March 21, 2007

Three Subprime Lenders Ordered to Cease Operations in Bay State
The subprime mortgage industry continued to draw scrutiny from government regulators this past week as both the Massachusetts Division of Banks and Securities and Exchange Commission (SEC) announced new actions to protect consumers from losing their homes or one they are about to purchase. On the federal level, SEC officials have announced they are undertaking a board probe of all subprime mortgage lenders to determine whether illegal practices or regulatory violations have occurred.

Meanwhile, the Massachusetts Division of Banks has ordered New Century Mortgage Corp., the state’s third largest subprime lender, to temporarily halt all lending operations in the Bay State after it found New Century had closed a number of mortgages but failed to fund them. State banking regulators have ordered two smaller subprime lenders – Old Commonwealth Mortgage LLC of New York State and Apex Financial Group Inc. of Florida – to cease operations in Massachusetts as well.

New Century Mortgage is a division of New Century Financial Corp. in Irvine, CA. which has offices in Foxborough and Woburn. Its affiliates – Home123 Corp. and New Century Credit – also were included in the order. The company has failed to fund approximately 29 Massachusetts mortgages that have already closed and as many as 400 still in the works, according to the Massachusetts Division of Banks.

Notably, New Century Financial is also under investigation by the SEC for alleged accounting irregularities, and its stock was suspended by the New York Stock Exchange after news of the company’s financial trouble and rising delinquencies in its subprime portfolio were announced.

As a result of this latest action, it’s not just homeowners with adjustable rate, subprime loans due to re-set that are at risk of losing their home, but consumers who have pending applications with troubled subprime lenders. This is because without a lender, consumers may not be able to close on houses they have already contracted to purchase. The Commonwealth is currently trying to find replacement lenders for customers who were working with New Century and its associates. If you know of a consumer who may need assistance, direct them to the state’s mortgage hotline at 800-495-2265 ext. 1501.

Partnership Program Can Help Uninsured REALTORS®
According to the National Association of REALTORS®, 26 percent (336,000) of REALTORS® do not have health insurance – up from 13 percent in 1996. Beginning in July 2007 however, all Massachusetts residents will be required to have health insurance, marking the beginning of a new Health Care Reform Plan.

The Insurance Partnership Program is a state and federally funded program to help subsidize health insurance coverage for the self-employed, like many REALTORS®, as well as small businesses and their qualified employees. The program is not a health insurance program, but rather a funding mechanism for those who possibly can’t afford high health insurance rates. The Commonwealth recently expanded eligibility for the Insurance Partnership Program, which is free for those who qualify:

• Must be a Massachusetts resident between the ages of 19 and 64 (inclusive)
• Be self-employed
• Have an adjusted gross family income that does not exceed the Employee Income Standards listed below.

Family Income Ceilings*

*Each additional dependent please add $10,440.
Effective April 1, 2007 through March 31, 2008.

Brady Woodward, regional marketing manager for The Insurance Partnership, has offered to visit realty offices throughout the state to educate REALTORS® about the program. For more information or to apply, call Brady at 800-399-8285 ext. 202 or visit www.4ip.org.

Are You Prepared to Lose Your Rights to Use the REALTOR® Trademark?
As a friendly reminder, any member who has not paid their annual membership dues will be terminated as of March 30^th, and will be prohibited from using the REALTOR® trademark in connection with their real estate business, including all advertising and marketing materials. Renewal is easy and can be completed by credit card (Amex, Discover, MasterCard, Visa) with just one phone call to the GBREB Membership Department at 617-423-8700. Annual dues are $597 for Designated REALTORS® and $425 for REALTORS®. A total of $35 in reinstatement and late fees also will be payable at the time of renewal, since payment was due on January 1, 2007.

Notably, with the National Association of REALTORS® now in the midst of a $40 million public awareness campaign that touts the advantages of working with a REALTOR® to buy or sell a home, and a recent study showing that the REALTOR® brand generates an average of $32,000 in incremental income for practitioners while a member of the REALTOR® organization, it’s clear that there are compelling reasons to retain your REALTOR® membership. For those undecided about whether to renew their membership, remember too that agents and brokers who are not REALTORS® lose out on the opportunity to earn several professional designations, including the GRI and ABR designations that are available exclusively to REALTORS®. Additionally, you won’t have access to association-sponsored arbitration or mediation, or GBAR’s Brokerage Counseling service, the toll-free MAR Legal Hotline and Technology Helpline, or numerous news publications, market reports and industry studies produced at the local, state and national levels.

Recognizing the Risks of Mortgage Fraud
Do you know the risks of mortgage fraud? Mortgage fraud has long been a problem for the lending industry, but it is increasingly becoming a potential source of liability for real estate brokers and their businesses. The potential for brokers to be held responsible if agents are involved in a transaction that includes a fraudulently obtained mortgage makes it important that brokerages have a policy to address the issue internally. The National Association’s Risk Management Committee has created a new brochure to help brokers explain the issue and identify for their agents the warning signs in a transaction.

Nominate Your Neighbor
Dorothy was right when she said, “there’s no place like home!” To honor this idea, the Massachusetts Association of REALTORS® (MAR) is once again accepting nominations for its Good Neighbor Award. The award, established in 2004, recognizes those who take the time to improve their communities through volunteer work. To date, nine REALTORS® have received the award. Eligible activities include but are not limited to, volunteer work involving affordable housing issues, educational programs, youth-related activities, or any other civic or charitable activity that improves the lives of local residents or the community at large. Past recipients have volunteered at soup kitchens, organized food and clothing drives and created youth programs.

Any MAR member, affiliate member, or local REALTORS® association staff or committee is eligible for the award, with no limit as to the number of members nominated each year. Recipients will be honored at the annual MAR Professional Awards Banquet and will receive a commemorative trophy along with a $1,500 grant to the charity of their choice.

Nominations for the award must be submitted in writing on the association’s Good Neighbor Award Nomination Form and received by May 1, 2007. Nominees will be judged by a sub-committee of the MAR Communications and Public Relations Committee, which includes past Good Neighbor award recipients. The committee can select up to three REALTORS® for the award.

Visit the MAR website for details on the nomination process, tips on how to make an application stand out and the nomination form. The National Association of REALTORS® uses a similar nomination form for its Good Neighbor Award, so nominees can easily be in the running for both. Good luck!

Bay State REALTORS® Prepare to Lend a Hand
Five members of the Greater Boston Real Estate Board will soon be hammering away in Alabama as they help rebuild the Gulf Coast after it was devastated by Hurricanes Katrina and Rita.

In all, twenty-one Bay State REALTORS® will be making the trip to Mobile on April 9th for five days to repair and construct homes and clean up neighborhoods. The trip is part of the National Association of REALTORS’® Operation Global Village, a year-long effort to rebuild the coast. Partnering with NAR is Habitat for Humanity. Participating members are:

Judith Hagan of Coldwell Banker Residential Brokerage in Milton; Jonathan Polino of Highland Real Estate in Winthrop; Yi Qian of Keller Williams Realty Bay State in Cambridge; Steven Tomkiewicz of Landmark Holdings in Dartmouth; and Nancy Wluka of Wluka Real Estate Corporation in Sharon.

We wish you the best; good luck!

It’s Your Newsletter – Tell Us What You Think!
The GBAR Team is finally at full staff, and we’re excited to get moving. Please take a short survey to let us know what you like about On the Home Front and what we can improve upon for future issues. Responses can be submitted online or via fax at 617-338-2600. Please submit the survey by Monday, April 2. We appreciate your time and look forward to hearing from you!

Proper Business Card Etiquette is Good for Business
Have you ever come back from an event and emptied several crumpled up business cards out of your pocket or purse? Beware – you may need a lesson on business card etiquette. First, some general tips on exchanging business cards:

• Have a plentiful supply in good condition
• Ensure your contact information is correct
• When traveling abroad have one side of your card translated into the appropriate language; have the appropriate side facing up when exchanging
• Cards are typically exchanged at the beginning or end of an event
• Comment on, or clarify points before putting the business card away

Although exchanging business cards is very relaxed in North America, in other parts of the world the exact opposite is true.

GBAR to Present CE Courses in Boston and Waltham
Members in need of continuing education credits to renew their license are encouraged to enroll in one or more of the six CE courses being offered by GBAR in April. On April 5^th, CE classes on Real Estate Brokerage Ethics (9:30 a.m. - 12 p.m.), Residential Rental Agency (12:30 –2:30 p.m.), and Foreclosures, Estate Sales and Auctions (2:45 – 4:45 p.m.) will be held at the Massachusetts Association of REALTORS® offices at 256 Second Avenue in Waltham. The first two classes will feature former GBREB counsel Richard Sullivan, Esq. as instructor, while attorney George Megaloudis, Esq. will facilitate the final class of the day. Notably, the Real Estate Brokerage Ethics course not only provides two hours of CE credit, but also fulfills the requirement for NAR Quadrennial Ethics training, which all REALTORS® must complete between January 1, 2005 and December 31, 2008, as part of the second four-year cycle of ethics training.

Additionally, on April 23^rd, three CE classes will be presented at the GBREB offices at 11 Beacon Street in Boston. On that day, courses on Chapter 93, Consumer Protection & Business Regulation for Brokers & Salespersons (9 - 11 a.m.), Anti-trust (11:15 a.m. - 1:15 p.m.), and Alternative Dispute Resolution & Procuring Cause (2 - 4 p.m.) will be presented, with William Mullen, Esq. instructing the morning classes and MAR General Counsel Stephen J. Ryan, Esq., facilitating the afternoon class.

Registration is $45 per class or $105 for members who attend all three courses scheduled for the same day. To register, log on to www.gbar.org or call 617-423-8700. Don’t delay as seating is limited for these programs!

GBAR to Present ABR Courses This Spring
This April, GBAR will present the popular Accredited Buyer Representative (ABR) designation course and the elective E-Buyer class for those members interested in receiving comprehensive training in buyer representation. If you want to become educated on how to provide the same level of service and fidelity to buyers that sellers have come to enjoy, then you’ll want to attend these classes to earn your ABR designation, which happens to be the only buyer representative designation recognized by the National Association of REALTORS®.

The two-day ABR course examines agency theory and practice, standards of care in the delivery of buyer agent representation, and strategies to target niche markets and build your buyer representation business. In addition, attendees will receive instruction on how to successfully handle offers and negotiations as a buyer agent, and learn about disclosure requirements, vicarious liability and other risk management issues. Meanwhile, the one-day E-Buyer class will teach agents how to effectively service today’s Internet savvy consumers. Specifically, participants will learn strategies to locate and market to the e-buyer, predictive modeling, customer confidentiality, and the tools and techniques for conducting business electronically.

The ABR course will be offered on April 9-10, with the E-Buyer class scheduled for April 11^th. Both courses will be held on the campus of Regis College in Wellesley. Registration fees for GBAR members are $300 for the ABR course and $175 for the one-day E-Buyer course, or enroll for both programs for just $400. For more information or to register call GBAR at 617-423-8700 or go online to the Education & Events section of www.gbar.org.

The Warren Group Discounts Available to GBAR Members
As a result of a new marketing agreement with The Warren Group, members of the Greater Boston Real Estate Board may now obtain substantial discounts off the purchase of real estate records search data, homeowner marketing lists, and subscriptions to the weekly industry trade journal, Banker & Tradesman.

The Warren Group’s Real Estate Records database includes property ownership, sales and financing information for nearly six million properties throughout New England, allowing you to search properties and identify comparables based on address; sales date, price range, property characteristics, and name of the buyer, seller or lender. In addition, RE Records Search subscribers can utilize a custom Automated Value Model application to obtain a property’s current market value, as well as view deed images and access Community Profile reports, which include comprehensive market data and trends, neighborhood and school information; and population demographics. GBREB members are eligible for a complimentary two-week trial subscription to RE Records Search and discounts of up to 26 percent off the standard monthly subscription rate for the service.

Additionally, REALTORS® can purchase homeowner marketing lists and sign up to search for foreclosure auctions, petitions to foreclose, and lis pendens online at a savings of 15 percent off regular rates just by being a member of the Greater Boston Association of REALTORS®. And, GBAR members are entitled to a special annual subscription rate of $178 on Banker & Tradesman, a discount of 28 percent, or $70, off the regular subscription rate. The special rate is available for both new subscriptions and renewing subscribers upon their current subscription renewal date.

For any questions call The Warren Group at 617-428-5100 or send an e-mail to sales@thewarrengroup.com.

GBAR Welcomes Two New Staff Members
Joining the GBAR team this month is Kristin Langone and Christina Meehan (we’re trying not to mix them up!). Kristin will be our Events and Education Manager while Christina is our Communications Coordinator.

Kristin comes from the office of Boston city councilor Jerry P. McDermott where she served as his campaign manager and chief of staff for four years. She also has more than 10 years of experience in the Boston residential and commercial real estate market. Kristin will be serving as staff liaison to the Education and Community Service committees.

Christina joins us from Clarion, Pennsylvania where she served as Assistant Director of Admissions at Clarion University of Pennsylvania for two years. She is currently pursuing her Master’s at Emerson College in Integrated Marketing Communication. Christina will serve as staff liaison to the Membership and Communications committees.

We are happy to have both on board – welcome!

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