean for real estate market? I am excited to announce that this month we will be hosting two homebuyer’s workshop in association with the Dunbar Real Estate Group on September 19th and 21st. We will discuss more about the California housing crisis, the wealth gap for minorities, the loan programs as well the opportunities for minority groups to acquire properties. It is a workshop you don’t want to miss! Still on that note, I am happy to announce that The Power Is Now in collaboration with AmPac Tri-State CDC and James Jamar, the Digital Currency Guy will be hosting a realtor seminar at Ivar. The seminar will be on September 7th and the door open at 9.00am. I will begin the seminar where I will be talking about how to close more deals with low to no money down. In the second session, we’ll have Hilda Kennedy the president of AmPac Tri-State and Brandon Sellers the Vice President do a presentation about the Small business lending options. Finally, in the last and closing session, we’ll have Jamar James do a presentation about Bitcoin and its impact on real estate. It is a seminar you don’t want to miss out. Come out, learn and interact and share in the power because The Power Is Now! Lastly, I want to thank you for your continued support. My team and I are committed to make sure that you get the latest news and developments in the real estate. Please take a moment and share this magazine. Knowledge is power and The Power Is Now.
Eric Lawrence Frazier, MBA CEO The Power Is Now Inc.
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NEW MARKETING SESSIONS
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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
September is National Sickle Cell
Awareness Month
S
eptember is the Sickle Cell Awareness month which warrants us to write an overview about the disease. The term Sickle Cell actually refers to a group of inherited red blood cells disorders and the people who have sickle cell disease have an abnormal protein in their system. In America, the exact number of people living with SCD is unknown, however, ma jority of people who have sickle cell disease are of the African ancestry. SCD occurs among about 1 out of every 365 Black Americans also the condition is also very common with people with a Hispanic background, as it occurs among about 1 out of every 16,300 Hispanic births. Sickle Cell disease is a serious blood disorder which affects the red blood cells and uses a protein called hemoglobin to transport oxygen from the lungs to the rest of the body. The mutations in the hemoglobin gene cause Sickle cell disease. About 100,000 Americans are born with sickle cell disease and every year another 1,000 babies are born with the disease. Approximately 10% of the African American populations carry the SCD traits. The black panthers were the first to raise National Awareness about Sickle Cell Disease and established testing in their free clinics in 1970. Fast forward to the 90s, newborn screening was set up and all the babies born in the 90s or later could now be screened for Sickle Cell Trait (SCT). SCT is nothing like SCD and cannot change to the disease. SCT is found in about 1 out of every 14 African Americans in California. The
The Power Is Now Magazine
September 2018
trait passes to a person if he/she gets hemoglobin A from one parent and a gene for hemoglobin S from another parent. Basically, people with SCT have enough hemoglobin A for red blood cells to function normally. The cause of SCD is normally a defective gene, the gene is called the Sickle Cell Gene. People with the disease are born with two sickle cell genes, one from each parent. People with SCD normally start to have the signs of the disease during the first year of life, usually 5 months of age. Early symptoms of SCD may include the following; • Painful swelling of the hands and feet • Fatigue or fussiness from anemia • A yellowish color of skin or whites of the eyes. Over time, SCD may lead to complications including infections, delayed growth and some episodes of pain called the pain crises. Most of the children who have SCD are pain free between the crisis but the adolescent may suffer with chronic, ongoing pain. If untreated, SCD can harm a patient’s spleen, brain, eyes, liver, heart,
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kidneys, joints or the skin.
Sarah
In 2014-2015, the most recent years for which we have complete data, it showed that there were just under 200 persons with SCD who either lived in or sought care in Solano county. Most of the adults in search care used either the North Bay or Sutter Solano.
Obama children’s orphanage and provided resources. She is also a member of the Toastmasters International and has attained the level of Distinguished Toastmasters.
The Sickle Cell Community Health Network of Northern California, in which Mary Evans is a founding member plans to kick start its campaign on Sickle Cell Awareness from September 6th all through to 15th and here at The Power Is Now, we are not left behind in the campaign. Ms. Evans has more than 20 years to her credit. She is a respected community organizer and a mover amongst the Northern California’s Sickle Cell Community. Due to her innovativeness, she has earned a reputation of turning concepts into realities. In 2016, God gave Ms. Mary Evans favor and she was able to launch sickle cell testing on Mama
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Here is what you can do during the Sickle Cell Awareness month; raise awareness, conduct educational forums or attend one, participate in health fairs and donate blood. The Power Is Now is actively engaged in raising awareness on SCD and we invite you to join in the campaign. The Power Is Now is also dedicated to making sure that the word gets out there, so that people can have the power because truly, The Power Is Now!
Sources https://www.cdc.gov/ncbddd/sicklecell/data.html https://www.cdc.gov/ncbddd/sicklecell/data.html https://www.omicsonline.org/open-access/sickl e-celldisease-with-special-emphasis-to-african-americans-anoverview-2155-9821-1000e138.php?aid=61093#1
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Helping Families Make the Right Move!
Danon Burnside Cal DRE # 01835853
Real estate Agent
Realtor | San Bernardino O: (800) 401-8994 x 724 D: (951) 205-5796 danon.burnside@thepowerisnow.com www.thepowerisnow.com www.applytobuynow.com
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
IN REAL ESTATE
Irvine, a Hidden Jewel in the Heart
of Orange County
U
nlike other Californian cities, which date back their roots to the 18th and 19th centuries, Irvine began its history in later in the 20th century. Yet, despite of just celebrating its 45-year anniversary, the city has grown to become one of the crown jewels of the Orange County. Irvine currently boasts a population of a quarter million people and offers great job and real estate opportunities, along with beautiful landscapes, higher education, amenities, and entertainment areas that make it one the most sought after places in Southern California.
Since those humble beginnings, the city has evolved to offer some of the most interesting urban developments and sites of entertainment in Southern California such as:
The Orange County Great Park Built in the former Marine Corps Air Station El Toro, this incredible park is best known for the Great Park Balloon that allows passengers to
For the better part of the 19th and 20th centuries, the area where the city is located belonged to a ranch owned by the Irvine Company. After Myford Irvine, the then president of the company passed away in 1959, the University and State of California purchased 1,500 acres of land from the Irvine Company and the 50,000 people city plan was envisioned. Finally, in 1971, the communities of Culverdale, the Ranch, Turtle Rock, University Park, and Walnut decided to incorporate into the current city .
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September 2018
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enjoy a 360 degree view of the Orange County from an orange balloon at a high of 400ft. However, this is just a small section of the park, which covers a total of 1,300 acres, twice as big as Central Park in New York.
Irvine Spectrum Center
In August 2017, the city inaugurated the first phase of the 194 acres Great Park Sports Park. Once is completed, this one of a kind facility will include a total of 18 soccer fields, 25 tennis courts, 12 baseball and softball fields, and a soccer stadium that will be home to the USL PRO Orange County Soccer Club . Likewise, developer FivePoint is set to develop 713 acres of the park in exchange for building 4,600 homes adjacent to the park. Among the projects the firm has planned is the construction of an 18-hole golf course along with walking trails, agricultural fields and a 2.5-mile wildlife corridor connecting the Santa Ana Mountains with the coast. It is also expected that by the end of 2018, the Anaheim Ducks will call home a new 270,000 ft2 ice complex and training facility built in the park.
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This entrainment center is another one of the most interesting places to visit in the city. It is easily recognizable by the 108-foot-high Giant Wheel, which offers great views of the center and surrounding shops. This attraction, the carousel and the train that circles around the complex are sure to offer a great time for young and adults alike. Yet, it is shopping that stands above the rest. The Irvine Spectrum Center offers a total of 100
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boutiques and stores providing a great deal of options, from bookstores to casual clothing and sportswear. The center also offers great dining options, as well as, the Irvine improve comedy club and a 21-screen and IMAX movie theater .
By Tiana Owens Realtor CalBRE # 01998032
Diversity Irvine has a special place in America. The planned city is the only ma jor city with a sizeable Asian-American population. According to the 2010 US census, about 45% of the city are of Asian descent, while Whites represent 50%, Hispanic or Latino 9.2% and African American just 1.8%. This can be appreciated in the eclectic mix of Asian cuisine found in and the Annual Irvine Korean Cultural Festival. The city is also constantly ranked among the safest cities and one of the best places to live in America . Irvine has come a long way since its humble beginnings. From a city planned for just 50,000 people it has grown to more than 200,000. With great projects in development such as the Orange County Great Park, locations as the Irvine Spectrum Center and its location at the heart of the Orange County makes the city an ideal place for investment and real estate transactions.
The Power Is Now Magazine
September 2018
Sources: https://web.archive.org/web/20101203011057/http:// www.ci.irvine.ca.us/about/history.asp https://www.ocregister.com/2017/08/05/game-onirvines-great-park-opens-first-part-of-new-sportspark-which-is-twice-the-size-of-disneyland/ estate-in-2019/ https://www.ocregister.com/2017/02/17/irvines-greatpark-anaheim-ducks-host-icebreaking-of-mega-icerink-complex/ https://www.shopirvinespectrumcenter.com/ http://worldpopulationreview.com/us-cities/irvinepopulation/
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MOVING ON TO YOUR IDEAL PROPERTY?
CALL ME I CAN HELP YOU! TIANA OWENS Realtor CalDRE # 01998032 Office: (800) 401-8994 x 704 Direct: (949) 393-8020 Email: tiana.owens@thepowerisnow.com Website: www.thepowerisnow.com
IN REAL ESTATE
The time to buy is now. Don’t wait for opportunities in Los Angeles By Nicole Burns Realtor CalBRE # 01359705
L
os Angeles market trends indicate an increase of about $81,000 representing a 10% increase in median home sales over the past one year and the average price per square foot for the same period rose to $675 up from $608
• Southern California home sales has seen the worst crash ever in the market, sending huge waves to the nation of yet another bubble that is about to burst. • Sales of both new and existing houses dropped 11.8 percent Y-O-Y, with the prices shooting up to a record high according to data by corelogic. • The supply for new homes in the 2nd quarter of the year rose at 3 times the rate of the last year according to data by Trulia
supply and low historical mortgage rates and an improving economy. The number of homes sales in the region fell 3.4% from a year earlier.
Los Angeles is one of the most attractive areas in California but for the last few years, it hasn’t been so much attractive, with the homes sales reaching all-time record high. Is this the right time to settle? Especially in a hot market such as LA?
In LA, the median home price is almost $1 million as the bidding wars continues for the shrinking inventory. This means that if you’d like living in Los Angeles, be ready to fork over several million dollars if you are lucky enough to find what you are looking for. Experts say that for a fullsize family home without much of commute, the buyers will have to pay at least $2 to $3 million and the price is dramatically changing.
The last few years have been the most competitive, tightest and terrifying for the housing market in decades and the good news is that, the market could be loosening its grip and that could put a pressure on the overheated home prices. The 2nd quarter of 2018 saw the supply of homes, the all-important spring market, rising three times the rate of the same period in 2017.
In the western Los Angeles area, the Yearto-date median prices increased 20% to hit $1,225,000, if you are considering living in the that part of LA, be ready to move as fast as you can because homes in the area are not staying that much on the market. More to that, be ready for a price war, some 54% of the West LA home listing sold above the asking price.
CoreLogic reports that the southern California market median home prices surged 8.2% in May from a year earlier, hitting a new all-time high to record $530,000. This sharp gain in the median home sales was partly fueled by the lack of
The shortage of supply has been the blame for what’s is happening in the market right now. It may be the primary reason why most of the baby boomers are not downsizing. However, looking on the brighter side and the reason why the market
The Power Is Now Magazine
September 2018
20
has been tight, I think the main reason is the fact that developers can’t build enough housing to meet demand as there has been strict zoning laws and opposition from the existing residents. For a long time now the Eastern side, especially the greater Pasadena Area, has been a favorable spot for downtown commuters, where 62% of all homes sold over the asking prices in April. However, prices in the Eastern LA are better than the West Los Angeles with a median tag price of $868,000, only 10% above the previous year. If you are thinking about owning a home in Los Angeles, then there can never be a better time to buy than now. But, where do you go when you must live in Los Angeles area and you want to own a home? Some great areas to explore would be areas that weren’t your top options, remember, Los Angeles is a big metro area and all you have to do is open up to the endless possibilities of options available.
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Resources https://www.forbes.com/sites/ ellenparis/2018/05/28/los-angeles-medianhome-price-nears-1-million-as-fierce-biddingwars-continue/#68d78c0f1e85 http://www.latimes.com/business/la-fi-homeprices-20180621-story.html# https://www.cnbc.com/2018/07/12/the-housingshortage-may-be-turning-warning-of-a-pricebubble.html https://www.cnbc.com/2018/07/24/southerncalifornia-home-sales-crash-a-warning-sign-tothe-nation.html https://www.trulia.com/real_estate/Los_AngelesCalifornia/market-trends/
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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
?
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
IN REAL ESTATE
San Bernardino receives $20 million
for affordable housing projects
A
ffordability has become a ma jor issue in the Californian housing market. For years rising prices in the country’s most populous state has meant that homeowners coming from the underprivileged communities find it almost impossible to purchase property. However, steps are being taken to alleviate the problem. For instance, San Bernardino recently became the first Inland Empire community to receive a $20 million help fund from the California Affordable Housing and Sustainable Communities (AHSC) program . The measure approved on Jun 28, 2018 will contribute to the rehabilitation of the Arrowhead Grove neighborhood, previously The Power Is Now Magazine
known as the Waterman Gardens Public Housing site. The $75 million private-public project is a collaboration between the California Affordable Housing and Sustainable Communities (AHSC) program , the Housing Authority of the County of San Bernardino, the National Community Renaissance (National CORE), one the country’s largest affordable housing developers will transform Arrowhead Groove into a vibrant community. Using proceeds from the Greenhouse Gas Reduction Fund, the Affordable Housing and Sustainable Communities program (AHSC), grants loans for affordable housing development and transportation improvement projects that focus on reducing carbon footprint by encouraging ecofriendly means of transportation such as bicycling, walking and public transport . As such, the $20 million from Cap-and-Trade dollars granted by the AHSC will go on to fund two upcoming projects in the former Waterman neighborhood . It will first focus on 147 affordable housing units and 36 market-rate units located on North Waterman Avenue and East Baseline Street. Once the project is completed, Arrowhead Grove will comprise 400 homes and amenities such as a pool and a clubhouse. The project is also set to include a community garden, a computer lab, as well as, upgrades in infrastructure and walking paths. As City of San Bernardino Mayor R. Carey Davis commented, the September 2018
24
decision of the AHSC shows the constant effort made in rehabilitating the Waterman Corridor. As he said, “This is a testament to the power of community collaboration. With the support of our partners, we will continue to pursue safe and stable communities for our residents and families to thrive.� Two initial phases of the Waterman Gardens rehabilitation project have been completed to date, the 76 unit Valencia Vista opened in December 2016 and the 62-unit Olive Meadow, which opened to residents in September 2017. The complete Arrowhead project is expected to be completed by securing financing from low-income housing tax credit financing, collaboration with the U.S. Department of Housing and Urban Development’s www.thepinmagazine.com
(HUD), the Rental Assistance Demonstration (RAD) program and federal HOME-Investment Partnership funds.
By Danon Burnside Realtor CalBRE # 01835853
Although more funding is needed, $20 million will contribute greatly to the completion of Arrowhead Grove, which is expected to break ground by late 2018 or early 2019. Considering the need of affordable housing in California, more private and government initiatives are required to start balancing the market. Projects such as the rehabilitation of Waterman Gardens can serve as a precedent for future developments.
References: https://inlandempire.us/sanbernardino-receive-20-million-for-afamily-development-project/ https://www.sbsun.com/2018/06/28/ san-bernardino-secures-20-millionfor-affordable-housing-communityarrowhead-grove/ https://inlandempire.us/20-millionrecommended-for-affordablehousing-project-in-san-bernardinocounty http://iecn.com/san-bernardino-firstcity-in-i-e-to-receive-20m-for-familydevelopment-project/
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IN REAL ESTATE
The Housing Market is making a slow come back
R
eal estate professionals must always beware of any news or report that can help them predict any upswing or downturn in the housing market. One of the greatest tools to do so is The State of Nation’s Housing published by The Joint Center for Housing Studies of Harvard University . The 2018 report reflects on how our nation has changed over the thirty years since the publication began, and it presents significant trends that need to be taken into consideration in regards of demographics, homeownership, and future challenges. In overall, the Harvard report revealed that despite progress, many challenges continue to be present in modern-day America. For example, homeownership rates are lower than 30 years ago (Joint Center p.3). While many issues such as rising home prices, low stock in inventory, high rents may explain the low rate number, unequal distribution of wealth is probably the biggest factor. low-income
The Power Is Now Magazine
September 2018
households
have
only
seen
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their wealth increase by 3% since 1988, while the 25-34 median income demographic experienced an increase of 5% (Joint Center p.2). This disparity creates a though environment in which many young adults and minorities cannot keep up with the pace of home affordability, thus keeping a larger portion of the population unable to rise equity and further deepening the income gap. Moreover, many regions of the country continue to experience housing shortages. There are several explanations as to why the market is tight. In the aftermath of the housing burst, many foreclosed properties were converted in rental property, shrinking the numbers of existing homes for sale (Joint Center p.3). Additional to this, Americans are staying put in their homes for longer than in the past. Housing mobility has slowed down considerably compared to previous decades. Baby Boomers are less willing to put their homes on sale. For example a 2014 AARP survey showed that 88% of adults over 65 years of age want to remain in their homes (Joint Center p.22). Land prices in the most sought after metros have also increased as well as the cost of building materials. In addition to this, thecaution taken by building companies in creating new single-families units means www.thepinmagazine.com
that although numbers may rise in the upcoming years, the number of homes entering the market will not be enough to meet the demand. Neverthel ess, there is a positive outlook into the future. After years of steady decline, homeownership began to make a recovery in 2017. Immigration and Millennials entering into their 30’s are a ma jor factor for the upturn. For example, adults under 35 created 10.5 million new households from 2012-2015, an increase of 1.5 million units since the previous 5 year period (Joint Center p.4. Considering that most Millennials are in entering their late twenties, it is expected that the market will continue growing in the future. In overall, taking into account these numbers, the increasing demand for real estate in the numbers of native and foreignborn families entering the market will likely push in the construction of home units. Nonetheless, the slow pace in the creation of new buildings and low residential mobility, along with the affordability crisis means that the market will not be balanced in the nearby future.
G re a t challenges remain ahead. Despite the economy largely recovering from the Great Recession and the GDP expecting to grow, the homeownership rate remains relatively low and it is not likely to be significantly reduced soon. Measures need to be taken to expand the market of entry homes and lessen the affordability gap. This will require the intervention of both private and government institutions whether to bring down the price of building new homes or provide subsidies for low-income and rent burden families.
References: Joint Center for Housing Studies of Harvard University. (2018) The State Nation’s Housing 2018. President and Fellows of Harvard College.
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ON THE COVER: AUBREY L. STONE
President and CEO for the California Black Chambers of Commerce
Aubrey L. Stone Background Aubrey L. Stone is a Native of Brooklyn, New York and has lived, worked and actively engaged in the community and public service in Sacramento, California for the past 20 years. Currently, Mr. Stone is the president and CEO for the California Black Chambers of Commerce.
Professional Advocacy Mr. Stone has been known for his aggressive advocacy. He has led the organization in such public issues such as the Proposition 187, he also co-authored the 9th Circuit Injunction against the implementation of Proposition 209. In addition to that, Mr. Stone publicly advocated against the Brownfields, the urban environment, Insurance redlining the inner city impact of bank acquisitions/ mergers and leads the charge of new and emerging markets.
Professional experience Aubrey is a mentor, a teacher, a motivator and a leader. Most of all, Mr. Stone has been known as a man who has dedicated his life into public service and economic development. His optimistic outlook is well displayed by his belief that no life obstacle is insurmountable. To him, it is simply a matter of attitude, tenacity and focus. Apart from his role at the California Black Chamber of Commerce, Mr. Stone was appointed by the Governor to serve as a California Commissioner for Economic Development. Mr. Stone’s single-minded focus is the creation of individual community wealth through small business growth development and sustainability. Aubrey is the current chairman of the National African American California Chamber of Commerce and also serves on the California Regional Community Utilities Diversity Council, the Citibank Regional www.thepinmagazine.com
Community Board, the Pfizer National Minority Business Board, the California Small Business Advisory Board, the Cal-Trans Small Business Board, and is a member of the Greenlining Coalition.
Previous Roles Mr. Stone has had top executive positions. He served on the boards of NAACP, Sacramento Black Chamber of Commerce, the Mayor’s Economic Development Council, the District Attorney’s Community Relations Board and the State Fair Minority Council. Under Aubrey’s leadership, the California Black Chamber Foundation became the owner of the State’s Sole African American owned and operated low-powered radio station serving the Sacramento region and statewide online streaming. Mr. Stone received the Sacramento Observer Newspaper’s Lifetime Achievement Award for being one of the most influential African Americans in the city of Sacramento over the past 40 years.
About the U.S. / California Black Chambers of Commerce The California Black Chamber of Commerce is a non-profit organization that is dedicated to economic empowerment. CBCC engages in many issues like legislation that affects business practices in California; Ballot measures, acquisitions, mergers and deregulations. For more than 20 years, the CBCC has been producing business and community events and this year, the 2018 Ron Brown Business/ Economic Summit and Women’s symposium took place on August 23-25th. CBCC staff has gone to exceptional lengths to make sure that each event brings meaningful and impactful experience for all the participants and the guests. 31
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
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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.
IN MORTGAGE
Mortgage application rates hits the lowest
as interest rates continue to rise
M
ortgage application rates dropped for the third week as the interest rates and high home prices take their toll on mortgage. The total mortgage application rate volume decreased 2.6 percent from the previous week according to a survey by the Mortgage Bankers Association. The Market Composite Index, which is a measure of the mortgage loan application volume, fell 2.6 percent on a seasonally adjusted basis from the previous week. However, on an unadjusted basis, the index decreased 3 percent when compared with previous week which recorded a 1 percent higher than the same week a year ago. The decrease in the rate was led by the purchase application volume dropping 3%, both on the seasonally adjusted and the unadjusted bases. The refinance share of the mortgage activity increased 37.1% of all the applications from 36.8 percent the previous week. On the other hand, the adjustable rate mortgage, ARM share increased its activities to 6.4 percent of the total applications. “Rates rose slightly last week due to easing trade tension between the U.S. and Europe and Signals on Japanese and European monetary policy,� Joel Kan, MBA’s associate Vice President of Economic and Industry Forecasting. Activity on the application remained slow which is in line with the weak trend tra jectory on other housing indicators such as the home sales and the housing starts. In the past week, both the purchase option and the refinance activity has decreased. For the third week, purchase application index was at its lowest level as the low housing inventory and rising home prices continue be a real cause for alarm. Of the total applications, the Adjustable rate loan activity recorded an increase of 0.1 percent, from 6.3% to 6.4%. For the FHA share of the total applications, the activity increased to 10.4 percent from 9.9 percent the previous week. The Veterans Affairs-guaranteed the loan applications which also rose up to 10.5 percent to 10.2 percent. The USDA share of the total applications remained unchanged at 0.8 percent when compared to a week before. Despite the drop, the average contract interest rate for the 30-year-fixed rate mortgage with jumbo loans balances increased from 4.72 percent to 4.76
The Power Is Now Magazine
September 2018
34
percent while the 30-year-fixed rate mortgage backed by the FHA remained unchanged at 4.78 percent. It is worth noting that the Mortgage Credit Availability increased significantly in July according to the Mortgage Credit Availability Index. The MCAI increased 1.7 percent to 184.1 in July. An increased in the MCAI indicates that lending standards are tightening while the increase in the index are an indication of the loosening of the credit. In 2012, the index was benchmarked to 100, making the year the base year. The conventional MCAI increased up to 4.2 percent while the Government MCAI decreased. “Credit availability continued to expand, driven by an increase in conventional credit supply. More than half of the programs added were for jumbo loans, pushing the jumbo index to its fourth straight increase, and to its highest level since we started collecting these data. There was also continued growth in the conforming non-jumbo space, which reached its highest level since October 2013,” said Joel Kan
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
Take a look at the following component indices; The conventional MCAI increased up to 4.2 percent
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35
The government MCAI decreased down to 0.4 percent
The Jumbo MCAI increased by 5.8 percent;
Source: Mortgage Bankers Association; Powered by Ellie Mae’s AllRegs® Market Clarity® The primary difference between the total MCAI and the component indices are the population of the loan programs which they examine. For the Government, it examines the FHA/VA/USDA loan programs while the conventional examines the non-governmental programs.
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September 2018
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UPCOMING EVENTS
September REALTOR SEMINAR FRIDAY, SEPTEMBER 7 9:00 AM TO 1:00 PM 3690 Elizabeth St. Riverside, CA 92506 Ph: 951-684-1221 | Fax: 951-684-0450 www.ivaor.com Click here to register HOMEBUYER’S WORKSHOP DUMBAR REAL ESTATE GROUP WEDNESDAY, SEPTEMBER 19 6:00 PM - 8:30 PM Fusion Real Estate Network 1709 International Blvd # 209 Oakland, CA 94606 Click here to register HOMEBUYER’S WORKSHOP “HEART AND SOUL CENTER OF LIGHT” CHURCH SATURDAY, SEPTEMBER 22 9:00 AM - 12:00 PM Heart and Soul Center of Light Church 1001 42nd Street, Suite 100 Oakland, CA 94608 Click here to register ..... THE POWER LUNCH EVERY TUESDAY LIVE ON FACEBOOK 12:30 PM TO 1:00 PM https://www.facebook.com/thepowerisnow
FACEBOOK LIVE HOMEBUYER SEMINAR EVERY TUESDAY LIVE ON FACEBOOK 7:00 PM TO 8:00 PM https://www.facebook.com/thepowerisnow
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IN MORTGAGE
T
en years after the financial crisis which was largely contributed by the faulty mortgage system, Wells Fargo agreed to go on record to pay $2.09 Billion to settle a U.S. Probe into its creation and sale of loan that contributed to the horror. The settlement comes as a fine to settle claims that Wells Faro misled investors about the quality of the subprime mortgage loans that it had initiated and sold between years 2005 and 2007. The long awaited penalty was announced on Wednesday and was in line with what some of the analysts had predicted and to some degree, smaller than the sanctions borne by some bank’s competitors. Wells Fargo originated and sold Mortgage loans that contained incorrect income information, warranting a civil penalty. Between years 2005 and 2007, Wells Fargo was the second largest originator of the residential mortgages. It pushed hard into the sub-prime loans by encouraging underwriters to be more aggressive according to a settlement agreement signed by Wells Fargo.
that indeed the bank had a “substantial” number of loans which contained misrepresentations or materially inaccurate information and still, the bank greenlighted the loans through the process. “Abuses in the mortgage-backed securities industry led to a financial crisis that devastated millions of Americans,” said Acting U.S. Attorney for the Northern District of California, Alex G. Tse. “Today’s agreement holds Wells Fargo responsible for originating and selling tens of thousands of loans that were packaged into securities and subsequently defaulted. Our office is steadfast in pursuing those who engage in wrongful conduct that hurts the public.” The settlement by the DOJ holds Wells Fargo accountable for the actions leading to the financial crisis. “It sends a strong message that the Department is committed to protecting the nation’s economy and financial markets against fraud.” Said Acting Associate Attorney General Jesse Panuccio.
Basically, the rule or the civil penalty by the DOJ was in fact under the Probe into the bank’s dealing proved Financial Institution Reform, Recovery,
Wells Fargo ordered to pay $2.09B to settle allegations of misrepresentation of Loan quality The Power Is Now Magazine
September 2018
38
and Enforcement Act of 1989 (FIRREA) and according to DOJ, Investors including Federally Insured financial institutions suffered a blow in losses from investing in residential mortgage-backed securities (RMBS) which contained loans originated by Wells Fargo. The probe jeers on debts in which the borrowers were allowed to declare their income without
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substantial proof. FIRREA authorizes the federal government to seek civil penalties against institutions that violate the code of ethics and allows for predicate criminal offenses including wire and mail fraud. United States alleged that in 2005, Wells Fargo initiated a program to
double its production of the subprime and the Alt-A loans (loans where the borrower simply states their incomes without providing any further supporting income documentation) In its evaluation part, Wells Fargo subjected a sample of the loans to “4506-T testing.� This is a government
39
document signed by the borrower during the loans approval process and allows the lender to obtain the borrower’s tax transcripts from the Internal Revenue Service (IRS). Basically 4506-T testing involves a comparison of the tax transcripts of the borrower with the income stated on the loan application. Wells Fargo initiated this testing on two of its programs.
Disturbing revelations Probe into the matter revealed that more than 70% of the loans that Well Fargo sampled had an unacceptable variance. The average variance was approximately 65%. After Wells Fargo received the results, the bank conducted a further internal testing. The additional testing was designed to determine if the plausible explanations existed for the unacceptable variance of over 20%. This further revealed that nearly half of the stated income loans that Wells Fargo tested had both an unacceptable variance and the absence of the plausible explanation for the variance.
The Power Is Now Online Events Every Tuesday at 12:30 PM and 7:00 PM, along with every Thursday at 12:30 PM, we are live on Youtube! We educate our friends and followers about all of the latest mortgage programs, interview industry leaders and professionals, and give agents an opportunity to showcase their listings on our platform.
Despite having the knowledge about this misrepresentation, Wells Fargo failed to disclose this information and instead, the bank reported false information about the debt-to-income ratios in connection with the loan it sold. Furthermore, Wells Fargo also allegedly prefigured its fraud controls by failing to disclose discrepancies in its income which the controls had identified. The United State further alleged that Wells Fargo took a huge step to cloister itself from the risk of its stated income loans. This it did by screening out many of these loans from its own loan portfolio held for investment and by limiting the liability to the third parties for accuracy of the stated income loans. Wells Fargo allegedly sold at least 73, 539 stated income loans which were included in the RMBS in 2005-2007. Nearly half of the loans have so far defaulted resulting in billions of dollars in loses to the investors.
See the weekly topics at: Source: https://www.justice.gov/usao-ndca/pr/wells-fargo-agreespa y-209-billion-penalty-all egedl y-misrepresentingquality-loans-used
The Power Is Now Magazine
September 2018
thepowerisnow.com/events/
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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:
CONVENTIONAL:
• • •
• • •
Credit scores as low as 580 Manual underwrites FHA - Approved condos OK
USDA:
VA:
• •
• •
Credit scores as low as 600 100% financingn available
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 580 Manual underwrites
NICHE PRODUCTS:
JUMBO:
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Down payment assistance Conforming and High Balance Extended Builder Rate lock Programs Available Doctor/Dentist programs for Conforming and NonConforming loan amounts Renovation Products available Non-warrantable condo options 80/10/10 Programs
Credit scores as low as 610 Debt-to-income as high as 49.99% Loan amounts as low as $100K and up to $3M Up to 95% loan-to-value Interest-only options
ERIC LAWRENCE FRAZIER MBA CalDRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243 Phone: (800) 401-8994 ext. 703 Website: Direct: (714) 475-8629 eric.frazier@thepowerisnow.com 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.
Christina Kimble
the New Face of OC Realtist
Christina Kimble C Christina Kimble Christina Kimble hristina Kimble is the new President for Orange County Realtist. She has been an active member of the OC Realtist since 20XX and in the community as an agent since 2005. She is originally from Los Angels but has lived in Orange County since 20XX. Christina Kimble is passionate about helping her community and even more passionate about increasing the rate of homeownership in the African-American community. Christina states.
“I’m very proud to be a Realtist and a member of the national Association of the state brokers in their commitment to democracy and housing for everyone. I decided to take on the role of President because I want to make a difference in our community and to lead other real estate professionals to do the same in Orange County.”
Knowledge, Ethics, Friendliness, Professionalism in the field have been Christina’s focus with buying, selling, and renting properties. She has made it her mission to serve her clients’ needs and wishes to the highest degree. Educational real estate courses, seminars, and conferences bring her to the cutting edge of the market. She has sold, rented, and upgraded a plethora of properties throughout the area. She is committed and motivated to selling your home with the utmost care and to finding you the affordable home of your dreams. Christina Kimble was promoted to Director of Sales and Operations of The Power Is Now in January 2013. Christina works with corporations, non-profits and trade associations such as NAREB, NAHREP, and AREAA. She builds relationships with urban communities and plans events such as homebuyer workshops. Christina oversees the firm’s day-to-day operations and interfaces with the CEO. Prior to her current role, Christina was a sales representative with WorldMark by Wyndham. Christina began her career in 1993 as key www.thepinmagazine.com
accounts sales manager at CRLaurence in Vernon, CA. She subsequently built her career in many roles. With over two decades of professional experience, Christina has strong relationship and sales management skills. Christina is also a real estate agent in Orange County and North Orange County working with The Power Is Now. Christina’s superior local knowledge has been a key factor in her continued success. Christina is dedicated to asking herself ‘What is best for the client?’ and ‘What does the client want?’ to ensure she always gets the right result. Her phenomenal track record can be put down to her unwavering energy for the business, negotiating prowess, tenacious attitude and strong commitment to the client’s aspirations. With a career spanning more than 20 years in sales, marketing and training Christina is committed to representing her clients to realize the value of their property and delivering exceptional outcomes and experience. With Christina you’re just getting your Basic Real Estate agent, she has gone above and beyond, the know-how and experience required. She ensures comfort, confidence and satisfaction to all that she represents. Her Professionalism, organizational, skill provides personal attention are keys to her success. Christina has the expertise to guide you throughout each step of your transactions. She utilizes the latest technologies, market search, internet and social networking to provide your entire satisfaction. If you live and work in Orange County and embrace the mission and vision of NAREB please renew your membership and join the OC Realtist. The OC Realtist chapter was established August 10th 2010 by Henry Currie Regional Vice President of CAREB and Eric Frazier Founding President. Like all organizations we have gone through difficult economic times and growing pains but we are still here representing NAREB. Let’s work together and support the oldest Minority Real Estate Trade Association in the United States by rejoining TODAY.
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Robin Davis Realtor | CalDRE # 01971982
Phone: (800) 401-8994 x 706 Direct: (925) 565-4848 robin.davis@thepowerisnow.com www.thepowerisnow.com
IN YOU
Home renovations could
get much more expensive.
This is why
H
omeowners tend to look at the prices first prior to embarking on a home renovation project. This is because it is known to be much less expensive than buying property outright. Homeowners try to do it themselves mainly because it would be much cheaper than hiring professional construction workers. From materials to the labor costs, homeowners will definitely be able to save more money if they do it on their own and start from scratch. However, there may be a bit of bad news on this front for DIY construction workers and interior designers out there. If home renovations are expensive now, it might get even worse in the coming days. Here’s why:
Top Reasons The Labor Market According to a recent survey by Houzz projects regarding home renovation could become more expensive this year because of the fierce labor market and increasing costs of materials. This is according to the 3378 United States Property Renovation Businesses that have participated in the said survey. One good thing about this trend is that the market has been steadily increasing in the home improvement niche. There are many customers who choose to have their house renovated. However, many home renovation businesses are still being cautious about outsourcing laborers because of the lack of security in many regions.
The Power Is Now Magazine
September 2018
Paying the Labor Force and Problems with Security Aside from paying the workers outright, many design and construction firms in the States tend to pay more for the vetting of these laborers. Aside from labor costs and security, another factor that could cause the price of renovation to increase significantly according to U.S. based economists is the subsequent increasing of raw materials in value.
Trading Issues and Increased Prices of Materials From lumber to stainless steel and aluminum, the price of these raw materials seems to have
46
risen significantly over the years by 40%. This is due to the import tariffs placed by large U.S. trading partners including China. (Source: James Rosseau, LegalShield CCO) In addition to this, the Housing Activity Index from LegalShield states that, the worsening trade relations between the U.S. and their partner countries have also steadily affected the cost of raw materials. This does not even include the steadily increasing interest rates for the raw materials as well as the renovation and the labor.
The Silver Lining: Home Renovations In Lieu Of Property Investments However, in the year before (2017) the aforementioned annual Houzz survey showed an optimistic view of revenue growth in the coming years. This means that the exorbitant prices as well as the significant increase in home improvement needs had been expected all along. In fact, according to the website, at least 3 out of 5 construction companies have increased revenue in the last year. What factors may have contributed to this? Read
www.thepinmagazine.com
on to learn more. One of the main causes of the steady increase in the need for home renovations over the last few years is the rise in real estate prices.
Home Renovations vs House Buying According to experts, home improvements can increase equity as well which encourages homeowners to just apply for extended credit lines and more loans to pay for renovations. This is why most people who can never afford to buy their own home choose to just invest in home improvements instead. Furthermore, other experts from the Harvard Joint Center for Housing Studies predict that homeowners would be willing to spend up to $340,000,000,000 just for home improvements alone for the rest of the year. This presents a small but significant statistical growth of 8% from last year. Therefore, while there is still a large market for home renovations, a lull in the real estate market for renovated homes could balance it out in the next two years or so. (Source: Abbe Will, Associate Project Director—
47
Harvard Joint Center for Housing Studies)
and one will find the answers that they seek sooner rather than later.
The Role of Social Media If one is still interested in buying houses, social media definitely can play an important role in the quest. A lot of real estate websites as well as construction firms already offer a social media presence to make it easier for customers to find them on the web.
Final Words This is why homeowners should really think about their options before deciding on whether to just buy a new house or spend their hard earned money on possible renovations. Would it be worth it to pay more for labor costs and materials over time than just to avail an already built dream house for the family? Consider the aforementioned factors carefully The Power Is Now Magazine
September 2018
References: https://www.bloomberg.com/research/stocks/private/ personhttps://www.mercurynews.com/2018/07/12/whyhome-renovations-could-get-more-expensive-this-year-2/ http://st.hzcdn.com/static/econ/ HouzzStateOfTheIndustry2018.pdf https://www.prnewswire.com/news-releases/legalshieldindex-housing-construction-momentum-is-buildingbut-willtrade-restrictions-put-on-the-brakes-300610238.html http://www.jchs.harvard.edu/research-areas/researchbriefs/investigating-metro-area-home-improvementspending-cycles http://www.jchs.harvard.edu/blog/robust-outlook-forresidential-remodeling-through-mid-year-2019/ https://www.cnbc.com/2018/06/26/remodeling-your-homewill-cost-more.html
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IN LEGAL
FHFA Director Mel Watt
under investigation for sexual misconduct
M
elvin L. Watt, the Director of Federal Housing Finance Agency is being investigated for alleged sexual misconduct- harassment of an employee. Watt is being accused of repeatedly making inappropriate sexual advances against an FHFA staffer when she tried to discuss with Watt about her career and salary concerns. Currently, the employee works as a special adviser at FHFA and has been working with FHFA since December 2014, according to a report by Politico. The article notes that Watt’s behaviors began long ago. The conversations where Watt made his advances towards the employee included a 2016 meeting during which Watt steered the discussions to his feeling for the employee. Still in a separate encounter, Watt asked the woman about a tattoo on her ankle saying, “If I kissed that one would it lead to more?” The employee’s attorney confirmed that the investigation about the misconduct by FHFA director is underway. However, the attorney, Diane Seltzer, declined to name the employee out the concerns for her privacy. Director Watt is among the few remaining appointees of the Obama Era and has since then come to defend himself saying that the allegations about the ‘his’ sexual misconduct is politically motivated. “The selective leaks related to this matter are obviously intended to embarrass or to lead to an unfounded or political conclusion,” he said in a statement. “However, I am confident that the investigation currently in progress will confirm
The Power Is Now Magazine
September 2018
that I have not done anything contrary to law.” The employee filed the complaint against Watt under the Equal Employment Opportunity Act and accused Watt of repeatedly making unwanted sexual advances. She further claims that she was denied a promotion at the agency because she reported the harassment, claims under the Equal Employment Opportunity Act are not made public. Investigation into the matter is being conducted by the U.S. Postal service, this is in accordance with administrative protocols. In a transcript dated April 2016, Watt was identified as the person behind arranging a meeting between the two outside the office “because of perceptions.” The alleged conversation took place on the drive from the FHFA to the Rosa Mexicana restaurant. “Well, you probably want to know what I wanted to talk to you about,” Watt said. “I mentioned to you there is an attraction here that I think needs to be explored. In my experience there are four types of attraction: emotional, spiritual, sexual or of friendship. So, the exercise here is to find out which one exists here.” To counter, the woman tried to shut down the conversation. “If I gave you that impression in any way, that was not intentional,” she said. “My impression was that you wanted to discuss the work-related items I’ve been talking to [a superior] about. But, if that’s not the case, then I think I should take you back to FHFA. Because I don’t want any confusion here.” In a third conversation between the woman and Watt which was dated in Nov. 11, 2016, he asked
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the woman why she had rejected his advances. The woman told Watt that she was in a relationship and he responded by saying that he loved his wife too and that being attracted to someone else doesn’t mean that “you don’t love them.” The EEO guidelines recommend that a federal agency has up to 180 days to investigate the matter before the accuser can file a lawsuit. The investigation into the matter is at least one month old according to the documents. Watt is the former Democratic U.S. House Member from North Carolina and assumed his post in January 2014. His term in office is due in January, which forces President Trump to appoint his replacement. FHFA is a government agency created with the aim of rescuing and taking over Fannie and Freddie in the depths of the financial crisis of 2008 after the huge losses that threatened to wipe them out. With the most expensive bailout of $170 billion – for the combined companies and the tax payers support. Over the recent past, the companies have turn profitable and have been able to pay most of the federal aid. Freddie Mac and Fannie Mae have been under the government conservatorship since 2008. The government took control of the companies to prevent their collapse during the housing crisis. During Watt’s leadership, the companies have expanded their footprint and has started to develop new mortgage and lending products raising red flags to republicans and some Democrats. FHFA is also facing litigation by hedge funds over the future of the two companies. Watt found himself into office after being investigated and cleared in 2010 by the office of Congressional Ethics for fundraising efforts during debate over the Dodd-Frank Overhaul Bill. Year later, Watt introduced legislation which aimed to cut ethics office funding by 40 percent, however, the measure failed.
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IN LEGAL
HUD Housing reform could potentially SPLIT FAMILIES APART
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he Trump administration has vowed to end its policy of separating children from their parent not on records, however, underway is a deep crisis and at the center of it are innocent American Kids, a crisis that is unfolding and no one is noticing it. In April, the Housing and Urban Development Secretary Ben Carson made public a proposal which seeks to reform the way rents are made in public housing, the proposal dubbed “Rent Reform” seeks to eliminate the ‘decades-old’ rent policies which the agency considers confusing, counterproductive and expensive. “The system we currently use to calculate a family’s rental assistance is broken and holds back the very people we’re supposed to be helping,” HUD Secretary Ben Carson said. If The Making Affordable Housing Work Act was to be passed by the congress, most of the single parents could be forced to leave their
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children in most unsecure conditions just to meet the demands of the law. Chances are, most of the single parents could even lose their children.
is $214. However, for an average person earning
Currently, the congress requires that the HUD assisted households to provide 30% of their income toward rents while the government steps in to fill in the difference, up to the maximum amount. The Agency’s proposal seeks to increase the amount to 35% of the net income for the people receiving the assistance.
same hours. Simply, this means that for single
One misstep that the government made in this calculation is that it didn’t take in to account the child care expenses. Child care expenses take up most of the family’s income and with the Act in place, most of the family’s income would be going towards rent.
affordability of a family as if none of the income
According to HUD, 34% of the U.S.’s 1 million public housing units are owned by the single parents with children. Currently, the government calculates the portion of the income that goes towards renting by taking into account the childcare expenses the family has to incur for children under 13 years of age while a parent is working or is in pursuit of education. With the new proposal by the HUD, this deduction is eliminated as well as deductions for medical care.
arguing that it would simplify the process of
the federal minimum wage of $7.25 would be making $108.75 before being taxed for the exact parents, it would be hard getting minimum wage jobs because the child care expenses would cost them more than they earn. What’s most challenging with this law is that the government would be calculating the is going to the child care expenses. This policy leaves open the chance of government taking away kids from their families. HUD in its part is promoting this bill by rent calculation in the public housing. HUD further notes that there is currently “a complex set of rules to properly calculate a household’s rent contribution.” The government needs to do more by accounting the cost of child care when computing what families with young kids can afford to pay as rent.
That is not all, the legislation raises rents for the poor families allowing the housing authorities to require adults to work. Under the new legislation, renting would be calculated by taking 35% of the family’s income or simply, 35 percent of the money that a person would be earning working 15 hours a week – the federal minimum wage, regardless of whether they work or not. The requirements of this new law would put some lives at risk with the most threatened people being the poor families. Take this scenario, if a parent with young kids is making the minimum wage, it is most difficult and nearly impossible for them to find safe, quality child care they can afford. Back in 2016, Care.com conducted a research which revealed that the average cost of a sitter for 15 hours of work in the U.S.
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Sources; https://www.bloomberg.com/view/articles/2018-07-30/huds-public-housing-reforms-shouldn-t-target-the-poorest-kids https://www.hud.gov/press/press_releases_media_ advisories/HUD_No_18_033 https://www.huduser.gov/portal/datasets/assthsg.html http://time.com/money/4444034/average-cost-child-care/
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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
IN COMMUNITY
Neighborhood Assistance Corporation of America
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he Neighborhood Assistance Corporation of America (NACA) is a nationwide non-profit organization fighting for economic justice through home ownership and community action. NACA is a non-benefit, network support and homeownership association. Its main purpose is to manufacture solid, sound neighborhoods in urban and rustic territories across the country through reasonable homeownership. This organization has made the fantasy of owning a shelter a reality for a great many working individuals by directing them correctly and empowering those who do not have enough credit to buy a home with obviously better terms than those given even in the prime market.
History of NACA Founded in 1988 by financial advocate Bruce Marks, NACA has been in the forefront of attacking predatory lending. The organization has a colossal reputation for effective backing against ruthless and unfair banks and giving the best home loan program in America with $13 billion in subsidizing duties. NACA is the biggest lodging administrations association in the nation and is quickly extending by developing its current 30+ workplaces, headquartered in Boston, MA, opening numerous new workplaces across the country, and growing the administrations it offers its participation. NACA’s fierce network sorting out and phenomenal home loan program have set the national standard for helping low-and direct pay individuals to accomplish the dream of homeownership. The organization mobilizes its followers “to extend the reach of affordable lending and homeownership to every working person” and “to combat discrimination and exploitation of working people by lenders and financial institutions.”
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NACA – America’s Mortgage Program
Best
The extraordinary NACA contract enables NACA Members to buy their homes with: • No Upfront Instalment • No End Costs • No Expenses • No Prerequisite For Idealize Credit
What’s More, at an underneath Advertise Loan Cost? Everybody gets the same extraordinary terms, including the underneath, advertise loan cost, paying little mind shockingly score or different components. NACA likewise gives free, far-reaching lodging administrations. NACA guides Members into the phenomenal NACA contract utilizing character-based loaning criteria that consider every Member’s conditions to decide if they are prepared for homeownership and what they can manage. This is rather than hazard based estimating where individuals are frequently given credits they can’t manage the cost of while specialists and others make huge charges and benefits.
Innovative Technology In addition to abovementioned details, the NACA program has created best in class contract programming for
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electronic advising, preparing and guaranteeing, called “NACA Lynx”, which is the envy of the home loan industry. This is a paperless framework that takes into account character loaning, advanced handling and guaranteeing to be done on a vast scale.
Powerful National Advocacy NACA has brought improvement in home lending with its home loan administrations and promotion. The firm’s arranging division proceeds with the forceful support against savage loan specialists and the battle for financial equity. Also, it is a prominent association due to its program and support highlighted in the national media, including the Wall Street Journal, Prime Time Live, Boston Globe, Washington Post, real news outlets, and nearby systems across the country. NACA’s Committed Staff Their staff is not only devoted but also really very responsive. They are always focused on
working with you to get to this unbelievable home loan item and to advocate for solid neighborhoods and financial equity. The company lends shelters to those who can’t buy of their own. Either the situation is related to some mortgage, renting or simply buying, they are always prepared to help. NACA’s “Best in America Mortgage” offers no down payment, no closing fees, low interest rate, no PMI loans to low to moderate income people. The character-based approach used by company means that perfect credit is not required. Our “HomeSave” program has helped over 250,000 people modify their high interest rate loans and keep their homes.
References: https://www.nacalynx.com/nacaweb/ about_naca/staff/bruceMarks. aspx?language= https://www.nacalynx.com/nacaweb/ about_naca/nacaHistory.aspx https://www.naca.com/ https://www.glassdoor.com/ Reviews/Neighborhood-AssistanceCorporation-of-America-homeowners-Reviews-EI_IE318845.0,46_ KH47,58.htm
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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.
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