NAR NEWS

JUNE IS NATIONAL HOMEOWNERSHIP MONTH

For the second consecutive year, President Bush has designated the month of June as a time to promote homeownership as a cornerstone of democracy and economic strength and to increase the ranks of homeowners - especially among minorities. The White House is challenging public and private entities to work together to boost minority homeownership by 5.5 million homeowners by 2010.

President Bush expanded the five-year-old National Ownership Week to a month-long celebration last year in an effort to give more attention to the need to broaden homeownership opportunities.

"We applaud the president and Secretary of Housing and Urban Development Mel Martinez for their leadership in this initiative. It dovetails with NAR's own efforts to increase minority homeownership opportunities," said Cathy Whatley, president of the National Association of REALTORS®.

NAR launched the Housing Opportunity Program last year. The Housing Opportunity Program focuses on narrowing the homeownership gap through coalition building, research, training and communication using a Web site as its centerpiece (www.REALTOR.org/housingopportunity).

"We have cause to celebrate the highest homeownership rate in our country's history with 68.3 percent, or nearly 72 million families, owning a home of their own today." Whatley said. "But there are still millions of minority families of low or median income, women-headed households, new American families and other communities where homeownership rates are below 50 percent. We have much to do to live up to the goal of the Housing Act of 1949, which called for "a decent home and suitable living environment for every American family," she said.

"REALTORS® believe that growing the number of minority homeowners and advancing the ideals of homeownership for everyone must be national priorities," Whatley said. "This is the time to put our community service where our ideals are. National Homeownership Month is the perfect time to act on these deeply held beliefs," she said.

REALTORS® know that increasing American's homeownership base is not only good for families, but also good for the economy and communities, as well.

"Because homeowners put down roots, they tend to participate in community affairs and the business of local government. That commitment to make the democratic process work leads to better local communities," Whatley said.

NAR research indicates that homeowners are voters and that they volunteer their time for political and charitable causes more frequently than renters do. For homeowners, the value of their home - the largest investment many of them will make in their lifetimes - creates an incentive to stay abreast of local governments.

"In short, owning a home gives people greater reason to care - it makes a huge difference in their lives," Whatley said.

NAR encourages consumers interested in participating in National Homeownership Month activities in their area to contact their local association of REALTORS® for information.

Special Report from the NAR Board of Directors Meeting, May 17, 2003

VOW POLICY APPROVED
The board approved a policy and model rules for display of MLS listings on a virtual office Web site by MLS participants. The new policy includes two opt-out provisions: a blank opt-out and a selective opt-out. Under the opt-out provisions, a brokerage that is an MLS participant is able to precludethe display of its listings on all VOWs or on the VOWs of selected participants. The policy was effective upon approval. MLSs have until Jan.1, 2004, to adopt and implement the policy. VOW operators have 180 days after the date of MLS implementation to bring their sites into compliance with the new rules. The policy will be posted at REALTOR.org/VOW this week. And look for a special section on the new policy in the August issue of REALTOR® Magazine.

2004 NAR LEADERS ELECTED
The board approved the following Nominating Committee recommendations for NAR leadership positions: Walter McDonald, Riverside, Calif., President; Al Mansell, Salt Lake City, President-Elect; Thomas Stevens, Vienna, Va., First Vice President; and Michael Brodie, Plano, Texas, Treasurer.

MORE BOARD ACTIONS:

Risk management:
Approved a consumer guide about the impact changing
insurance market conditions may have on real estate transactions. The guide
will be downloadable from REALTOR®.org.

Professional standards:
Approved four changes to professional standards:

1) Review by the chair, vice chair, and immediate past chair of the NAR
Professional Standards Committee of complaints against member boards
regarding their enforcement of the Code of Ethics

2) Increase in the maximum permissible fine in expedited cases to $5,000

3) Clarification that REALTORS®, whenever possible, put all agreements (not just buyer-seller and landlord-tenant agreements)in writing (subject to Delegate Body approval at its meeting in November)

4) Clarification of the language in Article 16 prohibiting REALTORS® from interfering with exclusive agency relationships of other REALTORS® (also subject to Delegate Body approval at its meeting in November).

Dues:
The board voted to keep dues at $64 and the special assessment for the Public Awareness Campaign at $20.

Insurance availability/affordability:
The board approved several measures to increase awareness of and action on insurance issues, including a program to provide state REALTOR® associations with access to consultants to help them address state legislation or regulations. The board also voted to support amending the federal Risk Retention Act to extend its provisions to property and casualty insurance; support disclosure to consumers of insurance scores, key factors influencing the scores, the date of the score, and sufficient information to understand the impact the score has on insurance underwriting; support proposals to allow associations to offer health insurance coverage to its members via association health plans; support amending the federal Fair Credit Reporting Act to shorten time available to consumer reporting agencies to review and correct errors in reports; seek legislation to increase penalties for entities that repeatedly provide inaccurate information to consumer reporting agencies; and support amending the Fair Credit Reporting Act to require consumer reporting agencies to provide one free consumer report per year on the consumer's request.

Housing issues:
To expand affordable housing opportunities, the board voted to support the development of an FHA sub-prime loan product and to oppose the use of block grants in the federal Section 8 rental assistance program. On the tax front, the board took a position that any proposal to reduce or eliminate dividend taxes should have no adverse impact on low-income and other types of real estate. The board also voted to oppose introduction of any income limitations into the federal mortgage interest deduction.

Taken from INS Marketplace Report