One of the
most difficult tasks in life is defining your purpose. The payoff from clarity of purpose is
enormous. There is a direct correlation
between clarity of purpose and success.
I have found that the most successful people spend time thinking,
planning, evaluating and then re-evaluating their progress. As REALTORS®, we continually need to
evaluate where our business is coming from, the trends in the market, and then
plan for changing market conditions.
Spending time planning and evaluating is critical to our success and
growth in the real estate industry.
One of the
most crucial functions of the planning process is future forecasting. It is very hard to achieve clarity when the
view is on a daily, weekly or even a yearly basis. The view must be long-term and then work backwards. True leaders have a vision, and decide on
the necessary steps to fulfill that vision.
The
Association leadership team, Strategic Planning Committee and staff are
actively engaged in the planning process in the development of a Long Range
Strategic Plan for the Association. The
goal is to create a blueprint to fulfill the vision and mission of our
Association and plan for the future and all the changes that will most
assuredly come.
Each one of you is invited to be a part of this
important process. Watch for the first
Annual SCAOR Membership survey that will be arriving by mail this week. The
survey is also available on the Association website (www.scaor.org) that you may download as a pdf
file (a file format that all computers can read) then print, complete and fax
back to the Association. You were also
notified via e-mail with a link to the Membership Survey when it became
available on the website. Please take
the time to provide us with the valuable information we need.
In
addition to the Membership Survey, the strategic plan is being shaped by input
from 6 separate focus groups comprised of Brokers/Owners, long-term agents (11+
years) mid-term agents (4-10 years) and our newest agents (up to 4 years) as
well as Commercial agents and Affiliates.
If you wish to volunteer or are asked to participate in a focus group, I
encourage you to take this opportunity to share with us your unique view of
your business, the Association and the real estate industry.
Your
involvement in this planning process is critical to the creation of an
effective long-term plan for the Association. Our goal is to provide relevant
products, programs and services that will continually support your career as
REALTORS® and contribute meaningfully to your success. It is only through your voice that we are
able to assess your needs and provide for them so we can be successful in our
goal.
Thank you
for being involved in our success!
Ronnie
Trubek
2003
President
- Message from C.A.R. President
- New REALTOR® Members
- REALTORS® Making a Difference
- Affiliate Member Spotlight
- Economy, War Impacting Investors
- Time to Brush Up on Cold Calling Rules
- Mortgage Delinquencies Drop
- ‘eNote’ Registry Req. Announced
- Impact of Sandicor on Your MLS
- Lawmakers Urge HUD to Rethink RESPA
- Home Sales Should Hold Despite War.
Dear Fellow REALTORS®:
The
availability of homeowners insurance has become a pressing concern for all
Californians. Home buyers and sellers have scrambled for coverage so a real
estate transaction can close, while escrows have been delayed and policies have
been cancelled because of a simple inquiry regarding coverage. Homeowners
throughout the state have seen their premiums skyrocket despite never having
made a claim.
As you
already may know, the insurance industry’s Comprehensive Loss Underwriting
Exchange (CLUE) system is based on inquiries, both theoretical and
hypothetical, that can be used to disqualify people for homeowners insurance.
For example, a simple question about insurance coverage can trigger a report to
the CLUE database. And even if consumers fix a problem so that it no longer presents
a loss exposure to the insurer — removing a fallen tree or fixing a leaky roof,
for example — they still can be reported to the CLUE database.
C.A.R. has
closely monitored the insurance-availability crisis in the state, and last year
formed the Insurance Availability Task Force to help combat the problem. In
early February, I met with state Insurance Commissioner John Garamendi,
accompanied by C.A.R. Treasurer Jim Hamilton, Executive Vice President Joel
Singer, Insurance Availability Task Force Chair John Cribb, Legislative
Committee Chair Sereta Churchill and Senior Vice President of Government
Affairs Alex Creel to discuss possible solutions to the availability crisis.
I am
pleased to report that the commissioner, who shares many of our concerns, has
released a draft advisory notice for comment that clarifies that insurance
providers can’t characterize a simple inquiry as a claim and negatively impact
the insured’s CLUE score, nor can insurers use a loss-exposure issue that has
been corrected.
The
commissioner’s release of the draft advisory is a positive step toward helping
people use their homeowners insurance as it was intended, without negative
consequences on future insurance needs. Commissioner Garamendi continues to be
an advocate for homeowners and is aggressively pursuing fairness in
insurance-underwriting practices that will benefit all Californians. C.A.R.
looks forward to continuing to work with the commissioner on the insurance
availability and affordability problem to ensure that homeowners insurance is
available in a fair and timely manner to all Californians.
We expect
the final advisory letter to be released by the Dept. of Insurance within two
weeks. Look for additional information in C.A.R. Newsline, which will report
updates as they become available.
Sincerely,
Toby
Bradley
2003
C.A.R. President
Linda Bailey, Vanguard REALTORS®
Sharon King, Vanguard REALTORS®
Cathy Thorne, David Lyng & Associates
John Arriola, Bailey Properties, Inc.
Mary Ann Riley, Bailey Properties, Inc.
Donald Callely, Donald Callely, REALTOR®
Lance Lammers, Century 21 Showcase REALTORS®
Chris Gonzalez, American Dream Realty
Alan Brownell, Network Alliance Real Estate
Nancy Olea, Century 21 Arrowhead Realty
Jean Matthews, Coldwell Banker Jackson and Mann
Nancy Comstock, Coldwell Banker Jackson and Mann
Jeff Harris, Harris and Associates
AFFILIATE MEMBERS
Associated Finance Mortgage Co. - Representative:
Alexis Jackson
Sterling Capitol Mortgage - Representative: Heidi
Maldonado
Comments about an applicant’s admittance should be
submitted in writing to the Santa Cruz Association of REALTORS®, 2525 Main St.,
Soquel, CA 95073.
REALTORS® MAKING A DIFFERENCE...
We applaud
Debra Frey, RE/MAX Real Estate Services, for her volunteer efforts with
RRI. Refugee Relief International,
Refugee Relief International (RRI) provides humanitarian medical assistance to
victims of armed conflict around the world.
Most of the volunteer doctors, nurses and medics at RRI are military
veterans who can operate in war zones and other dangerous environments where
other humanitarian agencies will not go.
In these places, RRI is the only help available. Their medical team depends on charitable
contributions to complete its missions.
The team consists entirely of volunteers, so your support goes directly
where it matters most – the victims of land mines and war. For more information, visit: www.refugeerelief.org
Santa Cruz Financial
Contacts:
Chick Donaldson, Cheri Welch, Bobbie Donaldson, Crystal Swink, Dennis
Silva, Megan Young, Don Gerig, Jennifer Farley, Greg Turnquist
4170 Gross Road, Capitola, CA 95010
Phone: (831) 477-5757 Fax: (831) 477-5747
All of us at Santa Cruz Financial believe in doing
the right thing in the right way for each and every client. Our growth and dedicated client base are a
direct reflection of putting our professionalism and background to work for our
clients. We believe that the best way
to predict the future, is to create it. THANK YOU to all of our friends and
affiliates who have made it possible for us to be so successful in providing
the best service available. We wish the
best to everyone in 2003!
A recently
released ETrade survey reported a third consecutive quarter of lowered optimism
regarding a near-term economic recovery, while the war and economic concerns
continued to influence respondents’ perceptions of their personal finances. The
study found that 30 percent of those surveyed are confident the economy will
improve over the next 12 months, compared to 44 percent in November and 47
percent in August.
Investors
currently consider their homes to be a superior investment to stocks by more
than six out of 10 (62 percent) respondents, the report said. Two-thirds of
current homeowners believe their home’s value will remain the same or increase
in value over the upcoming six to 12 months.
Sixty-three
percent of investors said war would be detrimental to the economy during the
first three months of a conflict, while 25 percent said the economy would
improve as a result of a war with Iraq.
City of Santa Cruz Water Conservation Office
For information about the new plumbing fixture
regulations in the Santa Cruz City water service area, or to obtain forms,
please contact: Francesca or Toby at 420-5230 or visit: www.ci.santa-cruz.ca.us/wt/wtcon
Time to Brush Up on Cold Calling Rules
Cold
calling has proven itself a valuable marketing tool for many business people,
and has taken on even greater importance as electronic communication options
proliferate. Not surprisingly,
government regulation of electronic communication is trying to keep pace.
C.A.R.’s
Legal Department has updated its publication “Cold Calling Using Telephones,
Faxes, or E-Mails” to reflect recent legal developments that may affect a
REALTOR®’s cold calling practices.
C.A.R. members may access the revised publication through C.A.R. Online
at http://www.car.org/index.php?id=MjgzMg.
REALTORS®
should take care to comply with all applicable cold calling regulations. C.A.R. is aware of at least one recent
lawsuit filed against a broker for alleged violations of federal telemarketing
laws. REALTORS® with information about
any such lawsuits should bring them to the attention of C.A.R.’s Legal
Department immediately.
For
additional information, C.A.R. members may contact C.A.R.’s Member Legal
Hotline at 213.739.8282, or 213.739.8350 for office managers, broker/owners,
and Designated REALTORS®. Hotline
access is also available through C.A.R. Online at www.car.org.
Mortgage Delinquencies Drop, Foreclosures Increase
The share of homeowners who were delinquent with
their mortgage payments dropped in the fourth quarter of 2002 compared to the
previous quarter, while the percentage of loans in foreclosure increased
slightly, according to the recently released 2002 National Delinquency Survey
by the Mortgage Bankers Association of America (MBA). The seasonally adjusted
delinquency rate for mortgage loans on one- to four-unit residential properties
was 4.53 percent at the end of the fourth quarter of 2002, a drop of 13 basis
points from the third quarter and a drop of 14 basis points from the fourth
quarter of 2001.
While the
quarter-to-quarter delinquency rate for conventional loans increased 4 basis
points to 3.08 percent, the delinquency rate for FHA loans fell 17 basis points
to 11.45 percent, according to the report. VA loans were virtually unchanged at
7.82 percent. Conventional prime loans registered a total delinquency rate of
2.65 percent in the fourth quarter, up 11 basis points from 2.54 percent in the
third quarter and down 9 basis points from 2.74 percent the same quarter in the
previous year.
The
percentage of loans in the process of foreclosure was 1.18 at the end of the
fourth quarter 2002, up from 1.15 percent at the end of the third quarter. “We
expect to see delinquencies fall as the economy improves and generates jobs
growth. We are seeing some signs of improvement, but absent a significant or
sustained period of growth, expect no major improvement in delinquencies.” said
MBA Senior Vice President and Chief Economist Doug Duncan. “It should be
pointed out that the slight decline in mortgage delinquencies came at the same
time personal bankruptcies were setting a new record high. In general, an
increase in delinquencies lags a downturn in the economy, and a decrease in
delinquencies lags an improvement in the economy.”
MBA Releases Requirements for a National Electronic
Note (eNote) Registry
The
Mortgage Bankers Association of America (MBA) recently announced the release of
functional and business requirements for a national electronic note (eNote)
registry. The eNote registry will be responsible for tracking the location and
controller or owner of eNotes that are originated and closed electronically in
the future.
“This will
allow for a less expensive and more standardized means by which to originate
and sell e-Mortgages in the future, with cost savings benefits to consumers,”
said Rod Hardin, chair of the MBA Residential Technology Committee. MBA will collect comments over a 30-day
period, after which it will finalize the documents in conjunction with the task
force and recommend further steps for implementation.
HELP WANTED - A Call for 2004 Board of Directors
Nominations
These
are exciting times in the Real Estate Industry! We need you to share your experience and expertise! This is your opportunity to help lead the
Santa Cruz Association of REALTORS® in 2004.
If
you wish to be considered for nomination to the Board of Directors in 2004,
please fill out the form below or send an e-mail including your bio, to Philip
Tedesco, CAE, Executive Officer (ptedesco@scaor.org)
by April 11, 2003. YOU can make a
difference!
Mail or Fax to:
Philip Tedesco, CAE, Santa Cruz Association of
REALTORS®, 2525 Main Street, Soquel, CA 95073
Phone: 831/464-2000, Fax: 831/464-2881, E-mail: ptedesco@scaor.org
Deadline for receipt is April 11, 2003
Required Section:
Name:___________________________________________________________________________
Firm: ____________________________________________________________________________
Address: _________________________________________________________________________
Reason I wish to serve: ______________________________________________________________
Optional Section:
C.A.R. and/or NAR activity (if any):
_____________________________________________________
Community Activity:
_________________________________________________________________
Honors or other important information: ____________________________________________________
(Attach additional sheet if needed)
NOMINATIONS MUST BE RECEIVED NO LATER THAN APRIL 11,
2003
Impact of Sandicor Case on Your MLS
The
business practice found to be illegal in the Sandicor case is an agreement
among a regional MLS’s shareholder REALTOR® associations providing for the
REALTOR® associations to receive a uniform fee for the support services they
provided to MLS participants. The support services included activities such as enrolling
new subscribers, billing and collecting payments, ensuring compliance with the
rules and answering subscribers’ questions. The court found that the service
agreements between the regional MLS and the REALTOR® associations fixed the
fees for support services in violation of the Sherman Act.
This
business practice is not present in the following MLS structures, and
therefore, the MLSs with the following structures are not exposed to potential
liabilities as a result of the Sandicor holding:
1. A MLS run as a committee of a REALTOR®
Association, where all of the services (MLS database and support services) are
delivered by the REALTOR® Association and the fees are established by the board
of directors of the REALTOR® Association.
2. A MLS run as a wholly-owned subsidiary of a
REALTOR® Association, where all of the services (MLS database and support
services) are delivered by the MLS corporation and the fees are established by
the board of directors of the MLS corporation.
3. A MLS owned by one REALTOR® Association (either
operated as a committee or separate corporation) that provides services by
agreement to the members of two or more REALTOR® associations where all of the
services (MLS database and support services) are delivered by the MLS and the fees
are established by that MLS (if a separate corporation) or the REALTOR®
association (if run as a committee).
4. A regional MLS, separately incorporated and owned
by two or more REALTOR® associations which “wholesales” MLS database services
to the REALTOR® associations, which in turn deliver (resell) MLS services to
their members at prices determined by each REALTOR® association.
5. A regional MLS, separately incorporated and owned
by two or more REALTOR® associations, that delivers MLS services (database and
support services) directly to the participants, where the pricing is determined
by the board of directors of the MLS corporation, and no support services are
purchased by the MLS from the REALTOR® associations.
Any regional MLS that delivers MLS services
(database and support services) directly to the participants and purchases the
support services from two or more REALTOR® Associations should contact the
MLS’s antitrust counsel and Laurie Janik (ljanik@realtors.org
or 312/329-8371).
Lawmakers Urge HUD to Rethink RESPA Proposal
U.S.
Senate Banking Chairman Richard Shelby, R-Ala., wants U.S. Department of
Housing and Urban Development Secretary Mel Martinez to delay publication of a
final Real Estate Settlement Procedures Act rule until its costs and benefits
have been determined.
The rule
would enable lenders to offer packages of settlement services at set prices,
among other changes, including to the federal Good Faith Estimate form and
lender fee disclosure requirements.
The
proposals have generated widespread concern in the real estate industry and
among federal lawmakers and agencies. The Federal Trade Commission has warned
that borrowers could be confused by the changes in cost disclosures, and the
U.S. Small Business Administration wants HUD to re-examine the costs to small
businesses.
Shelby
wants to see the rule make it mandatory for lenders to disclose the transaction
fees paid when loans are sold to Fannie Mae and Freddie Mac on the secondary
market.
HUD
Secretary Martinez says he’s uncertain that HUD has any authority over
transactions that occur after settlement.
Source: Dow Jones Newswire (03/20/03); Kopecki, Dawn
Home Sales Should Hold Despite War
Not even
worries about war and terrorism have dampened America’s housing boom. However,
now that U.S. military action is underway in Iraq, industry participants expect
a brief lull in activity as consumers wait to see how the war unfolds.
Hints of a
slowdown have emerged in recent weeks; perhaps the most notable indicator was a
decline in homebuilder confidence. “Right now, builders are reacting to the
potential for consumers to postpone anticipated new-home purchases; however,
inventories of unsold new homes are still quite lean, so builder sentiment
should rebound quickly in the months ahead as the geopolitical and economic
uncertainties are resolved,” predicts National Association of Home Builders
chief economist David Seiders.
His
counterpart at the National Association of REALTORS®, David Lereah, says the
war’s length will determine it’s effect on the housing market. A drawn-out
conflict could result in higher interest rates that would impair the housing
market and the overall economy, while a quick resolution would trigger a fast
recovery after slight disruption to the property sector, he predicts.
Analysts
also say home sales this spring aren’t likely to be greatly affected by
war—particularly as interest rates begin to climb and consumers scramble to
lock in rates before they return to levels above 6 percent. Source: CBSMarketWatch.com (03/20/03);
Kerch, Steve
Graduate, REALTOR® Institute
GRI – 106 - Strategies for Success
Friday, April 11, 2003 at the Santa Cruz Association
of REALTORS®
Please call 888/785-4800 for more information
WCR Luncheon
Homeowner’s Insurance Forum
Hear the latest from the experts and get your
questions answered. Presented by Claudia Demaranville, Allstate Insurance,
Aptos; Mike Burns, Farmers Insurance Group, Felton; Priscilla Marks, Moore
& Miller Insurance Agency, Soquel.
Wednesday, April 23, 2003,
11:30 a.m. - 1:30 p.m. $23/Members $28/Nonmembers Westcoast Santa Cruz Hotel.
R.S.V.P. to Jennifer Walker by Friday, April 18th, wcrsantacruz@yahoo.com or 831/345-3675