The PIN Magazine April/May 2015

April / May 2015 Vol. 02 | Issue 10

the PIN magazine

POWER AGENT SPOTLIGHT: Coldwell Banker’s Steve Frankel MANAGE YOUR TAXES, HANDLE YOUR FINANCES WOMEN IN DIVERSIFIED SERVICES (WinDS) CONFERENCE MINORITIES’ LAGGING HOME VALUE REBOUNDS TIED TO SUBPRIME LENDING MARKET FOCUS: NEW YORK and GEORGIA

Federal Reserve Chair

Janet Yellen SPECIAL EDITION REGARDING

WInDs Conference May 3rd to 5th, 2015

We proudly welcome ZipRealty™ and its innovative technology platform to our family of real estate brands!

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Any of Our the PIN magazine THE POWER IS NOW INC. Vol. 02 | Issue 10 Eric Lawrence Frazier, MBA President and CEO Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 Eric.Frazier@ThePowerIsNow.com www.thepowerisnow.com www.blogtalkradio.com/thepowerisnow

Previous Issues

TPIN Magazine Your resource for

real estate

EDITORIAL TEAM Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Ross Dickens Managing Editor (800) 401-8994 ext. 701 ross.dickens@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com

CONTRIBUTORS Eric Lawrence Frazier, The Power is Now Research Team

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CONTENTS: Mission and Vision of the PIN Magazine .......................................(page 6)

THE CEO CORNER Barbara Desoer, Citibank..............................................................(page 10)

REAL ESTATE Real Estate Market Focus: New York...........................................(page 12) Real Estate Market Focus: Savannah, Georgia.........................(page 16) Housing Shortages in Major Metropolitan Areas........................(page 20)

OUR COVER Cover Story: Janet Louise Yellen.................................................(page 22)

NEWS Normalizing Monetary Policy: Prospects and Perspectives......(page 26)

THE CEO CENTERFOLD Barbara Ann Corcoran .................................................................(page 40)

POWER AGENT SPOTLIGHT Steve Frankel...................................................................................(page 44)

HOMEOWNERSHIP First Time Home Buyer? Here’s What You Need to Know .........(page 48) How to Build Equity on Your New Home .....................................(page 50)

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page 54

page 52

page 64

page 12

FEATURE Women in Diversified Services. 2015 Member of the Year Julie Baldino ...................................................................................(page 52)

FINANCES Tax Deductions for the Homeowner ............................................(page 54)

POLITICS How the Change in Senate Will Affect Housing Markets ..........(page 56)

LEGAL US Immigration Reforms and Its Impact on Housing and Jobs...........................................................................(page 58) Supreme Court Ruling on Mortgage Loan Officers Overtime and Working Hours.........................................................................(page 60)

COMMUNITY Minorities’ Lagging Home Value Rebounds Tied to Subprime Lending......................................................................(page 64)

PERSONAL DEVELOPMENT The Sound Mind, Sound Body Theory...........................................(page 68)

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Mission and Vision of the power is now MAGazine Mission

Vision

The Power Is Now e-Magazine is a national real estate and lifestyle magazine that aims to bring together consumers and the real estate, banking, insurance and investment professionals who serve them. Through smart, fun, and timely editorial content, mixed with compelling photographs and quality advertising, TPIN e-Magazine is a surefire way to stay current on all things real estate.

The Power Is Now Online and e-Magazine will be the premier Real Estate Magazine serving consumers, real estate and business professionals nationwide in all metropolitan markets. The Power Is Now Online and e-Magazine will be viewed as the most effective medium for real estate and business professionals to get exposure to consumers and to share their knowledge and information that will empower them to take action.

Each issue will feature a blend of articles from business and industry professional leaders, on topics ranging from residential and commercial real estate to default services, REO and short sales, finance, banking, insurance, dining, fashion, home design, travel, health/fitness, Book/ Movie reviews and more. The Power Is Now eMagazine will be a free subscription magazine available on www.thepowerisnow.com. The Online version will be a paid subscription with more content, video, radio interviews and commentary from news makers and the writers.

Cover and Feature story profiles: The cover of each issue will feature the CEO Centerfold. This individual will always be an extraordinary business professional who is an exceptional leader in real estate, banking, politics or another other related industries.

The Online and e-Magazine will have many sections under the Power Is Now theme: Real Estate Sales, Real Estate Resources, Real Estate Agent Spotlight, Real Estate Headline News, Technology in Real Estate, Real Estate Politics, Real Estate Social media, Real Estate Research & Reports, Business of Real Estate, Real Estate Green & Energy, Real Estate Economics, Real Estate Coaching and the Publishers Note. This is a real estate magazine.

The writers are industry professionals who are practitioners in their fields of expertise. We will bring experts in the industry to share their knowledge and experience. They will provide advice, and information that will enable consumers to navigate through the challenges and opportunities that exist in real estate. and opportunities in life.

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CEO & Publisher Eric Lawrence Frazier, MBA 3739 6th Street, Riverside, CA 921506 Ph: (800) 401-8994 ext. 703 EDITORIAL Editor in Chief: Eric Lawrence Frazier MBA Managing Editor: Ross Dickens ONLINE Web Designer: Abhinav Raj DESIGN Art Director & Design Manager: Goldy Ponce ADMINISTRATIVE Administrative Assistant: Rachel Bacol

SALES National Sales Manager: Christina Kimble National Relationship Manager: Success Money HEADQUATERS The Power Is Now Inc. 3739 6th Street Riverside, CA 92506 Ph: (800) 401-8994 Fax: (800) 401-8994 Email: info@thepowerisnow.com www.thepowerisnow.com www.thepowerisnow.com/onlinemagazine www.thepowerisnow.com/ezine PUBLICATION AND SERVICES The PIN Magazine The Power Is Now Radio The Power Is Now Publications The Power Is Now Radio Guide The Power Is Now VIP Agent Program The Power IS Now Power Consulting/Coaching The Power Is Now Association Management The Power Is Now Event Management

STATEMENT OF COPYRIGHT: The PIN Magazine™ is owned and published electronically by The Power Is Now Inc. Copyright 2013-2015 The Power Is Now Inc. All rights reserved.

“The PIN Magazine and distinctive logo are trademarks owned by The Power Is Now Inc. “ThePINMagazine.com” is a trademark of The Power Is Now Inc. “Magazine.thepowerisnow.com “ is a trademark of The Power Is Now Inc. “Thepowerisnow.com” is a trademark of The Power Is Now Inc. “The Power Is Now Event Management” is a trademark of The Power Is Now Inc. “The Power Is Now Radio” is a trademark of The Power Is Now Inc. “The Power Is Now Publications” is a trademark of The Power Is Now Inc. “The Power Is Now Radio Guide” is a trademark of The Power Is Now Inc. “The Power Is Now VIP Agent Program” is a trademark of The Power Is Now Inc. “The Power IS Now Power Consulting/Coaching” is a trademark of The Power Is Now Inc. “The Power Is Now Association Management” is a trademark of The Power Is Now Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now Inc. Requests for permission should be directed to: info@thepowerisnow.com

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From the

Editor...

W

elcome Power Is Now readers and subscribers to spring and another great issue of The PIN Magazine. It is my pleasure to continually provide great information to enrich your knowledge of real estate and all the business and finance matters that surround it.

This is not a job it is a passion and I love doing it. I want to thank the newest member of my team, Ross Dickens, the Managing Editor for The PIN Magazine, for her hard work and diligence

april / may 2015

in completing her first issue for The PIN. It is a team effort at The PIN and I appreciate everyone’s contribution.

I am very excited about the April issue and it is my hope that you will share my excitement with others after you have read the magazine. In every issue of The PIN, you will find great articles from our Research Team.

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EDITORIAL

The goal of The Power Is Now Research Team is to provide timely real estate information that you can use in your investment strategy or client consultations or simply to share with other professionals for further development.

Knowledge is Power and because information is changing so rapidly. Our slogan, “The Power Is Now”, underscores our goal to keep you informed as the information develops.

are speaking and being honored at the WinDS 2015 conference. I encourage you to follow the link and celebrate each and every honored woman’s achievements. I am very proud to be associated with WinDs and to be one of the “few good men” that support the organization.

A new section in The PIN Magazine is The Power Agent Spotlight. In this issue I had the wonderful opportunity to interview Steve Frankel, $200 million sales producer with Coldwell Banker. You can listen to the interview on The Power Is Now Radio. Please read the article and be inspired by Steve Frankel’s story and incredible achievements in real estate.

With spring, comes tax preparation, tax time and other financial obligations that we need to wrap up the first quarter of 2015. To support your efforts we have provided great tips, recommendations and links that offer great strategies for a healthier financial picture throughout the rest of the year.

Finally, pleased to announce to you that our sister magazine, Orange County Realtist, has its March was Women’s month and as we have debut issue this month. I invite you give Orange since the inception of the magazine, we are County Realtist magazine the same support celebrating great Women in our industry this and interest you have bestowed upon The PIN month. The April issue has devoted pages to magazine. As President of the OC Realtist, I am highlight the strengths and inspiration great very proud to bring a magazine that is focused women who are impacting the world. I am glad on Orange County and the realtists that serve we have Women Month to celebrate women. the organization. To locate the magazine and all Without them, our lives would simply be amiss. of the interesting articles and special features, Here’s a toast to all women! go to www.ocrealtist.org.

In the spirit of Women’s month, we releasing for the first time. a special edition honoring the accomplishments of Women in Diversified Services (WinDS). Our Feature page of this special edition honors WinDS 2015 Member of the Year recipient, Julie Baldino. Cheers to Julie for her outstanding career and contribution to women in business. We have included a special link about many of the incredible women who

Thank you all for your continued support and see you next issue.

All the best,

Eric Lawrence Frazier M.B.A President & CEO The Power Is Now, Inc.

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THE CEO CORNER

BarbaraDESOER

B

anking industry veteran Barbara Desoer has been the esteemed CEO of CITIBANK, N.A. since April of 2014.

She is also a member of its Board of Directors.

She joined Citibank in October of 2013 as its Chief Operating Officer.

In her tenure as President of Consumer Products, she handled mortgage and home equity, insurance services across products, as well as banking services.

Ms. Desoer obtained her M.B.A. in Finance from the University of California, Berkeley – Haas Prior to holding her chief executive office School of Business. Her B.A. degree was granted at Citibank, Ms. Desoer worked for Bank of at Mount Holyoke College with a concentration America for 35 years. Among the positions she in Mathematics. held at Bank of America were President of B of A Home Loans, Global Technology and Operations She actively serves on the Advisory Council of Executive, President of Consumer Products, the Haas School of Business at the University of Director of Marketing, Banking Group President, California-Berkeley, as well as at the Business California Retail and Small Business Banking Advisory Council of Belk College of Business Executive, and District Manager.

Administration at the University of North Carolina in Charlotte.

These three and half decades of experience has enabled her to propel various banking and financial As Chief Executive Officer of Citibank, she initiatives. Under her leadership, Ms. Desoer was is responsible for corporate governance and able to lead the integration of Countrywide, which franchise management of Citibank’s 101 branches is the largest mortgage originator in the country. and subsidiaries.

She is adept in international relations, having managed Bank of America’s international market. More recently, Citigroup CEO Michael Corbat has Through this executive position, she was able to appointed Barbara Desoer to head the institution’s drive quality by establishing offshore teams for planning process for the Federal Reserve’s stress Bank of America. She was also the proponent test submission next year. This year’s submission for its Six Sigma centralized capability, further was led by Ms. Desoer’s predecessor, Gene elevating Bank of America’s standing.

McQuade. 3

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REAL ESTATE

Real Estate Market Focus:

New York

N

ew York City is a hot sellers’ market with steep home prices and appreciating home values, but the greater New York metro is a buyers’ market, where inventory is high and competition to purchase homes is low. The median home value in the New York metro is $382,900, far below New York City’s $553,900 but still more than double the national median of $178,500. Overall, real estate in the New York Metro is still a leading U.S. market because it’s such a desirable location near the center of business, fashion and diversity.

Housing Crisis Effects

20 percent from their peaks in 2007 to market lows in 2012. Across all New York City demographics, home values fell an average of 19 percent from the height of the market to the bottom in 2012. Since the crash, home values significantly recovered among most markets. On average, homes values in New York City are just 3.6 percent below their peak prices from 2007. In fact, homes in Asian communities are 13.8 percent above their peak prices while homes in Hispanic areas are still 13.6 percent below peaks.

Distressed Properties in the New York Metro

The Great Recession hit all U.S. housing One of the effects of the Great Recession markets, including New York City. As a was widespread negative equity. As all result, U.S. home values plummeted nearly home values depreciated, owners owed

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REAL ESTATE

more on their properties than they were worth.

In the New York metro, 13.6 percent of homes are still underwater. The result of dramatic negative equity for many homeowners across the nation was foreclosure. To get out from under their properties, owners stopped paying their mortgages. Currently in the New York metro, 1.5 homes are foreclosed per 10,000 homes.

This foreclosure rate is significantly lower than the national figure of 4.0 homes per 10,000.

On the other hand, many current owners in the metro are delinquent on the mortgages, 18.9 percent, which is the first step in the foreclosure process. New York metro residents are defaulting at a dramatically higher rate than median U.S. homeowners with a mortgage delinquency of 6.4 percent. This steep delinquency rate could lead to additional foreclosures throughout the coming months.

Selling homes for a loss is seemingly a good option for these underwater and delinquent owners, especially since home values are nearly recovered, but these displaced owners would likely inject themselves into New York’s outrageously expensive and competitive rental market.

Rents in the New York Metro Currently, renters in the New York metro pay a median monthly cost of $2,331. Renting in the metro is slightly more expensive than New York City’s $2,209 but far above the national cost of $1,350. In the past year, rents in the metro rose 2.1 percent, making living in New York an increasingly costly option. Plus, on a national scale, income growth has not kept up with rent increases, limiting affordable rent options for all residents.

REAL ESTATE

Rents grew nearly twice as fast as wages since Housing Predictions in the New 2000, causing renters to pay roughly 30 percent York Metro of their income on rent. Although the breakeven horizon in New York is 2.5 years, meaning residents who plan to live in the area for a minimum of 2.5 years will find owning more cost efficient than renting, most renters will not be able to purchase a home soon if 30 percent of their income goes to rent. Saving a 20 percent down payment in the New York metro requires $76,580 – a steep sum to save with little disposable income to allocate toward savings.

Housing Confidence in the New York Metro As can be seen, home values in the New York Regardless of this imbalance in wages and rent prices, renters across the country are beginning to feel more confident about purchasing homes within the next year due to recent improvements in their local housing markets. Home values increased 5.4 percent across the country in the last year. Among U.S. renters, 5.2 million expect to buy a home in 2015, which is up from 2.2 million last year. This aspiration to buy was particularly strong in the first half of 2014 and stayed flat for the remainder of the year.

A recent study by Zillow surveyed renters in 20 major U.S. metros and found that renters in eight of the metros plan to buy a home within 2015, nine metros experienced declining homeownership aspirations and three metros had flat results. In New York, renter aspirations to buy this year remained flat. In three of the New York subsects studied, renter confidence remained flat (young adults, low income and blacks) while Hispanics’ confidence decreased. So, even though the New York metro is a buyers’ market, current renters are not likely to snatch up homes at a faster rate than last year.

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metro, the city and the country should see continued appreciation throughout the next year.

Nationwide, home values rose 3.3 percent in the last year and should see 5.4 percent growth through 2015 – that’s a slowed yet sustainable growth rate for a healthy housing market. In the New York metro, home values appreciated 3.7 percent in the past year and are anticipated to grow another 0.6 percent within the year – the slowest growth rate of these three markets. New York City specifically experienced 8.2 percent home value increases since January 2014 and should see another 2.3 percent growth by 2016.

If you’re considering buying a home in New York within the next year, the best opportunity lies in the New York area, outside of the city center. There, it’s a buyers’ market with inventory to select your dream home, room for negotiation and lower listing prices. Appreciation of New York City homes will occur faster, but inventory is low, competition is fierce and prices are steep. 3

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REAL ESTATE

Real Estate Market Focus: Savannah,

A

Georgia

s the oldest city in the United States, the city of Savannah is found in the state of Georgia and is the county seat of Chatham County. Established in 1733, the city of Savannah has grown to become an industrial centre and a very important Atlantic seaport. Savannah has been rated as the fifth largest city and the third largest metropolitan area in Georgia. According to 2013 U.S. Census Bureau estimates, the city has an estimated population of 142,772 which represented a 4.8% increase from the 2010 count which was estimated at 136,286.

city include Victorian District, Pin-Point Historic District, Mid-City District, and the Cuyler-Brownsville District.

Savannah’s Neighborhoods

The Economic Conditions

In as far as neighborhoods are concerned, Savannah is known for its diversity. The city boasts of having hundreds of distinct neighborhoods. The popular areas include: Downtown, Midtown, and West Chatham.

Savannah takes pride in hosting one of the nation’s largest districts in the Savannah Historic district. Other districts found in the

The Savannah HMA economic conditions have been oscillating over the years. The years spanning 2000-2007 were very promising, economic-wise, as Savannah experienced a continual economic growth in the HMA. By the end of 2007, the non-farm payrolls had peaked to high of 161,400 jobs in 2007. However, this was followed by a decline. For the next three

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Housing Market Area The Housing Market Area in Savannah is ideally located in south-eastern Georgia which mainly consists of Bryan, Chatham and Effingham Counties. It also includes the city of Savannah which is basically known for its historical district and pride in appealing architecture.

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REAL ESTATE

Savannah, Georgia, USA downtown skyline at the riverfront at dusk.

years, the non-farm payroll declined by an average of 3,800 jobs on an annual basis which represented a 7.3% decline. It was only during the 12 months ending September 2011, that the Savannah’s HMA economic conditions began to stabilize. As of November 2014, the number of non-farm jobs stood at 167,600.

According to the figures released in January 14, 2015 by the United State Bureau of Labor Statistics about the labor force data, as of November 2014, Savannah had a total of 171,100 persons employed and 11,200 were unemployed. According to the same statistics the unemployment rate in Savannah stood at 6.1%.

mortgage rates. A housing review released by www.realtor.com in 2014 revealed that the same upward trend in the residential real estate is expected to be projected into 2015.

Home Sales Market

In 2014, Savannah was rated among the most researched real estate markets in the United States despite having a considerable low number of homes for sale. This, together with the stringent lending standards, played a major role in preventing a good number of first time home buyers from owning their first homes.

The home sales market conditions in the HMA are currently soft. There is a steady build-up of housing momentum in Savannah.

This build-up was basically attributed to the significant improvements in the economic fundamentals, compressed inventory and low

The chief economist for www.realtor.com, Jonathan Smoke, says that the increases in job creation and gross domestic product played a significant role in impacting the consumers’ confidence and the home buyers’ demand.

He adds to this by saying that historical low interest rates have managed to keep the properties moving quickly. This has had huge impact on the median market time which is currently estimated to be about 90 days.

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REAL ESTATE

The housing real estate market improved from attached units went up. greatly in Savannah, something that was • On average, the unit size of newly-sold attributed to the following strong housing homes increased from 2,021 square feet in trends: 2013 to 2,690 square feet in 2014.

• As of September 2014, the foreclosures • The economic fundamentals improved and real estate owned closings registered – once the economy peaked, it led to the a decline but in general, it remained a drag creation of jobs, and the GDP improved on the market. In percentage terms, the which gave consumers confidence to total number of foreclosures and real estate invest. owned closings accounted to 30% of all the • Continued historical low mortgage rates – closings from 44.4% which was registered the actions by the European Central Bank the previous year. and other banks in Asia played a huge role in keeping the Federal Reserves fixed to Summary for Savannah prevent them from raising the Federal Fund Rate which in turn kept the mortgage rates According to Trulia, the average price per low. square foot for Savannah was estimated to be • Decline of distressed sales – throughout at $107, as of January 2015. This represented the year, the number of foreclosures and an 8.1% increase as compared to the same short sales declined. period the previous year. As of January 2015, the median sales price for homes in Savannah The Market Trends was at $181,750 and represented an 8.2% increased from the pervious period. According According to the latest figures released by to the current figures on Trulia, there are Metrostudy, the new home prices in Savannah around 2,180 both resale and new homes in registered an increase. As of September 2014, Savannah. the report revealed that there was a general decline in new home closings in the Savannah How the real estate market relates to African market. It also declared that a total of 135 Americans in Georgia new homes were sold during the year ended September 2014. This represented a decline According to a report issued by the National from 151 for the year that ended in August.

Urban League State of Black America 2014, the minority community is losing economic When it came to the pricing and the mortgage ground in specific areas: employment and trends, the average new home value went up income throughout the United State. The from $169,848 as of 2013 to $246,956 in 2014. metropolitan area of Augusta-Richmond The average mortgage size on new homes County has been ranked as the most equal also registered an increase from $171,315 to area with regards to income equality and $204,304 during the same period. the unemployment equality of the African Americans with a 13.3% unemployment rate Other notable market trends that were compared to 8.5% of the white community. experienced in Savannah included: 3 • The share belonging to single family homes dropped, while that for new home closings april / may 2015

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REAL ESTATE

Housing Shortages in Major Metropolitan Areas The Economics of Real Estate

Foreign Users

H

ousing plays a vital role in a nation’s economy. The issues revolving around housing shortages in major metropolitan areas have been trending topics of discussion for many years. The consistently changing fashionable take on the economy of real estate demonstrates the depth of this issue.

One cannot help but nod in agreement that one of the greatest ironies of this age is the housing crisis in urban areas.

Many non-residential users, though not residing in their property, have been investing their finances with the motive of returning at some point in the future. Also, some tourists invest money in real estate with the intention of staying once or twice annually. During the remaining time of the year, their house remains locked. In this way, the property remains occupied yet vacant, thus creating further deficiency in residences.

Increment in Demands

With the inflation in population, there is a deflation in available property. The ever increasing demands have overpowered the total land area. A region’s growing population mainly attributes to young families with their children, leading to an escalation in demands, thus, congesting the supply of housing even more. This directly leads to the growth in Increasing Investments the level of prices. Though the roof cost has increased, the wages have not been running For quite some time now, the markets of real parallel, which then results in burdens, estate have been viewed as an approach to park unaffordability and stress. excess funds. A great investment option, real estate is for those who wish to contemplate New York City added 180,000 units of housing and then retrieve after a period of time because between 2002 and 2011. Yet the shortage was though they are in favor of benefiting the gains, reported to increase from 60% to 70%. In 2013, yet may not prefer to eventually settle in the the city’s homeless section was calculated to be property. As this factor is highlighted, we see 53,531. Moving further towards 2014, the total why housing shortages are caused. escalated by 10% to become 58,469 people.

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REAL ESTATE

Mismatch in Sizes, Demands and Supply There is a vast gap between what is needed and what is offered. The lack of familysized apartments has also led to the tight housing problem.

For instance, a house that can easily accommodate up to five families is owned solely by one family. This has resulted in the scarcity of shelter for the remaining four families.

In addition to this, even if the apartments are available, they are very expensive; and if they do not demand a high rent, they would be overcrowded, which brings them back to square one.

In Los Angeles, California, though the median household rent increased by 25%, the household income fell by 9%. In all, the county’s average residents would have to earn $56,000 annually to overcome this crisis.

Similarly, Chicago totals to a housing deficiency of 118,334 units. A recent survey revealed that nearly 90% of Washington, D.C.’s inhabitants considered their increasing housing shortage as extremely severe.

There is no magic wand to solve the issues related to housing shortages, but there are steps and ways that could be implemented to manage and control this crisis for a better and brighter future.

Make Smart Choices

neighborhood.

Moreover, rather than selecting the construction plot on the outskirts, the smarter choice would be to build the apartments in areas that are near jobs, convenient and require minimum transportation.

Provide Affordability

Make your investment count.

If you plan to buy a property, then make certain you bring it into use by realizing the value and worth of your money. Try and avoid leaving it vacant.

Even if you may not be currently available and intend to use it in future, then the wisest course of action would be to put your property up for rent at a reasonable price.

The residence may be rented as whole unit or in divided segments.

Broadening the Horizon Since the lack of proper apartments is the primary reason behind the shortage of housing facilities, it is high time to discover unique and creative ways of constructing new buildings.

These residences should be in the range of family size without bringing any harmful or negative impact on the surrounding environment and The PIN MAGAZINE | 21

Another key to combating the issue of housing shortages is to ensure residential developments for the low- and moderate-income sections of our society by providing affordable housing options and apartments.

Maintenance It is also essential to maintain the current buildings in a positive shape. The stock of older apartments contributes to affordable residing. Due to the increasing prices of land area and various construction requirements, the existing buildings should be preserved and not replaced. Thus, rather than razing them to the ground and constructing new ones in their place, it is vital to sustain the older apartments in good condition. 3

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Our Cover

OUR COVER

Janet Louise Yellen J

anet Louise Yellen, American economist and professor was born on August 13, 1946.

Currently holding the position of Chair at the Board of Governors of the Federal Reserve System, Yellen is a prominent figurine in the world of economics and the history of Federal Reserve.

Prior to this post, she served as Vice Chairperson for a period spanning 4 years, ranging from 2010 to 2014.

Previously, at the Federal Reserve Bank of San Francisco, she held the post of President and Chief Executive Officer; at the Council of Economic Advisers as the Chairperson under former President Bill Clinton and at the White House, as Chair. She fulfilled her role as a professor at the University of California, Berkeley - Haas School of Business.

she lectured at The London School of Economics and Political Science. At the Haas School, Yellen has held the post of professor in Microeconomics and as a guide to undergraduates and MBA students. Currently, she is an honorable emeritus professor at Berkeley’s Hass School of Business.

For her outstanding performance, she has received the teaching award at Haas School twice.

From February 1997 to 1999, she was in office as the Chairperson of the Council of Economic Advisers, during the tenure of President Bill Clinton. Prior to the above post, she served as a member of the Board of Governors of the Federal Reserve System.

In addition to her role as a professor, Yellen has served as Vice President at the American Early Life and Education Economic Association and as an associate of the Yale Corporation. Currently, she serves as the Born in Brooklyn, New York, Yellen is the daughter President of the Western Economic Association of Anna and Julius Yellen. After attending school International. at the Fort Hamilton High School, she graduated from Brown University summa cum laude in 1967, Adding to a well-accomplished list, Yellen served with a degree in economics. In 1971, she earned as the President and the Chief Executive Officer her Ph.D. in Economics from Yale University. of the Federal Reserve Bank of San Francisco, from June 2004 to 2010.

Yellen has married to George Akerlof since 1978.

Akerlof is also an American economist and a Many on Wall Street have termed her as a Nobel Prize Winner in Economic Sciences. Robert ‘dove’, since her primary concerns incline more Akerlof, their son is a teacher of economics at the towards unemployment and job issues, rather University of Warwick. than inflation. An expert in economy, along with

President Barack Obama, Yellen also considers Career unemployment as a more serious danger to the growth of the nation’s economy than the rising From 1971 to 1978, Janet Yellen worked as an inflation. She believes the reducing rate of assistant professor at Harvard. She served as an unemployment should hold the center stage. economist from 1977 to 1978 with the Federal Reserve Board of Governors. From 1978 to 1980, The PIN MAGAZINE | 23

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ISSUE COVER

The White House Council of Economic Advisers has described Yellen as a recognized personality who is a scholar in international economics.

In February 2014, Janet L.Yellen became the Chair of the Board of Governors of the Federal Reserve System. Since it is a four-year term, it would end in January 2018. However, she would remain a member of the Board of Governors until January 31, 2024.

Janet Yellen is also an associate of the American Academy of Arts and Sciences as well as the Council on Foreign Relations.

Achievements, Awards and Honors • In 1997, Janet Yellen was awarded the Wilbur Cross Medal from Yale University.

• In 1998, from Brown University, she received an honorary Doctor of Laws degree and in 2000, the Bard College awarded her an honorary Doctor of Humane Letters.

• Furthermore, she was bestowed the prestigious Adam Smith Award by the National Association for Business Economics or NABE in October 2010.

• In 2012, the American Economic Association

april / may 2015

elected her as a Distinguished Fellow.

• In September 2012, she was voted as one of the “50 Most Influential” of the Bloomberg Markets Magazine.

Vice Chairperson

President Obama nominated Yellen in April 2010 as a successor to Donald Koh to serve as Vice Chairperson of the Federal Reserve System. Later that year in July, she was voted in at 17 to 6, a confirmation by the Senate Banking Committee.

By October, she was sworn in for the post by Chairman Ben Bernanke.

Criticism

Janet Yellen has received criticism for following the moves of Bernanke by implementing efforts to boost economy through reducing the interest rates. 3

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NEWS

Normalizing Monetary Policy: Prospects and Perspectives Chair Janet L. Yellen At the “The New Normal Monetary Policy,” a research conference sponsored by the Federal Reserve Bank of San Francisco, San Francisco, California March 27, 2015 Chair Yellen’s March 27, 2015 Speech appears herein and is reproduced with permission from the Federal Reserve Board. Released by the Board of Governors of the Federal Reserve System.

I

would like to thank President Williams for his kind introduction and the Federal Reserve Bank of San Francisco for inviting me to what promises to be a very stimulating and important conference.

As you know, last week the Federal Open Market Committee (FOMC) changed its forward guidance pertaining to the federal funds rate. With continued improvement in economic conditions, an increase in the target range for that rate may well be warranted later this year. Of course, the timing of the first increase in the federal funds rate and its subsequent path will be determined by the Committee in light of

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incoming data on labor market conditions, inflation, and other aspects of the current expansion.

monetary policy over the next several years? And, finally, are there special risks and other considerations that policymakers should take In my remarks today I will into account in the current discuss some factors that will environment? likely guide our decisions as we adjust the stance of Current Economic monetary policy over time. I Conditions and the Outlook will also discuss why most of my colleagues and I believe Before turning to these the return of the federal funds questions, however, let rate to a more normal level me first review where the is likely to be gradual. In economy is now and where doing so, I will address three it’s likely headed--a necessary questions. First, why does backdrop for understanding the Committee judge that an why, after more than six increase in the federal funds years of maintaining a nearrate target is likely to become zero federal funds rate and appropriate later this year? accumulating a large portfolio Second, how are economic of longer-term securities, and financial considerations the Committee is now likely to shape the course of giving serious consideration

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to beginning to reduce later this year some of the extraordinary monetary policy accommodation currently in place.

Although the recovery of the labor market from the deep recession following the financial crisis was frustratingly slow for quite a long time, progress has been more rapid of late.

The unemployment rate has fallen markedly over the past few years and now stands at 5.5 percent, down from 10 percent at its peak. Payroll gains have averaged 275,000 per month over the past year, well above the pace needed to sustain further declines in the unemployment rate.

Of course, we still have some way to go to reach our maximum employment goal.

The unemployment rate has not yet declined to the 5.0 to 5.2 percent range that most FOMC participants now consider to be normal in the longer run. Involuntary parttime employment remains high by historical standards.

Labor force participation is still somewhat lower than I would expect after accounting for demographic trends.1 And wage growth continues to be

quite subdued. But I think we can all agree that the recovery in the labor market has been substantial.

I am cautiously optimistic that, in the context of moderate growth in aggregate output and spending, labor market conditions are likely to improve further in coming months. In particular, and despite the somewhat disappointing tone of the recent retail sales data, I think consumer spending is likely to expand at a good clip this year given such robust fundamentals as strong employment gains, boosts to real incomes from lower energy prices, continued increases in household wealth, and a relatively high level of consumer confidence. Of course, not all sectors of the economy are doing as well: dollar appreciation appears to be restraining net exports, low oil prices are prompting a cutback in drilling activity, and the recovery in residential construction remains subdued.

But overall, I anticipate that real gross domestic product is likely to expand somewhat faster than its potential in coming quarters, thereby promoting further gains in

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employment and declines in the unemployment rate.

In assessing the actual strength of the labor market and the broader economy, we must bear in mind that these very welcome improvements have been achieved in the context of extraordinary monetary accommodation.

While the overall level of real activity now appears to be much closer to its potential than it was a year or two ago, the economy in an “underlying� sense remains quite weak by historical standards, for the simple reason that the increases in hiring and output that have been achieved thus far have required exceptionally low levels of short- and longerterm interest rates, reflecting a highly accommodative stance of monetary policy.

Interest rates have been, and remain, very low, and if underlying conditions had truly returned to normal, the economy should be booming.

As I will discuss shortly, this assessment concerning the underlying strength of real activity has important policy implications.

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While there has been considerable progress on the maximum employment leg of our dual mandate, progress on the price stability leg has been notably absent. Inflation as measured by the price index for personal consumption expenditures has been running below the FOMC’s longer-run goal of 2 percent for a number of years, and on a 12 month basis is currently 1/4 percent.

Some of the weakness in inflation likely reflects continuing slack in labor and product markets. However, much of this weakness stems from the sharp decline in the price of oil and other one-time factors that, in the FOMC’s judgment, are likely to have only a transitory negative effect on inflation, provided that inflation expectations remain well anchored.

In this regard, I take comfort from the continued stability of survey measures of longerrun inflation expectations.

And although marketbased measures of inflation compensation have declined appreciably since last summer and bear close watching, I suspect that these declines are primarily driven by changes in risk premiums and market factors that I expect to prove

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transitory. On balance, I therefore think it is appropriate for monetary policy to remain accommodative for some time, fostering an environment of tightening labor and product markets that, together with stable inflation expectations, will help move inflation up to 2 percent over the medium term.

Why Might an Increase in the Federal Funds Rate Be Warranted Later This Year?

The Committee’s decision about when to begin reducing accommodation will depend importantly on how economic conditions actually evolve over time. Like most of my FOMC colleagues, I believe that the appropriate time has not yet arrived, but I expect that conditions may warrant an increase in the federal funds rate target sometime this year. So let me spell out the reasoning that underpins this view.

I would first note that the current stance of monetary policy is clearly providing considerable economic stimulus. The near-zero setting for the federal funds rate has facilitated a sizable reduction in labor market slack over the

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past two years and appears to be consistent with further substantial gains. A modest increase in the federal funds rate would be highly unlikely to halt this progress, although such an increase might slow its pace somewhat.

Second, we need to keep in mind the well-established fact that the full effects of monetary policy are felt only after long lags. This means that policymakers cannot wait until they have achieved their objectives to begin adjusting policy. I would not consider it prudent to postpone the onset of normalization until we have reached, or are on the verge of reaching, our inflation objective.

Doing so would create too great a risk of significantly overshooting both our objectives of maximum sustainable employment and 2 percent inflation, potentially undermining economic growth and employment if the FOMC is subsequently forced to tighten policy markedly or abruptly. In addition, holding rates too low for too long could encourage inappropriate risk-taking by investors, potentially undermining the stability of financial markets.

That said, we must be

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reasonably confident at the time of the first rate increase that inflation will move up over time to our 2 percent objective, and that such an action will not impede continued solid growth in employment and output.

An important factor working to increase my confidence in the inflation outlook will be continued improvement in the labor market. A substantial body of theory, informed by considerable historical evidence, suggests that inflation will eventually begin to rise as resource utilization continues to 2 tighten. It is largely for this reason that a significant pickup in incoming readings on core inflation will not be a precondition for me to judge that an initial increase in the federal funds rate would be warranted. With respect to wages, I anticipate that real wage gains for American workers are likely to pick up to a rate more in line with trend labor productivity growth as employment settles in at its maximum sustainable level. We could see nominal wage growth eventually running notably higher than the current roughly 2 percent pace. But the outlook for

wages is highly uncertain even if price inflation does move back to 2 percent and labor market conditions continue to improve as projected. For example, we cannot be sure about the future pace of productivity growth; nor can we be sure about other factors, such as global competition, the nature of technological change, and trends in unionization, that may also influence the pace of real wage growth over time. These factors, which are outside of the Federal Reserve’s control, likely explain why real wages have failed to keep pace with productivity growth for at least the past 15 years. For such reasons, we can never be sure what growth rate of nominal wages is consistent with stable consumer price inflation, and this uncertainty limits the usefulness of wage trends as an indicator of the Fed’s progress in achieving its inflation objective.

I have argued that a pickup in neither wage nor price inflation is indispensable for me to achieve reasonable confidence that inflation will move back to 2 percent over time. That said, I would be uncomfortable raising

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the federal funds rate if readings on wage growth, core consumer prices, and other indicators of underlying inflation pressures were to weaken, if marketbased measures of inflation compensation were to fall appreciably further, or if survey-based measures were to begin to decline noticeably.

Under normal circumstances, simple monetary policy rules, such as the one proposed

by John Taylor, could help us decide when to raise the federal funds rate.3 Even with core inflation running below the Committee’s 2 percent objective, Taylor’s rule now calls for the federal funds rate to be well above zero if the unemployment rate is currently judged to be close to its normal longer-run level and the “normal” level of the real federal funds rate is currently close to its historical average. But the prescription offered by the Taylor rule changes significantly if one instead assumes, as I do, that appreciable slack still remains in the labor market, and that the economy’s equilibrium real federal funds rate--that is, the real rate consistent with the economy achieving maximum

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employment and price stability over the medium term--is currently quite low by historical standards.4 Under assumptions that I consider more realistic under present circumstances, the same rules call for the federal funds rate to be close to zero. 5 Moreover, I would assert that simple rules are, well, too simple, and ignore important complexities of the current situation, about which I will have more to say shortly.

deploys in adjusting the federal funds rate over time, in response to economic developments, to achieve its dual mandate. Market participants’ perceptions of that reaction function and the implications for the likely longer-run trajectory of short-term interest rates will influence the borrowing costs faced by households and businesses, including the rates on corporate bonds, auto loans, and home mortgages.

The FOMC will, of course, carefully deliberate about when to begin the process of removing policy accommodation. But the significance of this decision should not be overemphasized, because what matters for financial conditions and the broader economy is the entire expected path of short-term interest rates and not the precise timing of the first rate increase. The spending and investment decisions the FOMC seeks to influence depend primarily on expectations of policy well into the future, as embedded in longer-term interest rates and other asset prices. More important than the timing of the Committee’s initial policy move will be the strategy the Committee

How Are Economic and Financial Considerations Likely to Shape the Course of Monetary Policy over the Next Several Years?

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Let me therefore turn to the second question I posed earlier: How are economic and financial considerations likely to shape the course of monetary policy over the next few years? Let me first be clear that the FOMC does not intend to embark on any predetermined course of tightening following an initial decision to raise the funds rate target range--one that, for example, would involve similarly sized rate increases at every meeting or on some other schedule. Rather, the actual path of policy will evolve as economic conditions The PIN MAGAZINE | 32

evolve, and policy tightening could speed up, slow down, pause, or even reverse course depending on actual and expected developments in real activity and inflation.

Reflecting such data dependence, as well as some historically unusual policy considerations that I will discuss shortly, the average pace of tightening observed during previous recoveries could well provide a highly misleading guide to the actual course of monetary policy over the next few years. Our goal in adjusting the federal funds rate over time will be to achieve and sustain economic conditions close to maximum employment with inflation averaging around 2 percent, responding, as best we can, to the inevitable twists and turns of the economy.

Keeping in mind the allimportant proviso that policy is never predetermined but is always data dependent, what can we say about the appropriate path of policy, assuming the most likely outcomes for real activity, inflation, and related factors?

The answer is that it depends, of course, on one’s outlook for the economy. Today I will focus on the modal outlook presented by FOMC

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participants’ submissions to the March Summary of Economic Projections (SEP), which assumes that no further unanticipated disturbances buffet the economy. As I noted at my press conference after last week’s FOMC meeting, participants generally project that the unemployment rate will continue to fall through late 2017 to levels at or somewhat below estimates of its longer-run sustainable level, accompanied by growth in real gross domestic product that runs somewhat above its estimated longer-run trend with inflation moving up to around 2 percent. This solid economic performance is projected to be consistent with a gradual normalization of monetary policy: The median funds rate projection in the March SEP increases apercentage point per year on average through the end of 2017.

The projected combination of a gradual rise in the nominal federal funds rate coupled with further progress on both legs of the dual mandate is consistent with an implicit assessment by the Committee that the equilibrium real federal funds rate--one measure of the economy’s underlying strength--is rising

only slowly over time. In the wake of the financial crisis, the equilibrium real rate apparently fell well below zero because of numerous persistent headwinds. These headwinds include tighter underwriting standards and restricted access to some forms of credit; the need for households to reduce their debt burdens; contractionary fiscal policy at all levels of government after the initial effects of the fiscal stimulus package had passed; and elevated uncertainty about the economic outlook that made firms hesitant to invest and hire, and households reluctant to buy houses, cars, and other discretionary goods.

Fortunately, the overall force of these headwinds appears to have diminished considerably over the past year or so, allowing employment to accelerate appreciably even as the level of the federal funds rate and the volume of our asset holdings remained nearly unchanged.6 Stated differently, the economy’s underlying strength has been gradually improving, and the equilibrium real federal funds rate has been gradually rising.

Although the recent appreciation of the dollar is The PIN MAGAZINE | 33

likely to weigh on U.S. exports over time, I nonetheless anticipate further diminution of the headwinds just noted over the next couple of years, and as the equilibrium real funds rate continues to rise, it will accordingly be appropriate to raise the actual level of the real federal funds rate in tandem, all else being equal.7 At present, the equilibrium real federal funds rate, which by some estimates is currently close to zero, appears to be well below the longer-run normal levels assessed by the FOMC. The median SEP estimate of this longer-run normal rate--that is, the long-run projection of the nominal funds rate less 2 percent inflation--stood at 1-3/4 percent in the FOMC’s recent projections.8 Provided that inflation shows clear signs over time of moving up toward 2 percent in the context of continuing progress toward maximum employment, I therefore expect that a further tightening in monetary policy after the first increase in the federal funds rate will be warranted. Should incoming data, however, fail to support this forecast, then the actual path of policy will need to be adjusted appropriately.

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Are There Special Risks and Other Considerations That Policymakers Should Take into Account in the Current Environment?

of monetary policy in the future will primarily depend on events as they unfold, I see three additional considerations that are relevant.9

As I noted, my FOMC colleagues and I generally anticipate that a rather gradual rise in the federal funds rate will be appropriate over the next few years, conditional on our baseline forecasts for real activity, inflation, and other aspects of the economy’s performance. So far in my remarks, I have emphasized one key rationale for such a judgment--namely, that the equilibrium real federal funds rate is at present well below its historical average and is anticipated to rise only gradually over time as the various headwinds that have restrained the economic recovery continue to abate. If incoming data support such a forecast, the federal funds rate should be normalized, but at a gradual pace.

The first, which is closely related to my expectation that the headwinds holding back growth are likely to continue to abate gradually, pertains to the risk that the equilibrium real federal funds rate may not, in fact, recover as much or as quickly as I anticipate. Substantial uncertainty surrounds all estimates of the equilibrium real interest rate, and, as I will discuss momentarily, market participants appear to be fairly pessimistic about the odds that it will rise significantly over time. Moreover, some recent studies have raised the prospect that the economies of the United States and other countries will grow more slowly in the future as a result of both demographic factors and a slower pace of productivity gains from technological advances. At an extreme, such developments could even amount to a type of “secular stagnation,” in which monetary policy would need to keep real interest rates persistently quite low relative to historical norms to promote full employment and

Several additional factors reinforce this conclusion, and that brings me to my third question: Are there special risks and other considerations that policymakers should take into account in the current environment? Keeping in mind that the actual course april / may 2015

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price stability, absent a highly expansive fiscal policy.10 Such a risk has important implications for monetary policy in the near term, when the ability of the economy to adjust to significant rate increases will be especially uncertain. The experience of Japan over the past 20 years, and Sweden more recently, demonstrates that a tightening of policy when the equilibrium real rate remains low can result in appreciable economic costs, delaying the attainment of a central bank’s price stability objective.

International experience therefore counsels caution in removing accommodation until the Committee is more confident that aggregate demand will continue to expand in line with its expectations--a view that is also supported by the research literature.11 A second reason for the Committee to proceed cautiously in removing policy accommodation relates to asymmetries in the effectiveness of monetary policy in the vicinity of the zero lower bound. In the event that growth in employment and overall activity proves unexpectedly robust and

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inflation moves significantly above our 2 percent objective, the FOMC can and will raise interest rates as needed to rein in inflation. But if growth was to falter and inflation was to fall yet further, the effective lower bound on nominal interest rates could limit the Committee’s ability to provide the needed degree of accommodation. With an already large balance sheet, for example, the FOMC might be concerned about potential costs and risks associated with further asset purchases.

Research suggests that, the higher the probability of monetary policy becoming constrained by the zero lower bound in the near future because of adverse shocks, and the more severe the attendant consequences for real activity and inflation, the more current policy should lean in accommodative 12 direction. In effect, such a strategy represents insurance against the zero lower bound by aiming for somewhat stronger real activity and a faster rise in inflation under the modal outlook. Given the modal outlook envisioned in FOMC participants’ recent forecasts, with headwinds continuing to diminish, the equilibrium real rate rising, and inflation moving back up

to 2 percent over the next few years, the risk that the funds rate would need to return to near zero should be declining appreciably. Consistent with this assessment, almost all FOMC participants now view the risks to the outlook for real activity as largely balanced, although some also see inflation risks as weighted to the downside.

That said, it is sobering to note that many market participants appear to assess the risks to the outlook quite differently.

For example, respondents to the Survey of Primary Dealers in late January thought there was a 20 percent probability that, after liftoff, the funds rate would fall back to zero sometime at or before late 2017. 13 In addition, both the remarkably low level of longterm government bond yields in advanced economies and the low prevailing level of inflation compensation suggest that financial market participants may hold more pessimistic views than FOMC participants concerning the risks to the global outlook.

Since long-term yields reflect the market’s probabilityweighted average of all possible short-term interest rate paths, along with compensating term and risk premiums, the generally low The PIN MAGAZINE | 35

level of yields in advanced economies suggests that investors place considerable odds on adverse scenarios that would necessitate a lower and flatter trajectory of the federal funds than envisioned in participants’ modal SEP projections.14 A final argument for gradually adjusting policy relates to the desirability of achieving a prompt return of inflation to the FOMC’s 2 percent goal, an objective that would be advanced by allowing the unemployment rate to decline for a time somewhat below estimates of its longer-run sustainable level. To a limited degree, such an outcome is envisioned in many participants’ most recent SEP projections. A tight labor market may also work to reverse some of the adverse supply-side developments resulting from the financial crisis. The deep recession and slow recovery likely have held back investment in physical and human capital, restrained the rate of new business formation, prompted discouraged workers to leave the labor force, and eroded the skills of the long-term unemployed.15 Some of these effects might be reversed in a tight labor market, yielding www.thepowerisnow.com

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long-term benefits associated with a more productive economy. That said, the quantitative importance of these supply-side mechanisms are difficult to establish, and the relevant research on this point is quite limited.

Of course, taking a gradualist approach is not without risks. Proceeding too slowly to tighten policy could have adverse consequences for the attainment of the Committee’s inflation objective over time, especially if it were to undermine the FOMC’s inflation credibility. Inflation could, for example, exhibit nonlinear dynamics in which high levels of unemployment place relatively little downward pressure on inflation, but tight labor markets generate marked upward pressure. If so, a decline in unemployment below its natural rate could cause inflation to quickly rise to an undesirably high level.

Rapid increases in short-term interest rates to arrest such an unwelcome development could, in turn, have adverse effects on financial markets and the broader economy.

Proceeding too cautiously could also have undesirable

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effects on financial stability.

An environment of prolonged low short-term rates could prompt an excessive buildup in leverage or cause underwriting standards to erode as investors take on risks they cannot measure or manage appropriately in a reach for yield.16 At this point the evidence indicates that such vulnerabilities do not pose a significant threat, but the Committee is carefully monitoring developments 17 in this area. Moreover, in my view, macroprudential regulatory and supervisory tools should serve as our first line of defense in addressing these risks.18 Conclusion To conclude, let me emphasize that in determining when to initially increase its target range for the federal funds rate and how to adjust it thereafter, the Committee’s decisions will be data dependent, reflecting evolving judgments concerning the implications of incoming information for the economic outlook. We cannot be certain about the underlying strength of the expansion, the maximum level of employment

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consistent with price stability, or the longer-run level of interest rates consistent with maximum employment.

Policy must adjust as our understanding of these factors changes. However, if conditions do evolve in the manner that most of my FOMC colleagues and I anticipate, I would expect the level of the federal funds rate to be normalized only gradually, reflecting the gradual diminution of headwinds from the financial crisis and the balance of risks I have enumerated of moving either too slowly or too quickly.

Nothing about the course of the Committee’s actions is predetermined except the Committee’s commitment to promote our dual mandate of maximum employment and price stability.

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1. For a discussion of the influence of demographics and other factors on the labor force participation rate in recent years, see Stephanie Aaronson, Tomaz Cajner, Bruce Fallick, Felix Galbis-Reig, Christopher Smith, and William Wascher (2014), “Labor Force Participation: Recent Developments and Future Prospects,” Brookings Papers on Economic Activity (Washington: Brookings Institution, Fall). In addition, for evidence that the labor force participation rate is currently unusually low from a cyclical perspective, see Robert E. Hall (2014), “Quantifying the Lasting Harm to the U.S. Economy from the Financial Crisis,” in Jonathan Parker and Michael Woodford, eds., NBER Macroeconomics Annual 2014, vol. 29 (Chicago: University of Chicago Press); and Council of Economic Advisers (2014), “The Labor Force Participation Rate since 2007: Causes and Policy Implications (PDF)” (Washington: CEA, July).

2. For recent evidence on the relationship between labor market slack and wages, see Anil Kumar and Pia Orrenius (2014), “A Closer Look at the Phillips Curve Using State Level Data (PDF),” Working Papers 1409 (Dallas: Federal Reserve Bank of Dallas); and Daniel Aaronson and Andrew Jordan (2014), “Understanding the Relationship between Real Wage Growth and Labor Market Conditions,” Chicago Fed Letter No. 327 (Chicago: Federal Reserve Bank of Chicago, October). The price Phillips curve is discussed extensively in the literature; for instance, see Robert J. Gordon (2013), “The Phillips Curve Is Alive and Well: Inflation and the NAIRU during the Slow Recovery,” NBER Working Paper Series 19390 (Cambridge, Mass.: National Bureau of Economic Research, August). In addition, the apparent lack of disinflationary pressure seen during the recent recession is not necessarily a puzzle for the New Keynesian Phillips curve, as shown in Marco Del Negro, Marc P. Giannoni, and Frank Schorfheide (2015), “Inflation in the Great Recession and New Keynesian Models,” American Economic Journal: Macroeconomics, vol. 7 (January), pp. 168-96.

3. For the original exposition of the Taylor rule, see John B. Taylor (1993), “Discretion Versus Policy Rules in Practice,” Carnegie-Rochester Conference Series on Public Policy, vol. 39, pp. 195-214. For a discussion of policy rules in general, see John B. Taylor and John C. Williams (2010), “Simple and Robust Rules for Monetary Policy,” in Benjamin M. Friedman and Michael Woodford, eds., Handbook of Monetary Economics, vol. 3B (San Diego: Elsevier), pp. 829-59.

4. The equilibrium real rate is typically viewed as the level

of the short-term interest rate, less inflation, estimated to be consistent with maximum employment and stable inflation in the long run, assuming no future disturbances to the economy. Accordingly, the equilibrium real rate is usually thought of as independent of the cyclical disturbances that routinely buffet the economy, on the assumption that the influences of such disturbances on real activity and inflation fade away after a few years. In the aftermath of the financial crisis, however, the U.S. economy has been subject to various adjustment processes that are unusually drawn out by historical standards, such as the ongoing repair of household balance sheets and other persistent headwinds. These atypical processes imply that, in determining the appropriate stance of monetary policy over time, policymakers in the current environment need to take account of slow-moving influences on both aggregate demand and supply that were not important factors during previous tightening episodes. For this reason, it is useful to think of the equilibrium real rate in present circumstances as not only time-varying but also having a predictable element that evolves over the medium term.

5. For example, the Taylor rule is Rt = RR* + πt + 0.5(πt -2) + 0.5Yt, where R denotes the federal funds rate, RR* is the estimated value of the equilibrium real rate, π is the current inflation rate (usually measured using a core consumer price index), and Y is the output gap. The latter can be approximated using Okun’s law, Yt = -2 (Ut - U*) , where U is the unemployment rate and U* is the natural rate of unemployment. If RR* is assumed to equal 2 percent (roughly the average historical value of the real federal funds rate) and U* is assumed to equal 5-1/2 percent, then the Taylor rule would call for the nominal funds rate to be set a bit below 3 percent currently, given that core PCE inflation is now running close to 1-1/4 percent and the unemployment rate is 5.5 percent. But if RR* is instead assumed to equal 0 percent currently (as some statistical models suggest) and U* is assumed to equal 5 percent (an estimate in line with many FOMC participants’ SEP projections), then the rule’s current prescription is less than 1/2 percent.

6. Although the FOMC suspended its asset purchase program last October, the stimulus provided by this type of unconventional monetary policy action depends primarily on the stock of longer-term assets held by the Federal Reserve, not the flow of securities bought. Because the FOMC has held the size of the Federal Reserve’s balance sheet constant since October while continuing to keep the federal funds rate near zero, the overall stance of monetary policy is thus little changed over this period.

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However, the downward pressure on long-term interest rates from the Federal Reserve’s asset holdings should decline over time, particularly after the FOMC suspends its current reinvestment policy, because the average duration of the assets held in the portfolio will be steadily falling and because the relative size of the portfolio to the stock of publicly held debt will be shrinking.

7. If resource utilization was at a normal level and inflation was equal to 2 percent, policymakers would presumably opt to set the real federal funds rate equal to the equilibrium real rate in order to maintain those conditions. Accordingly, if the equilibrium rate is rising over time, the “neutral” setting of monetary policy should be rising in tandem.

8. For example, the estimate of the equilibrium real rate from the Laubach-Williams model for 2014:Q4 is negative 0.16. For information on the model, see Thomas Laubach and John C. Williams (2003), “Measuring the Natural Rate of Interest,” Review of Economics and Statistics, vol. 85 (November), pp.1063-70; updated estimates of the baseline model are available on the Federal Reserve Bank of San Francisco website at www.frbsf.org/economicresearch/economists/john-williams/Laubach_Williams_ updated_estimates.xlsx. Another recent study, however, concludes that the equilibrium real rate is probably in the range of 1 to 2 percent while also emphasizing that estimates in this area are quite imprecise; see James D. Hamilton, Ethan S. Harris, Jan Hatzius, and Kenneth D. West (2015), “The Equilibrium Real Funds Rate: Past, Present, and Future (PDF),” working paper (San Diego: University of California at San Diego, March).

Note that the concept of the equilibrium real rate used in the latter study is explicitly long-run in nature and so excludes the effects of forces that have persistently restrained the pace of the current expansion but are expected to eventually fade away, such as household balance sheet repair; for this reason, the paper’s estimate is higher than the medium-run concept of the equilibrium real rate discussed in the speech.

9. In principle, the three considerations--uncertainty about the value of the equilibrium real federal funds rate, the asymmetric risks associated with the zero lower bound on nominal interest rates, and the potential benefits of allowing the unemployment rate to temporarily undershoot its sustainable longer-run rate--should influence both the timing of the onset of policy normalization and the

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subsequent pace at which that normalization proceeds.

And in fact, I view all three considerations as helping to explain why the FOMC has held the federal funds rate near zero for so long. I also view such considerations as consistent with a likely increase in the target federal funds rate later this year, because such an increase would be part of a broader strategy for only gradually reducing accommodation over time (subject, of course, to adjustments in response to incoming information on real activity, inflation, and other factors).

10. The concept of “secular stagnation” was first coined back in the late 1930s; see Alvin H. Hansen (1938), “The Consequences of Reducing Expenditures,” Proceedings of the Academy of Political Science, vol. 17 (January), pp. 60-72; and Alvin H. Hansen (1939), “Economic Progress and Declining Population Growth,” American Economic Review, vol. 29 (March), pp. 1-15. This possibility, and its applicability to the United States and other developed economies in coming years, has received considerable attention of late; see Robert J. Gordon (2014), “The Demise of U.S. Economic Growth: Restatement, Rebuttal, and Reflections,” NBER Working Paper Series 19895 (Cambridge, Mass.: National Bureau of Economic Research, February); Robert E. Hall (2014), “Quantifying the Lasting Harm to the U.S. Economy from the Financial Crisis,” in Jonathan Parker and Michael Woodford, eds., NBER Macroeconomics Annual, vol. 29 (Chicago: University of Chicago Press); and Lawrence H. Summers (2014), “U.S. Economic Prospects: Secular Stagnation, Hysteresis, and the Zero Lower Bound,” Business Economics, vol. 49 (April), pp. 65 73. For a more skeptical assessment of the secular stagnation hypothesis, see Hamilton and others, “The Equilibrium Real Funds Rate,” in note 8.

11. A number of studies have shown, using model simulations, that policymakers can improve macroeconomic performance by adjusting the stance of monetary policy more cautiously in response to changes in economic conditions when the economy’s equilibrium real interest rate is uncertain. For a survey of the literature on this issue, see John B. Taylor and John C. Williams (2010), “Simple and Robust Rules for Monetary Policy,” in Benjamin M. Friedman and Michael Woodford, eds., Handbook of Monetary Economics, vol. 3B (San Diego: Elsevier), pp. 829-59.

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12. For example, see Klaus Adam and Roberto M. Billi (2007), “Discretionary Monetary Policy and the Zero Lower Bound on Nominal Interest Rates,” Journal of Monetary Economics, vol. 54 (3), 728-52; Taisuke Nakata (2013), “Optimal Fiscal and Monetary Policy with Occasionally Binding Zero Bound Constraints (PDF),” Finance and Economics Discussion Series 2013-40 (Washington: Board of Governors of the Federal Reserve System, April); Taisuke Nakata (2013), “Uncertainty at the Zero Lower Bound (PDF),” Finance and Economics Discussion Series 2013-09 (Washington: Board of Governors of the Federal Reserve System, December 2012); and Charles Evans, Jonas Fisher, Francois Gourio, and Spencer Krane (forthcoming), “Risk Management for Monetary Policy Near the Zero Lower Bound,” Brookings Papers on Economic Activity (Washington: Brookings Institution).

Matter,” a research symposium sponsored by the Federal Reserve Bank of St. Louis, St. Louis, February 7.

17. See Janet L. Yellen (2014), “Semiannual Monetary Policy Report to the Congress,” testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, July 15.

18. See Janet L. Yellen, (2014) “Monetary Policy and Financial Stability,” speech delivered at the 2014 Michel Camdessus Central Banking Lecture, International Monetary Fund, Washington, July 2.

13. See Federal Reserve Bank of New York, Markets Group (2015), Responses to Survey of Primary Dealers (PDF) (New York: FRBNY, January).

14. Of course, low long-term yields in the United States may not reflect investor pessimism about U.S. economic prospects but instead an expectation that weak economic performance abroad may result in persistent upward pressure on the dollar, thereby putting downward pressure on U.S. net exports, employment, inflation, and thus shortterm interest rates. On a closely related issue concerning evidence that investors’ perceptions of the likelihood of high inflation versus low inflation have shifted noticeably in recent months, see Justin Wolfers (2015), “A Prediction Market for Inflation, or Deflation,” The Upshot, New York Times, March 6. This piece relies heavily on work by Yuriy Kitsul and Jonathan H. Wright (2013), “The Economics of Options-Implied Inflation Probability Density Functions,” Journal of Financial Economics, vol. 110 (December), 696-711.

15. For a discussion of these effects, see Dave Reifschneider, William Wascher, and David Wilcox (2015), “Aggregate Supply in the United States: Recent Developments and Implications for the Conduct of Monetary Policy,” IMF Economic Review advance online publication, March 17, doi: 10.1057/imfer.2015.1.

16. Jeremy C. Stein (2013), “Overheating in Credit Markets: Origins, Measurement, and Policy Responses,” speech delivered at “Restoring Household Financial Stability after the Great Recession: Why Household Balance Sheets

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CEO Centerfold

CEO CENTERFOLD

Barbara Ann CORCORAN Barbara Ann Corcoran was born on March 20, 1949 in Edgewater, New York.

Starting her $5 billion real estate business, The Corcoran Group with a loan of $1,000, Corcoran has successfully established herself as an outstanding entrepreneur and a multi-talented American businesswoman. She is an author, investor, orator, syndicated columnist, consultant and a well-known television personality.

Early Life and Education Barbara Corcoran completed her college from St. Thomas Aquinas College and received her degree in Bachelors of Education (B.Ed.) in 1971. Thereafter, she started working as a teacher. After continuing the job for nearly a year, along with 20 other odd jobs, Corcoran decided to expand her horizon by attempting to target a bigger dream with firmer steps. First, she rented the apartments in New York City. Using it as a base, she believed in being her own boss.

In 1973, Corcoran borrowed $1,000 from her then-wealthy boyfriend. From this point, she co-founded her real estate business and termed it as The Corcoran Group. The total amount of $1,000 borrowed in 1973 would total up to approximately $5,500 in the current market, due to the rising inflation. Working along her selfwoven path to success, somewhere during the mid-1970s, Corcoran also started to publish The Corcoran Report, which included the latest news, trends and facts related to real estate businesses in New York City.

She currently lives in Manhattan, New York, along with her husband, Bill, and their two children.

Career

to being “Shark” investor on ABC’s TV show, Shark Tank, Corcoran has successfully invested in over a dozen businesses.

Columnist and Speaker The More Magazine, The Red Book and The Daily Review have seen Barbara Corcoran take over her role as a columnist with ease and experience.

Apart from this, she has written numerous books.

The television world has interviewed her live in shows like Larry King Live. Moreover, she has been invited to several estate events as a guest business speaker.

With her experitse, Corcoran has contributed vastly in the sectors related to real estate. Along with imparting knowledge and providing advice as a weekly columnist in the New York Daily News, she also hosts the show, “The Millionaire Broker with Barbara Corcoran” on NBC.

Barbara Corcoran, Author Barbara Corcoran has been repeatedly featured as a columnist in The Corcoran Report, The New York Daily News, The More Magazine, The Red Book and The Daily Review. She has likewise written a number of the nation’s bestselling books on her life and providing tips for a successful business:

In 2010, the NRT, Inc. bought her real estate business for $66 million altogether. In addition

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CEO CENTERFOLD

1. In 2013, Penguin published her books, “If You Don’t Have Big Breasts, Put Ribbons on Your Pigtails” and “Other Lessons I Learned from My Mother” or “Use What You’ve Got”. She co-authored these books with Bruce Littlefield.

2. In 2011, SPortfolio Trade published her book on ABC’s TV show, “Shark Tales: How I Turned $1,000 Dollar into a Billion Dollar Business”. She has co-authored this book with Bruce Littlefield.

3. In 2008, Springboard Press published her book, “Nextville: Amazing Places to Live Your Life.”

Barbara Corcoran’s Journey to Success The Corcoran Group was built in 25 years.

Though it may seem simple, constructing an entire real estate empire worth $5 billion is no easy feat. Barbara Corcoran had to face numerous failures, tasks and obstacles to bring her business to a stature to where it is today.

According to the entrepreneur, she was never an A-grade student, yet she holds this fact as an added benefit on her side. She says that it is almost essential to have a low IQ since a high optimism factor is more beneficial to an entrepreneur than intelligence.

According to Corcoran, an entrepreneur should leap first and think later. Waiting for the “right” time leaves you standing where you are. Barbara gives credit to her school time troubles and mother’s kitchen table knowledge for providing her the inspiration and confidence to bring her business to this level. Her cheer and liveliness is infectious with just the right blend of motivational enthusiasm. The main reason that sets her apart is her truthful and frank attitude towards success.

3

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Power Agent Spotlight

POWER AGENT SPOTLIGHT

Steve Frankel S

teve Frankel’s contribution to the real estate world is one of the greatest achievements in marketing history. Realtor with Coldwell Banker in Beverly Hills, Frankel holds the appraisable positions of Number 1 agent in Coldwell Banker Beverly Hills, North Office and Number 7 agent in Southern California. He is the ‘soul’ of real estate marketing.

A resident of the Beverly Hills area, Frankel has proved his mettle as a consummate professional with outstanding marketing talents that have benefitted both sellers and buyers. With decades of experience by his side, the entrepreneur has been termed as one of the “brightest” stars and most successful realtors in the nation.

With a proven track of over $1 billion, Frankel continues in his relentless quest to break records with the highest prices for properties in Beverly Hills, Santa Monica, Beverly Park, Bel Air, the Hollywood Hills, Lower Canyon and the Cheviot Hills. Due to his expertise, accomplishments, dedication and unique perspective, Frankel is consistently sought out by the Wall Street Journal, the Los Angeles Times and other media outlets.

In addition to this, for nearly two decades now, from 1998 to 2014, the realtor has been voted in the elite Top 25 of all Southern California Banker agents. Within the company, he is ranked in the Top 1% of all agents throughout the company.

A maximum number of his past clients return to him for their further real estate transactions.

Frankel values their trust and appreciates these long term associations with his clients the most.

During the interview, he stated that in his college days, he was once told by a dear friend, “Steve, you shine! But to be successful in business, you need to be like a laser and be focused.” Apparently this phrase became his mantra for success in life.

According to him, being focused in whatever you do will allow you to be the best you can be as that is the way he became the Number One agent in office in 2014.

Despite his escalating fame and celebrity status, Steve Frankel remains down to earth. The most impressive fact about him is that if you contact him, he would himself answer the call. Along with all the marketing and happenings in real estate business, he manages to always answer his phone irrespective to the caller name or identity. And this is what sets Steve Frankel apart - simplicity blended with class.

Steve Frankel believes that the key to be successful is not merely hard work. It means treating your agent community with great respect, always being punctual, provide the other members with benefits and favors and let them give you advantages and favors. Your success within the community largely depends on your outlook and how you create a standard level of camaraderie and mutual trust with your colleagues and in the community.

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POWER AGENT SPOTLIGHT

Steve loves to work with Coldwell Banker.

Currently a Director at the exclusive Coldwell Banker Previews Estate Divisions in Beverly Hills, the realtor states that he values his association throughout the world with his fellow Coldwell Banker agents.

According to him, their real estate companies in New York, under the Coldwell Banker umbrella, provide him with an important link to all the ongoing events in the real estate market. This is why Coldwell Banker International in Beverly Hills is very vital to him. The company reflects his aspirations and personality. Coldwell Banker International, as a whole, has emerged as a strong and stable family. From information, assistance, listings to their pockets, this great group believes in sharing.

Steve Frankel is a proven realtor due to his top performance in the market area. However, the Number One agent said that this was actually his second choice in career. He earned his degree from the New York University. Following this, Steve worked on Wall Street. Though he enjoyed his job, it soon came to his realization that it was not the perfect fit for him. At this point in time, he decided to move out of New York City. Nearly 25 years ago, the NYU graduate relocated to Los Angeles and so his ascent into the world of real estate began.

Steve Frankel considers himself lucky to have achieved stable success in a short span of time.

A career as a real estate agent demands a wide background. Frankel graduated from the New York University, lived in New York City during his college days, worked on Wall Street and then moved to Los Angeles. All these aspects have provided him an in-depth knowledge and considerable experience competent enough to work along highly intelligent and hugely successful people in the luxury markets of Beverly Hills, Bel Air and Santa Monica. This is why he

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considers his second choice as a blessing and an important asset in his outstanding success.

To Steve Frankel, the phrase “the power is now� is significant of everything he is about. It relates to seizing the right moment and making certain whatever task you may do, it is profound.

You hold intelligence, honor and integrity in you. Every morning you sit and start your job with the power is now within you. To become a successful, Frankel advises that it is essential to recognize your opportunities and know what you are projecting. No matter how influential or powerful a company you may work with, we all stand alone as an individual and represent our own business. As a realtor you must understand what you work for, what you project, who you are attracting, how you could be of assistance to a client and most important, what you are best. It matters the least which is a career option. The real deal is to master your skills and services to the best of your abilities. Others would benefit, you would be applauded and your talents would come to the forefront.

Steve Frankel, a realtor, a futurist, a successful businessman and a great person has proven himself as an exemplary figure not only to realtors but to anyone who is willing to succeed. With his expertise, great personality and powerful aura, the enthusiasm and intelligence he portrays is infectious. 3

This article also appears on our sister magazine, Orange County Realtist, at www.ocrealtist.org

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POWER AGENT SPOTLIGHT

HOMEOWNERSHIP

First Time Home Buyer

?

Here’s What You

Need to K now 2.

There is nothing more fulfilling than holding those set of keys that jingles the symbol of your newly purchased house. From that first time you scour the listings, to viewing open houses, to making your first offer, and to finally signing that significant stack of papers called mortgage –there are a lot more details within these steps.

Just as you plan a trip, you need to take careful and deliberate actions in purchasing your first home. Here are the top five necessary pieces of knowledge for the first time homebuyer.

1. Do Your Research. It sounds tedious, but it

is well worth it. Once you have narrowed the neighborhood you want to purchase your first home in, do an in-depth research about it. You need to know the important statistics about the area you plan to move into. These factors depend on your priorities. Typical research covers home styles, median home rates, crime index for the town or city, school districts, and even available recreational activities in the neighborhood.

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Know Yourself. A first time homebuyer is a giddy, excited individual who sees his new life in his new home full of promise – as it should.

Turn this energy into learning about what it is you are exactly searching for. Do you want your own single family home or you do not mind conjoined walls? Would you prefer the bustling city life or a quiet suburban setting? Creating a simple list that itemizes what you need, what you want and what you definitely do not want can ease some of the stress for first time homebuyers.

3. Money Matters.

Most of the time, this is the deal breaker for first time homebuyers.

You need to know that there are other costs involved in purchasing your first home. On top of the listed purchase price, there are closing costs, escrow amounts, appraisal fees and inspection costs, homeowner’s insurance, and even at times, homeowner’s association dues. Before beginning the entire process, you must know what your budget is and remember to include the details in your cost computations.

4. Getting Pre-Approved. Once you know the

monetary figure you can work with, get all your finances in check and get pre-approved.

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HOMEOWNERSHIP

Making an offer for your first home normally requires a loan pre-approval letter. Having this important document ready and handy helps make the home buying process run a little smoother. In order to obtain a preapproval, you need to go to a lender, present your home purchasing case and have them run a credit check on you. This enables them to determine the amount of loan they can lend you to purchase your home. This loan amount defines how much you can afford to purchase. Don’t forget that this is simply a pre-approval; the full approval comes when you have your loan application processed.

real estate agent. Find someone who comes with good feedback, great recommendations and most importantly, someone you feel is confident to handle this first major purchase in your life.

It takes a lot to decide to purchase your first home. Congratulations on that decision. Now we have shared some tips about your purchase, we wish you the best of luck. 3

5. Having

Your Agent. One of the most important aspects of first time home buying is being acquainted with a real estate agent.

This is the individual who knows the real estate market inside and out in your desired neighborhood. Your real estate agent is your link between you and your brand new home. Do your research in choosing your

Dive deeper and discover a complete list of solutions at PEMCO-Limited.com

Sample Services Premarket Services Compliance Oversight Due Diligence Vendor Management Closing Facilitation and Management Program and Inventory Marketing Services Sales and Homebuyer Education Property Preservation Property Management Real Estate Sales Facilities Maintenance

HOMEOWNERSHIP

How to Build Equity on Your New Home

N

owadays, the latest trend to emerge among real estate holders is home equity. One of the primary advantages of home ownership is the freedom to build equity. According to conventional wisdom, you should go for it. The question is how to follow this rage?

Here are a few tips you will find useful in constructing equity on your new home in a faster and efficient manner: 1. Understanding Home Equity: For a hassle-free and successful procedure, it is essential to know the basics first. Equity typically refers to the true ownership you hold over your home. It is the divergence between the appraised value and the loan balance you have that is remaining to be paid off. For clarity in view, consider the below sample: • Let your home’s market value be $200,000.

• The amount you have paid on your residence is $30,000.

• The loan balance on your mortgage is $170,000.

• Now, the estimated difference between the market value, $200,000, and the balance owed, $170,000, determines the available equity amount, $30,000.

2. Increment in Home Prices:Arise in the market value of houses leads to an increase in the overall worth of your home, thus giving you the benefit of equity.

3. Decrement in Loan Balance: Your mortgage consists of two portions: interest and principal.

Interest refers to the exchange the creditor demands for providing the loan. Principal refers

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HOMEOWNERSHIP

to the amount borrowed from the creditor.

For instance: • If on a 15-year mortgage worth $250,000 and an interest rate of 5%, the plan grants you the ability to pay off the mortgage 20 months in advance, • Then you are able to save an interest of $20,834 in your balance. This factor assists you in profiting quick and safe home equity.

4. Reduction in Mortgage Term: In contrast to the customary 30-year loan, you can even prefer a short-term mortgage plan, such as a 15-year loan with a lower interest rate.

Refinancing to a shorter rate would heighten the amount of your payments, resulting in paying more of the principal value.

5. Bi-Weekly Mortgage Term: Another way is to follow the Bi-Weekly Plan. 50% of the monthly loan payment is made which is credited on a two-week basis to the account holder. In this term, you are expected to pay 26 times, annually.

Therefore, instead of 12 schedules, a total of 13 monthly payments are planned. The benefits include lowering of your mortgage term and saving a great deal of interest on the debt owed. It is more convenient and may run parallel to your payroll schedules.

6. Home Improvements: Make wise improvements in the physical appearance of your dwelling’s interior and exterior.

Replace the normal counterparts with granite, upgrade the bathroom and include stainless steel appliances as these factors play a vital role in attracting buyers. However, stay on the safe side by adhering to some limits. Avoid using your own choice of color. Remember that color preferences are relative. It is recommended to stay neutral in this aspect.

Remodelling your home in a smarter manner would increase the market value, thus supporting your equity and the influx of potential buyers.

7. Maintenance: Along with improving the overall look and style, it is essential to maintain a degree of class and standard in your offer by retaining a fresh, clean, green and pleasant environment. For a better appearance, plant flowers and small trees in a systematic manner.

While listing your home, make sure you have made a great presentation. A good staging inflates the chances of selling at a much higher price than expected.

8. Borrow Sensibly: A home equity line of credit is considered a better option than a home equity loan. The reasons being suitability and availability. A loan has a certain repayment time period, such as 10 or 15 years. However, a line of credit is equivalent to a credit card.

Whenever needed, it is accessible. Users may have zero balance and interest would be paid on the unattended charges.

9. Market Appreciation: The ultimate path to construct a reliable and enjoyable equity is through appreciation. When the markets of real estate are going through a powerful phase, the prices on houses also escalates or appreciates. Though this factor cannot be listed under a direct control policy, yet the longer the time period of home ownership in your name, the greater the growth in appreciation value. An average value would also increase considerably over time and would eventually sum up fast. 3

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FEATURE

Women in Diversified Services 2015 Member of the Year

Julie Baldino

By Lilyvette Rodriguez

W

hat do you think of when you think of the word exceptional? According to the dictionary the meaning of exceptional is “unusually excellent; superior”. For Women in Diversified Services (WinDS), Julie Baldino personifies that meaning.

Julie has been a member of WinDS since 2010.

She is an active contributor in several WinDS committees, such as education, conference, social media, and also volunteers during the annual national conference. I asked Shelley Kaye, Executive Director to provide a description of qualities the Member of the Year awardee would demonstrate. Her response was, “I read a great [anonymous] quote that would be an appropriate way to describe Julie,

“A person’s most useful asset is not the head full of knowledge, but a heart full of love, an ear ready to listen, and a hand willing to help.”

Her dedication and support of WinDS has been unwavering. When something needs to be done, Julie is always the first person to step up to the plate.

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When you meet Julie, she greets you with a smile that makes you feel like she has been waiting for you all along and not just another appointment.

That warmth and sense of caring for others is one of the building blocks to her success. I asked Julie what attracted her to enter the field of real estate and her answer was she followed in her mom’s footsteps. When her business grew to the point she could no longer manage on her own, she started a team and opened her own company in 2011. Her approach to expanding that team was done in very unconventional ways. When she saw that her housekeeper possessed the qualities she wanted in an agent representing clients, she suggested she take real estate classes and become an agent. Julie’s personal assistant who has been with her since 2011 is another such example. After only just a week on the job, Julie felt confident that she could manage her transactions in the same manner she would.

So she went on vacation to Hawaii, knowing her business was in good hands. Her assistant had previously worked at a major investment firm where stress was a major component of daily activities.

Julie’s staff is comprised of former clients, friends of family and, yes, even her ex-housekeeper. She describes the approach as hiring the person, not the job which is a unique cultural experience not only for the team that works together, but for the

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FEATURE

clients she serves. She looks for personality traits that show real care about wanting to help the consumer.

How does a busy broker who manages and operates businesses in two States (Washington & Oregon) balance work and life?

She laughs and admits that she is working on that and says she couldn’t do all she does without the support of her spouse. Julie is quick to point out that he fully understands that she runs and is in control of her business. A true entrepreneur, she knows how to leverage a bad situation and turn it into a thriving opportunity.

Julie invested in people and employed them during the most difficult time of a bad economy.

On a personal level, due to a recent injury experienced by her husband, they decided that he would play a greater supporting role in the home. This has allowed her to continue business expansion of her real estate business in the State of Oregon.

It is understandable how a seasoned veteran of the Pacific Northwest has consistently been in the top 10% in sales for over a decade. Julie has

grown her team to twelve full time agents and support staff.

Julie’s specialties include listing bank owned homes, corporate relocation services, and progressive internet/social media marketing. She attributes her REO business growth to her affiliation with WinDS and realized the importance of pursuing certification with WBE and WOSB as a tool to business expansion.

So how does Julie unwind and relax? She enjoys spending time with her husband and daughters - hiking, cooking, boating, going to the movies, traveling, and exploring the beautiful scenery the Pacific Northwest offers. Julie is passionate about animals and related charities and loves her two dogs and two cats.

Definitely, a full life.

Congratulations to Julie Baldino, 2015 WinDS Member of the Year awardee. 3

Please follow this link to honor the achievements of Women in Diversified Services

Lilyvette Rodriguez is a real estate broker servicing the Inland Empire of Southern California for over 24 years. She specializes in equity sale, short sale, foreclosure, probate and corporate relocation. She is an NAR instructor of the Employee Assisted Housing Program.

Lilyvette serves on a number of boards, holds multiple certifications/designations and is a consumer advocate. She believes that an informed community is an enlightened community.

Lilyvette Rodriguez CEO/Broker BRE License #01061272 Excel Realty (909) 333-6008 www.ExcelRealty-IE.com www.Facebook.com/ExcelRealtyIE

This article also appears on our sister magazine, Orange County Realtist, at www.ocrealtist.org

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FINANCES

Tax Deductions for the Homeowner The IRS grants homeowners tax credits and tax deductions. As we begin to receive and file our tax forms W-2, 1040 and 1099, as homeowners, we also have the Mortgage Interest Statement, the 1098. IRS requires homeowners to file the 1098 for reporting mortgage interests of $600 or more that was received during the tax year.

Homeownership is a great financial investment.

There are several tips the homeowner can maximize this when filing the 1040. Discuss the following with your certified accountant to see which apply to you.

Discount Points At the closing of your purchased house, there is a one-time discount point that allows the borrower use of mortgage rates that are below the current market rates. It is 1% of the total loan size of the borrower. If your total loan size for your purchased home was $575,000, then your one discount point would be $5,750. These are prepaid mortgage interests since they are advanced in exchange for a lower market rate.

Mortgage Interest The first few years of your home loan can give you sizeable tax breaks. The mortgage interest that is paid to your lender or bank is tax-deductible. The IRS places a $1 million loan size ceiling and loans that exceed a million dollars are exempt from the deduction.  

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FINANCES

Home Offices If you work from home, you may deduct expenses incurred for your qualified home office. You may claim costs to maintain your home office such as electricity, internet and telecommunications and even renovations to create your home office.

Renovations and Improvements The IRS accepts certain home renovations and improvements as tax deductible. These renovation and improvement costs are usually 100% deductible if they satisfy these two premises: (1) these are done to accommodate a disability or a chronic condition, and (2) these improvements and renovations do not increase the overall value of the property itself.

Private Mortgage Insurance

2007 and you are paying a private mortgage insurance. If your down payment was less than 20% of the purchase price, there is typically a private mortgage insurance that is also being paid.

Energy-Efficiency Improvements There are certain acceptable deductions for home improvements that cater to energy efficiency.

These could be in the form of installing solar panels, hot water heaters, and energy-efficient roofing and windows.  

Selling Costs

If you have sold your house in the year prior to filing your taxes, you may claim selling costs.

These may include advertising and classifieds listings, title insurance, and real estate broker fees.

This is deductible on the condition that your mortgage was originated after the 1st of January As the April 15 tax filing deadline approaches, gather all your pertinent documents consult with your certified accountant which of these benefits can be applied to your situation. 3

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POLITICS

How the Change in Senate Will Affect Housing Markets The Results, Reactions & Impact of the 2014 Midterm Elections on the Housing Markets in the U.S.

A

s predicted, the Republican Party did reclaim control of the U.S. Senate, adding to its majority in the U.S. House of Representatives. Because of this, Republicans now have the opportunity to display what they can do with control of both houses of Congress. In the race to 2016 elections, we expect Republicans to demonstrate to the American people that they have the ability to govern, while focusing on a few issues they can quickly pass through Congress and get onto President Obama’s desk.

Their first agenda is probably the long debated extension of the Keystone Pipeline. For a long time, there have been legal challenges surrounding this particular project and it remains unclear as to whether or not Obama will approve of this construction project. If the Republicans succeed to push for this project, the additional phase of the Keystone Pipeline will be a boon to infrastructure and energy-related companies.

Republicans will pay distinct attention to healthcare issues, specifically looking to repeal the medical device tax that requires the President’s cooperation as well. Most likely, Obama will consent to the alterations since the tax has been so outdated. The medical device industry will improve due to the repeal.

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So what does the change in Senate mean for the housing markets?

Business commentator Sanjay Sanghee reports that the Republican victory might actually conclude political gridlock, therefore offering U.S. companies the stability and clarity they needed from Washington. The midterm U.S. elections marked a major victory for Republicans in the Senate. Presently, the GOP runs both chambers in Congress, which could be a good thing for the U.S. business, but not for the obvious reasons.

Conventional wisdom suggests that the businessfriendly Republican Party will utilize their influence to scale or repeal several programs and regulations unpopular with the U.S. business.

This includes restrictions on drilling for oil in protected areas, efforts to limit tax dodging deals, the Affordable Care Act, Consumer Protection Act, and the Dodd-Frank Wall Street Reform.

Businesses often view restrictions and regulations as unfavorable. However, the public often perceives them otherwise; take for instance DoddFrank. It is burdensome for banks, but seems favored by many Americans who comprehensibly want protection against the type of Wall Street surplus that resulted in subprime mortgage crisis in the year 2008.

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POLITICS

With the upcoming presidential elections in 2016, it is possible that the Republicans will want to bench the populist vote and avoid alienating average voters by trimming off laws that safeguard the consumers and the economy.

Alternatively, the real profit to business of a Republican-controlled Senate will be economic stability in the process of ending political gridlock in Washington.

According to RealtyTrac’s new report, almost half of of the entire U.S. housing market is better off, when compared to the last presidential election cycle two years ago. RealtyTrac’s Election Housing Scorecard 2014 report scored 1,547 U.S. county housing markets based on five factors that affect housing health: housing affordability, unemployment rates, foreclosure starts, median home prices, and the percentage of underwater homeowners. The County housing markets were grouped as “better-off, worse-off, or toss-up”, according to the scores.

Out of all the counties analyzed, 52% were categorized as better-off, amounting to a total of 811 county housing markets. This is in comparison to two years prior when 11%

representing 176 county housing markets were categorized as worse-off, and 36%, representing 560, were categorized as a toss-up.

Daren Blomquist, Vice President for RealtyTrac, reports that the housing market recovery has truly been captured in almost half of the country. However, the recovery is weak, and there are many replaces in the other half.

The Georgia housing market favors the Republican obligatory party. Out of the 80 counties in Georgia with enough housing data to score, 56 were grouped as better-off, while 19 were grouped as toss-ups. Five were in the worse-off category. North Carolina, Colorado, Louisiana, Arkansas, and Alaska housing markets all favor a Democratic incumbent.

Clearly, elections have implications for policy and the direction of the country. With the Republican Party in control and all eyes focused on the 2016, factors such as the stock market, corporate earnings, and economic growth will affect the direction of stock prices and unpresuming legislative changes. 3

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LEGAL

US Immigration Reforms

and Its Impact on Housing and Jobs The immigration question remains in the minds of many Americans. Answers have been sought and this matter has raised both historical inquiries and accusations in equal measure. The reason why the debate on immigration will not just cool off is because immigration has a major effect on different facets of life in the United States; both the job and housing sectors are affected by immigration.

According to President Barack Obama (November 21, 2014),

“We didn’t raise the Statue of Liberty with her back to the world, we did it with her light shining as a beacon to the world. And whether we were Irish or Italians or Germans crossing the Atlantic, or Japanese or Chinese crossing the Pacific; whether we crossed the Rio Grande or flew here from all over the world — generations of immigrants have made this country into what it is. It’s what makes us special.”

There has been wide acceptance that the immigration system is damaged, leading to continued calls for reforms. Employers have been

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blamed for cheating the system by hiring legally undocumented workers. The government admits there are over eleven million undocumented immigrants, which has negative effect on the economy and the country at large. In an effort to fix a damaged immigration system, the president signed an executive order to improve overall immigration accountability.

The aims of these executive actions are to help modernize the immigration system, increase border security and make sure undocumented immigrants are more accountable; they will be expected to pay taxes and get criminal record clearance.

The current move means that over 4 million immigrants can apply for work permits, meaning the job market will be more strained and employers will readily hire immigrants with permits without legal ramifications. There have been calls to pass a bill as a way to enforce the new executive orders because not every immigrant qualifies. Although there had been calls for mass amnesty, the president stated that was not possible but clearly stated that mass deportation would not be implemented because it would scar the character of the US. Under the new reforms, only parents who have been in the US for a period of five years can qualify. Looking at the figures, 6.2 immigrants are not eligible to apply for the new package.

Recent approximations state that immigrants form twelve percent of the recent US population. Although the there have been claims that lack of jobs has been due to the soaring immigrant population, there is no denial that the immigrants’ entrepreneurial skills are well documented. Both critics and supporters of immigration agree that they bring skills, which are beneficial to the economy. A key statistic to back the benefits of immigrants in the job market is the fact that 25 percent of companies with the highest growth rates started between 1990 and 2005 were started by immigrants. Major brands started by immigrants include, but not limited to, Yahoo, Google and eBay. The positive impact of immigrants cannot be understated as many Americans enjoy jobs from these immigrant-owned companies.

they bolster the value of housing and with recent changes, they can buy houses without any legal hurdles. Immigrants also help in stabilizing less favorable neighborhoods by moving into them, thus opening up the housing market. The declining rural areas have come to life because of immigration.

The jury is still out on the impact of immigration on the US, especially the housing and job sectors. With the recent reforms as described in this post, there will be more scrutiny on the overall effect on these key areas. The fact remains that the immigration community forms a core of the history of America. 3

Recent research reveals that the over 40 million immigrant population has created over 3.7 trillion dollars in terms of housing wealth, which in turn has helped stabilize less attractive communities that are reported declining or would have already declined. Although very little research has been done on the effect of recent immigration reforms on the housing sector, the fact remains that the US will experience a strengthened housing sector for various reasons. The immigrant demand for housing means that The PIN MAGAZINE | 59

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LEGAL

Supreme Court Ruling on Mortgage Loan Officers’ Overtime and Working Hours

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ortgage loan officers are the key beneficiaries of a new ruling by the U.S. Supreme Court. Under the new ruling, they will be entitled to 40 hours of work weekly and overtime pay for any overtime work. In a unanimous ruling, the Supreme Court stated that the Department of Labor acted rightly by reclassifying mortgage loan officers; the Department of Labor had earlier stated that loan officers cannot be exempted for overtime and related benefits.

The verdict by the Supreme Court originates from a decision made by the Department of Labor in 2010 to re-categorize loan officers. In a ruling in 2006, loan officers had been classified as exempted employees and the new ruling was simply a reversal of the previous ruling.

At the point when the Department of Labor rolled out the new changes in 2010, it provoked the Mortgage Bankers Association (MBA) to sue. The

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MBA asserted that the 2010 elucidation of the statute disregarded the Administrative Procedures Act, APA, by neglecting set procedures for changing major verdicts, which included failure to notify the public of any changes or give the public ample time to air their opinions on the new rule changes.

case, famously referred to as Perez v. Mortgage Bankers Association, the Supreme Court clearly stated that there was no violation of the Administrative Procedures Act by the labor department when it rolled out the changes to the loan officer rule.

In the universal agreement, Justice Sonia Sotomayor stated,

The MBA initially won the “Because an agency is not suit in the Court of Appeals in 2013 but the decision was required to use notice-andcontested in the Supreme comment procedures to issue Court. During the initial suit, an initial interpretive rule, it is the Court of Appeals had ruled also not required to use those that an agency had no power to revise any verdict without procedures to amend or repeal that rule.” prior notification. The decision in the Court of Appeals meant there was an immedia- In 2013, Thomas E. Perez was te break from the previous rule selected by President Obama to that had stated loan officers are serve as the Secretary of Labor. not qualified for any exemption He had to deal with a mortgage from overtime payment. This industry in limbo. In 2006, The was a ruling that would change Department of Labor representhe industry and both the MBA ted by Perez addressed an opiand Department of Labor un- nion letter to the MBA stating derstood this too well. that under the new administrative Act, mortgage loan officers While making a ruling on the qualified to be reclassified as

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exempt employees, meaning that under the Fair Labor Standards Act they are not owed overtime pay. However, the labor department withdrew the opinion letter stating loan officers cannot be exempted.

Three former mortgage loan officers were enjoined in the case as petitioners namely Jerome Nickols, Beverly Buck and Ryan Henry famously referred to as Nickols. Nickols had sued their previous employer after the 2010 Administrator’s Interpretation was released. Regardless of a strong argument by MBA, the court rejected its arguments on grounds of failure to show justifiable reliance on labor department’s interpretation.

MBA expressed disillusionment but expressed willingness to forge ahead and assist members to work under restrictions of the new verdict.

In a statement, an MBA representative declared,

“MBA hoped that the court would uphold the lower court decision in our favor, so obviously we are disappointed with the final outcome. We will now work with our members to develop approaches to this issue that hopefully do not unduly increase borrower costs or compromise customer service.”

Although the ruling was made in common agreement, some Supreme Court moderate-inclining judges made concurring opinions. They expressed apprehension about the authoritative pattern the new ruling would set.

One of the moderate-inclining judges, Justice Samuel Alito, stated in his concurrence,

“The creation of that doctrine may have been prompted by an understandable concern about the aggrandizement of the power of administrative agencies as a result of the combined effect of the effective delegation to agencies by Congress of huge swaths of lawmaking authority, the exploitation by agencies of the uncertain boundary between legislative and interpretive rules, and this Court’s cases holding that courts must ordinarily defer to an agency’s interpretation of its own ambiguous regulations.”

There were also cautionary concurrencies from conservative-leaning judges, Justices Antonin Scalia and Clarence Thomas, forewarning about the national impact of the verdict.

This is one ruling whose effect will ripple through the entire mortgage sector. However, a leading national lender states that the new ruling will have no influence on its operations.

Quicken Loans, as per a report in the Detroit Free Press, states that the Supreme Court’s decision will have restricted effect on the organization in light of the fact that it, as of now, offers extra time to its credit officers.

The Department of labor argues that the APA excuses interpretive rules from need for public comments or notification. It is important to consider that the Supreme Court’s decision has a bearing on the power of agencies to amend any ineffective rules or alter the outdated perception of any agency.

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LEGAL

A ruling by U.S. Supreme Court on March 9, 2015 stated that there is no requirement for federal agencies to neither make any notification nor seek comments while issuing any interpretation of a rule, which is notably dissimilar from an earlier interpretation.

The decision will have a significant immediate impact on lenders. Those who are still relying on the labor department’s opinion letter of 2006, still believing loan officers are exempted employees are in trouble. This is a wakeup call to employers to track any changes in rules. Mortgage loan officers have borne the burden for so long and no one has recognized the efforts they have put in making the mortgage industry what it is today. Many lenders, especially banks, have been overworking loan officers due to legal loopholes while offering them derisory payments. They have been using outdated rules as a scapegoat but now with the

new rule, we will experience sanity in a sector that has had no luck in finding it.

It is no secret that the new ruling has received criticism and acclaim in equal measure. With an industry that has been non-responsive to change, this ruling will surely cause a limbo between proponents and opponents of the new rule. However, even as we hold our opinions so dearly, it is important to acknowledge that the critics of this ruling do not represent the majority of loan officers who work for banks and not mortgage banks or brokers. These loan officers are hammered everyday with administrative and tracking activities that take away from revenue-generating activities. They are asked to cross-sell checking accounts and other banking products. They are in constant training, meetings and sales meetings.

The new benefits will go a long way in motivating a forgotten lot. 3

The Power Is Now, Inc. is in search of talented, professional WRITERS and GRAPHIC ARTISTS. Please get in touch with our Managing Editor, Ross Dickens, at:

ross.dickens@thepowerisnow.com Be a part of our wonderful team!

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COMMUNITY

MINORITIES’ LAGGING HOME VALUE REBOUNDS TIED TO SUBPRIME LENDING

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or many people owning a home is a major part of the “American Dream,” – a rite of passage for hardworking citizens. For most men and especially fathers, owning a home is the Holy Grail of manhood and of being a provider. For women and especially mothers, it is the epitome of stability and security when they can raise their children in home they own.

Banks and financial institutions provide the credit and lending facility for most people to fulfill this dream because they are unable to pay cash and have very limited savings in the bank. In fact, they have been price and financed out of the market because of cash buyers who have dominated the market and sellers who would prefer to sell to cash buyer than a finance buyer. The savings rate for America has declined dramatically over the past years and is currently very low by historical standards. In 2012, we saved about 4 percent of after-tax personal income, down from average savings rates of 5.5 percent in the ‘90s, 8.6 percent in the ‘80s, and 9.6 percent in the ‘70s.

This is symptomatic of the challenging economic environment we have been in since 2005, when the savings rate fell under 2%, the lowest since 1970.

the American Dream. What could have been an opportunity for Wall Street and many banks who originated these loans to strengthen the economy through the housing boom turned out to be an economic nightmare. It was all fraud on every level of the transaction, which, unfortunately, sometimes included the borrower who was naïve and misled by their real estate agents and loan officers. In addition, the misleading loan disclosures, complicated terms and “FICO” driven and underwriting criteria that lacked any commonsense, set up every borrower for failure.

The high volumes of foreclosures that started with Subprime Lending diminished home values on neighborhoods, on state and national levels.

But are some communities affected more than others, based on the predominant race living in them? Yes!

In a recent study by Zillow economists, data revealed that home values in black and Hispanic communities have not rebounded as quickly as home values in white and Asian communities following the Great Recession. Further, black and Hispanic applicants are denied conventional mortgages twice as often as whites. Finally, Asians, blacks and Hispanics have smaller percentages The advent of Subprime Lending opened the door of homeowners within their demographic than to many minorities who were desperately seeking whites.

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Home Values For Hispanics, home values dropped around 46.3 percent on average since the market peaked in 2007. Similarly, predominately black neighborhoods also fell significantly – 32.1 percent – at their lowest since 2007.

Comparatively, home values in white and Asian neighborhoods dropped 23.6 and 19.2 percent, respectively. While these dramatic figures are expected in a housing crisis, the aftermath is somewhat more complicated.

whereas home values in black areas are at 17.9 percent below their peak. White neighborhoods, on the other hand, are much better off at 8.2 percent below their peak values – a 15.4 percent increase from their lowest point during the Great Recession. Even stronger, Asian communities are 9.6 percent above their pre-recession peak prices.

Looking forward, Hispanic communities’ home values should appreciate by 16.8 percent, Asian communities by 15.6 percent, white communities by 8.3 percent and black communities by 8.5 percent, according to the Zillow Home Value Forecast.

Although national home values continue to rise, black and Hispanic neighborhoods are struggling to rebound as quickly and significantly as white neighborhoods. Home values in Hispanic areas still remain 24.2 percent lower than their peak,

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Mortgages A representative of the National Fair Housing Alliance attributes lagging home value rebound rates to subprime lending. Because they often struggle to get approved for conventional loans, black and Hispanic neighborhoods are notoriously targeted by subprime lenders, according to Lisa Rice, executive vice president of the National Fair Housing Alliance. With double the denial rate of whites, black and Hispanic applicants are often pressured into accepting subprime loans with less favorable terms. Risky mortgages were especially abundant in lower-income areas before 2007, but even high-income minority communities are struggling to recover economically.

Minorities apply for conventional mortgages less often, presumably due to their high denial rates. Hispanics make up 17 percent of the U.S. population, but only represent 5 percent of the conventional mortgage total applicants. Similarly, blacks make up 12 percent of the national population, but only 3 percent of conventional mortgage applicants. Alternatively, more than half of black applicants (57.4 percent) and 60.3

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percent of Hispanic applicants applied for an FHA loan. Only 30.1 percent of white applicants apply for FHA loans.

Not only are minorities struggling for conventional loan approval, their homeownership rates are significantly lower than whites. According to the latest U.S. Census Bureau News released in January of this year, 72.3 percent of whites own a home, and only 42.1 percent of blacks are homeowners. Asian neighborhoods may have rebounded in terms of home values, but only 53.3 percent of the total Asian population in the U.S. are homeowner and approximately 44.5% of Hispanics own a home.

This data indicates that race, mortgage approval rates and homeownership levels tend to affect home value appreciation. Current homebuyers can still benefit from entering these low-cost markets and hopefully see their home values appreciate in the future – but at a slower, more unpredictable pace. If you’re considering investing in a slow-rebounding neighborhood, calculate your mortgage with a 20 percent down payment and lessen your risk of falling into the same issues outlined above. This, unfortunately,

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will be difficult for most minorities who would like to participate in the recovery but lack the money in saving. The good news is that there are conventional loans and government loans that only require a 3 to 3.5% down payment and also will allow down payment assistance and/or the seller to cover your closing cost with certain limitation.

Subprime has hurt the minority community. It may take African and Hispanic Americans 10 years to fully recover from the damage that has been done to their respective communities. Access to credit is the headwind that most minorities face with Hispanics representing only 5 percent of the conventional mortgage total applicants and African Americans representing only 3 percent of conventional mortgage applicants. The FHA mortgage will be the vehicle of choice to help minorities get back into the game. More than half of black applicants (57.4 percent) and 60.3 percent of Hispanic are applying for the mortgage because it represents the great flexibility in credit, debt to income ratio and down payment.

Other banks are coming on the scene with a conventional portfolio that looks just like FHA. Where were they during the Subprime debacle?

These programs are great, however, they are late. The damage has been done. Let’s hope it doesn’t take 10 years for minorities get back into the game. We need the private sector to solve this program with new loan programs and zero down payment loans that have worked perfectly for veterans.

The American Dream is alive and well because there is still a will to participate and make the dream a reality. 3 References Callis, R., & Kresin, M. (2015, January). Residential vacancies and homeownership in the fourth quarter 2014. U.S. Census Bureau News. Retrieved from http:// www.census.gov/housing/hvs/files/currenthvspress.pdf Zillow.com

Eric Lawrence Frazier MBA, President The Power Is Now, Inc. www.thepowerisnow.com

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PERSONAL DEVELOPMENT

SSound Mind, ound Body

The

Theor y

1. Fights Weight Issues Proper exercise can assist in losing excess weight and solving low weight problem. During physical activity, calories burn and fat melts. This can be achieved by doing simple tasks like increasing household chores, preferring the stairs over the elevator and being in constant motion every half to one hour.

T

2. Emotional and Mental Benefits

he Greek philosopher, Thales of Miletus (624 - 546 B.C.), famously quoted, “Mens Working out proves soothing as a balm to a sana in corpore sano”, which means a stressed mind by stimulating brain chemicals. sound mind resides in a sound body.

In addition to removing anxiety and depression, regular exercise would build confidence and selfAccording to John Locke, a sound mind in a esteem towards one’s figure. sound body describes a state of well being and happiness in this world and someone who has 3. Health Benefits both, has minimum desire for anything more.

• fights heart diseases and high blood pressure, Every human life revolves around two aspects: • enhances the level of good cholesterol, high the physical existence and the mental state. Both density lipoprotein (HDL) and lowers harmful are interconnected to each other. One factor triglycerides, cannot be achieved without the other.

• prevents cardiovascular diseases, insomnia, specific kinds of cancer, arthritis, stroke and A Sound Body metabolic syndrome, and • boosts energy levels and muscle strength by The many benefits of exercise are hard to ignore. smoothly delivering nutrients and oxygen to From making sound decisions to enhancing your the internal organs, cells and tissues. mood and personal life, see why exercise is essential for general development:

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A Sound Mind In the contemporary world, our lives have become hyperactive and technology savvy. Since our mind is the main builder, it is essential to opt for healing through sound therapy. The basis of all existence is energy. For maintaining harmony and balance in the body, heart, mind and spirit, the latest rage in the therapy world is vibration medicine.

The power of music and sound has always been celebrated. According to the beliefs of many ancient civilizations, energy was drawn from the spiritual world and a rhythm, music, was designed which would cure the mind and body.

The sound could be created by a human being or any handmade instrument. Eventually, this belief has lead to chants, songs, dances, drums and clapping which could heal people.

When viewed from a scientific angle, it can be noted that during World War II, the soldiers who were injured or ailing from a disease were also provided medicine in the form of sound therapy, due to the immediate effect it had on their mental state, thus, proving as a reliable anaesthesia.

According to science, matter is eternal energy in constant activity and vibration. Physical resonance can be medicinally used to relocate the vertebra back to its position. Also, the alternation of the cerebrospinal fluid and cranial bones can be done using sound waves. The reason being that the central nervous system is the primary connection point and the powerhouse of all motions in the human body. Since all the body’s cells, organs and tissues vibrate at certain frequencies, sound is utilized for healing and relieving anxiety and stress.

Benefits of a Sound Mind Mental Effects

• • •

• •

therefore, enhancing daily brain activity.

It sharpens overall memory and inflates concentration, thus, highly assisting children who have learning disabilities.

It increases outcome, better attention span and productivity Due to the ‘fog’ dissipating, an individual would become motivated in life to listen to fresh and new ideas without much hesitation or irritation.

An individual’s outlook and thinking would improve enabling him to welcome new challenges.

The person would become more organized, have an open mind and great personality.

Emotional Effects The main aspect of our life is emotion. They govern our daily routine, actions and behavior by creating an array of feelings. Many times, during a specific mood, we play a music which associates with our mood. Emotional benefits we could achieve include: • increased confidence and lower frustration • relief from anxiousness would enhance our ability to relax and communicate with others by expressing ourselves in a better manner • • it would improve our tolerance and patience levels, helping us take more effective decisions Physical Effects Physical effects are the most evident ones: • increased energy levels and all-round well being • relief from muscle tension, headaches, chest pain and better motor skills • endorphins, the body’s natural pain killers are increased in the blood and stress hormones are lowered, thus, improving the immune system. 3

• Sound therapy helps the human mind to relax,

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Women in Diversified Services

Serving the real estate, mortgage, finance & legal industries And not just for women

May 3 – 5, 2015 Economic Update & Forecast Speakers Bruce Norris The Norris Group Investor Forecast

Sandra Thompson Deputy Dir., Division of Housing Mission & Goals; Federal Housing Finance Agency Richard Koss Director of Economics Fannie Mae

Len Kiefer Deputy Chief Economist Freddie Mac

G Grow

P

Prosper

Enter WinDS-X for $397 pricing, a 50% savings www.WinDSConference2015.com More info contact: ShelleyKaye@WomeninDS.com Diamond Sponsor

Derrick Luckett State President California Association of Real Esate Brokers

Nancy E. West Housing Pgm. Officer U.S. Dept. of HUD

Santa Ana Homeownership Center

Rick Sharga Executive Vice President Auction.com

Keynote Speaker: Tanya Brown, Life Strategist, international speaker and author

S Sustain

Marriott Newport Beach Hotel & Spa

Notable Women Making An Impact In The 21st Century

Amazing women surround us in every aspect of our lives. Some become our teachers, role models, mentors, coaches, colleagues and friends. There isn’t a situation we could encounter where a woman couldn’t provide the solution.

While that is not an exclusive phenomenon reserved for women, because we outnumber men, it is fair to say women come up with more solutions.

Far too few are given the recognition deserved for their accomplishments.

Others may not even realize the impact they make in our lives because it is commonplace to share and pour into those who surround them.

The notable women who are making an impact in the 21st century are more like you and me. This year, in recognition of March being Women’s Month, I would like to acknowledge the women that will be presenting at this year’s Women in Diversified Services conference. While the conference is geared toward the real estate, finance/mortgage and affiliated services industry, you can’t help but be impressed by the accomplishments made by these relatable women. These are the women shaping the business world and making an impact in the 21st century. They come from all walks of life, varied backgrounds and some were told they couldn’t beat the odds.

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WinDS Special Issue

Julie Baldino

Sharon Bartlett

Managing Broker Front Door Realty

Director Vendor Services & Ops Support HomeSteps

Julie is a seasoned veteran of the Pacific Northwest real estate industry, and has consistently been in the top 10% in sales for over a decade in Oregon and Washington. She opened Front Door Realty, a certified WBE and WOSB, in 2011. She has grown the brokerage to 12 full time agents and support staff. Julie’s specialties include listing bank-owned properties, corporate relocation services, and progressive internet/social media marketing.

When not working, she enjoys spending time with her husband and daughters - hiking, cooking, boating, going to movies, traveling, and exploring the beautiful scenery the Pacific Northwest offers.

Julie is passionate about animal-related charities and loves her two dogs and two cats. Julie is Women in Diversified Services 2015 Member of the Year awardee.

Sharon has been with Freddie Mac for over 30 years and has a diverse background in mortgage loan servicing and REO. During her tenure at Freddie Mac, Sharon has worked in many areas, including: Default Management, Loan Administration, Loss Mitigation, Asset/ Outsourcing Management, Servicer Relations, Risk Management, REO Operations and Broker/ Vendor Management.

As the Director of Vendor Services at Freddie Mac, Sharon and her team are responsible for the management and oversight of all vendors supporting the REO disposition process; including real estate brokers, closing and title agents, valuation vendors, general contractors, preservation and maintenance vendors, etc.

In addition, Sharon is also responsible for HomeSteps marketing, communications and customer service teams.

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Notable Women Making An Impact In The 21st Century

Goldy Berger

Shelia Blockson

Attorney The Law Offices of Goldy Berger

Reo Specialist Signature Landmark

Goldy has been practicing law for the past 14 years. She has worked for large firms in the field of business litigation, business formation, corporate, trust and estates, probate, insurance defense, tax resolution and real estate. In 2010, she has been the owner of the Law Firm of Goldy M. Berger practicing the same forms of law.

Goldy is an animal rights activist and a vegetarian.

In her spare time she loves to read books about the complexity and mysteries of the brain. Her children, ages 15 and 11, consider her a “science geek” and love to tease her about it. She loves to discuss science, politics and the environment with them.

Shelia has been the Broker/Owner of her own company for 16 years with 24 years in the Real Estate/Default industry. Education is a bedrock principle behind Shelia’s nationally recognized success. After entering the real estate profession, she became an instructor and community outreach presenter in her own challenging marketplace.

Over the years, Shelia has become well known as the “go-to” REO broker for a large area in Illinois that includes the Southside of Chicago and South Suburbs. She has provided a variety of brokerage, property management, and other default services to all of the major government and corporate banks and other portfolio sellers, also representing literally thousands of buyers, with an emphasis on neighborhood recovery through homeownership.

A co-founder of Women in Diversified Services (WinDS), Shelia is committed to providing leadership for women within the real estate industry and is currently the Treasurer and Vice President. Shelia also serves as the Treasurer of the WinDS Foundation.

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WinDS Special Issue

Tanya Brown

Patty Cotton

Life Strategist, International Speaker & Author

Executive Coach & CEO The Cotton Group

When people think of Tanya, it is often in connection with the murder of her sister, Nicole Brown Simpson. Tanya will always speak on domestic violence. She came through one of the darkest experiences a person can undergo.

Tanya is a certified life coach and has a Master’s degree in Counseling Psychology from Argosy University.

Patti has more than 25 years of international leadership experience with high-profile organizations, in the areas of diplomatic relations, public affairs and marketing, business development, and philanthropy. She is an ICFcertified executive coach and organizational development consultant specializing in leadership development and transformational change for leaders, executives, and key decision-makers.

The quest for potential and impact has placed Patti alongside heads of state and other change agents from around the globe to solve problems creatively.

Her motto is “Talk It Out, Loud.” Through her personal experiences, professional education, workshops and coaching, she helps others develop effective coping skills necessary to manage stress, anxiety and depression. Tanya conducts workshops and coaching using Tanya’s Tools for Patti has a Master’s of Science degree in Change.

Organizational Management & Development (Fielding Graduate University), English Tanya encourages her audience and coaching Literature (La Sierra University), and a yearlong clients to recognize and acknowledge their graduate certification in Evidence-Based personal struggles, in order to avoid overload and/ Coaching (Fielding Graduate University). She or a mental health breakdown. She empowers her holds certifications with the International Coach clients to remain disciplined and focused so they Federation at the PCC level, and with the State of will reach their ultimate goal of optimum mental California for mediation. Her advocacy and board health. She emphasizes the significance of proper service are focused on supporting alternatives self-care in achieving and sustaining an optimal for domestic violence, and empowerment of quality of life. vulnerable and silenced voices.

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Notable Women Making An Impact In The 21st Century

Laura Dietz

Phyllis Dixon

CEO & President Merlin Enterprises, Summit Realty

CEO/Founder Thomas & Webster Associates

Laura is a real estate broker, recently listed as #107 of the TOP 1,000 real estate agents in the US, by the Wall Street Journal. Laura has 20 years of experience and is a respected industry professional. Her experience are in the areas of bank-owned properties, personal property appraiser, auctioneer, estate sales and veterans.

Having handled the intricate details of hundreds of properties from the common to the complex, she attributes her success to her commitment to excellence.

Phyllis is a results-driven professional who can deliver entrepreneurial vision with strategic execution within structured and entrepreneurial environments. She is an innovative and creative problem-solver, evidenced in her approach to customer service, which is based on integrity, accountability, proactive planning and solutions development. She excels in client relationship management, marketing and business development. Phyllis has been a featured speaker at events; is an engaging and effective trainer; and small business diversity advocate through the Women’s Business Enterprise Council – San Diego Council.

An entrepreneur for entrepreneurs, Phyllis started Thomas & Webster Associates to provide consulting services to start-up and small businesses, with an emphasis in designing creative and cost-effective marketing strategies, coaching, mentoring and strategies for organizational and process improvements.

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WinDS Special Issue

Annemarie du LeBohn

Gina Schreck

Community Engagement Strategist

President & Founder SocialKNX

Annemarie is a sought-after speaker who shares insights on how to develop your brand, no matter if you are selling real estate, racing Ironman, or embracing a cause-related marketing campaign, like breast cancer.

Her goal is to provide usable tools that will help you fine tune your image, express your purpose, and connect with your community. Her tools stem from lessons learned while building her speaking career. She shares strategies that embrace social media, public relations, and branding.

SocialKNX, is an interactive media and social marketing company. Lisa assists organizations, connects and builds their communities through the use of social media and technology tools.

Gina is an international speaker, author of several books including Getting’ Geeky with Twitter, and was the technical editor on the latest Complete Idiots Guide to Social Media! Gina was ranked as one of the top 50 women influencers on-line in Fast Company’s Influence project.

Annemarie’s determination is infectious, and her thriving spirit shines whether speaking on a TED stage, teaching corporate workshops, or being recognized as a success by SBA, SCORE, and AARP.

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Notable Women Making An Impact In The 21st Century

Wendy Forsythe

Lana Gosnell

Executive Vice President Carrington Real Estate Services, LLC

VP & Supplier Diversity Manager Supplier Diversity and Development MUFG Union Bank, N.A.

Wendy joined Carrington Real Estate Services in early 2012 to lead the company-owned brokerage branch operation nationally. In this role, Wendy is responsible for the day to day management, growth, and development of the brand as it relates to growth in sales, agent count, and market share as well as, direct responsibility for marketing, training, technology, customer care, and brand development.

Wendy was instrumental in leading the successful effort to launch the rebrand of Atlantic & Pacific Real Estate Services to Carrington Real Estate Services.

Lana is responsible for providing diverse business enterprises with the maximum practicable opportunity to participate in the bank’s procurement of goods and services throughout the MUFG Union Bank, N.A. enterprise.

Lana joined Union Bank in 1977 and has held various positions within the organization such as Corporate Planning, Credit Examination, and Finance Director for the Corporate Real Estate group. She has been with Supplier Diversity & Development since 2012 and is a part of Throughout her real estate career, Wendy the driving force in the bank’s commitment to has leveraged her passion for real estate and increase diverse business supplier spend. technology to help build national real estate brands in both Canada and the United States. Lana is active in community outreach and with Wendy is a recognized speaker and writer on various fundraising organizations. She enjoys branding, technology and social media. She has traveling, participating in half-marathons, spoken at the National Association of Realtors kayaking and spending time with family and Annual Conference, Inman Connect, RIS Media, friends.

Real Estate Expo, Women’s Council of Realtors and many other industry events.

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WinDS Special Issue

Sylvia Gutierrez

Cathy Hsieh

Economic Development & Women’s Outreach Coordinator U.S. SBA – San Ana District Office

Founder & CEO Kambrian Corporation

Sylvia has more than 20 years of experience in business development. Her marketing and outreach activities reach the tri-county area of Orange, Riverside, and San Bernardino. She has been invited to speak on SBA Programs and Services by various organizations and TV networks like Univision. Sylvia is tasked with coordinating events to assist, inform, and educate entrepreneurs and business owners to start, expand and run successful businesses.

Sylvia holds a Bachelor’s degree in International Relations from USC, and M.A. degree from The American University in Washington, D.C., in International Economic Policy, Business, and Finance. Sylvia is a member of Toastmasters where she recently received the Advanced Toastmaster Silver Certificate.

Cathy is the founder and CEO of Kambrian Corporation, an IT value-added reseller located in Southern California. Founded in 2009, Kambrian provides customizable IT solutions and affordable licensing and financing options for various industries including government, education (K-12), healthcare, and commercial organizations.

Born in Taiwan, Cathy grew up in the US and has lived in Dubai, Tokyo, and Beijing. She received her Bachelor of Science degree in Electrical Engineering from UCLA and an MBA from Cornell University. Cathy has ten years of corporate experience with Microsoft, and three years with Honeywell. She has held various sales, marketing and operations positions while at both Microsoft and Honeywell. Cathy has a strong passion for technology, the public sector, and the value of technology helping customers gain a competitive edge in the market place.

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Notable Women Making An Impact In The 21st Century

Shelley Kaye

Evelyn Olson Lamden

President & Executive Director WinDS

CEO Red Kite Business Advisors

Shelley is a co-founder of Women in Diversified Services (WinDS) and serves as its President and Executive Director. She has had a multifaceted career in both real estate and mortgage banking spanning more than 20 years. Her experience in customer service, collections and loss mitigation led to her greatest passion, REO asset management for organizations such as First Central Bank, Option One Mortgage, ECC Capital and Insource Financial Services. Shelley participates as a speaker on a variety of panels at industry events. Shelley and her husband Neil have two grown daughters and one granddaughter, Megan. Shelley also serves as the Secretary of the WinDS Foundation.

Evelyn has over 33 years of experience in corporate and agency management supervision roles involving retail/consumer/business-tobusiness advertising, media, sales promotion, and marketing. Evelyn has managed local, regional, and national media budgets exceeding $60 million and has managed and directed media departments for major corporations.

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She has worked in several industries, including automotive, fast food, weight management, fitness, healthcare, wellness, entertainment, horse racing, real estate, interior design, furniture manufacturing, public agencies, and non-profits.

She was a finalist in San Diego Magazine’s 2014 “Woman of the Year” Award, and a recipient of the “Women Who Mean Business” Award, 2012 by San Diego Business Journal. Most recently, she was a nominee for San Diego’s Performing Arts League 2015 “Star Award” for her community service, and was a recipient of the same award in 2009.

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A consummate lover of the arts, Evelyn has professionally developed scripts, directed, produced, and choreographed for musical stage productions. She uses these skills for clients by writing scripts and producing for corporate sales presentations, public speaking, and conducting workshops.

Azucena Maldonado

Rae Majors-Wildman

Founder & President Latina Golfers Association

Business Strategist, Speaker & Author Rae Majors-Wildman International A survivor of domestic violence, Rae successfully raised her child as a single mother on welfare.

When most would expect her to stay down, Rae Majors-Wildman shattered the stereotypes and became an award winning business strategist, sought after speaker, best-selling author and CEO/ President of Rae Majors-Wildman International.

Rae graduated with honors with her degree in Counseling Psychology and has received certification and mentorship from some of the best business leaders in the U.S. With over 15,000 coaching hours under her belt, Rae has successfully coached and trained every business from startup at the ground-level to Fortune 100 companies. She is committed to helping companies who struggle with attracting and retaining top employees.

She solves their problem by taking a G.P.S. approach to developing emerging and the next generation of leaders.

Azucena is on a mission to transform women’s lives through golf. She founded the Latina Golfers Association (LGA) in 2008 to introduce Latinas of all ages to golf for their professional development, personal enjoyment, and to promote a healthy lifestyle. The LGA teaches women how to utilize golf as a business tool.

What started as a passion and love of the game quickly turned into a movement with over 1,200 Southern California Latinas having participated in the LGA’s golf clinics, lessons, events and tournaments.

Azucena teaches women how to break gender and cultural barriers through golf. She shares how to be welcomed into the elite “boys club” and break the glass ceiling with a golf ball. She is recognized as an industry leader. Azucena has appeared in Golf Digest, Golf Business, PGA of America and the Southern California Golf Association’s FORE magazine, NBC Latino, Now Latina, La Opinion, Latina Style Magazine, and Golf Legend Arnold Palmer’s Kingdom Magazine.

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Notable Women Making An Impact In The 21st Century

Gail Perry-Mason

Lani Porter

First Vice President of Investments Oppenheimer & Co. Inc.

Senior Vice President, Operations American Residential Properties, Inc.

Detroiter Gail Perry-Mason is well known in the securities industry where she has climbed the corporate ladder from receptionist to First Vice President of Investments of Oppenheimer & Co. Inc., formerly Fahnestock & Co., Inc./First of Michigan.

Lani joined American Residential Properties, Inc. in 2012. She has been an executive in the Real Estate Industry since 1995, when, as a founding executive serving as Senior Vice President of Operations, she helped to create the first online marketplace for mortgage lending at Getsmart. com. In 2000, after Providian Bank’s acquisition of Getsmart.com, she joined nCommand as CoFounder, Chief Operating Officer and Chief Financial Officer, where she developed an endto-end virtual loan process for residential lending.

After the acquisition of nCommand by Ellie Mae in 2002 Lani served as Chief Financial Officer and Vice President of Operations at Accruent, a company whose products are used in managing over 1 billion square feet of commercial space for many Fortune 500 companies and large retailers.

In addition, beginning in 2005, Lani served as Director of Operations for Hometown, where she developed the systems technology and processes to underwrite, fund, manage, securitize and sell more than $2 billion in assets. Lani has served on the MBA-sanctioned Governance Board of MISMO (Mortgage Industry Standards Maintenance Organization), attended Arizona State University, and completed the Oracle RDBMS Master’s program for Database Administrators.

For more than 18 years, Gail has focused on socially responsible investing which has presented numerous opportunities in writing, teaching and speaking engagements to national audiences. She is a sought-after speaker for many corporations, government agencies, labor unions, religious groups, non-profit organizations, youth organizations, women’s groups, high schools, and universities. Gail has taught weekly financial training sessions for major corporations. She founded and directed the original Money Camp for Teens and the first Youth Investment that is incorporated in the United States which is just another of the ways in which she invests in the young adults who will be our tomorrow.

Gail was elected as one of Michigan’s Top 10 Business Women by the National Association of Business Women Owner’s in 2007.

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Lisa Rice

Lilyvette Rodriguez

Executive Vice President National Fair Housing Alliance

CEO/Broker Excel Realty

Lisa oversees the communications, resource development, public policy and enforcement initiatives of the agency. She is responsible for helping to achieve the organization’s goal of achieving fair and equal housing opportunities for all people.

Lilyvette has a proven record of success as a broker and real estate agent for over 24 years.

Her 15 years of corporate experience, from working as a legal assistant in the insurance and banking industries, prove to be a continued asset when contract negotiating. She specializes in equity sale, short sale, foreclosure, probate and corporate relocation and her business is WBE and WOSB certified.

Lisa has provided extensive fair housing and fair lending training to consumers, government agencies, insurance companies, lending institutions, regulatory agencies, housing industry professionals, real estate management companies, fair housing agencies, and nonprofit organizations. She has developed certified and accredited fair housing real estate and insurance courses. Lisa has helped to develop fair lending training courses and materials for federal and state regulated financial institutions.

She provides consulting on a wide range of fair housing issues to fair housing organizations, insurance companies, lending institutions and government agencies.

Under her direction, the National Fair Housing Alliance has provided helpful insight to Congress on the development and enactment of numerous laws including the Dodd Frank Wall Street Reform and Consumer Protection Act as well as comments to federal agencies on a broad range of regulations and guidance.

Lilyvette holds multiple certifications/ designations and is a consumer advocate. She believes that an informed community is an enlightened community. Lilyvette hosted a weekly radio show, Real Estate Radio Unplugged, on AM1510 KSPA, Financial News & Talk, a Bloomberg radio station.

In 2003, she co-founded CCFR Community Services, a 501(c) 3 non-profit organization which provides information, resources and access to services for residents in underserved communities. As an active leader in her community she serves as Board President of the Neighborhood Housing Services of The Inland Empire; and as a board member on the WinDS Foundation. She was named Broker of the Year in 2011 by the Orange County Realtists and is Women in Diversified Services 2015 Leadership awardee.

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Notable Women Making An Impact In The 21st Century

Susan Speer

Sandra L Thompson

Vendor Manager Matt Martin Real Estate Management

Deputy Director, Division of Housing Mission & Goals Federal Housing Finance Agency

Susan currently holds the position of Vendor Manager for Matt Martin Real Estate Management.

Going into her 8th year as Vendor Manager of a large Asset Management Company, she focuses on building best in class broker networks through monitoring performance, coaching and conducting regional training and onboarding new coverage as needed. Susan has participated in numerous conferences, panels and round tables and taught REO Agent skills through webinars and C.E. training courses.

Sandra is the Deputy Director, Division of Housing Mission and Goals at the FHFA. She is responsible for policy development, analysis, research and oversight of the mission activities of Fannie Mae and Freddie Mac. Prior to her work at FHFA, Sandra spent 23 years at the FDIC in several executive positions where she last served as the Director of Risk Management Supervision. In this position, she was responsible for the Agency’s nationwide bank supervision and examination programs. She has testified before the House Financial Services Committee and the Senate Banking Committee on issues such as risk management, consumer protection, community banking and other policy matters.

She served as the Acting Chairman of the Board of Directors for the Association of Supervisors of Banks of the Americas (ASBA) which includes bank regulators from 35 countries in North and South American and the Caribbean.

Before joining the FDIC in 1990, Sandra served as an associate with Goldman Sachs in New York City. She holds a degree in finance from Howard University, Washington, D.C.

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Marcia Toms

Carla Ulufanua

2A Project Manager PEMCO, Ltd.

Vice President Portfolio Performance LRC Asset Management

Marcia serves as the 2A Project Manager for PEMCO, LTD in the Atlanta office. She has over 20 years in the industry as a result driven sales manager and trainer. She began her career with PEMCO in 2008. She has trained over 10,000 brokers on the HUD’s sales process. She oversaw and assisted with PEMCO’s HUD sales training classes and has managed over 170 broker partnerships in 13 states and US territories. She has spoken on many panels about the current housing market and HUD.

Carla is an experienced corporate leader with strong background in Default Administration and the management of non-performing loans with an emphasis on Real Estate Owned. She is results oriented with a valuable depth of experience managing programs, strategies and personnel. Her expertise at aligning strategy with organizational goals, moves vision to execution.

Carla is skilled at leading divisions through periods of transformation and change. She has extensive experience in portfolio management, outsourcing, vendor management, and regulatory oversight. Carla thrives at cultivating and maintaining loyal business relationships and overall profitability.

Her most recent accomplishment includes the completion of the NeighborWorks Housing Counselor Program. In June of 2012, she was elected President of the WinDS Foundation.

Marcia is Women in Diversified 2014 Leadership awardee.

Marcia is a graduate of the University of Tennessee, Knoxville where she received her Bachelor of Sociology Degree. She received her Paralegal certification from Clayton State University and received her Master of Public Administration from Walden University.

She is the mother of two wonderful children and enjoys spending quality time with family and friends.

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Notable Women Making An Impact In The 21st Century

Pamela S. Williamson, PhD. C. Renée Wilson

President/CEO Women’s Business Enterprise Council –West Pamela is responsible for the day-to-day operations of WBEC-West, achieving organizational goals and fostering WBEC-West’s mission to serve as corporate America’s premier agent for certification, enhancement and promotion of Women Business Enterprises in the western region.

She brings more than 15 years experience in executive level management, including the Vice President and Deputy Director for META Services. Her extensive experience in developing and implementing innovative alliances with key stakeholders has enabled the organizations she has worked with to reach new levels of growth and stability. The concept of servant leadership is core in every project that is moved forward which fosters strong relationships with constituencies, community partners, and staff creating a solid foundation for growth. Through the implementation of servant leadership principals, Pamela is working to enhance and create innovative ideas for the expansion of the organization.

Pamela holds a Doctorate degree in Health Care Administration, a Master’s degree in Business Administration and bachelor’s degrees in Sociology, Social Work and Psychology from Midwestern State University. april / may 2015

President/CEO/Broker CTS Real Estate Services CTS Consultants Firm Renée has a strong background in the Mortgage Lending and Residential Real Estate. She is the Broker/Owner of CTS Real Estate Services (licensed in 1989), a full service real estate firm.

She is also President & CEO of CTS Consultants Firm (founded in 2004) which provides services to non-profit and for-profit entities, national and local organizations to assist the leadership and board in fulfilling its organization’s mission, goals, objectives and strategic plans.

Renée currently serves as NAREB’s Relationship Manager and State of Housing in Black America – SHIBA Solutions Coordinator. Prior to CTS Consultants and CTS Real Estate Services, Renée was the Houston Branch Manager of the largest minority owned mortgage bank in the country, United International Mortgage Bank, Paralegal at Fulbright & Jaworski and Weil, Gotshal & Manges, LLC. During her tenure as President of the Women’s Council of the Houston Black Real Estate Association, over 1100 children were taught financial literacy and money management skills. In addition, 16 scholarships were provided to Houston students (Elementary, Middle and High School) from un-served and underserved communities.

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Renée has received numerous awards and recognition for her service and commitment to the community. She attended Woodbury University in Los Angeles. Renée has one son, Darryl L. Bowles, Jr.

Rosa Wilson

exclusively for “God’s Woman Award.” She is a member of Alpha Christian Women Ministry, Proverbs 31 Women’s Ministry that provides services, praying and counseling with incarcerated men and women; World Wide Ministry and “United Prayer Line,” a phone ministry.

Some of the ministries in which Rosa Wilson has been and is still involved with are Emergency Visitation, Visitation and Counseling Ministry, Home, Hospital and Convalescent Home Services, Supply Our Daily Bread, God’s Helper, God’s Exhorter, Committed to Service Prayer Ministries, Women at Prayer Universal Conference Prayer Line, Committed to Service Prayer Group-SWA.

Rosa has ministered and fellowshipped with many churches of all denominations throughout the City and directed the 103rd Street Boys and Girls Youth Choir. She assisted her husband with the Jr. Brotherhood (Boys) in conference and meetings. She has studied the Old Testament Survey, Moody Bible Institute, and in 1984, received her Spiritual B.A. Degree at Bibleway Church of God in Christ, Elder Wilbert Warren.

In 1983, Rosa was chosen as “Honored Mother of the Year.” In 1994, Rosa received the recognition

Rosa quotes John 9:4, “I must work the works of Him that sent me while it is day! The night cometh, when no man can work.” Her favorite Bible verse is found in 1Corinthians 15:58 and this scripture in many ways summarizes her life.

Her source of encouragement can be found in this statement: “I shall pass through this world but once. Therefore, if there by any kindness I can show or any good thing I can do, let me do it now.

For I shall not pass this way again.” Rosa is 81 years young.

These are but a few of the notable women during our lifetime. On the surface we may have overlooked the hidden jewel they possess just under the surface. If you want to hear some of the nuggets, they will be presenting May 3 – 5, 2015 at the Marriott Newport Beach Hotel & Spa. Visit: www.

WinDSConference2015.com for more information. I guarantee you, it will enrich you personally and move you to action.

Lilyvette Rodriguez CEO/Broker BRE License #01061272 Excel Realty (909) 333-6008 www.ExcelRealty-IE.com www.Facebook.com/ExcelRealtyIE The PIN MAGAZINE | 87

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Real Estate Agent VIP Benefit Program™

Aka: VIP Agent Program TM

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A G E N T S NANCY BRAUN

AMEER J. ELAHEE

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A G E N T S REGGIE WOODGETT

ARNOLD VER

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A G E N T S TED BRASS

SERINA LOWDEN

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Realtor, Serina Lowden Real Estate

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april / may 2015

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