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deltacurrents

DELTA ASSOC I A T I O N O F R E A L T O R S ® NOVE MBER 20 1 1 • w w w. d e l t a a o r . c o m

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MORTGAGE LOAN ORIGINATORS: 8 HOUR LIVE CONTINUING EDUCATION COMPREHENSIVE COURSE NMLS Provider ID #1400388 - Duane Gomer Inc.

Cost Only $139 (includes $12 NMLS Bank Fee) LIVE CLASS—NO 8 HOURS ON A COMPUTER NO EXAM TO PASS LIKE AN ONLINE COURSE Delta Association of REALTORS® 3428 Hillcrest Ave. #200, Antioch, CA Tuesday, November 8th — 8:30 a.m. to 4:30 p.m. To Register: Call (925) 757-8283 EIGHT HOUR LIVE COURSE : Includes three hours federal law and regulations, two hours of ethics, and two hours of lending standards for nontraditional mortgages and one elective hour . OUTSTANDING INSTRUCTORS: All instructors must meet stringent NMLS requirements including experience, education, and professional standards. SEMINAR: • The course will be from 8:30 a.m. to 4:30 p.m. with a one hour lunch break. • There is a $12 NMLS bank fee for your course and we will pay that. • Students taking home study courses of any kind must be on a computer eight hours and must pass a NMLS approved exam. You don’t want to do that. A real live class is of more value. • We are a California-only company. We know California regulations. OTHER NOTES: • Selling out classes: Outstanding reviews—sign up now • DRE Credit: Available for a small service charge • State Company: We will help you year-round on State Regulations

Duane Gomer Seminars offers courses for anyone who wants to obtain or renew a real estate sales license, a broker license, a notary commission, a MLO Endorsement or learn about REOs, Short Sales, Foreclosure, etc. Courses are available live, online or by home study. Check us out at www.DuaneGomer.com.

CAMP MEMBER

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DELTACURRENTS

DRE Sponsor #0054


Ralph Garrow, Jr. President Cecily Tippery, President-Elect Cynthia Alfred, Treasurer Denise Stewart, Immediate Past President

NOVEMBER 2011 Delta Association of REALTORS® 3428 Hillcrest Avenue, Suite 200, Antioch, CA 94531

John Bedford, Secretary

Phone 925 757 8283

DIRECTORS

Fax 925 757 8393 info@deltaaor.com

James Britto • Angela Johns Scott MacIntyre • Cathie Marples Aaron Meadows • Errol Mooney Iris Obregon • Ramesh Suman Lynn Valintis

STAFF John Bedford, Association Executive john@deltaaor.com Tonia Nielsen, Chief Operations Officer tonia@deltaaor.com Jean Ruelas, Manager- Retail Operations jean@deltaaor.com Ron Greenslade, Chief Financial Officer rong@deltaaor.com

Delta Currents is the official monthly publication of the Delta Association of REALTORS®. Although every effort has been made to ensure the accuracy and thoroughness of this publication, errors may occur. DAR shall not be held liable for misinformation, typographical errors, omissions, and/or misprints in editorial and/or advertising materials. Delta Currents is published by Michelle Manos Design. For advertising rates, please contact Michelle Manos at 831 869 5084 or michellemanos@gmail.com.

Barbara Baham, Members Service Director

Linda Walling-Stone

barbara@deltaaor.com

925 689 2439

BY AIR, LAND, OR SEA, CALL ME!

The Bargain Travel Lady (on Facebook.com)

Member, Delta Association of Realtors®

www.lwalling-stone.cruiseone.com Subscribe to my weekly newsletter! $

50 toDAR CSF for any 7+day land or sea package you or someone you know books through me.

yourDARteam

OFFICERS

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H o l d i t a t t h e D e l t a A s s o c i a t i o n o f R E A LT O R S 速 . C a l l 9 2 5 7 5 7 8 2 8 3 f o r d e t a i l s .

planameeting!


DISCOVERY BAY/BYRON MARKETING MEETING & TOUR 1st and 3rd Tuesday Board Walk Grill at the Marina, Discovery Bay 9:00am • $1 For more information call LeeAnn Seamann 634-2224 at Marples & Associates Group does use Paragon to schedule homes on tour. Tours are Caravan and must be in by Noon on Monday. OAKLEY/BETHEL ISLAND/ BRENTWOOD/KNIGHTSEN MARKETING MEETING & TOUR Every Wednesday Black Bear Diner, 3201 Main Street, Oakley • 8:30am • $2 For more information contact Dan Barnes, Tour Coordinator, 759-4648. Group will use Paragon to schedule homes on tour.

CONTRA COSTA REALTORS® IN MOTION CONTRA COSTA NORTH Martinez, Pacheco, Pleasant Hill, Concord, Walnut Creek, Clayton, Clyde Every Tuesday 8:30am • $10 Centre Concord, 5298 Clayton Rd., Concord Doors open at 8am for breakfast www.ccrim.info

novembertours

ANTIOCH/PITTSBURG/BAYPOINT Every Tuesday Delta Associatioan of REALTORS® 3428 Hillcrest Avenue, Ste. 200, Antioch 8:30am • $2 For more information call Ramesh Suman, Majestic Homes, 779-1234, or Ralph Garrow Jr., Ralph Garrow Real Estate, 757-3770

REALTORS® MARKETING ASSOCIATION CONTRA COSTA SOUTH Danville, San Ramon, Blackhawk, Diablo, Alamo Every Thursday San Ramon Community Center, 12501 Alcosta Blvd., San Ramon 8:30am • $5 Doors open at 8am for breakfast No formal tour www.RMAtoday.com INFORMAL TOURS Martinez, Pacheco, Pleasant Hill, Concord, WalnuCreek, Clayton,Clyde, Rossmoor, Orinda, Lafayette, Moraga Tuesday between 9:00am and 2:00pm Danville, San Ramon, Blackhawk, Diablo, Alamo Thursday between 9:00am & 2:00pm


Jenifer Wasso Realty World Pigati and Russell Realtors 6670 Lone Tree Way, Ste. 4, Brentwood 513-4004 FAX 513-4330

MEMBERS ON THE MOVE

Jennifer Banta is now with Intero Real Estate at 5541 Lone Tree Way #150, Brentwood, 516-9090 FAX 513-0986

Amanda Chamberlain is now Keller Williams Premier Properties at 4041 Lone Tree Way, Ste. 101, Antioch, 315-8700 FAX 315-8701 Noelle Charles-Merrill is now with Mark Skilling Broker at 5170 Discovery Point, Discovery Bay, 354-2037-513-1465

Ron Pestana WR Properties 651 First St., Brentwood 634-3100 FAX 634-3190

ASHI and CREIA Certified

NATIONAL PROPERTY INSPECTIONS 925 768 7818

Mike and Shawn Stewart

Six years inspecting East County houses • Same-day reports • SUPRA lock box access • Fully insured, including REALTOR® coverage • Comprehensive walkthrough with your buyer • Flexible scheduling • Competitive rates

Click for customer reviews.

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DELTACURRENTS

welcome!

TO THE D ELTA ASSOCI ATI ON OF REALTORS®

WELCOME NEW MEMBERS

REALTORS® Diana Wallin Prudential California Realty 2510 Sand Creek Rd., Brentwood 634-3200 FAX 634-3393


New Members Orientation Wednesday, November 2, 2011 8:30am – 12:00pm To register call DAR 757-8283

Mortgage Loan Originators: 8 Hour Live CE Duane Gomer course Tuesday, November 8, 2011 8:30am – 4:30pm Cost: $139.00 To register call DAR at 757-8283 45 Hour CE Review Course Duane Gomer Tuesday, November 14, 2011 1:00pm – 4:00pm Cost: $72 members $82 non members To register call DAR at 757-8283

All Classes are held at the Delta Association of REALTORS® 3428 Hillcrest Ave., Ste: 200, Antioch, except as otherwise noted.

The Life of an Escrow

Top Ten Reasons

Understanding your escrow transaction

to call your local First american

Branch START Manager and SaleS repreSenTaTive BUYER SELECTS A REALTOR

BUYER GETS PRE-APPROVED By LENDER IF NEw LOAN NEEDED

BUYER VIEwS HOMES wITH REAL ESTATE PROFESSIONAL

INSPECTION REPORTS SENT TO APPLICABLE PARTy, REVIEwED AND NOTIFICATION SENT

PRELIMINARy REPORT RECEIVED AND APPROVED By BUYER

CLOSING DOCUMENTS COMPILED By ESCROw COMPANy

SEPARATE APPOINTMENTS SET: BUYER & SELLER SIGN DOCUMENTS

DOCUMENTS RECORDED AND ESCROw CLOSED

AFTER RECORDING, CONFIRMED ESCROw COMPANy DISBURSES FUNDS

SELLER SELECTS A REALTOR

SELLER PREPARES HOUSE FOR SHOwING & SELLING

1. Open Escrow

BUYER 2. Ask a question about Short Sales and our role as SELLER SELECTS HOME AND REVIEwS AND ACCEPTS SUBMITS CONTRACT wITH a settlement service provider. CONTRACT FROM BUyER LOAN STATUS REPORT (LSR)

3. Obtain Notice of Default/Notice of Trustee Sale VARIOUS INSPECTIONS ESCROw OPENED AND confirmations. ORDERED PRELIMINARy REPORT ORDERED 4. Confirm Property Taxes or verify Special APPRAISAL ORDERED By Assessments/Mello Roos. & COMPLETED FOR LENDER

BUYER ADVISES ESCROw COMPANyOF HOME INSURANCE COMPANy

5. Ask me to explain the First American Preliminary Report toLOAN clients. DOCUMENTS PREPARED By LENDER & SENT TO ESCROw

6. Confirm Parcel numbers and Subdivision/Tax Assessor information.

BUYER RECEIVES FINAL LOAN APPROVAL FROM LENDER

BUYER DEPOSITS REQUIRED FUNDS

LOAN DOCUMENTS RETURNED TO LENDER FOR REVIEw

LENDER "FUNDS LOAN"

ESCROw COMPANy ENSURES ALL CONTRACT CONDITIONS

7. Request Comparable Sales and/or Property Profile information.

FUNDS TO ESCROw) HAVEline BEEN MET 8. Ask me to(SENDS explain the HUD-1 settlement services items.

9. To address issues that can slow or stop your escrow from BUYER FINAL DOCUMENTS RECEIVES KEyS FROM at other First American offices. SENT TO closing including those REAL ESTATE PROFESSIONAL INTERESTED PARTIES 10. To schedule a “Welcome to Escrow” call from me with clients or Review Escrow Opening packages.

STRATEGIC MARKETS CERTIFIED BRANCH MANAGER & BUSINESS DEVELOPMENT OFFICE 925.240.9901 | CELL 510.225.8385 jefquinn@firstam.com

dareducation

EBRDI Paragon Training Free to MLS Subscribers Steven Pean, Instructor Wednesday, November 9, 2011 1:00pm – 4:00pm CMAs, Listingbook and Cloud (lecture training class) To register call EBRDI at 363-2333 Or logon to EBRDI.com

925.240.9901 | www.firstam.com First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions.

© 2011 First American Financial Corporation. All rights reserved. | NYSE:FAF

CA - 09/2011

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Where you

and your money

belong Join

o nline

today!

REALTORS® Federal Credit Union is dedicated to serving the financial needs of REALTORS® like you!

Savings & Investment Products

Not a Member? Not a Problem!

• • • •

All REALTORS® and immediate family members are eligible for lifetime membership!

REALTORS® FCU offers customized products & services to meet the unique financial and cash flow needs of REALTORS®. You deserve the freedom to manage your finances when and where you want to.

Checking

Traditional Savings Money Market Savings Industry leading Certificate Investments Traditional, Roth and SEP Individual Retirement Savings and Certificate Accounts

• F ree eChecking with MasterCard® Debit Card* with no minimum balance requirement • Fee-Free ATM Transactions at Thousands of CO-OP Network & CU24 ATMs

Join online today, here’s how: 1. Visit REALTORSFCU.ORG 2. Click “Membership” to learn more 3. Click “Membership Application” to get started

Have Questions? Call a Member Care representative 24-hours a day at 866.295.6038.

Lending to Fit Your Needs • Vehicle Loans • Personal Loans & Lines of Credit • Home Loans, Refinancing and Home Equity Lines of Credit

Your Own Virtual Branch • • • • •

Remote Check Deposit Online Bill Pay Electronic Internal & External Transfers Electronic Statements Alerts & Secure Messaging

Must meet REALTORS® Federal Credit Union (RFCU) membership eligibility. Membership requires opening and maintaining a primary share savings account with a $100 minimum balance. Rates, terms, conditions and services are subject to change. RFCU savings are federally insured by the National Credit Union Administration (NCUA). *No monthly service fee. Other fees may apply. Please refer to the Schedule GF1101 of Fees and Charges at REALTORSFCU.ORG for details.


yourcalendar

November 2

New Members Orientation

8:30am - 12:00pm

November 2

Business & Technology Committee

10:00am - 11:00am

November 3

ByLaws Committee

10:00am - 11:00am

November 9

EBRDI Three CMAs, Client Connect

1:00pm -

4:00pm

and Morning Report (Lecture Training)

November 9

Strategic Planning Committee

2:00pm -

3:00pm

November 9-14

C.A.R. Realtors Conference in Anaheim

November 10

Local Government Relations

11:30pm

November 11

DAR Closed Veterans Day

November 15

Delta Realtors Community Service Foundation 1:30pm -

November 23

DAR Closed half day

2:30pm

12:00pm

November 24-25 DAR Closed Thanksgiving November 30

Board of Directors

12:00pm -

December 1

ByLaws Committee

10:00am – 11:00am

December 7

Business & Technology Committee

10:00am - 11:00am

December 8

Local Government Relations Committee

11:30am

December 14

New Members Orientation

8:30am - 12:00pm

December 14

Strategic Planning

2:00pm -

December 15

Holiday OpenHouse

11:30am -

December 20

Delta Realtors Community Service Foundation 1:30pm - 2:30pm

December 21

Board of Directors Meeting

12:00pm

December 23

DAR Closed half day

12:00pm

December 26

DAR Closed

December 27

Education/Membership Committee

2:00pm - 3:00pm

December 30

DAR Closed half day Inventory

12:00pm

East County Insurance Agency, Inc. ANTIOCH 925 757 4208 2738 B W. Tregallas Rd. BRENTWOOD 925 240 1330 6440 Brentwood Blvd. All personal and commercial lines www.eastcountyins.com

1:30pm

3:00pm

3:00pm

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NPHOTOELECTRIC VERSUS IONIZATION SMOKE ALARMS Mike Stewart, National Property Inspections

Most homes have ionization type smoke detectors (because they are cheaper). But, they are by far less reliable in saving lives during a Most homes have ionization type smoke detectors (because they are cheaper). smoldering fire. But, they are by far less reliable in saving lives during a smoldering fire.

Photoelectric versus Ionization Smoke Alarms* Ionization Units Percent Installed in Homes: Nuisance Trip when cooking Chance of being intentionally disabled Response time in Residential fire Survival rate in Residential fires Cost

Photoelectric Smoke Alarms

95%

5%

High

Low

8x more likely 30-90 MINUTES Note: nearly 20% of ionization never activate 40%

30-90 SECONDS

$7 to $20

$13 to $25

96%

Residential Fires: Around 3,500-3,600 deaths per year, Nearly all from smoke inhalation. Most deaths occur between 8 PM and 8 AM Residential Fires: Around 3,500-3,600 deaths per year, Nearly all from smoke inhalation. Most deaths occur between 8 PM and 8 AM

Lives Lost Annually: Around 1,000 persons die in homes where alarm goes Lives off after are dead. Lostoccupants Annually: Around 1,000 persons die in homes where alarm goes off after occupants are dead.

Around 2,400 persons die annually where the alarm is non-functional persons disabled, die annuallyIEwhere the alarm is non-functional of hasAround been 2,400 intentionally the battery removed. of has been intentionally disabled, IE the battery removed.

EVERY DAR member should put at least one photoelectric smoke EVERY detector in DAR theirmember home.should put at least one photoelectric smoke detector in their home.

* Data from various NFPA, NIST, NFIRS, CPSC and University Sources * Data from various NFPA, NIST, NFIRS, CPSC and University Sources Data compiled by Skip Walker of CREIA Reprinted with permission. Data compiled by Skip Walker of CREIA Reprinted with permission.

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DELTA ASSOCIATION OF REALTORS® PRESENTS Duane Gomer’s Most Popular Continuing Education Optional Review & Group Testing Formerly All Your Tests on 1 Day.

We Have You Covered — It’s Easy, Quick and Low Priced

ONLY $72 Members $82 Non Members

Wednesday, November 16th at 1:00 p.m. Delta Association of REALTORS® 3428 Hillcrest Ave. #200, Antioch

YOU MUST REGISTER & RECEIVE THE MATERIALS BY Tuesday, November 14th

WHAT THE PROGRAM WILL COVER 1. All Brokers & Salespersons will receive 3 hour home-study mandatory courses of Agency, Ethics, Trust Funds, Fair Housing, Risk Management and a 30 hour course on Foreclosures, Taxes & Evictions. 2. There will be an optional review to prepare you to pass the easy exams. Money-back guarantee. 3. Exams will be offered on the five mandatory courses. You may test on only 15 hours a day—DRE Rule (we don’t like this either). Students will be provided with instructions for testing on the additional 30 hour course online. If you received your materials at least five days before the class, you will be given passwords and user names to test later online. Later signups will receive their passwords by email.

SCHEDULE

REQUIREMENTS

12:45 p.m.

Registration

1:00 p.m.

Course review and industry update

3:00 p.m.

Home-study Exams on 5 Mandatory Courses and Certificates Awarded.

1. You must sign up and receive your materials before the class to comply with DRE regulations for testing. 2. Easy exams, 70% to pass, 99.99% passing rate. 3. Please have a Government issued picture ID available. 4 Fee includes $10 for the cost of the required courses.

Anyone who fails an exam can take a second test at no cost any time within one year from date of registration or take the class again at no cost. Courses are for all licensees. These courses are approved for Continuing Education Credit by the California Department of Real Estate. However, this approval does not constitute an endorsement of the views or opinions which are expressed by the course sponsor, instructor, author or lecturers. DRE Vendor #0054.

To register contact (925) 757-8283 Make checks payable to Delta AOR

Name

Company_

Address

Phone

City

Zip Code

Please charge my VISA

MC

DRE #

Credit Card #___________________________ Exp.__ __ Signature_________________________ www.deltaaor.com DELTACURRENTS

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DELTA Association of REALTORS®

Installation of Officers and Directors Honoring 2012 President Cecily Tippery January 13, 2012 Luncheon at Wedgewood, Brentwood Golf Club “Change is Opportunity”

Platinum Level Sponsor • • • • • • •

8 tickets to the event. Full one page ad and recognition at the event. Provide artwork. Pre-event recognition in Delta Currents for articles promoting the event. Post-event recognition in any article submitted to the newspapers and post-event coverage in the Delta Currents and Delta News Views Photograph with incoming President for the Delta Currents February edition. Recognition on Power Point Presentation Special introduction and recognition at the event by the Master of Ceremonies of the representative(s) in attendance.

Diamond Sponsor • • • • • •

$750

4 tickets to the event One half page ad in program (Priority for rear and inside cover) and recognition at the event-first come first serve. Provide artwork. Pre-event recognition in Delta Currents for articles promoting the event. Post-event recognition in any article submitted to the newspapers and post-event coverage in the Delta Currents and Delta News Views Recognition on Power Point Presentation Recognition at the event by the master of ceremonies of the representative(s) in attendance.

Gold Sponsor • • • • • •

$400

2 Tickets to the event Business card ad in the program. Provide Artwork. Pre-event recognition in Delta Currents for articles promoting the event. Post-event recognition in any articles submitted to the newspapers and post-event coverage in the Delta Currents. Recognition on the Power Point Presentation Recognition at the event by the master of ceremonies of the representative(s) in attendance.

Friends of the Delta Association •

$1200

$150

Recognition on the Power Point Presentation and listed in the Official Program Contact the Delta Association of REALTORS® at 925-757-8283. Pay by check or credit card. Ticket Prices are $40 per person.

Champagne Sponsor (previously reserved)

Delta Association of Realtors®

2012 Installation of Officers and Directors 12 www.deltaaor.com DELTACURRENTS

$1000


Sponsor Information/Donation Form We would be honored to participate in DAR’s 2012 Installation as a sponsor as noted below. ____________ ____________ ____________ ____________

$1200.00 $750.00 $400.00 $150.00

Platinum Level Sponsor Diamond Sponsor Gold Sponsor Friends of the Delta Association

In lieu of financial support we will offer the following as an “in kind” sponsor. ______________________________________________________________________________ We cannot participate in the above categories, but will make a contribution of $ _______

Company Name: ___________________________________________________ Name/Contact: ____________________________________________________ Address/City/State/Zip: ___________________________________________ Phone: ___________________________ Fax:_____________________________ Email: ____________________________________________________________ Credit Card Type: _______Number:___________________________________ Exp. mo/yr: ______________________________ Code: _________________ Authorizing Signature: _____________________________________________ Please indicate how you would like your name to appear on all printed materials. Be sure to provide artwork. Return with donation by November 30, 2011 to: Delta Association of Realtors Attn: Tonia Nielsen 3428 Hillcrest Ave., Suite 200 Antioch, CA 94531 925-757-8283 or FAX to 925-757-8393

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2011 Five-Point Housing Solutions Plan It’s no secret our nation’s housing markets remain depressed and continue to suffer. While no one thought the crisis would carry on so long, markets are slowly recovering and are in need of immediate policy solutions to address the myriad challenges in order to stabilize housing and support an economic recovery. We have long maintained that the key to the nation’s economic strength is a robust housing industry. And, we remain steadfast in our belief that swift action is needed now from Congress and the Administration that could directly stimulate a housing recovery. To that end, NAR worked with two well-respected policy think tanks – the Progressive Policy Institute (PPI) and the Economic Policies for the 21st Century (e21) – that organized and conducted a policy meeting on October 4. New Solutions for America’s Housing Crisis brought together policy leaders, industry representatives, Members of Congress, thought leaders and the media to present ideas and make actionable recommendations intended to stimulate the growth necessary for a sustained recovery in housing and extend an ensuing positive effect on job creation and the broader economy. NAR unequivocally endorses many of the bipartisan ideas and recommendations that came out of the meeting and we wholeheartedly urge Congress and the Administration to undertake their consideration promptly. In letters sent Oct. 24, 2011 to the Chairman of the Federal Reserve Bank, President Obama, and Congress, NAR provided recommendations and solutions to stabilize and revitalize the housing industry and economy:

Recommendation 1: Do Not Risk Weakening Our Nation’s Housing Markets Any Further •

Recraft the Qualified Residential Mortgage rule mandated by the Dodd-Frank Act to include a wide variety of traditionally safe, well documented and properly underwritten products. Requiring a 20% down payment coupled with stringent debt-to-income ratios and rigid credit standards – as defined under the proposed rule by six federal regulators – would be detrimental to prospective home buyers, especially first-time and middleincome buyers. Restore higher loan limits supported by FHA and the GSEs to provide liquidity in housing markets and to assure mortgage financing options while stabilizing local housing markets. On September 30, the loan limits in 669 counties and 42 states declined. Already, this has had a harmful impact on our fragile housing recovery. Sellers have had to lower their price in markets where mortgages backed by FHA and the GSEs are no longer available. Buyers are confronting higher mortgage rates and larger downpayments because only private mortgages are available in these high-cost markets. In some instances buyers have given up their home search entirely.

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contrinued


Resist proposals that call for changing the tax rules that apply to homeownership now or in the future. Without a doubt, now is not the time to change the mortgage interest deduction or any other housing incentives. Making gradual or targeted changes would send the wrong signal further undermining confidence and further depressing home values.

Recommendation 2: Restore Vitality to Our Communities and Neighborhoods by Reducing the Foreclosure Inventory •

• •

Support S.170, The Helping Responsible Homeowners Act, sponsored by Senators Barbara Boxer (D-CA) and Johnny Isakson (R-GA). Their bill would remove refinancing limits on underwater properties for borrowers that have been paying on time, and would eliminate risk-based refinancing fees charged by Fannie Mae and Freddie Mac. Support bipartisan Senate efforts calling for improvements to the Home Affordable Refinance Program (HARP). Led by Senators Barbara Boxer (D-CA), Johnny Isakson (R-GA) and Robert Menendez (D-NJ), the time is appropriate to enhance HARP and provide refinancing opportunities to at-risk borrowers as an alternative to defaulting on their mortgage loans. Direct Fannie Mae, Freddie Mac and servicers to prioritize short sales above foreclosures. Support all necessary foreclosure/loss mitigation efforts to keep American families in their homes. Reology Corporation’s President and CEO, Richard Smith, has proposed a debt for equity approach to help underwater borrowers in trouble keep their homes and lower their monthly payments while lenders take a smaller hit than they would have with a default and foreclosure. We call on Congress to introduce legislation adopting this innovative proposal.

Recommendation 3: Open Opportunities for Private Capital to Return to the Mortgage Marketplace to Foster New Demand among Responsible Homebuyers •

Open up the FHA Section 203(k) rehabilitation loan program to investors to encourage purchasing of foreclosed property. This will facilitate the rehabilitation of the existing housing stock and help reduce the inventory of foreclosed homes. Require the GSEs to temporarily suspend investor financing limitations, especially the limit on the number of mortgage loans allowed for any one investor/borrower (currently 4 for Freddie Mac and 10 for Fannie Mae). This will give small, private investors the opportunity to absorb some of the excess inventory, resulting in the stabilization of prices for existing real estate-owned (REO) properties.

Recommendation 4: Support a Secondary Mortgage Market Model that Includes Some Level of Government Participation contrinued

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Reject proposals that call for full privatization of Fannie Mae and Freddie Mac. This is not an effective option because private firm’s business strategies will focus on optimizing their revenue/profit generation. This model would foster mortgage products that are more aligned with the businesses goals than in the best interest of the nation’s housing policy or the consumer.

Recommendation 5: We Call on the White House to Hold a National Housing Summit to Articulate a New National Housing Policy and Move the Provision of Housing to the Front of the Nation’s Domestic Agenda •

Homeownership matters! It represents the single largest expenditure for most American families and the single largest source of wealth for most homeowners. The development of homeownership has a major impact on the national economy and the economic growth and health of regions and communities. Homeownership is inextricably linked to job access and healthy communities and the social behavior of the families who occupy it. We recognize the serious public debate as to which tax and spending policies will best support the sound fiscal management that our nation requires. However, we urge caution against dismantling or eliminating vital resources for housing that provide important economic, social, and societal benefits. We call on the White House to empanel a body comprised of public and private industry participants to fashion a national housing policy that is flexible enough to address the varying needs across the nation, whether it’s homeownership or rental housing, production or preservation.

In conclusion, we emphasize again the recovery of the broader economy depends on housing. The last two and a half years have shown that, with housing prices bumping along the bottom, a robust economic recovery will remain exceedingly difficult. The National Association of REALTORS stands ready to work with Congress and the Administration to move this 5-point plan to help restore housing and grow our economy.

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Delta Currents November 2011