Goodbye, Home Valuation Code of Conduct

Legislation will overhaul appraisal rules

By Matt Carter, Friday, July 16, 2010.

Inman News

Appraisers are welcoming Thursday’s passage of legislation that makes sweeping changes to the nation’s financial regulatory system, saying the bill includes the first modernization of real estate appraisal regulations in more than 20 years.

HR 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act, includes appraisal independence requirements and provides grant funding for state oversight and enforcement of those regulations.

The bill creates a new Bureau of Consumer Financial Protection that’s charged — among many things — with drafting new interim final regulations that specifically define acts or practices that violate the bill’s appraisal independence requirements.

The regulations are to be drafted within 90 days of the bill’s signing, superseding the Home Valuation Code of Conduct, rules adopted by Fannie Mae and Freddie Mac in May 2009.

Realtors have complained that the code, which was intended to protect appraisers from coercion by lenders, has resulted in lenders relying more on appraisal management companies (AMCs) that may employ appraisers with little experience in the markets in which they are asked to provide valuations, paying them less than experienced local appraisers.

Fannie and Freddie on June 30 put lenders on notice that they must use appraisers with local experience who can access records on recent sales in markets where they are being asked to provide valuations.

The appraisal independence requirements of HR 4173 provide that AMCs register with state agencies, and stipulate that lenders and AMCs pay “reasonable and customary” fees to appraisers. Violators will be subject to penalties under the Truth in Lending Act.

The new law allows lenders to establish what’s “reasonable and customary” by citing “objective third-party information, such as government agency fee schedules, academic studies, and independent private-sector surveys.” But fee studies can’t include assignments ordered by AMCs.

The Appraisal Institute, a group representing appraisers, says that language will encourage the use of “highly trained and competent appraisers.”

“We encourage AMCs to justify the legitimate services they are providing to lenders by charging for those services, rather than penalizing highly trained and competent appraisers” by offering subpar wages, Appraisal Institute President Leslie Sellers said in a press release.

The banking and lending industry is wary of many of the bill’s other provisions, saying they will create more costs and tighten the availability of credit to consumers.

After the House passed the bill on June 30, the Mortgage Bankers Association issued a statement saying the bill would change mortgage lending, increasing costs and creating new regulatory burdens that would affect consumers and lenders.

Lenders’ concerns about the bill include risk retention provisions for loan originators and the lack of strong federal preemption of state consumer protection laws, preserving the rights of states to pass even stronger measures.

According to one analysis by attorneys at K&L Gates, the bill “essentially mandate(s) that all flavors of mortgage loans besides ‘plain vanilla’ will disappear from the menu.”

For consumers who want something besides staid 30-year fixed-rate loans and other loans viewed as less risky? “Sorry, the government has determined that it may be hazardous to your health,” K&L Gates attorneys Kristie Kully and Lawrence Platt wrote.

Although the lending industry won some concessions in the long fight over financial regulatory reform, “the extent to which makers and holders of non-plain vanilla mortgages are targeted for punishment through enhanced monetary damages, defenses to foreclosure, and risk retention requirements,” came as a surprise, Kully and Platt said.

“Only time will tell whether the mortgage finance industry will assume the risks and expand the menu of mortgage options.”

Commenting on Thursday’s Senate passage of HR 4173 in a 60-39 vote, the American Bankers Association said the group was “very disappointed” with bill, calling it “overloaded with new rules and restrictions on traditional banks that did not cause the financial crisis. The result will be over 5,000 pages of new regulations on traditional banks and years of uncertainty as to what the massive new rules will mean.”

On that point, the National Community Reinvestment Reinvestment Coalition did not disagree.

The proof of the bill’s worth “will come not from what is written in the bill, but how the regulators interpret the bill, write the rules and then enforce them,” said John Taylor, NCRC’s president and CEO, in a statement. The bill leaves “too much to study, and (up to) the discretion of the existing regulators.”

NCRC welcomed beefed-up reporting requirements under the Home Mortgage Disclosure Act that will require lenders to include more details on loan terms and conditions and borrower characteristics to regulators. That information can be used to determine whether lenders are discriminating against minority borrowers or underserving some communities.

The bill also creates a default and foreclosure database that NCRC said will “serve as an early warning system” allowing regulators to take action when data shows a spike in foreclosures

Regulators will also have access to a database of individual loan records for homeowners participating in the Home Affordable Modification Program (HAMP) program, which NCRC said will increase industry accountability for loan modifications.

The National Association of Realtors largely stayed on the sidelines of the battle over financial reform, after lawmakers made it clear last year that the Consumer Financial Protection Agency they envisioned would not have authority over real estate agents and brokers, or other businesses that bill customers after services are provided, such as doctors and lawyers.

Speaking on a panel at Inman News’ Real Estate Connect San Francisco Thursday, NAR CEO Dale Stinton said the group was focused on the Obama administration’s next project: determining the fate of Fannie Mae and Freddie Mac, and the future of the secondary mortgage market.

“On the consumer side, we try to pick our fights, and that wasn’t our fight,” Stinton said, noting that the U.S. Chamber of Commerce was an advocate for businesses during the debate.

Stinton said that 25 years ago, a previous NAR CEO made a public appeal for the government to implement spending reductions to tackle the national deficit. NAR “paid the price for 10 years for putting our nose where it didn’t belong,” Stinton said.

Appearing onstage at Connect with Stinton, ForeclosureRadar.com founder and CEO Sean O’Toole said that loose lending standards and mortgage products like pay-option adjustable-rate mortgages with low interest rates artificially inflated home prices during the boom by allowing people to buy more home than they could really afford.

But the root of the problem was the loose lending standards employed by lenders because they were able to pass risk along to secondary market investors — not the loan products themselves, O’Toole said.

“I’m not sure subprime lending isn’t OK … we’re going to lose a lot of good products that could expand homeownership, ” O’Toole said.

“I think all of these products could be on the market” if lenders were partners with borrowers in a home, sharing the risk. One way to do that would be to bar deficiency judgements against borrowers who default on their mortgage, O’Toole said.

The American Land Title Association was pleased that the HR 4173 does not place title insurance under the jurisdiction of the Bureau of Consumer Financial Protection, as originally proposed by the Obama administration.

The bill does create a new Federal Insurance Office within the Treasury Department, which will have the authority to determine when state insurance regulations are inconsistent with international agreements relating to prudential measures for insurance or reinsurance, ALTA said.

Proposition 18
Bond Measure
SBx7 2. (Chapter 3, 2009), Cogdill.

Safe, Clean, and Reliable Drinking Water Supply Act of 2010

Proposition 19
Initiative Statute
1377. (09-0024. Amdt. #1S) – Final Random Sample Update – 03/24/10

Changes California Law to Legalize Marijuana and Allow It to Be Regulated and Taxed.

Qualified: 03/24/10

Proponents: Richard Seib Lee and Jeffrey Wayne Jones (510) 208-4554

Allows people 21 years old or older to possess, cultivate, or transport marijuana for personal use. Permits local governments to regulate and tax commercial production and sale of marijuana to people 21 years old or older. Prohibits people from possessing marijuana on school grounds, using it in public, smoking it while minors are present, or providing it to anyone under 21 years old. Maintains current prohibitions against driving while impaired. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Savings of up to several tens of millions of dollars annually to state and local governments on the costs of incarcerating and supervising certain marijuana offenders. Unknown but potentially major tax, fee, and benefit assessment revenues to state and local government related to the production and sale of marijuana products. (09-0024.) (Full Text)

Proposition 20
Initiative Constitutional Amendment
1380. (09-0027) – Final Random Sample Update – 05/05/10

Redistricting of Congressional Districts.

Qualified: 05/05/10

Proponent: Charles T. Munger, Jr. votersfirstactforcongress@gmail.com

Removes elected representatives from the process of establishing congressional districts and transfers that authority to the recently-authorized 14-member redistricting commission. Redistricting commission is comprised of five Democrats, five Republicans, and four voters registered with neither party. Requires that any newly-proposed district lines be approved by nine commissioners including three Democrats, three Republicans, and three from neither party. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Probably no significant change in state redistricting costs. (09-0027.) (Full Text)

Proposition 21
Initiative Statute
1421. (09-0072) – Final Random Sample Update – 06/10/10

Establishes $18 Annual Vehicle License Surcharge to Help Fund State Parks and Wildlife Programs and Grants Free Admission to All State Parks to Surcharged Vehicles.

Qualified: 06/10/10

Proponent: Joseph L. Caves (916) 558-1516

Establishes an $18 annual state vehicle license surcharge and grants free admission to all state parks to surcharged vehicles. Requires deposit of surcharge revenue in a new trust fund. Requires that trust funds be used solely to operate, maintain and repair the state park system, and to protect wildlife and natural resources. Exempts commercial vehicles, trailers and trailer coaches from the surcharge. Requires annual independent audit and review by citizen’s oversight committee. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state revenues of about $500 million annually from the imposition of a surcharge on the VLF to be used mainly to fund state parks and wildlife conservation programs. Potential state savings of up to approximately $200 million annually to the extent that the VLF surcharge revenues were used to reduce support from the General Fund and other special funds for parks and wildlife conservation programs. Reduction of about $50 million annually in state and local revenues from state park day-use fees. These revenue losses could potentially be offset by increases in other types of state park user fees and revenues. (09-0072.) (Full Text)

Proposition 22
Initiative Constitutional Amendment.
1414. (09-0063, Amdt.#1NS) – Final Random Sample Update – 06/22/10

Prohibits the State from Taking Funds Used for Transportation or Local Government Projects and Services.

Qualified: 06/22/10

Proponents: Joshua Shaw, Christopher K. McKenzie, and James N. Earp

Prohibits the State from shifting, taking, borrowing, or restricting the use of tax revenues dedicated by law to fund local government services, community redevelopment projects, or transportation projects and services. Prohibits the State from delaying the distribution of tax revenues for these purposes even when the Governor deems it necessary due to a severe state fiscal hardship. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Significant constraints on state authority over city, county, special district, and redevelopment agency funds. As a result, higher and more stable local resources, potentially affecting billions of dollars in some years. Commensurate reductions in state resources, resulting in major decreases in state spending and/or increases in state revenues. (09-0063.) (Full Text)

Proposition 23
Initiative Statute
1454. (09-0104) – Final Random Sample Update – 06/22/10

Suspends Air Pollution Control Laws Requiring Major Polluters to Report and Reduce Greenhouse Gas Emissions That Cause Global Warming Until Unemployment Drops Below Specified Level for Full Year.

Qualified: 06/22/10

Proponent: Thomas W. Hiltachk (916) 442-7757

Suspends State laws requiring reduced greenhouse gas emissions that cause global warming, until California’s unemployment rate drops to 5.5 percent or less for four consecutive quarters. Requires State to abandon implementation of comprehensive greenhouse-gas-reduction program that includes increased renewable energy and cleaner fuel requirements, and mandatory emission reporting and fee requirements for major polluters such as power plants and oil refineries, until suspension is lifted. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Potential positive, short-term impacts on state and local government revenues from the suspension of regulatory activity, with uncertain longer-run impacts. Potential foregone state revenues from the auctioning of emission allowances by state government, by suspending the future implementation of cap-and-trade regulations. (09-0104.) (Full Text)

Proposition 24
Initiative Statute.
1412. (09-0058, #1NS) – Final Random Sample Update – 06/24/10

Repeals Recent Legislation That Would Allow Businesses to Carry Back Losses, Share Tax Credits, and Use a Sales-Based Income Calculation to Lower Taxable Income.

Qualified: 06/24/10

Proponents: Robin Johansen and Karen Getman (510) 346-6200

Repeals recent legislation that would allow businesses to shift operating losses to prior tax years and that would extend the period permitted to shift operating losses to future tax years. Repeals recent legislation that would allow corporations to share tax credits with affiliated corporations. Repeals recent legislation that would allow multistate businesses to use a sales-based income calculation, rather than a combination property-, payroll- and sales-based income calculation. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Annual state revenue increase from business taxes of about $1.7 billion when fully phased in, beginning in 2011-12. (09-0058.) (Full Text)

Proposition 25
Initiative Constitutional Amendment.
1408. (09-0057) – Final Random Sample Update – 06/24/10

Changes Legislative Vote Requirement to Pass a Budget from Two-Thirds to a Simple Majority. Retains Two-Thirds Vote Requirement for Taxes.

Qualified: 06/24/10

Proponents: James C. Harrison and Thomas A. Willis (510) 346-6200

Changes the legislative vote requirement necessary to pass the state budget from two-thirds to a simple majority. Provides that if the Legislature fails to pass a budget bill by June 15, all members of the Legislature will permanently forfeit any reimbursement for salary and expenses for every day until the day the Legislature passes a budget bill. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Unknown changes in the content of the state budget from lowering the legislative vote requirement for passage. Fiscal impact would depend on the composition and actions of future Legislatures. Minor reduction in state costs related to compensation of legislators in years when the budget bill is passed after June 15. (09-0057.) (Full Text)

Proposition 26
Initiative Constitutional Amendment.
1441. (09-0093) – Final Random Sample Update – 06/24/10

Increases Legislative Vote Requirement to Two-Thirds for State Levies and Charges. Imposes Additional Requirement for Voters to Approve Local Levies and Charges with Limited Exceptions.

Qualified: 06/24/10

Proponent: Allan Zaremberg c/o Steve Lucas (916) 446-6752

Increases legislative vote requirement to two-thirds for state levies and charges, with limited exceptions, and for certain taxes currently subject to majority vote. Changes Constitution to require voters to approve, either by two-thirds or majority, local levies and charges with limited exceptions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Potentially major decrease in state and local revenues and spending, depending upon future actions of the Legislature, local governing bodies, and local voters. (09-0093.) (Full Text)

Proposition 27
Initiative Constitutional Amendment and Statute.
1451. (09-0107) – Final Random Sample Update – 06/24/10

Eliminates State Commission on Redistricting. Consolidates Authority for Redistricting with Elected Representatives.

Qualified: 06/24/10

Proponent: Daniel Lowenstein c/o Fredric D. Woocher (310) 576-1233

Eliminates 14-member redistricting commission selected from applicant pool picked by government auditors. Consolidates authority for establishing state Assembly, Senate, and Board of Equalization district boundaries with elected state representatives responsible for drawing congressional districts. Reduces budget, and imposes limit on amount Legislature may spend, for redistricting. Provides that voters will have the authority to reject district boundary maps approved by the Legislature. Requires populations of all districts for the same office to be exactly the same. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Likely decrease in state redistricting costs totaling several million dollars every ten years. (09-0107.) (Full Text)

NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

For additional information on the extension visit www.realtor.org/government_affairs

Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010.  This will allow transactions to move forward.  The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension.

For more information on the flood insurance program visit www.realtor.org/government_affairs

LOS ANGELES – Attorney General Edmund G. Brown Jr. today joined the California Department of Real Estate and the State Bar of California to warn homeowners about an alarming rise in short sale fraud across California in a field “rife with scam artists”.

A short sale is an arrangement in which a homeowner sells his or her home for less than the outstanding mortgage, with the consent of the lender.

“While short sales can provide homeowners with a last-ditch alternative to foreclosure, this market is rife with scam artists,” Brown said. “Homeowners and buyers, agents, and lenders should beware of short sale negotiators who operate without licenses, use straw buyers or charge illegal fees.”

With so many homeowners now considering short sales, an entire industry of so-called short sale negotiators has emerged. These individuals solicit homeowners by promising to expedite the process and help coax lenders into taking part in the transaction.

The Department of Real Estate is investigating more than 40 complaints of short sale fraud, up from “virtually zero” cases only three months ago, a spokesman said.

In April, the Obama administration launched a new initiative called the Home Affordable Foreclosure Alternatives Program, which encourages homeowners in financial distress — especially those who have failed to complete a trial modification or qualify for a loan modification — to consider a short sale as an alternative to foreclosure.

Before working with — or paying — any short sale negotiator, homeowners should consider the following red flags:

No license
With limited exceptions, only licensed real estate agents or attorneys can engage in short sale negotiations with a homeowner’s lender.

Up-front fees
Licensed real estate agents wishing to collect up-front fees from homeowners for short sale transactions must first submit an advance fee contract to the Department of Real Estate and receive a no-objection letter.

Surcharges
With many distressed properties listed well below market value, negotiators and agents are charging potential buyers thousands of dollars in surcharges and hidden fees just to place an offer on a home. These illegal fees are frequently not disclosed and are paid outside escrow.

Straw buyers and house flipping
In this scheme, short sale negotiators misrepresent the market value of a property to a homeowner’s lender by only submitting offers on the property from an affiliated straw buyer. After the home is purchased below market value, the fraudsters immediately flip it and pocket the difference.

Short sale negotiators and agents use a number of titles including debt negotiator, debt resolution expert, loss mitigation practitioner, foreclosure rescue negotiator, short sale processor, short sale coordinator and short sale expeditor.

If you are a homeowner who has been scammed, contact Brown’s office at 1-800-952-5225 or file a complaint online at: www.ag.ca.gov/consumers/general.php.

Homeowners can also learn more about avoiding mortgage and real estate fraud by visiting the Department of Real Estate website at: http://www.dre.ca.gov/cons_alerts.html. A complaint form can be accessed online at: http://www.dre.ca.gov/frm_consumer.html.

“Short sale fraud appears to be the fraud of the moment, and it is proliferating statewide,” according to Real Estate Commissioner Jeff Davi. “Consumers, licensees and lenders must all arm themselves with the tools necessary to avoid such scams.”

Homeowners can file a complaint against a lawyer, a legal specialist or a company purporting to operate as a law firm with the State Bar by calling 1-800-843-9053 or visiting: www.calbar.ca.gov.

Homeowners can learn more about the federal government’s Home Affordable Foreclosure Alternatives Program by visiting: http://makinghomeaffordable.gov/hafa.html.

Non-profit housing counselors certified by the U.S. Department of Housing and Urban Development are also available to provide free help to homeowners. To find a counselor in your area, call 1-800-569-4287.

REGIONAL LAW ENFORCEMENT JOINS TOGETHER IN CRACKDOWN ON

MORTGAGE FRAUD, WITH SEVERAL DOZEN BEING NAMED IN CRIMINAL AND

CIVIL ACTIONS FILED IN FEDERAL COURT

Federal and local law enforcement officials joined together this morning to announce a series of cases that have resulted from coordinated efforts to target fraud in the mortgage loan industry. As part of a nationwide crackdown, federal prosecutors in Los Angeles, Riverside and Orange Counties worked with local and federal investigators to bring criminal charges against a wide range of individuals involved in mortgage fraud, including borrowers, “straw borrowers,” corrupt real estate professionals, bank employees who help facilitate fraud, and those who prey upon distressed homeowners.

In addition to recently filed criminal cases that charge about three dozen defendants, the Civil Division of the United States Attorney’s Office this week filed five civil lawsuits that allege mortgage fraud, including one case in which prosecutors are seeking an immediate order from a judge to shut down an organization allegedly engaged in an ongoing scheme that is defrauding the federal government.

“Over time, we have seen repeated spikes of fraud targeting financial institutions.  Over the last decade, we saw one of those spikes as mortgage fraud blossomed with the housing bubble,” said United States Attorney André Birotte Jr. “ When the bubble burst, in part because of fraud permeating the system, the effects were felt around the world. We are now sorting the through the wreckage to identify and prosecute the most egregious offenders. We are also targeting those who continue to exploit the system by fraudulently obtaining new loans or by bilking upside-down homeowners through loan modification and rescue scams.

As part of its enforcement efforts, the United States Attorney’s Office is working collaboratively with a number of law enforcement partners to use all available resources and bring to justice as many criminals as possible. This morning, arrests were made in two federal cases involving mortgage fraud in Ventura. The matters were initially reviewed by the Ventura County District Attorney’s Office, and the investigations grew to include agents from the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development’s Office of Inspector General of, U.S. Immigration and Customs Enforcement, the Secret Service, IRS-Criminal Investigation, as well as District Attorney investigators. (i.e. conspicuous by their absence is the Riverside District Attorney’s Office – even though one of the biggest indictments is in our turf.)

The two cases involving mortgage fraud in Ventura name a total of 14 defendants, all of whom face potential sentences of hundreds of years in prison if they are convicted in the schemes that cumulatively helped unqualified and straw borrowers obtain tens of millions of dollars in fraudulent mortgage loans. But this is only one of several cases that seek to address the mortgage fraud problem from different angles.

●       In a civil action filed yesterday, prosecutors are seeking up to $1 million in damages from several real estate professionals allegedly involved in an ongoing scheme to obtain government-insured mortgage loans for unqualified borrowers. The complaint seeks a preliminary injunction that would shut down the allegedly fraudulent operation being run out of The Team Realty Group in Riverside. The complaint alleges that, for the past three years, Peter Morris, a California licensed real estate broker, and other professionals working at Morris’ Team Realty Group submitted bogus documents to banks to make their clients appear to be eligible for mortgage loans insured by the Federal Housing Authority or the Veteran’s Administration. The complaint, which is one of five civil actions filed this week by the United States Attorney’s Office, was filed pursuant to the Financial Institutions Reform Recovery and Enforcement Act of 1989 (FIRREA), which became law in the wake of the savings and loan crisis and gave the Justice Department flexibility to pursue civil penalties, as well as criminal charges, against individuals involved in mortgage fraud.

●       In a criminal case indicted yesterday by a federal grand jury in Santa Ana, the owners of a mortgage brokerage firm are accused of obtaining more than $30 million in loans by submitting hundreds of loan applications that substantially inflated the borrowers’ true income and assets.

●       A Lancaster man pleaded guilty last month to conspiracy and making false statements for his role in a scheme to defraud homeowners by promising to delay or prevent foreclosures on their homes and pay-off delinquent mortgages in exchange for the homeowners making payments and transferring title.

Ellon Lindsey, Assistant Special Agent in Charge of IRS – Criminal Investigation’s Los Angeles Field Office, observed: “Mortgage fraud hurts our communities, drives some homebuyers into foreclosure, leaves lenders with bad loans, and burdens neighborhoods with deteriorating and abandoned properties. Today, IRS – Criminal Investigation is pleased to be a part of the numerous investigations that have successfully attacked these crimes on a variety of fronts. Using federal laws that include wire fraud, money laundering and tax offenses, we are able to successfully disrupt these schemes and bring their promoters to justice.”

The court cases that have been brought and resolved as part of the ongoing crackdown are the result of the collaborative efforts of a number of law enforcement agencies, including the United States Attorney’s Office, the Federal Bureau of Investigation, the Office of Inspector General for the United States Department of Housing and Urban Development, the United States Secret Service, IRS – Criminal Investigation, U.S. Immigration and Customs Enforcement, the United States Postal Inspection Service, and the Ventura County District Attorney’s Office.

Suspected fraud can be reported to the Financial Fraud Enforcement Task Forces at www.stopfraud.gov. The Los Angeles Field Office of the FBI also takes reports of suspected fraud at (310) 477-6565.

Extending the deadline for closing from June 30 to Sept. 30 would allow lenders more time to clear a backlog of 180,000 homebuyers nationwide, said amendment sponsor Sen. Harry Reid, D-Nev.

The amendment to HR 4213, the “American Jobs and Closing Tax Loopholes Act of 2010″ — which primarily extends unemployment insurance benefits — was approved in a 60-37 vote Wednesday. The vote was mostly along party lines, with only four Republicans in favor and one Democrat opposed.

The National Association of Realtors supports the amendment, saying Realtors have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.

The amendment does not extend the deadline for homebuyers to qualify for the tax credit, NAR said in urging lawmakers to approve it, but simply extends the deadline for closing transactions already in contract.

“Since these applications were already in the pipeline and figured into the program’s cost, the extension of the closing deadline should not incur any further government costs,” NAR President Vicki Cox Golder said in a statement.

Big news to report from our board of directors’ meeting in Sacramento: On Saturday, June 12, the C.A.R. board of directors voted to approve a new structure for the statewide MLS that will merge the efforts of calREDD® with the Multi-Regional Multiple Listing Service Inc. (MRMLS).

This joint effort supports and is in line with the principles that have guided our efforts throughout the process of building a statewide MLS. The new structure will create one dynamic MLS provider serving more than 33,000 real estate professionals and 22 REALTOR® associations statewide.

It’s a huge stride forward for our members — combining our respective strengths and resources will significantly accelerate our shared vision and position the new entity to deliver even more expanded and efficient MLS services to you. You’ll have expanded access to MLS information, greater exposure for your listings, and eventually will be able to select either the calREDD® software system or the Tarasoft Matrix platform currently in use by MRMLS. You should expect to see even more choices and increased services over time.

Your Association will remain both a member and a fundamental part of the new entity, and will continue to have the right to approve actions such as merger, dissolution or sale of assets, changes in the purpose of the new entity, and changes in the board composition.

calREDD® and MRMLS will work closely during the transition to the new entity to ensure there are no disruptions in service, the needs of members continue to be met, and associations scheduled to join calREDD® are seamlessly added to the system. The Amador Association of REALTORS® is on schedule for a June 21 launch, followed by the Tehama Association of REALTORS® on June 28.

I’d like to thank our board, and the members of the calREDD® board of directors and its chairman, Mike Silvas, for their hard work and dedication to ensure that our members’ interests were front and center throughout the process. We’ll provide more information as our joint effort progresses.

Also at the Sacramento business meetings, your board of directors adopted a special purpose political assessment of $49 per member for 2011. This special assessment is for the California Real Estate Political Action Committee or, if the C.A.R. member chooses, to direct the funds to the C.A.R. general fund for non-candidate political purposes.

I can’t stress enough how valuable political involvement is. Whether it’s the legislature looking to tap REALTORS®, the transaction, or our industry for additional sources of funding, or placing restrictions on private property rights or on our right to conduct business, we must be continually vigilant in Sacramento to ensure that our interests are fairly represented. This is even truer in today’s fiscal environment, with politicians searching for every available means to cut the state’s ballooning deficits and produce a balanced budget.

Over the past few years, our coffers have dwindled, and while we still have a strong presence and a team of dedicated individuals working on our behalf at the capital, so has our influence. That’s why I contribute to C.A.R.’s political action funds, why I believe each member of the Association should support our efforts in this area, and why I wholeheartedly support your board of directors in their decision.

The special assessment takes effect for the 2011 dues bill cycle. Details on process and implementation now are being worked out; we’ll let you know additional information as it becomes available. I know I can count on you for your support.

Looking ahead, if you haven’t registered for CALIFORNIA REALTOR® EXPO 2010, taking place Oct. 5-7 at the Anaheim Convention Center, early-bird pricing has been extended through June 25, so take a few minutes to sign up today to take advantage of the savings. This year’s EXPO will feature exhibit booths, cutting-edge seminars, and other special events, while Tech Tuesday on Oct. 5 will offer a full day of technology training preceding CALIFORNIA REALTOR® EXPO. You can register online by visiting http://expo.car.org or calling toll-free (800) 242-2732.

C.A.R. also has negotiated a 25-percent discount off the registration fee for members to Inman Connect in San Francisco July 13-15; use promo code “CAR.” http://www.inman.com/conferences/real-estate-connect-san-francisco-2010/register. While you’re at Connect, don’t miss the Association’s four agent-focused sessions during Agent Reboot on July 12.  C.A.R.’s Agent Reboot sessions assist agents with “rebooting” their business and are scheduled from 1 p.m. to 5 p.m. For a full list of program sessions, please visit http://www.agentreboot.com/.

Sincerely,

Steve Goddard

2010 President

CALIFORNIA ASSOCIATION OF REALTORS®

Effective in 2011 the $49 basic cost of staying alive will now be shared by ALL Realtors in the state of California. If you are philosophically or religiously opposed to making political contributions, your investment will be channeled into a general CAR fund used for issues campaigns rather than direct candidate or party expenditures but if you’re a Realtor in California there’s no more free ride while others carry your political water. Welcome to the club!

Red Alert Update

SB 1178 Passes Senate!

Victory for REALTORS® and Their Clients!

SB 1178 was just approved by the Senate, over lender opposition, with a vote of 30 to 4.

Thank you to the over 5,000 REALTORS® who made a difference by contacting their senator to support the bill! For more information on the vote, see the list below.

C.A.R. is sponsoring SB 1178 (Corbett) to extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure. Most homeowners didn’t even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender.

Here is how senators voted today.

“Yes” votes: Aanestad, Alquist, Ashburn, Cedillo, Cogdill, Corbett (author), Correa, DeSaulnier, Ducheny, Florez, Hancock, Hollingsworth, Huff, Kehoe, Leno, Liu, Lownenthal, Negrete McLeod, Oropeza, Padilla, Pavley, Price, Romero, Runner, Simitian, Steinberg, Wolk, Wright, Wyland and Yee.

“No” votes: Calderon, Denham, Strickland and Walters.

Not voting: Cox, Dutton, and Harman.

Absent (not in Sacramento that day due to health reasons): Wiggins.

Thank you to everyone who made a call to their senator. Facing lender opposition, many of those who ultimately voted for the bill, may not have done so if they hadn’t received so many calls from REALTORS®.

YPN Goes to Washington

About 200 young real estate professionals attended the REALTORS® Midyear Legislative Meetings & Trade Expo networking event at The Gibson on May 13 in Washington, D.C. The event, “Speaking Easy with YPN,” was sponsored by the REALTORS® Political Action Committee and the REALTOR® Party.

YPNers had the opportunity to meet with NAR leadership and mingle with other young professionals from throughout the country. Several YPN members also took part in committee meetings and events during the week.

Midyear was particularly significant for YPN this year as its Advisory Board received official Subcommittee status (under the Communications Committee) by NAR’s Board of Directors.

For more information on how to get involved with YPN, or how to start a chapter in your area, visit www.realtor.org/ypn.

Dane Wunderlich (3rd from right) enjoys YPN networking at NAR in Washington DC

]]> http://gadblog.srcar.org/2010/06/01/dane-wunderlich-represents-src-ypn-in-washington-dc/feed/ 0 http://gadblog.srcar.org/2010/06/01/treasury-answers-your-hafa-questions/ http://gadblog.srcar.org/2010/06/01/treasury-answers-your-hafa-questions/#comments Tue, 01 Jun 2010 15:22:49 +0000 Gene Wunderlich http://gadblog.srcar.org/?p=1461 Treasury Answers Three HAFA Questions

On May 21, 2010, Fannie Mae, on behalf of the Treasury Department, answered three HAFA questions submitted by NAR on behalf of its members. HAFA is the Home Affordable Foreclosure Alternatives Program that provides uniform procedures, forms, and deadlines for short sales and deeds-in-lieu of foreclosure. The purpose of HAFA is to help homeowners avoid foreclosure even if they are unable to retain the home with a loan modification under the HAMP program. In brief, under the HAFA program:

(1) buyer agents are not permitted to rebate a portion of their commission to the buyer,

(2) sellers who are real estate agents must list their home for sale with another broker, not their own broker, and

(3) the incentive allowed for subordinate lien holders (6% of any one subordinate lien, up to a total of $6,000 for all subordinate liens) is a hard cap and may not be supplemented from any source.

HAFA Q&As
NAR’s Short Sale Web Page

Posted: 26 May 2010 06:34 AM PDT

This upcoming Memorial Day weekend our nation again commemorates those men and women who serve or have served our nation during combat. I was privileged to start my salute early on.

Last Thursday, I had the rare opportunity to testify on behalf of our 1.1 million members in support of the Veterans Home Loan Guarantee Program.

Like you, I am a strong believer in the value of homeownership, but let me just say this particular program has special meaning for me. As the father of a soldier currently serving in Iraq, I am so very proud that the VA is there to make good on the promises our nation made to our enlisted women and men when they joined the military through this entitlement.

The VA Home Loan Guarantee Program, created under the GI bill, encourages private lenders to offer very favorable home loan terms to qualified veterans.

Today, the VA has guaranteed nearly 19 million loans to American veterans, with a total loan volume of just over one trillion dollars. Because of programs such as the VA Home Loan Guarantee Program, the homeownership rate for veterans is significantly higher than the national average – as high as 80 percent.

I had the good fortune to meet with Chairwoman Stephanie Herseth Sandlin (D-S.D.) as well as the top Republican on the subcommittee Congressman John Boozman (R-Ark.). They both thanked me for the work you do! The work all REALTORS® do on behalf of veterans.

And I thanked them for their help to veterans who may have been victim to the subprime loan crisis. Listen to this, the Veterans’ Benefits Improvement Act of 2008 made changes to VA’s home loan refinancing program. Because of this Act, many veterans have been able to refinance toxic loans into safe, affordable VA loans if their non-VA loan is in distress.

I also spoke about NAR’s toolkit that promotes the VA Home Loan Guarantee Program. One if not the only informational piece of this very important topic. Last fall, the National Association of REALTORS partnered with the Veterans Affairs Department to produce “Unlocking the Future”, a VA Toolkit for REALTORS and homeowners. This comprehensive informational DVD and brochure complete with videos and Frequently Asked Questions, provides REALTORS® with all the information they need to successfully guide a veteran through the home loan process.  Yea, it’s a great informational piece for the vet as well. If you don’t have this valuable tool, please go online to realtor.org.

I was heartened after my testimony to talk with a representative of the American Legion, and other veteran organizations. After hearing about our toolkit, the Legion said they want to promote our VA Toolkit by writing an article in their publications with more than 2.5 million circulation. It is times like these when you plainly see how REALTORS® make a positive difference in our communities, in people’s lives, and especially for those who serve our country in combat.

For me, I can’t think of a better way to kick-off the Memorial Day weekend than to take pride in REALTORS® support of a program that is proven to be a huge benefit to those who have so bravely served our country.

Oh by the way! When there is such a hue and cry about the concerns in government programs, this one, supported by so many REALTORS® nationwide, has proven beyond a doubt that it works and works well. The foreclosure rate in VA loans is a strikingly low 2.46 percent compared to subprime 15.5 percent and even prime loans that are a full ¾ of a percent higher than VA loan foreclosure rate.  REALTORS® ARE TRULY THE “HEART OF THE MARKET”

PS  Remember, men and women in the military have an additional year to take advantage of the first time home buyers credit!!– Moe Veissi, 2010 NAR First Vice President ]]> http://gadblog.srcar.org/2010/05/27/what-memorial-day-is-all-about/feed/ 0 http://gadblog.srcar.org/2010/05/24/1455/ http://gadblog.srcar.org/2010/05/24/1455/#comments Mon, 24 May 2010 17:51:06 +0000 Gene Wunderlich http://gadblog.srcar.org/?p=1455

I’m not all that bright but it seems a lot more people are sharing my view that we simply have too much government involvement in our business for it to function normally. I should clarify that to state ‘a lot more people who aren’t in government share my view’. People in government tend to think their expanded presence is exactly what was needed to rescue us from ourselves, to stabilize the market and to support the recovery. (see FHA’s Dave Stevens Talks. WE created the mess. THEY’ll fix it. Oboy.)

But regardless of whether the government is taking credit for it or the private sector acknowledges the cyclical reality of the market, general consensus is that we are in for a couple more years of pain in the housing market – not severe pain maybe, but pain nonetheless. Under optimum circumstances, notwithstanding another Greece or other distractions, we will not return to a ‘healthy’ job market until 2014.

This will continue to drive the distressed property market as people continue to lose their homes while other make the decision to walk away. Whether through short-sale or foreclosure, this segment of the market will continue pretty much unabated through 2012 at which time it will start to decline slowly and then just dry up. Currently about 50% of the national market is distressed property sales (about 80% locally). That number needs to be down to about 5% before we experience realistic and sustainable price support.

Just over 1/3 of homeowners nationwide are currently upside-down in equity, and 15% are either delinquent or actually in the foreclosure process. That’s a bunch – but the good news is that 85% of loans are still performing and they expect that in another 3-5 years we’ll be back to a ‘normal’ market where only about 1% of loans default every year.

The average time people are remaining in their homes without making payments is currently 18 months under the working theory prevalent among banks that ‘a rolling loan gathers no loss.’ (If they don’t foreclose or short-sale, they don’t have to book the loss). Believe it or not, that has actually stimulated the economy because the money they are saving on house payments is being pumped back into the retail economy as they spend that cash on restaurants, clothes, cars, etc.

You might think that having been bitten once these folks might be twice shy and start saving their money but you’d be wrong. Remember, these are the entitlement folks to whom the government owes a bail-out. As long as the rest of us keep up our end of the bargain they will be OK.

There’s also a growing sentiment that there is no ‘shadow inventory’ hanging over our heads. Through the largely unsuccessful government loan-mod programs (unless you’re talking to the government), and their even less successful attempts to standardize and expedite short-sales, the housing inventory is now being categorized as a ‘pig-in-a-snake’. There’s a big lump moving through but by attrition from a few loan mod’s, a few short sales and even more auction sales, what eventually gets dumped onto the market will be inconsequential compared to what we’ve already experienced. Improving employment figures and continuing low interest rates will forestall many Alt-A loan re-sets and reduce pressure on homeowners going forward. How long we can maintain low interest rates in the face of burgeoning federal debt is anybody’s guess.

A caveat – the California, and especially the Southern California, economy is behaving both better and worse than expected. Our overall economy is performing better than it should be because we have more distressed homeowners living in their homes rent-free longer than the national average and these people are pumping more money into our local economy.

Locally our housing prices appear to have stabilized and some areas, like San Diego, have actually experienced double digit appreciation in the last 12 months.

And while much of the country still labors with 2 years worth of housing inventory (Florida is toast) our local inventory is 2 months or less. If builders don’t start building homes again soon, demand will exceed supply again – potentially in a big way, and we could experience another price spike.

Finally – some quotes. From former FDIC Board Member Nicholas Retsinas: “It was the Fed’s job to take the punch bowl away when people started getting drunk. Instead they just figured out more imaginative ways to spike it up.”

From Al DelliBovi, President of the Home Loan Bank of New York: “If we want the markets to work, we need to let them work – quit propping them up and massaging them. Now is the time for government to wean itself off of housing and for housing to wean itself off of the government.”

From MegaBroker Lennox Scott: “It’s a great time to buy low. Just don’t expect to sell high for awhile – maybe quite awhile.”

Former Governor Pete Wilson: “The willingness of these candidates to run for Governor should disqualify them from running. If elected, their first job should be to demand a recount.”

To read the backstory on many of these items, get up-to-the-minute local housing news & fraud reports and download local & national housing charts – follow Gene at http://gadblog.srcar.org/

TEMECULA: Man accused of $20 million fraud

A Temecula man is among six people facing charges for what federal prosecutors said Thursday involves more than $20 million worth of mortgage fraud.

Michael Wayne Wickware, 54, faces one count of conspiracy to commit wire fraud and nine counts of wire fraud, the San Diego U.S. attorney’s office said.

According to online records, Wickware was in custody Thursday at the federal jail in downtown San Diego.

Also charged in the scheme are San Diego residents Brian Andrew La Porte, 34; Daniel John Schuetz, 37; Darryl Anthony Wallace, aka Darryl Anthony White, 47; and Terrence Smith, aka Terry Lee Smith, 45.

The final defendant is Chula Vista resident Roxanne Yvette Hempstead, 53.

The defendants are accused of submitting false and fraudulent mortgage loan applications —- inducing financial institutions to give 36 loans totaling approximately $20.8 million, according to the U.S. attorney’s office.

Federal prosecutors alleged in a newly unsealed indictment that the six defendants cooked up a scheme in which they lied to mortgage lenders to obtain money and property, and then diverted the proceeds for their personal use and benefit.

Under the alleged scheme, the defendants recruited straw buyers with good credit to take out mortgage loans.

But, other than having sound credit, the straw buyers would not have qualified for the loans —- so defendants La Porte and Schuetz allegedly prepared loan applications containing false financial and employment information from the straw buyers, according to the indictment.

Once the loans were made, the defendants allegedly had the escrow agents divert them the money so they could benefit from the proceeds.

The defendants are scheduled to be in federal court on June 28.

Read the article in The Californian here.

For more fraud info – click here the logo:

Now I know there are some of you who are not enamored of Dr. Yun’s talks and consider him to be an NAR stooge – but the fact is he has recently been named by USA Today as one of the nations top 10 economic advisors and Dr. Zandi is one spot higher in that ranking than Yun – so say what you will, these guys have some credentials. I personally am glad to hear an econmist who understands real estate giving a Realtor perspective. Too many of them talk about housing but strictly from a philosophical point of view – they’re not surrounded by Realtors every day like Yun is.

An overview;

Yun talked quite a bit about the first time homebuyer program and the success that it was. Ultimately 3.4 million buyers will benefit from that credit and just over 1 million of those would not have purchased at this time without the incentive. Given the multiplier effect of real estate purchases this program more than paid for itself in terms of economic benefit to the nation. It also had a significant impact on reducing inventory which in turn helped stabilize prices. Without that inventory drop prices may well have dropped another 8% before finding a bottom and that 8% would have translated to another $1 trillion drop in equity wealth for homeowners. Price stability also translates to fewer foreclosures going forward as the 3rd wave of foreclosures was largely driven by unemployment and negative equity. 

Dr. Yun does not believe there will be a double dip in housing prices but that distressed properties will continue to be with us for at least the next two years before we start getting anywhere close to a normal market. Several factors could impact that timing – including such international pressures as a default by Greece and other events but he doesn’t believe that will be allowed to happen. 

Yun also called out the next crisis, one that I have been talking about for awhile now.  That is a housing shortage which could lead to a quicker price recovery, if not another mini-spike. This is driven by the fact that demand is now keeping pace with supply in many markets yet new home builders are not working yet – which could lead to a shortage within two years and force upward price pressure in some areas – specifically ours herein Southern California. Florida is still toast, Arizona & Nevada are still hurting but many areas are climbing back out with some, like the San Diego market, showing double digit price appreciation. 

Dr. Zandi titled his address “The Housing Crisis is Over (Almost). He believes we will continue to see minor price slippage in some areas into 2012 until the job market picks up. While as many as 250,000 new jobs have been crated in the past 2 months, we have lost nearly 9 million. He believes we will average 150,000 – 250,000 new jobs per month this year and as many as 300,000 a month by next year. By next year at this time we should see job growth in every sector of the economy except state and local government. But even under is rosiest lens, he doesn’t see us approaching full employment (5.5%) until well into 2014. 

While some areas, like SoCal, have housing inventories of 2 months or less, much of the country is still struggling with 2 years of homes – although he agrees with Yun that that inventory will be disposed of and if an adequate supply of new homes doesn’t begin to appear soon it could precipitate another shortage. He also outlined the four stages of the housing crisis starting with flippers giving homes back to builders in 2006 – that was just a preview of things to come. Stage 2 was the infamous sub-prime melt-down that consumed us in 2007 and the freeze on jumbo loans which is still hurting the recovery of the upper end of the market. Stage 3 occurred in 2008-2009 driven by rising unemployment and falling home equity. We are currently tailing off that state and driving into Stage 4 which is marked by strategic defaults. There are 50 million home mortgages in this country of which nearly 1/3 or 15 million are under-water right now with negative equity. Of those, 4.5 million are either in foreclosure or are 90 days or more late on payments. That translates to more pain to come but it will be somewhat mitigated by an improving employment picture, continued low interest rates (no re-sets) and stabilizing or appreciating equity. 

Overall not a bad prognosis from these two. Not entirely rosy but I’ve certainly heard worse. 

Here’s the slides to Dr. Yun’s presentation:

Last week I brought to your attention a new one making the rounds. Actually it’s been around awhile but just making a new appearance on the scene – this is the ‘Title Compliance Office’ scam that warns you to have a copy of your grant deed in your hot little hands or else people can just waltz in and take your home. If you don’t have it they can get you ‘certified’ or ‘official’ copy for just $167 IF you respond before 5/24. Of course anybody who has purchased a house has received a copy of their grant deed. If they can’t find it, the County Clerk will happily get them a duplicate for about $10. It’s been primarily seniors who have received this latest mailing so far.

Today there’s a new one that has also been around since at least 2004 but seems to be cropping up again out here (CA) and at least 11 other states that I’m aware of. It has become so prevalent that our Riverside County Court System has posted a warning on their jury duty site – here’s how it works:

You get a phone call purportedly from the court system claiming you’ve failed to report for jury duty and an arrest warrant is about to be issued for you. YIKES! The victim will rightly claim they never received a jury duty notice but the caller will inform them it was mailed and the presumption is that they received it and ignored it.

The caller will then request some information from the victim so they can ‘verify’ the callers claim and ‘hopefully’ get the arrest warrant canceled. This information includes your social security number, date of birth and sometimes even a credit card # and/or other private information.

Congratulations! Your identity has just been stolen. People tend to go along with this scam because it sounds plausible, it’s entirely possible they didn’t receive or overlooked a jury duty notice and they want to avoid an arrest warrant. They’re a little less vigilant about giving up their information because, after all, it’s the court system.

In reality the court system will NEVER call you to ask for your social security number or other private info. Most courts will follow up with regular mail and will rarely, if ever, call you.

It doesn’t matter who is calling or why – NEVER give out your social security number or other private information to somebody you don’t know over the phone. NEVER! The reasons may be different – the scam is not. The goal is to lift your identity and by the time you hang up from the call, they have already sold your identity to countless other people and you are up the proverbial creek – no paddle, no sail.

Here’s the official warning on the Riverside County Courts website:

Be careful what information you reveal over the phone.  Identity thieves have called Riverside County
residents and threatened them for failing to report for jury service. The thieves then asked for confidential
information. The Court and Jury Assembly Room staff will NEVER call you and ask for Social Security Numbers,
credit card numbers or other sensitive information. Do not give out such information over the phone to
anyone who calls you claiming to be with the judicial system.

Realtors, we’re part of the solution – not part of the problem. Make it so.

Posted: 05 May 2010 06:41 AM PDT

Just received a forwarded e-mail from my mom with the subject line:  “CAP & TRADE BILL” = License for your home!

I was afraid to open it knowing how much misinformation is out there about this legislation.

As a REALTOR® for almost 40 years, my mom is one of those sharp, informed citizens.  Her comments that prefaced the e-mail capture that challenge:  “What do you think about this?   Is it accurate?  What do we do if so?  Will be in the office tomorrow a.m.to talk about it.   Love, mom”

One of the advantages of being in REALTOR® leadership is you have access to accurate information.  So, I can respond to my mom’s concern with real, accurate information.  Rather than respond to the exaggerations and misinformation in the e-mail, let’s just explain what the legislation does and does not do:

We, the National Association of REALTORS® in collaboration between volunteer leaders and professional staff, have been most effective is crafting changes supportive to homeownership.  The approved house bill has elements that we need:

• Does not create a federal energy audit requirement for real property;

• Exempts existing homes and building from any federal guidelines for new construction energy  efficiency information labels.

• Prohibits the implementation of any labeling during a sales transaction.

• Leaves the decision to states as to whether to require energy audits, disclosures, etc.

• Provides property owners with significant financial incentives, matching grants and tools to make property improvements and reduce their energy bills;

• Prohibits the Environmental Protection Agency from regulating residential and commercial buildings under the Clean Air Act;

• Eliminated an early proposal to allow citizens to sue over minor climate risks under the Clean Air Act; and

• Establishes green building incentives for HUD housing, including a loan program for renewable energy, block grants and credit for upgrades in mortgage underwriting.

Obviously, the process is not complete.  The US House of Representatives passed a climate bill called the American Clean Energy and Security Act.   The Senate version of the bill has not yet been passed.  Then, more than likely, a bill that would reconcile the differences between the House and Senate version would still need to be approved by both houses before the President could sign it into law.

Because there is a long way to go before this bill becomes law, we need to remain vigilant in our efforts to make certain that these positive elements for homeownership remain in the final bill.

There is a larger lesson for us as advocates for property rights and home ownership.  First, we need to be attentive and informed.  We need to be aggressive and effective. But, both of those require that we have access to the truth.  Great government policy should be based on real information, not innuendo and misrepresentation.  As the National Association of REALTORS®, we are committed to getting to the truth.

And, by the way, Mom thanks for forwarding the email.  I am glad that it is inaccurate, because it allowed me the opportunity to clear some of the misperceptions.  It is important to be informed before we respond.  (I think that is what you and Dad had taught me, my brother, and my sisters for years…It is a great lesson). – Ron Phipps, 2010 NAR President-Elect