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Nearly 100 members and guests participated in Monday’s 14th Annual Silicon Valley REALTORS® Charitable Foundation Golf Tournament. The annual charity event held at the Los Altos Golf and Country Club, included the golf tournament, a cocktail reception and awards ceremony. The event is one of two fundraisers this year for the Foundation.
Special guests included California Association of REALTORS® (C.A.R.) President Don Faught and C.A.R. President-elect Kevin Brown, who golfed in the tournament. A highlight of the event was a hole-in-one on Hole #6 by Alain Pinel REALTORS® Vice President and Regional Manager Jeff Barnett.
This year’s golf tournament top winner is Sereno Group’s team, with Justin DeSantis, Ed Graziani, Timothy Proschold, and Chris Ray. The Sereno Group team won first place for the third year in a row.
C.A.R. 2012 President LeFrancis Arnold
Arnold was a licensed real estate broker for 36 years and a member of organized real estate for the last 35 years. He served as president of the Los Angeles County Board of REALTORS® (LACBOR) in 2008, and was the first appointed large Board National Association of REALTORS® representative for the Rancho Southeast Association of REALTORS® in 2006. He was first appointed C.A.R director in 1994 and was named REALTOR® of the Year by his local association in 1979 and 2008. Arnold served on numerous C.A.R. committees at the leadership level, including the Executive Committee, Strategic Planning and Finance, Housing Opportunity, Housing Affordability Fund, Real Estate Finance, Equal Opportunity and Cultural Diversity, and CREPAC. Active in his community, Arnold served as chairman of the Lynwood Economic Development Committee and was currently on the board of the Los Angeles County Boards of Real Estate.
A former defensive lineman for the Denver Broncos, Arnold followed his mother, Evelyn, into the real estate business in 1976. He became a broker the following year and a general contractor in 1979. Together, Arnold and his mother built Excellence Realty and All Communities Escrow Services, Inc. Most recently, Arnold was a candidate for the California State Assembly 62nd District seat.
Arnold is survived by his wife, Sheryl, and two sons, Jason and LeFrancis II, and two grandchildren. Funeral services will be held on Monday, September 9, 10 a.m. at Faithful Central Bible Church, 321 North Eucalyptus Avenue, Inglewood, CA., followed by a celebration of Arnold’s life at The Proud Bird Restaurant, 11022 Aviation Boulevard, Los Angeles, CA.
In lieu of flowers, contributions may be made to the C.A.R. Scholarship Foundation or C.A.R. Housing Affordability Fund. Mail checks payable to either fund to C.A.R., 525 S. Virgil Avenue, Los Angeles, CA 90020, or to use a credit card, email scholarship@car.org and C.A.R. staff will assist you.
On Wednesday, over 40 SILVAR members joined hundreds of REALTORS® from across the state in Sacramento for Legislative Day, the time of year when California REALTORS® personally meet with their legislators and discuss issues affecting the industry, their clients and their business. REALTORS® make up the largest group to visit Sacramento each year and speak to their local state Assembly and Senate representatives.
Highlights of the California Association of REALTORS® morning briefing at the Sacramento Convention Center included welcome remarks by C.A.R. President Don Faught and other C.A.R. officers, and a special address by Governor Jerry Brown, who noted the importance of REALTORS® and what they do.
“You are in an important place. We have to work with you because you are so powerful,” exclaimed Brown. “We’re all working to make California a great place.”
The governor told REALTORS® that California “is on the move. Great opportunities are happening in Silicon Valley, Orange County … in manufacturing, warehousing, technology. Housing is coming back. We have got to continue.”
C.A.R. Chief Lobbyist Alex Creel briefed REALTORS® on hot issues and important points they needed to convey to their political representatives. They included:
Vote Yes to SB 30 (Calderon) and AB 42 (Perea) – Short Sale Debt Forgiveness. These bills would conform California law to federal tax law, making clear that debt forgiven in a short sale is not income. These bills were placed on “suspense files” because they are deemed to cost a certain threshold and are to be eventually considered once the state budget has passed. In the meantime, families are stuck in limbo because those currently in short sale escrows can’t finalize these transactions without the fear of potentially incurring state tax liability. Sellers need to know now that the debt forgiven is not going to be treated as income for state tax purposes. REALTORS® told their representatives that the state law needs to conform to the federal tax law passed on debt forgiveness. It’s the right thing to do and taxpayers “shouldn’t be held in suspense.”
Vote No to AB 905 (Ting) – Private Transfer “Tax.” This measure seeks to create a private transfer tax to fund environmental improvements to a property and forces a financial burden on future owners of property with no oversight, no accountability, and no limit on how long the tax can be imposed, even years after the improvement has been paid for or the useful life of the improvement has been exhausted. REALTORS® explained there is no connection between the fee and the actual cost of the improvement, no oversight on the entities receiving the funds, no “cap” on the collection or the duration of the fee. Also, the Federal Housing Finance Agency (FHFA) has already adopted regulations restricting the imposition of private transfer taxes.
Vote No to AB 1164 (Lowenthal) – Wage Liens on Property. This bill creates a super-lien for wage claim disputes. Under existing law, trades people and others who work to improve a property have the right to record a mechanics lien against the property for payment for that work. An employee who has a wage dispute can do the same with an employer. This measure seeks to expand the mechanics lien concept so an employee may record a lien against any property owned by the employer, even property that has no connection to the dispute. REALTORS® explained to legislators that legal remedies for wage disputes already exist. This measure denies property owners due process since the lien can be filed without notice or opportunity to contest the claim; the lien would increase the cost of loans and reduce the availability of lending options for borrowers; and the lien would allow an employee’s wages dispute to cloud title on all property owned by the owner.
Vote No on AB 1229 (Atkins) – Rent Control. This measure would dramatically weaken the rent control limitations contained in the landmark “Costa-Hawkins” law sponsored by C.A.R. in 1995. Under this existing law, new construction of rental units is not subject to local rent control ordinances. This measure seeks to use inclusionary zoning to allow local governments to create zones in which certain mandates are placed on builders. In this case, the mandate would be to set aside a certain percentage of units at below-market rent levels. REALTORS® told legislators this measure would discourage the creation of new rental housing at a time when it is most needed. The legislature has repeatedly made it clear its opposition to expanding rent control to new construction.
California Governor Jerry Brown will speak to REALTORS® at the California Association of REALTORS® Morning Briefing on Legislative Day. SILVAR members are encouraged to participate in this important event, which will be held on Wednesday, May 1. The deadline to sign up is Monday, April 22.
Legislative Day is the day REALTORS® from all over California travel to Sacramento and meet with their elected officials to discuss critical legislation that can affect REALTORS®, homeowners and private property rights. REALTORS® make up the largest group that travel to the nation’s capital to speak with their legislators.
When members arrive in Sacramento, they will receive a special briefing at the Sacramento Convention Center from California Association of REALTORS® lobbyists, REALTOR® leadership, Governor Brown, and other special guests. A joint luncheon with members of SILVAR, the Santa Clara County Association of REALTORS® (SCCAOR) and San Mateo County Association of REALTORS® (SAMCAR) will follow the briefing.
After lunch, SILVAR REALTORS® will attend meetings with all of the legislators in Silicon Valley, including Senators Jim Beall and Jerry Hill, and Assembly Members Paul Fong and Rich Gordon. At these meetings, REALTORS® will have the opportunity to discuss important real estate issues, such as private property rights, legal reforms and housing opportunity policies.
Personally meeting our legislators and discussing real estate-related issues that may adversely affect our clients – buyers, sellers, homeowners and private property rights – makes a difference! For more information about Legislative Day, contact SILVAR Government Affairs Director Jessica Epstein at (408) 200-0100.
In an effort to provide California home buyers with up-to-date information about available home buyer assistance programs, the California Association of REALTORS® (C.A.R.) has launched California Mortgage Resource Directory (http://mortgage.car.org), an online search tool that identifies current mortgage programs in communities throughout the state.
“Millions of dollars go unused every year because home buyers are unaware of the various buyer assistance programs available to them,” said C.A.R. President Don Faught. “With California Mortgage Resource Directory, REALTORS® and buyers can quickly connect with any number of home buyer resources without having to search within each municipality individually.”
California Mortgage Resource Directory helps bridge the down payment gap for homebuyers and connects them with resources that they may not have otherwise known existed. Buyers can search by city or address for public- and private-funded assistance programs including FHA/VA, HUD, affordable fixed-rate mortgages, rehab loans, and more.
“The California Mortgage Resource Directory is a good resource if you are thinking of buying a home and are assessing your finances. Many buyers are unaware of down payment and other home buyer assistance programs that are out there. This would be a valuable tool for both REALTORS® and their clients,” said Carolyn Miller, president of the Silicon Valley Association of REALTORS®.
“Low mortgage interest rates help make homes affordable for buyers, but many can’t come up with the down payment needed to qualify for a loan. The more money a buyer can put on a down payment, the lower the amount of the loan, so the California Mortgage Resource Directory can prove valuable to home buyers looking for down payment assistance,” added Miller.
The new directory is powered by Down Payment Resource, the nation’s only web-based aggregator of home buyer programs. The tool was developed by Workforce Resource (www.workforce-resource.com) and is made available through Multiple Listing Services, REALTORS® associations, and nonprofits.
The Silicon Valley Association of REALTORS® (SILVAR) hailed a rebuttal by the California Association of REALTORS® (C.A.R.) to an opinion editorial piece advocating the elimination of the mortgage interest deduction (MID).
“We are happy that California Association of REALTORS® President Don Faught was able to put the facts out there about the importance of the mortgage interest deduction to all homeowners, especially low- and middle-class families,” said SILVAR President Carolyn Miller.
Doyle McManus, a columnist with the Los Angeles Times, recently wrote an opinion editorial advocating the elimination of the MID. C.A.R. President Don Faught submitted a letter to the editor refuting the op-ed piece, questioning supporting a tax measure that would put a burden on lower- and middle-class families that can least afford it.
In his letter, Faught explained if the MID is eliminated, it would cost the average California taxpayer $3,940 annually, a substantial amount for those who need it the most. In California, 59 percent of taxpayers who claimed this deduction in 2010 earned less than $100,000 a year. The amount is considered not high income in California because home prices are among the highest in the nation.
“Eliminating the deduction would mean fewer home sales, not to mention a drop in other purchases that typically accompany a home sale such as furniture and other retail purchases. Already struggling local governments would see tax revenues fall, and since housing is widely regarded as a key economic driver, our country could be driven back to recession,” wrote Faught.
The MID allows an individual to deduct mortgage interest paid on mortgage debt of up to $1 million. The ability to deduct the interest paid on a mortgage can translate into significant savings at tax time.
Faught referred to a recent C.A.R. survey that found nearly eight in 10 home buyers said the mortgage interest and property tax deductions were “extremely important” in their decision to purchase a home. A Pew Research Center study last year also found 80 percent of Americans believe buying a home is the best long-term investment they can make.
“After all, renting is not the American Dream; homeownership is. For many, the mortgage interest deduction can mean the difference between attaining that dream or not,” Faught’s letter concluded.
Miller said REALTORS® will continue to defend the MID. “The mortgage interest deduction is not a loophole. It is a fundamental building block of equity for homeowners. For aspiring homeowners who don’t have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the mortgage interest deduction help them begin building their future through homeownership,” said Miller.
REALTORS® want to ensure the nation’s 75 million homeowners continue to receive the mortgage interest deduction as it is today. It’s a very important benefit for all homeowners, especially the middle class homeowners. On Wednesday, the California Association of REALTORS® placed an open letter advertisement in California’s six largest daily newspapers, calling on President Obama and Congress to preserve the mortgage interest deduction in its entirety during their “fiscal cliff” discussions.
The letter was placed in a full-page ad in the Los Angeles Times, San Francisco Chronicle, San Jose Mercury News, Sacramento Bee, U-T San Diego, and the Orange County Register, and states any proposal that eliminates or attempts to alter in any way the mortgage interest deduction undermines a century-old commitment to the American Dream of homeownership.
The letter also asks the public to visit www.KeepTheMID.com to learn how they can contact their Member of Congress and ask them to protect the mortgage interest deduction. View the open letter.
California REALTORS® this week strongly objected to the bulk foreclosure sale program and called for a change of leadership at the Federal Housing Finance Agency (FHFA), the agency which initiated the pilot program and oversees mortgage giants Fannie Mae and Freddie Mac.
The California Association of REALTORS® (C.A.R.) released a statement on Monday objecting to the recent REO bulk sale transaction between Fannie Mae, the FHFA and Colony Capital. Colony Capital, a Santa Monica real estate investment company, has purchased 970 foreclosed homes in California, Arizona and Nevada at auction from Fannie Mae for $176 million.
C.A.R. president LeFrancis Arnold called the recent purchase of California properties “another gift to Wall Street at the expense of taxpayers.”
According to the C.A.R. statement, “The implementation of the ill-conceived program highlights the failure of FHFA to appropriately address this issue despite C.A.R. and others outlining alternatives. The botched execution of the REO bulk sales, and Home Affordable Foreclosure Alternatives (HAFA) and Home Affordable Refinance Program (HARP) under FHFA’s oversight and leadership has demonstrated a lack of understanding of the housing market. Given these and other missteps, C.A.R. believes it is time for a change in leadership at the FHFA.”
The bulk foreclosure sale is a pilot program of the FHFA intended to help clear the large numbers of foreclosed homes on the books of Fannie Mae and Freddie Mac. The National Association of REALTORS® has objected to the program. California and Florida REALTORS® have also deemed the program unnecessary since housing inventory in their markets is now at an all-time low, prices are rising, and demand for homes is up.
C.A.R. data indicates the median home price in the Inland Empire is up 15 percent from $172,000 in February 2012 to $198,270 in September, and unsold inventory is down from 5.3 months to 3.8 months during the same period. The median home price in Los Angeles has risen 37 percent from $272,920 in February 2012 to $373,020 in September, and inventory is down from 5.7 months to 3.7 months.
Although Silicon Valley properties are not included in the bulk sales program, Suzanne Yost, president of the Silicon Valley Association of REALTORS®, said the region is also experiencing a shortage of inventory. She noted the housing market has greatly improved statewide and buyers are having a difficult time getting into the market because there are not enough homes to meet demand.
“By going forward with bulk sales of foreclosed properties, investors will be buying homes and holding them until prices appreciate further. These are homes that are affordable now for first-time buyers but may not be when prices have gone up. It is sad that FHFA is choosing to support investors instead of people that want a home to own and live in,” said Yost.
Along with the 970 properties in California, Arizona and Nevada bought by Colony Capital, the first round of bulk single-family home sales included 699 Florida properties sold to Pacifica Companies LLC and 94 Chicago properties purchased by The Cogsville Group.
The latest California Association of REALTORS® Lender Satisfaction Survey report says lenders have made some progress in their short sale processes from a year ago. Sixty-four percent of California REALTORS® said they still experienced difficulty in closing short sales, down from 77 percent in August 2011 and 70 percent in 2010. The percentage of REALTORS® who reported short sales as “extremely difficult,” dropped from 56 percent in 2011 to 34 percent in 2012.
C.A.R.’s Lender Performance Index (LPI), which measures REALTORS®’ lender satisfaction levels, rose to 23 in 2012, up from 17 in 2011 and 16 in 2010. The increase in the LPI is positive, but the index is still below the median of 50.
According to the C.A.R. report, communication issues continue to be the biggest stumbling block to the process:
* Lenders’ slow response time to a short sale package, cited by 67 percent of REALTORS® in 2012, up slightly from 66 percent last year;
* Poor communication with lender representatives, cited by 55 percent of REALTORS®, unchanged from 2011;
* Repeated requests for documentation, cited by 50 percent of REALTORS®, down from 51 percent a year ago.
* Eight percent of REALTORS® reported the lender foreclosed on the home before the short sale transaction could be completed, down from 15 percent in 2011.
However, overall satisfaction in working with lenders in short sales improved, with 59 percent expressing dissatisfaction, down from 75 percent in 2011.
REALTORS® believe a more standardized process may be the best way to facilitate the sale of homes that qualify. “The Federal Housing Finance Agency’s decision to align Fannie Mae and Freddie Mac short sale guidelines will allow lenders and servicers to quickly and more easily qualify eligible borrowers for a short sale,” says Richard Miller, who is chief banking officer of Ratecomb and serves as affiliate chair of the Silicon Valley Association of REALTORS® (SILVAR). “We are seeing progress as all parties involved strive to maintain better communication and are proactive with solutions.”
SILVAR President Suzanne Yost adds, “Whether a struggling homeowner chooses the path of foreclosure or a short sale, the experience is both financially and emotionally difficult. We hope lenders will continue to make improvements so the process is both easier and quicker for homeowners.”
Silicon Valley Association of REALTORS® says ... 