President’s Message

   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

 

Inside

- 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.

 

Message from C.A.R. President Toby Bradley

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

 

NEW REALTOR® MEMBERS

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

 

Affiliate Member Spotlight

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!

 

Economy, War with Iraq Impacting Investors

   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