vpar january 2013 realtor update

No REALTOR7 Update November 2009 - page 1No REALTOR ® Update January 2013 - page 1

REALTOR® UpdateJanuary 2013

Published by the Virginia Peninsula Association of REALTORS®

The Code Hits 100For a century, the NATIONAL ASSOCIATION OF REALTORS®’ Code of Eth-ics has served as a vital benchmark for conducting business the right way.

The year 2013 marks the centennial of the Code of Ethics and Standards of Prac-tice of the NATIONAL ASSOCIATION OF REALTORS®. The fi rst Code was written before license laws and most other regulations governing real estate ex-isted and was seen as a declaration of the industry’s principles and beliefs. The Code, a living document that today undergoes annual review and revision, has been called a “golden thread,” uniting those devoted to raising the standards of professionalism and service in real estate.

Strong Underpinnings

When NAR was founded in 1908 as the National Association of Real Estate Ex-changes, the organization’s bylaws included provisions for seven key committees, one of which was a committee on the Code of Ethics. So why did it take nearly fi ve years for members of the committee to put pen to paper and write the fi rst Code? During the intervening years, members spent much time—at local board meetings, at annual conventions, and in articles—exploring how the concept of eth-ics might apply to real estate in a meaningful way. Through this process, two of the Code’s most vital and enduring concepts were developed. In 1910, C. F. Harrison of Omaha, Neb., pointed out that a code of ethics “naturally divides itself into two continued on page 10

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Support your Affiliate Partners Today!A very special thank you to the following Partners for their

continued support in 2012!

Your Member Service with FEET! Check Out Our Tech Department. VPAR offers our members fantastic tech support via our tech guru, Rich Benet. Along with giving general advice, we provide computer repair services at 30 to 50% less than what most tech stores

charge. So, why not try us? Contact Rich Benet at 757-599-5222 or [email protected].

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Advertising PolicyWhile this magazine makes reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or

services unless specifi cally stated. The publisher reserves the right to reject any advertisement at anytime. Advertisements refused may include, but are not limited to, those that are legally questionable, that may support products or services of questionable standards, or that are inconsistent with the high professional standard of the Code of Ethics of the Association. Advertising is open to REALTOR®

members, member fi rms, affi liate members and non-members. Product advertising is limited to residential subdivisions, commercial, or industrial units and real estate related products and services, excluding personal listings.

Equal Opportunity PolicyVPAR is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity. The Association encourages and

supports an affi rmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, elderliness, religion, sex, handicap, familial status, or national origin.

NoticeVPAR does not fi x, control, recommend, suggest, or maintain commission rates or fees for services rendered by cooperating

members or non-members.

EditorDana R. Holben, RCE, e-PRO

REALTOR® Update is published monthly by the Virginia Peninsula Association of REALTORS® as a service to its membership. Corre-spondence and requests for advertising packets should be mailed to REALTOR® Update, Attention: Dana R. Holben, Editor, 1001 North

Campus Parkway, Hampton, VA 23666 or call VPAR at (757) 599-5222 or e-mail at [email protected].

REALTOR® UpdateThe Offi cial Publication of the

Virginia Peninsula Association of REALTORS®

Offi cers

PresidentPamela McKinney Lewis, ABR, SFR

President-ElectKimi Dornan, ABR, GRI, SFR

TreasurerChandra Patterson

Immediate Past PresidentSheila Dann, ABR, GRI, SFR

Directors Carl Burt • Carol Davanay, ABR, GREEN

Theresa Embler • Dewey Hutchins, Jr.Chris Pray • Diana Rondinelli

Regina Scott

Chief Executive Offi cer - Dana R. Holben, RCE, e-PRO

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LUNCH WITH LEGISLATORS Thursday, January 3, 2013 12:00– 1:30 P.M.

Enjoy lunch while you learn about the legislation that will be put forward at the 2013 Session and

VOICE YOUR OPINION ON OUR REAL ESTATE ISSUES!

To Register call the Association office 757-599-5222

VPAR Offices 1001 North Campus Parkway Hampton, VA, 23666

$15—member or FREE to 2012/2013 RPAC $99 or above contributors

Sen. Mamie E Locke (D-2)

Sen. John C. Miller (D-1)

Sen. Thomas K. Norment, Jr. (R-3r) Majority Leader

Del. Keith Hodges (r-98th)

Del. Rick Morris (R-64th)

Del. Brenda Pogge (R-96th)

Del. Gordon Helsel, (R-91st)

Del. Mamye E. BaCote (D-95th)

Del. David Yancey (R-94th)

Del. Mike Watson (R-93rd)

Del. Jeion Ward (D-92nd)

SAVE the DATE!

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Happy New Year members! Well, I hope your fi rst quarter is all planned and ready to go! Over at our Association, committees are having their kick off meetings and great events and educa-tion courses are planned for us. Check out www.vpar.org for what our Association has to offer for the fi rst quarter, sign up for courses and events and plug it in your schedule. With all that is going on over at 1001 N. Campus Parkway you don’t want to miss out, this is a great time for you to STRENGHTEN yourself both personally and professionally by partaking in all the fun! STRENGHTENING ourselves will allow us to be even stronger advocates for our clients and our community. So join us and don’t sit on the sideline!

All the Best & God Bless,

Pamela

President’s Messageby Pamela McKinney-Lewis, 2013 VPAR President

January 3rd - Lunch with Legislators Cost $15

January 21st - VPAR January After- Hours Social 5-7 p.m. at Tucanos Brazilian Grill at City Center

DOOR PRIZES!

Febuary 5th - REALTOR® Day on the HillRichmond

Febuary 19th - General Membership Breakfast Meeting atMarriot City Center with Dr. Lawrence Yun, NAR Chief Economist


Legal Corner Brian Lytle, Lytle Law, P.C.

with that), but the settlement agent will need it, especially the resolution. So, mention it to your client.A partnership is owned by the partners (duh) and the partners own and run it together. Con-sequently, all partners should sign everything, including your listing. The partners could theoretically empower one person to act but I suspect most settlement agents would want all partners to sign the deed regardless. In addition, the settlement agent will want to see a copy of the partnership agreement. Note that there is such a thing as a “limited partnership” (usually designated with “Ltd.”) where there are limited partners and a general partner. In that case the general partner can bind the partnership – but the partnership agreement will have to refl ect that authority.A limited liability company (an LLC) is owned by “members” and the members run the LLC much like partners run a partnership – and as a general proposition all the members should sign everything, including your listing. Virginia law does allow the members to appoint a “manager” who may or may not be vested with the authority to sell real estate. So, again, a settlement agent is going to want to see the operating agreement for proof of a manager and real estate author-ity, and may well want something signed by all members confi rming and authorizing the sale.A sole proprietorship really is not a business “entity.” Rather it is, by defi nition, one person transacting business under their own name or a fi ctitious name (a doing business as name, like “Pete’s Detailing”). If in our example Pete is a sole proprietor and bought a facility to do his car detailing he should take title in his personal name and would sell it in his personal name, but I have seen instances where someone wrongly took title as “Pete’s Detailing” and we found out near closing it was not a corporation, partnership or limited liability company. We work though it of course, but it creates problems.Having a business as a listing client is not hard, you just need to know who signs and how that is documented, and please note the foregoing is not an exhaustive list of what a settlement agent or underwriter might need for closing. If you have any questions please do not hesitate to email me at [email protected].

SELLERS OF A DIFFERENT KIND: BUSINESSESThe man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed. Henry Ford In keeping with our Sellers of a Different Kind theme in prior articles (Estates, Trusts), today we will discuss an agent’s responsibilities when the listed property is owned by a business entity. In Virginia there are three basic business entities: corporations, limited liability companies, and partnerships, and one business form that really is not an entity at all – sole proprietorships.As always a listing agent’s fi rst step should be to determine who owns the property. Typically agents simply ask who owns it, and they usually check the tax records. But for reasons we’ve previously discussed (asking and tax can be wrong or misleading) I always want an agent to check the source deed (the last deed of record): every person or entity shown on that deed as a grantee has to sign your listing, any contract, and the deed unless there is a documented reason why they do not (and you should confi rm that documented reason with an attorney).So, let us suppose you have done that and one of the entities noted above is the owner. Who signs?A corporation is owned by stockholders, who elect a board of directors, who in turn hire of-fi cers. A corporation’s board of directors must approve (by corporate resolution) the sale of a corporation’s real estate and they appoint some-one (usually the president) to carry out the sale and sign the contract, deed, etc. I’ve never seen an agent ask for this documen-tation when the listing is taken (and I am okay


Fannie, Freddie sued over transfer taxes Macon County is the latest Illinois county to fi le a lawsuit against Fannie Mae and Freddie Mac over failing to pay real estate transfer taxes on foreclosure properties.Offi cials in the central Illinois county fi led suit Dec. 4 in federal court in Springfi eld, asking a judge to order the two federal mortgage fi nance companies, as well as the Federal Housing Finance Agency, which oversees them, to pay the transfer taxes; issue a declaration that they are subject to having to pay them; and award damages, interest, penalties, costs and attorney fees.Macon County also wants its suit to be certifi ed as class-action to include all 102 counties in Illinois.A transfer tax is an excise tax that has to be paid when a property is sold or transferred to a new owner. Illinois’ statewide transfer tax rate is 50 cents for every $500 of the property’s value. There also is a county transfer tax that is 25 cents for every $500 of value.Macon County offi cials say Freddie Mac and Fannie Mae have handled numer-ous foreclosure sales in Illinois but have not paid the transfer taxes. The few times the agencies paid the taxes, they did so “under protest,” insisting they are exempt because they are governmental bodies, offi cials say.

Fannie Mae and Freddie Mac are not governmental bodies, Macon County of-fi cials argue, saying they “are, and have been, private, publicly traded corporations since approximately 1968.” A Michigan judge agreed earlier this year in a similar suit there, saying the entities are not exempt from the transfer taxes because they are excise taxes, not direct taxes.It’s unclear from the lawsuit how much back taxes are at stake in Macon County.In June, several northern Illinois coun-ties fi led a similar lawsuit. DeKalb, Will, Winnebago, Whiteside, Kendall and Kane counties all are asking a judge to rule that Fannie Mae and Freddie Mac are subject to the taxes. DeKalb County offi cials estimated they were owed about $40,000 for the past fi ve years.The Federal Housing Finance Agency responded to the suit, saying that while it recognizes the hardship faced by local offi cials because of shrinking tax bases, it must resist local governments imposing “unlawful” tax-raising programs that end up costing taxpayers across the country.Counties in other states also have fi led similar suits, including Minnesota, North Carolina, South Carolina, Ohio and Florida. By Jayette Bolinski | Illinois Watchdog


Welcome New Members!

Members on the Move - Transfers

Amy Hines to Keller Williams Realty NN/PenKristin Italliano to George’s RealtyShanda Kishlicky to Keller Williams Realty NN/PenBarbara Lassley to Prudential Towne RealtyJames Lassley to Prudential Towne RealtyEric Machuca to Keller Williams Realty NN/PenCynthia Melton to Prudential Towne RealtyJoyce Stokes to JLS Real EstateMardi Truitt to Prudential Towne Realty

NEW MEMBERS

Debra Nye – Coldwell Banker TraditionsDoug Holmes – Keller Williams Realty NN/PenKarie Rethamel – Abbitt Realty

NEW FIRMS

JLS Real Estate

Member News

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The Code Turns 100, continuedparts, the broker’s duty to his clients and the broker’s duty to his fellow brokers.” Today, the code has a third section: duties to the public. In June 1912, Frank Craven of Philadelphia, Pa., suggested the Golden Rule as the ideal starting point. It’s now part of the Code’s preamble in language that remains endearingly frozen in time: “Whatsoever ye would that others should do to you, do ye even so to them.”

Baltimore came fi rst

Although NAR’s Code was the fi rst to be applied to real estate professionals nationally, it was not the fi rst code of ethics for real estate. The Greater Baltimore Board of REALTORS®, when it was founded in 1858, incorporated rules of conduct into its bylaws that discouraged members from stealing one another’s listings. Those rules are considered to be the industry’s fi rst formal ethics rules. By 1913, many local associations had ethics codes. In fact, the 1913 Code was mod-eled after rules developed by the Kansas City association. Since adoption of the Code was volun-tary, some boards created their own versions even after 1913. The national association amended its bylaws in 1923, requiring all local associations to adopt the Code.

Yep, the Rules Apply to You

At fi rst, it was assumed that real estate brokers, once made aware of the rules, would simply abide by them. At least in some instances, that proved to be more hope than reality. So by 1915, the national association was encouraging local boards to set up enforcement procedures. NAR’s fi rst ethics enforcement guidelines were issued in 1925. Still, seven decades later, enforcement was apparently still an issue, because in 1998, NAR President R. Layne Morrill appointed a presidential advisory group to address the problem. The group recommended several steps to enhance enforcement, one of which was for all REALTORS® to successfully complete Code of Ethics training on a periodic basis. A four-year cycle of ethics training was instituted the next year, with the fi rst cycle running from 2000 to 2004. The current training cycle ends on Dec. 31, 2012.

27-Year freeze

The Code was meant to evolve; it was thoroughly revised in 1914, 1915, and 1924, and an amendment prohibiting “horseback appraisals”—what we would now call drive-by appraisals—was added in 1928. After 1928, however, the Code was declared “complete” and not touched again for more than 20 years. A 1948 member survey found the Code was outdated and no longer the source of pride, so the newly formed Professional Standards Committee set about bring-ing it up to date. But efforts to enact the proposed revisions were put on hold when the federal government brought an antitrust action against NAR. At issue was Article 9, which required REALTORS® to follow their board’s published commissions and fees. NAR said the provision protected consumers from paying unfair and arbitrary rates, but the Justice Department called the rate setting anticompetitive. The case reached the U.S. Supreme Court, which, in 1950, declared that Article 9 was illegal. It was removed from the Code, but attempts to bring the remaining


articles up-to-date were rejected. In 1955, the Professional Standards Committee tried again. This time the revisions passed.

Inspirational and Aspirational

“Under all is the land” is a familiar phrase. It’s the opening of the Code’s preamble, which sets forth the social responsibilities of the association and its members. The famous introduction, written by A. H. Barnhisel of Tacoma, Wash., was added in 1924. In 1955, the language was modernized, but REALTORS® were unhappy with the changes, and in 1961 members reverted to the earlier language “because of its superior phrasing.” No further attempts were made to alter the preamble until 1994.

Winding Path to Equal Opportunity

Today, the Code is renowned for its progressive attitude toward equal opportunity and fair hous-ing, surpassing the federal government’s own laws prohibiting discrimination against various protected classes. But it took many years for the Code to reach its current level of openness, and for several decades it was widely criticized for being discriminatory. The original Code didn’t address topics of nationality or skin color, but a 1924 addition—the infamous Article 34—stated that members “should never be instrumental in introducing into a neighborhood a character of property or occupancy, members of any race or nationality, or any individuals whose presence will clearly be detrimental to property values in that neighborhood.” As explained in 1965 by Eugene Conser, NAR’s executive vice president from 1955 to 1970, this provision “refl ected the then widely accepted policy of ‘separate but equal,’ ” established under the Supreme Court’s Plessy v. Ferguson decision of 1896. Conser cited another Supreme Court ruling, 1947’s land-mark Shelley v. Kraemer, as the beginning of the end of Article 34. That decision struck down states’ rights to enforce restrictive covenants—in this case, an agreement among neighbors to bar real estate sales to African Americans and Asians. It led the association in 1950 to remove all references to “race or nationality,” but the full article wasn’t removed until later. The Code underwent a complete revision in 1974, when a new provision—Article 10— brought it in line with federal fair housing and employment law; a 1989 revision factored in 1988 amendments to the federal Fair Housing Act; and in 2010, REALTORS® moved beyond federal rules, adding a requirement for equal service and employment opportunity regardless of sexual orientation.

Hear Them Roar

The 1913 Code followed the convention of using male pronouns and other gender-specifi c language. For example, the fi rst rule under “Duties to Fellow Brokers” read: “An agent should respect the listings of his brother agent, and cooperate with him to sell.” At the time, women comprised only a tiny fraction of REALTORS®. It wasn’t until 1989—when 52 percent of mem-bers were women—that gender-neutral phrasing was introduced.


On January 1st, the world welcomes 2013 with resolutions, hopes and dreams. One of VPAR’s resolutions is to strengthen our Association. Strengthen – to become or make something stronger. VPAR will be strengthening its commitment to our membership as a whole. VPAR has established several new committees; Affi liate, New Homes, Property Managers, YPN and revamped all events to just one committee, you guessed it, Events Committee. Each of these committees fi t a need within the Association as a way of communication, education, and networking for members who have a different business than that of a resale agent.

We are collaborating with HRRA, WAAR and CRBAR to bring a “road show” to give a wider selection of designation courses and other courses that will help you strengthen your real estate career. VPAR is working with VAR to bring Commercial and Appraiser courses to our area and have already talked to each of those Associations to join us.

In February, VPAR is strengthening its General Membership meeting by hosting Dr. Lawrence Yun, NAR Chief Economist and Senior Vice President of Research at the National Association of Realtors. Dr. Yun oversees the production of existing home sales statistics and the popular Home Buyer and Home Seller survey reports. He regularly appears on CNBC, BBC, Bloomberg TV, and is often quoted in the media. He will be discussing the Housing Market on a National Level. His promotion of NAR’s advocacy positions have often been adopted by Congress and the Administration. He helps strengthen real estate issues.

How did you do last month on your renewal plan? They say that if you want to make a change in your life it takes 21 days. I am working my renewal plan. So here is your January challenge, how can you strengthen your career, family life or spiritual life? I am going to strengthen my career by getting to know more of the membership. I will be visiting your offi ces and I want to hear from you what VPAR can do for your career. VPAR is here to help you!

Happy 2013 and VPAR hopes you strengthen your career to where you want it be in your life!

Off my Desk…. CEO ReportDana R. Holben, RCE, e-PRO

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Governmental Affairs Updateby Susan Gaston, Governmental Affairs Consultant

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LOCAL

Hampton

VPAR continues to work with the City and stakeholders on the implementation of the City’s Community Plan. There is much work to be done, but our time on the Community Plan steering committee and on the Zoning Ordinance Advisory Committee will bear fruit that is favorable toward a pro-business and pro-housing climate in the City!

The City, VPAR and the Virginia Peninsula Chamber of Commerce have exercised joint efforts toward securing appropriations in the Governor’s budget toward the

preservation of land adjacent to and around Langley Air Force Base. Known as the “clear zone,” we asked for appropriations in each year of the budget cycle for the purpose allowing the City to buy those properties from willing sellers and provide a layer of “BRAC-proofi ng” that is necessary for the base’s mission preservation. On Monday, December 17th, the Governor released his budget and the clear zone appropri-ation was NOT included. VPAR is working with the City to secure the introduction of budget amendments from Sen. Tommy Norment (R-James City) and Del. Gordon Helsel (R-Poquoson) so that some state appropriations can be secured.

Newport News

VPAR’s Legislative Consultant also met recently with Mayor McKinley Price and City Manager Neil Morgan, who just announced his retirement. (Neil – you will be missed!) The purpose of the meeting was to discuss potential outreach and NAR REALTOR Party grant opportunities along the issues of

Community planning, diversity and redevelop-ment. VPAR will work with the City toward securing a grant over the next three to six months.

In 2013, the City begins the arduous process of reviewing and revising its Comprehensive Plan. VPAR will be deeply involved in that process that is slated to take 18-24 months.

STATE

The 2013 Legislative Agenda of the Virginia Association of REALTORS® is in its fi nal stages and has been released to legislators we have sought as bill patrons. VPAR is taking a leadership role in crafting appropriate language to solve a number of industry matters.

The 2013 General Assembly Session con-venes on Wednesday, January 9, 2013 for a 45-day “short” session during which a host of major issues are expected to be vetted, including healthcare exchanges, transportation and the state budget. With statewide elections being held in 2013, and elections as well for all 100 members of the House of Delegates, it is sure to be an interesting time at the Capitol.

Each week during Session, be sure to check out VPAR’s LEGISLATIVE LINE that gives you the inside scoop and all related details of the General Assembly Session! See where the REALTOR bills are and how they are progressing, and discover some of the fun and interesting happenings of the legislative session. Also, be sure to follow our progress on the VPAR Facebook page!

If you would like to be part of the “inside base ball” of Session, join us on January 3rd at VPAR beginning at 12:00 noon for a Lunch ‘n Learn that will include the Peninsula’s General Assembly delegation. Members of the House and Senate from the area will discuss the “hot topics” and their legislative initiatives, and VPAR has the opportunity to discuss our

Governmental Affairs Updateby Susan Gaston, Governmental Affairs Consultant

bear fruit that is favorable toward a pro-business

ment. VPAR will work with the City toward securing a grant over the next three to six months.

In 2013, the City begins the arduous process of reviewing and revising its Comprehensive Plan.process that is slated to take 18-24 months.

STATE

The 2013 Legislative Agenda of the Virginia Association of REALTORS® is in its fi nal stages and has been released to legislators

No No REALTOR7 Update November 2009 - page 17REALTOR7 Update

Want to be an R-Man?

Would you like to be the first to participate in NAR’s newest way to keep you informed of

breaking news? Sign up for the REALTOR® Mo-bile Action Network (we like to call it R-MAN), and you’ll receive text messages right on your mobile phone with instant and important information. We’ll also use R-MAN to communicate with you when we need your help. It’s not a Call for Action (CFA), but rather a quick and easy way to alert you to an im-pending CFA or to connect you with your Member of Congress for an instant call to relay vital REAL-TOR® information. Visit http://www.realtoraction-center.com/realtor-party/realtor-mobile-action.html for more details and to subscribe to this service!

Rangel, Pelosi Comment about Tax Credit Ex-tension - At a press conference on October 8,

House Speaker Pelosi (D-CA) responded favorably when asked about the likelihood of extending the first-time homebuyer tax credit. When asked about the possibility of further housing legislation, she re-sponded “Yes, there is under consideration whether we extend the first time homeowners credit. And the question is, would that be just first time homeown-ers or would you open it up to other purchasers of homes?” She shed no further light on whether the credit would be expanded, but did note that the cost of an expansion would be the major consideration in the decision process.

When asked for comment, Bloomberg Wire Ser-vices reports that Chairman Rangel (D-NY)

said, “There’s no question that I think it should be extended; for how long, we should discuss.” As yet, no formal action has been announced.

House Extends Credit for Military, Intelligence and Diplomatic Personnel - The House has

voted 416 - 0 to extend through 2010 the benefits

the first-time homebuyer tax credit to military, intelli-gence and diplomatic personnel. To be eligible, pin 2009. The measure (H.R. 3590) now goes to the Senate. Timing and process for its consideration of are unknown.

IVPI Interim Complaint Process Available in No-vember 2009 - The Independent Valuation Pro-

tection Institute (IVPI) was announced as an inte-gral part of the Home Valuation Code of Conduct (HVCC). The purpose of the IVPI is to receive complaints from appraisers and users of appraisal services on the improper influence or attempted im-proper influence of appraisers. The IVPI has not yet been established but an interim web site is currently under development.

Fannie Mae and Freddie Mac announced a complaint form that will appear on the interim

Independent Valuation Protection Institute (IVPI) Complaint Web site. The complaint form is for dem-onstration purposes only and is not available for fil-ing a complaint until the Web site is publicly avail-able in November 2009. The Web site, http://www.ivpicomplaint.org, will collect complaints from any party about non-compliance with the HVCC or at-tempted improper influencing of appraisers or the appraisal process.

FHA May Further Delay Implementation of New Condominium Rules - The new condominium

approval process under Mortgagee Letter 2009-19 was to be effective for all case numbers assigned on or after October 1, 2009. While the new effec-tive date is for case numbers assigned on or after November 2, 2009, NAR understands that the new effective date may be delayed even further. The site condo and manufactured housing condo project changes that have already taken effect are not af-fected by this delay. However, all other rules of the condominium program remain in effect. For exam-ple, lenders are permitted to offer spot loans until the new condominium rules go into effect.

Governmental Affairs Update Continued!

No No REALTOR ® Update January 2013 - page 17

REALTOR® bills with the legislators.

MARK YOUR CALENDARS NOW for the 2013 REALTOR® DAY on the HILL event in Richmond! On February 6, 2013, join REALTORS® from across the state as we descend upon the General Assembly and walk to the halls to stomp for our message and legislation. Many more details to come, but SAVE THE DATE!

FEDERAL

HUD ANNOUNCES MORE CHANGES TO FHA

In a letter to Senator Corker (R-TN) dated December 18, 2012 FHA announced additional changes to “rebuild the reserves of the Mutual Mortgage Insurance Fund”. Last month, an independent actuarial audit of FHA showed the economic value of the Fund is negative $13.48 billion. This means that FHA needs an additional $13.48 billion to carry a full 30-years’ worth of reserves on its mortgage insurance portfolio. The changes outlined in the letter include:

• Raising DTI for borrowers with low credit scores. FHA will require borrowers with credit scores below 620 to have a maximum DTI (debt to income ratio) of 43%• Moratorium on full cash out HECM (reverse mortgages)• Raising the downpayment for loans above $625,500 to 5%• Greater oversight on borrowers who are trying to obtain a new FHA loan 3 years following a foreclosure.FHA will issue guidance by January 31, 2013 to implement these changes. NAR has urged the Administration and Congress to use restraint when making changes to the FHA program - which remains a vital part of our nation’s economic recovery.

SENATE BANKING COMMITTEE HOLDS FHA AUDIT HEARINGS

Last week, the Senate Banking Committee held a hearing entitled, “Oversight of FHA: Examining HUD’s Response to Fiscal Challenges”. The hear ing examined the recent actuarial report which a hearing entitled, “Oversight of FHA: Examin-ing HUD’s Response to Fiscal Challenges”. The hearing examined the recent actuarial report which projected FHA to have a negative capital reserve ratio of 1.44%. By law, FHA is required to keep 2% capital reserves. They currently need an addition $13.47 billion in order to make these reserves. FHA has announced several changes to try and raise revenue. Several Senators expressed frus-tration with FHA’s processes - saying they should have done more, sooner. FHA expressed optimism that they would not need to draw from the Treasury. NAR sent a letter of support for FHA and its critical role in the market today. The letter urged Congress to show restraint in reacting to the audit.

FTC WARNS OF DECEPTIVE BANKING ADS

The Federal Trade Commission (FTC) has issued warning letters to 20 companies, including real estate agents, home builders and lead generators, about possible violations of the Mortgage Acts and Practices Advertising (MAP) Rule. The letters do not trigger actual enforcement action but rather warn the recipients to insure that their advertising is in compliance with the law and the Rule.

The Rule, which took effect in August of 2011, bans material misrepresentations in advertising or any other commercial communications about consumer mortgages. The FTC has also created mock ads in order to illustrate improper claims. Practices that are outlawed include: offering low “fixed” rate mortgages without full mortgage loan terms, implying a government affiliation, or “guaranteeing” approval with low monthly payments without fully disclosing significant strings.

For additional details on these or any other issue, please contact VPAR’s Legislative Con-sultant, Susan Gaston, at 757-871-1445 or by e-mail at [email protected].

Governmental Affairs Update Continued!

8 Hour Required CE, 8 Hour Elective and Required Agency at VPAR in JanuaryJanuary 8, 2013 8 Hour Required Continuing Education $50 members, $60 non-members 8:30 -5January 15, 2013 8 Hour Elective Continuing Education $50 members, $60 non-members 8:30 -5 (can be taken by new agents for PLE credit towards 30 hour education license regs)January 28, 2013 Required Standard Agency Course $30 members, $35 non-members 9-12 noon

REALTOR® Enrichment Series: “Negotiation Skills for the Real Estate Professional” on January 29thJoin us on Tuesday, January 29th at 1:00 – 3:00 P.M. for our brand new course on Negotiation Skills! Learn the best tricks and tips for carving out the best deals. Learn critical skills and how people think the way they do and why – so you can negotiate your way to success! Instructed by Mary Womack and approved for 2 hours CE/PLE and Broker Management credits. Cost is $20 for members and $25 for non-members. Broker Licensing Course Modules begin in February – Get your Brokers License by June!Been in the business at least 2 ½ years . . . now is the time to get your Broker License or Take the Advanced Courses that you have an interest in! Instructor Pat Snyder has been teaching Broker Classes for over 35 years and has designed a Broker Licensing course that gives you great information as well as prepares you for the Broker’s License. We have divided the Broker’s Course into four modules:Property Management Feb. 5, 12, 18 & 25 Real Estate Law March 5, 7, 14 & 18Brokerage April 1, 8, 15 & 22Appraisal May 7, 14; June 3, 10Cram Course – date TBD

Cost of the modules are $200 each or $750 if you register for all (4) four. To view the upcoming Broker Licens-ing schedule, visit www.vpar.org.

VPAR General Membership Breakfast at Marriott City Center– February 19th – NAR Chief Economist Lawrence Yun to Discuss National Hosing Issues VPAR is thrilled to be offering a national speaker at our upcoming Quarterly General Membership Breakfast! Please save the date on your calendar for February 19th, 2013 at 8:30 a.m. We will welcome Lawrence Yun, Chief Economist and Statistician for NAR, who will speak to our members on national housing issues and trends. Cost is $15 per member only. Generously sponsored by Atlantic Bay Mortgage. Mark Your Calendars Now for Upcoming Janaury Courses & EventsJanuary 3, 2013 – Lunch With Your Legislators at VPARJanuary 8, 2013 – 8 Hour Required Continuing Education CourseJanuary 15, 2013 – 8 Hour Elective Continuing Education CourseJanuary 17, 2013 – Deadline for OSC Award ApplicationsJanuary 21, 2013 – VPAR After Hours Social – Tucanos Brazilian Grill at City CenterJanuary 22, 2013 - New Member IndoctrinationJanuary 28, 2013 – Required Standard Agency Course January 29, 2013 – REALTOR® Enrichment Series – Negotiating Skills for the Real Estate Agent

Online Education through VPAR !Are you lacking just an hour to complete your continuing education? Does your schedule prohibit you from attending classroom courses for license renewal? VPAR offers online education thru The CE Shop to suit your needs! You can complete it online at your convenience at a very reasonable rate. For more information on taking an online course through VPAR, log on to www.vpar.org and look for the online educa-tion ICON today!


Education Opportunities


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GET ACTIVE: VAR’S LEGISLATIVE ADVOCACY CONFERENCE

Every February during the Virginia Gen-eral Assembly session, VAR hosts our annual Legislative Advocacy Conference. All members are encouraged to attend this event, which includes the exciting REALTOR® Day on the Hill event, so that you have an opportunity to

• meet with your legislators face-to-face to discuss issues that affect your real estate business

• learn about issues around the state that impact your business and that shape VAR’s legislative agenda

• network with other REALTORS® from across the state to grow your con-tacts and your expertise

• get top-notch CE courses and participate in other events that can help grow your business

The Get Active conference takes place right in the heart of Richmond and boasts several popular events, like

• REALTOR® Day on the Hill • Legislative Reception at the historic Jefferson Hotel • Virginia Housing Policy Forum and regional caucuses • RPAC and Legislative Advocacy lunch • Virginia Real Estate Awards Reception

Click here to learn more about the VAR Get Active conference.


Janaury Courses & Events

January 3, 2013 – Lunch With Your Legislators at VPARJanuary 8, 2013 – 8 Hour Required Continuing Education CourseJanuary 15, 2013 – 8 Hour Elective Continuing Education CourseJanuary 17, 2013 – Deadline for OSC Award ApplicationsJanuary 21, 2013 – VPAR After Hours Social – Tucanos Brazilian GrillJanuary 22, 2013 - New Member IndoctrinationJanuary 28, 2013 – Required Standard Agency Course January 29, 2013 – REALTOR® Enrichment Series – Negotiating Skills for the Real Estate Agent

2013 Education and Events Calendar at a Glance


RPAC Update, Keith Canty, RPAC Chair

Season’s Greetings to all and Happy New Year.

It is my pleasure and privilege to thank you all for the success we had with RPAC fund raising in 2012. We raised over $27,454 to help protect the rights and interests of home owners, buyers and sellers.

2012 saw real threats being aimed the rights and benefi ts of home owners and the real estate industry. We saw ideas such as elimination of the mortgage Interest deduction, establishment of Qualifi ed Residential Mortgage Standards, stricter lending standards and restrictions all with the impact of reducing the opportunity for most Americans to own their own homes, lowering the values of those homes already owned and chilling the recovery of not only the residential real estate market but the economy as a whole.

Your contributions and support of RPAC turned back these poorly thought out actions and policy changes. We made a good start; we honored our oath as REALTORS. However the fi ght is not over.

Some of the same threats are still circulating as our policy makers struggle to fi nd ways reconcile fi scal and social issues necessary to the prosperity and future direction of our country. What direction they choose, whether it has a conservative or liberal direction, is less important than that the choice is to protect and preserve the value of home ownership.

I, along with the RPAC committee, your friends and colleagues, will be working hard this year to help you honor our oath not only in words but in deeds. We will be working hard for your support and participation in efforts that support “Home Ownership Matters.”

How can you help? Monetary support is one way, active participation in your professional REALTOR association is another and diligence in keeping abreast of the impact of proposed policies on the real estate industry is another.

By combining these activities we will do much to protect the “American Dream” of home ownership and can stand tall in our belief that Home Ownership Matters.

I look forward to serving your professional needs as Chairman of the RPAC Committee and sharing a prosperous and wonderful year with you.

Go to www.VPAR.org for the Calendar of Events


vpar january 2013 realtor update

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