Vol 3, Issue 3

FRONT AND CENTER she CENTER(FOLD)

MARGARET KELLY

in a candid and informative interview page 26

The DoddFrank Act: WHAT YOU NEED TO KNOW page 30

Investing In Real Estate Technology: NAR’S REACH PROGRAM page 20

Congressional Retirement, REITs, Bulk Sales, and more...

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Vol 3. Issue 3: Front and Center

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FEATURES

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CONGRESSIONAL RETIREMENT: IS IT A GOOD THING?

By Anne Sullivan

WHAT’S THE SCORE? SCORE business mentoring is a valuable resource for small businesses. Have you taken advantage of it?

By SCORETM CONSTANCE FREEDMAN TALKS TO NAWRB ABOUT NAR'S REACH PROGRAM Finding new technology partners for the housing industry

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WHO IS AFRAID OF THE BIG BAD REIT? Are REITs and Bulk Sales hurting the housing market? Will lenders bypass the real estate industry with bulk sales?

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THE DODD-FRANK PRIMER How does the massive Dodd-Frank Act affect components of our industry?

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REOMAC COVERAGE: A look back at the 2014 REOMAC® Annual Education Summit

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WHAT WOMEN WANT What's the new buzzword in Fitness?

Turbulance Training.

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CANCER CELL SLAYERS: Scientists have unlocked systems by which our bodies are equipped to fight and remember cancer cells.

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DEPARTMENTS

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INFOGRAPHIC Housing Market Forecast: What’s Going On in 2014? Steady Rates, Moderate Activity, Slight Rise in Price.

APP MAPP It’s the season for sprucing up on the home front. Use these apps to make your home a clean, organized, and beautiful space.

DEAR DESIRÉE From business to fashion, ask the 23-year real estate veteran your pressing questions.

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SWAN: • SPEAK • WRITE • ATTEND • NETWORK Out of their offices and into the field, where NAWRB members can be seen and heard.

MARGARET KELLY CEO of RE/MAX

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nawrb STAFF & CONTRIBUTORS

PUBLISHER/CEO Desirée Patno Desirée.Patno@NAWRB.com MARKETING DIRECTOR/EDITOR-IN-CHIEF Desirée Patno Desirée.Patno@NAWRB.com EDITORIAL ASSISTANT Lindsay Cabreros lindsay.cabreros@NAWRB.com SENIOR GRAPHIC DESIGNER Kendall Roderick Kendall.Roderick@NAWRB.com she CENTER(FOLD)

GLENDA GABRIEL

CONTRIBUTORS Ann Sullivan ScoreTM Constance Freedman Margaret Kelly Rachel J. Hall N Magazine,the official publication of NAWRB, a monthly magazine featuring unique content for women in the housing economy, exclusive interviews with industry professionals, business development tools, book reviews, feature stories and more. N Magazine welcomes comments from all readers. All materials submitted to N Magazine are subject to editing.

The articles, content, and other information in this publication are for information purposes only. Articles, content, and other information in this publication without named authors are contributed by the publication’s staff, but do not necessarily reflect the views or opinions of NAWRB. NAWRB assumes no liability or responsibility for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon.

www.NAWRB.com (949) 559-9800 | NMag@NAWRB.com 34 Executive Park, Suite 260, Irvine, CA 92614

SVP - Neighborhood Lending Executive Bank of America

small businesses receive new options IN OBTAINING FUNDING NAWRB Responds To The INTERAGENCY POLICY STATEMENT OF THE OMWIs REQUEST FOR COMMENT

The Borrower Effect: Impacts & Implications OF 2014 LOAN LIMITS five things small businesses SHOULD WATCH FOR IN 2014

Policy Prescriptions to Assist WOMEN Women Entrepeneurs: ENTREPRENEURS

THE NATIONAL WOMEN’S BUSINESS COUNCIL RELEASES ITS ANNUAL REPORT

Diversity in THE HOUSING MARKET

SBA: Putting Tools in the Hands of WOMEN ENTREPRENEURS

VOL. 3 / ISSUE 1

VOL. 3 / ISSUE 2

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IS CHANGING REAL ESTATE

TM

SPECIALIZING IN THE HOUSING ECONOMY

SUBSCRIBE NOW Call (949) 559-9800 or email info@nawrb.com today!

We chose Front & Center as the theme for this issue, as it calls to mind the importance of being original, standing tall and always collaborating with engaging women in the housing economy.

Whether speaking at or attending conferences, networking, organizing or hosting charity or educational events, to managing, marketing and growing your own business amidst the rapidly-changing real estate industry landscape, being front and center applies to most of us on an almost daily basis.

This month, we were graced with the opportunity to interview two women who have risen to become industry icons: First we spoke with Constance Freedman, Managing Director at Second Century Ventures, Founder and Managing Director of REach™, and Vice President of Strategic Investments at NAR. Constance is responsible for determining which new technologies will best serve the Real Estate Industry, and how they will be introduced and implemented. When you see DocuSign and Sentrilock, think of Constance Freedman.

Next, we had a very candid, inspirational and insightful interview with Margaret Kelly, CEO of RE/MAX while she was recovering from back surgery.

She is responsible for all operations and strategic direction at RE/MAX across North America, and in more than 90 countries around the world… truly front and center. Margaret Kelly's story and message speaks to all of us on multiple levels: as housing industry professionals, and as women who balance personal challenges, health issues, families and happiness with a rewarding career. The interview was exceptionally heartfelt and moving as I can personally relate to some

of the experiences. We all have bumps in the road, it is how you react to those bumps that define you as a person.

Both of these exceptional women have not only reached a level of success that few can imagine, they are in a position to initiate positive changes with a large outreach to our industry and all of its stakeholders, from business owners, managers and agents, to the consumers and investors.

Congratulations to Orange County SCORETM, CA receiving the award for being recognized as the National Chapter of the Year for 2013. No other SCORETM chapter has received the award more than once. Mentoring programs coincide with NAWRB's recent seminars, which are highlighted in the Speak section of the magazine.

Also, look for more seminars, Call4Alls, articles and information from NAWRB, as we work closely with several organizations to bring new opportunities and insight to women working in the Housing Economy.

monthly health-based articles are not only informative and relevant, they are on the forefront of medical technology and innovation. You need your health and knowledge to succeed in your business endeavors.

We hope that reading about the personal growth and success of business women such as yourself, combined with the treasure of information contributed regularly by the City of Hope, Women Impacting Public Policy (WIPP) and others, inspire you to raise the bar and overcome any obstacles on the path of your own personal achievement.

Desirée Patno Publisher/CEO Desirée.Patno@NAWRB.com

We are ever-grateful for our relationship that continues to flourish and grow with the City of Hope. Their N MAGAZINE |

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infoGRAPHIC

Housing Market Forecast:

STEADY RATES, MODERATE AC HOME PRICES

TOP MARKET

DEMOGRAPHIC

CMBS REVIVAL

Despite a weak first quarter, home prices are still expected to rise by 7% in 2014. The weakness is due to severe winter weather, a transition to mortgage credit-dependent buyers, and affordability challenges for first-time home buyers.1

San Francisco is again the topranked housing market, with the economy projected to add jobs at a 2% rate, with 36% of new residents moving into the metro area, and a 5.5% growth in personal income.2

Generation Y— those people born between 1979 and 1995—is approaching the size of the baby boom generation. Gen Y'ers prefer to live in medium-sized or big cities.

There are now 72 million gen Y'ers in the United States. 2

Commercial mortgage-backed securities are estimated to originate $100 billion or more in 2014 to pick up the slack if commercial banks, insurance companies, private equity players, and mortgage real estate investment trusts (REITs) cannot keep pace with new demand for debt capital. 2

SHIFTS

5.5 7

PERCENT

PERCENT

SOURCES 1. www.housingwire.com 2. Emerging Trends in Real Estate® 2014, produced by the Urban Land Institute and PWC

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72 MILLION

100

$

BILLION

3. newsroom.transunion.com 4. bnymellon.com, Outlook 2014: Chief Economist Richard Hoey presents his outlook for 2014

infoGRAPHIC

What’s Going On in 2014

CTIVITY, SLIGHT RISE IN PRICE. MORTGAGE DELINQUENCY

WAREHOUSING

RESIDENTIAL SALES

ECONOMIC GROWTH

The national mortgage loan delinquency rate (the ratio of borrowers 60 or more days past due) is expected to decline to 3.75% in 2014. By the end of 2013, the mortgage delinquency rate had dropped below 4% for the first time since 2008.3

In industrial real estate, warehousing stands out as the strongest prospect in both investment and development. This subsector received the most “buy” recommendations—64%— of all sectors in the Emerging Trends in Real Estate 2014 survey, reflecting the expanding influence of e-commerce distribution networks.2

Freddie Mac lowered its forecast for home sales from 5.6 million to 5.5 million, due to tight inventory causing higher home prices and lower sales than expected.1

After more than four years of subpar economic growth near 2%, a “three for three” pattern of roughly 3% real gross domestic product (GDP) growth is expected in the U.S. for the next three years. The U.S. is believed to have passed the midpoint of a seven-year economic expansion.4

STRONG

4

PERCENT

64

5.5 MILLION

3

PERCENT

PERCENT

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appMAPP Chairish Buy and sell high-quality, pre-loved vintage furniture and home décor. For sellers, Chairish offers two options: standard and concierge service. With standard service, the seller writes the description and takes the photographs before Chairish approves the item for sale. With concierge service, Chairish physically reviews the item, takes the photos, and writes the descriptions. Either way, Chairish handles the rest—product merchandising, delivery, and payment. Chairish’s “Rehab Clinic” features pieces that need extra work for homeowners and decorators who love to customize or recover items. FREE.

It's the season for sprucing up the home front. Here are some apps we found to assist with cleaning, organizing and beautifying your home.

BrightNest Shape up your home and simplify your life. BrightNest’s mission is to make homeowners happy. BrightNest is a personalized app that helps you tackle important home tasks with instructions, scheduling, customized tips and helpful reminders. Use BrightNest’s home quiz to personalize your experience even more.

Explore thousands of cleaning, organizing, DIY projects, design, and maintenance articles such as chalkboard paint ideas, unclogging a showerhead, and cleaning your microwave with lemon. The site also features fun, creative projects that won’t break the bank. FREE.

ChoreMonster Help your kids love doing their chores! ChoreMonster makes chores fun by engaging and rewarding kids.

Completing chores is made into a game by this clever app; kids work for points that earn rewards established by you. Once you have approved completion of a chore, your child receives a ticket to spin the wheel in the Monster Carnival. When your child spins the wheel, they have a chance to win a Monster or a consolation prize. You can even have them earn points for activities and items they previously viewed as an entitlement, helping them see what their good behavior brings them. FREE.

GoodGuide Use the GoodGuide app to find safe, healthy, green and socially responsible products based on scientific ratings.

GoodGuide includes ratings on more than 210,000 products. With the barcode scanner, you can do your research in the aisle of the store while you are shopping. GoodGuide will also suggest healthier alternatives for products. The GoodGuide ratings are based on scores in three areas: health, environment, and society. Each scoring area has several classes of indicators which are explained in detail. You can look at as much data or as little as you would like. FREE.

Color Capture® Snap a photo of any colored object that catches your eye, and Color Capture® will match it to Benjamin Moore’s palette of more than 3,500 paint colors. Then, share your favorite colors on Facebook®, Twitter®, and email. You may save your photos and their coordinating colors to your Favorites. You may also group colors in Favorites to create personalized combos and access the Benjamin Moore full-spectrum color wheel to search colors. Also, browse through Benjamin Moore’s large collection of color cards for inspiration. FREE.

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dearDESIRÉE

“Thoroughly checking out the company and individual you are trusting to be a voice for your company is key to changing over to a virtual assistant business model. Ongoing periodic follow-ups, vital to all aspects of running a company, provides accountability to running a successful company.” to be limited to certain job functions, as clients can have very strict requirements on accessibility to their systems (especially when dealing with government or financial entities).

Questions were submitted by individuals working in the housing economy You can submit your questions to: Dear.Desirée@nawrb.com “Given the recent slowdown in inventory, I am considering using a virtual assistant to replace full-time office staff.

Do you have any recommendations or opinions?”

Some of our members have had great success with virtual assistants, and virtual offices for that matter. I have one colleague who uses a virtual assistant to contact Notice of Default leads and send out information, and I know others who have used virtual assistants to replace their receptionist staff. Thoroughly checking out the company and individual you are trusting to be a voice for your company is key to changing over to a virtual assistant business model. Ongoing periodic follow-ups, vital to all aspects of running a company, provides accountability to running a successful company.

A good virtual assistant, especially for small operations, can help allow the company to grow with limited cash flow.

A word of caution, virtual assistants need

“I hired an assistant who was a licensed real estate agent. She was smart and enthusiastic, so I trained her and trusted her with all phases of my businesses. To make a long story short, she left, and is now using my contacts, workflow procedures and ideas to compete with me in her own business. What can I do?”

Sadly, you cannot really fix this specific situation. In the future, though, work with an attorney to draft an enforceable non-compete/non-disclosure agreement.

Not only should you have future employees sign it, but go over it verbally with them so they understand exactly what it means. In addition, it is safer for you to be the main point of contact for your clients, even if it is more work for you.

To minimize your risk, don’t make an employee the single point of contact or name them on your accounts.

Should I consider pursuing REO business when the supply of properties is decreasing? Is it still a good idea?

There are still several REOs and more in the pipeline. If you are very committed to working hard and working the listings, I would encourage you to pursue REOs. Several agents in the industry and especially in the REO space have left the industry in comparison. There is less inventory, yet opportunities. As you network, you will grow your contacts that can help facilitate with other connections to help your business, ie. Short sale approvals.

“Should I consider a Voice over Internet Protocol (VoIP) phone system for my office?”

There are clear advantages with a VoIP phone system. Because you are using your Internet connection to make phone calls, you will eliminate your phone company bill for landlines. You may make a phone call from anywhere you have broadband connectivity, so if you are traveling on business, you can take your phone with you. Another option is to place calls with your laptop using a headset/microphone anywhere you can connect to the Internet. Most of the services that regular phone companies charge extra for are included free of charge, such as Caller ID, call waiting, call transfer, repeat dial, return call, and three-way calling. With many VoIP services, you can also check voice mail on the Internet or attach messages to an email that is sent to you on your computer or cell phone.

Disadvantages include the possibility of sound distortion if you are downloading a large file from the internet while using the same internet connection for your call. Additionally, if you have a power outage, your VOIP system will not work unless you have a backup battery. If you are considering VoIP in your home, you need to consider that home security systems use a standard phone line and are not currently able to be integrated with VoIP. Also, emergency 911 calls on a VoIP may not be able to associated with a geographic location.

So, if you are considering switching, do your homework to make sure that VoIP will work for you.

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Government

CONGRESSIONAL

RETIREMENT: Is It a Good Thing?

By ANN SULLIVAN

lection Day is November 4, a whopping 6 months – 30 weeks – from now. For most of us, that is an eternity away. For Members of Congress, however, November elections are knocking on the door. It seems absurd, but the evolving dynamics of Congressional races have changed both the way Washington works and the political calculus of elected officials.

Members of Congress retiring this year fall into two general camps: those who are genuinely tired and those who are tired of partisan gridlock. A growing number of “retirements” are the results of frustration, discontent, and political reality – forced decisions rather than ready to quit working. Many are pragmatists – Republican and Democrat – who are tired

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of Washington gridlock and polarization.

As of April 15, 2014, 27 Representatives and seven Senators have announced that they will not seek reelection this fall. Another 13 Representatives have announced intentions to seek open Senate seats in their states, opening up their seats. Taken as a whole, about 6 percent of the House and 7 percent of the Senate will not walk the marble halls of Congress next year.

Another interesting aspect of the group of pending retirees is the fact that only two are women – Reps. Michele Bachman (R-MN) and Carolyn McCarthy (D-NY). The 113th Congress is the most diverse Congress in history, with 101 female legislators – 20 Senators and

81 Representatives. With at least 48 vacancies opening up, not including sitting Members of Congress who may lose their reelections, women stand a good chance of increasing those numbers in the coming year.

Retirements of 6 or 7 percent do not seem particularly high or out of the norm, especially when compared to previous Congresses. According to Roll Call, an average of 22 Representatives retire each year, a number not too far off from this year’s 27 announcements. So why is there this impression that everyone is quitting? It is not the numbers, but rather, who has announced they will not run for reelection – some of Congress’ biggest names are calling it quits this year, including:

Government • Senator Tom Harkin (D-IA), 5 terms, Chair, Senate Committee on Health, Education, Labor, and Pensions

“This year, nine retiring Members of Congress are Committee Chairs – an unusually large number. ”

• Representative Howard “Buck” McKeon (R-CA), 11 terms, Chair, House Armed Services Committee

• Representative Henry Waxman (D-CA), 20 terms, Ranking Member and former Chair, House Energy and Commerce Committee • Senator Tom Coburn (ROK), 2 terms, Ranking Member, Senate Homeland Security and Government Affairs Committee

• Representative George Miller (D-CA), 20 terms, Ranking Member and former Chair, House Education and Workforce Committee • Senator Carl Levin (D-MI), 6 terms, Chair, Senate Armed Services Committee

• Senator Max Baucus (DMT), 6 terms, Chair, Senate Finance Committee

• Representative Doc Hastings (R-WA), 10 terms, Chair, House Natural Resources Committee

Let’s take a look at one particularly illustrative example of how one Senator leaving Congress can have far-reaching consequences. Earlier this year, Senator Max Baucus (D-MT) – already said to be mulling retirement – was confirmed to serve as President Obama’s Ambassador to China. On the one hand, after serving nearly 40 years in Congress, most

Women in Congress will get a better chance at being Committee Chairs.

recently as Chair of the Senate’s Finance Committee, one might assume that this was a fitting cap to a long legislative career. However, the implications of his retirement from the Senate were in fact far-reaching.

One: It precipitated a round of musical chairs, as Senator Ron Wyden (D-OR) assumed the Chairmanship of the Finance Committee, allowing Senator Mary L. Landrieu (D-LA) to leave her post as head of the Committee on Small Business and Entrepreneurship and take Senator Wyden’s old job as Chair of the Senate Energy and Natural Resources Committee. That in turn allowed Senator Maria Cantwell (D-WA) to relinquish her Chairmanship of the Indian Affairs Committee in favor of the Senate Committee on Small Business and Entrepreneurship. Replacing Senator Cantwell at Indian Affairs is Senator Jon Tester (D-MT).

Two: After spending two years working with his counterpart—Chairman of the Committee on Ways and Means Dave Camp (R-MI)—to develop a set of principles to guide comprehensive tax reform, Senator Baucus’ departure from Congress effectively doomed any

chance for tax reform in the Senate. Not long thereafter, Chair Camp announced that he too would retire from Congress at the end of this year. So, not only do both of their retirements put tax reform on hold for the foreseeable future, but the institutional knowledge and intimate understanding of the intricacies of the U.S. tax code will no longer be around. Some would argue that’s a good thing.

Not only do retirements affect who chairs Committees, but the Republicans in Congress instituted “term limits” in 1994.

Looking for a way to rotate Committee leadership, then-Speaker Newt Gingrich (R-GA) adopted a rule that Committee Chairs could only serve in that capacity for a total of three terms in Congress, even if it was spent in the minority. Senate Republicans adopted similar rules allowing for six years as Chair. Democrats in Congress did not. Even if the Chair of a powerful Committee does not retire from Congress, once his or her time is up, there is not much of an incentive to hang around if your status in Congress goes back to just being a rank-and-file member of the Committee. This may have heavily influenced Chair Camp’s decision to leave Congress.

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Government “With at least 48 vacancies opening up, not including sitting Members of Congress who may lose their reelections, women stand a good chance of increasing those numbers in the coming year.”

With one-third of Senate seats up for election each year, retirements this cycle could determine which party controls the Senate starting in January 2015.

Three: His retirement has the potential to upend Democratic control of the Senate.

Senator Baucus was well-liked by his constituents and consistently received strong support back home in Montana, winning his last re-election battle in a landslide victory. He received 73% of the vote and carried every county in the state. With no incumbent on the ticket in Montana, most political observers are listing Montana as either “toss up” or “lean republican.” With one-third of Senate seats up for election each year, retirements this cycle could determine which party controls the Senate starting in January 2015.

Two other races that could decide the balance of power in the Senate next year feature two strong women. In Georgia, a number of Republican hopefuls, including three sitting Congressmen, are gearing up for a primary battle to replace retiring Senator Saxby Chambliss (RGA). On the Democratic side, Michelle Nunn, daughter of longtime Georgia

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Senator Sam Nunn Jr. (D-GA), is likely to capture the nomination and could emerge victorious, according to Christina Bellantoni, a former political editor for PBS NewsHour.

Similarly, the Senate race unfolding in Kentucky is drawing a lot of attention.

Senate Minority Leader Mitch McConnell (R-KY) will likely face Democrat Allison Lundergan Grimes. Although he is not retiring, he is the senior Republican leader in the Senate. One of the key themes of Ms. Lundergan Grimes’ candidacy is breaking political gridlock in Washington, where a win for her could serve as a referendum on the status quo. Could a win for her serve as a warning shot to sitting Members of Congress?

When the Founding Fathers wrote the Constitution, they were very particular in the design and function of the House and Senate. For one, they certainly believed that turnover in ranks

of elected politicians was a good thing.

This is why every Member of the House of Representatives must be elected every two years. On the other hand, they purposely designed the Senate so that it would not be subject to the whims of the majority. In fact, James Madison originally proposed Senate terms of seven or nine years to insulate the Senate from what some called the “amazing violence and turbulence of the democratic spirit.”

They compromised on six-year terms on a rotating schedule so that only one-third of Senators stand for election every two years. The system was designed specifically to reduce “Congressional brain drain” and ensures that the Senate operates continuously (it has been since 1789), protecting institutional knowledge.

Government

A win for her could serve as a referendum on the status quo.

Committee Chairs usually spend years getting to know the inner workings of the issues under their Committee’s jurisdiction, building a knowledge base accumulated over years of hearings on particular issues. We know how this impacted the prospects of comprehensive tax reform. One of the staunchest proponents for comprehensive climate change legislation (Rep. Waxman) will depart this year. Two of the most respected Armed Services Committee Chairs (Sen. Levin and Rep. McKeon) will depart. Chairs of Committees that oversee healthcare, workforce and labor policies, regulation of natural resources, among many other will all leave at the end of this year. Incoming Committee Chairs, whoever they may be, will have a lot of learning to do come January 2015.

I recently spoke with a respected candidate running in a competitive primary race in my home state of Virginia about the decision to run for Congress. The response was simple: “If we want to have bipartisan discussions, if we want to get back to the work of governing, we need to chip away at the system, one District at a time, one state at a time.”

Regardless of the outcome of particular races this November, there will be many new faces in Washington. Change is not a bad thing. There is nothing wrong with a change in leadership. Given the portrayal of Washington in the media over

the last couple of years, maybe new faces and fresh blood will rejuvenate a House and Senate, both ailing and unable to govern effectively. Women in Congress will get a better chance at being Committee Chairs and retirements will enable more women to run. They will have big shoes to fill and a lot of work to do, but if you look at it that way, maybe the slew of retirements is a good thing, one Congressional seat at a time.

Ann Sullivan WIPP Government Relations 1156 15th Street, NW, Suite 1100 Washington, DC 20005 202-626-8528 N MAGAZINE |

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SBA BUSINESS

WHAT’S the

SCORE?

SCORE business mentoring is a valuable resource for small businesses. Have you taken advantage of it?

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ast month you read about all the fantastic resources available to you through the U.S. Small Business Administration (SBA) and its resource partners, including SCORE. This month we delve deeper into how SCORE assists entrepreneurs like you in starting and growing business enterprises every day all across the country.

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Started in 1964, SCORE (Service Corps of Retired Executives) is a nonprofit association dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. Celebrating its 50th anniversary this year, SCORE has assisted over 10 million of America’s entrepreneurs in that time. As a national organization, SCORE is comprised

of over 11,000 volunteers available at 320+ locations throughout the country and online. In 2013, the work of SCORE’s volunteer mentors and small business clients resulted in 38,630 new businesses started and 67,319 new jobs created in the U.S. SCORE accomplishes these results through a variety of methods including educational workshops, webinars, and helpful online resources, but the real value that sets it apart from other organizations is free, personalized, one-onone mentoring by business experts who have truly “been there and done that.”

SCORE’s brigade of 11,000+ volunteer mentors is made up of men and women who are both retired and currently working, with experience in a huge variety of industries and fields. And true to the organization’s motto, SCORE mentors are there to assist “For the Life of Your Business” – from concept to creation, through

SBA BUSINESS

“In 2013 alone, SCORE OC helped start 774 new businesses, grow 1,082 businesses and create 327 new jobs in their community.� en Business Owners Conferences. The annual conference is a fantastic opportunity for female business owners to hear from knowledgeable speakers, learn from successful peers and network with others. growth and even eventual exit.

With 320+ chapters, many with their own additional branch locations, and a robust online educational offering, SCORE seeks to serve entrepreneurs through whichever information outlet is most convenient for them. One chapter in particular located in Orange County, California was recently named the 2013 SCORE Chapter of the Year for its commitment to excellence in serving entrepreneurs.

SCORE Orange County (OC) consistently serves the highest number of clients of all the SCORE chapters across the nation. In 2013 alone, SCORE OC helped start 774 new businesses, grow 1,082 businesses and create 327 new jobs in their community. But this chapter succeeds in much more than volume alone - a culture of innovation is their hallmark, driving continual ex-

pansion and improvement in services, bringing more and more clients into their educational and mentoring services.

One of the most groundbreaking developments to come out of Orange County is the concept of the CEO Forum program. These forums consist of monthly half-day collaborative meetings of small business owners that are facilitated by SCORE mentors.

SCORE OC hosts seven of these ongoing forums with over 80 small business owners, and the concept has now been successfully replicated in a number of other SCORE chapters, including Minneapolis and San Diego.

SCORE OC has also made it a priority to effectively serve female entrepreneurs by hosting bi-monthly Women in Business Breakfasts that facilitate learning and networking, as well as annual Wom-

In fact, SCORE OC has been so successful in helping local businesses start and grow that two of their small business clients were chosen from nominees across the country to be honored with national SCORE awards in August of 2013.

ViArch Integrated Solutions, a leading provider of automated precision measurement and control solutions, was named the 2013 SCORE Outstanding Minority-Owned Small Business award winner. Owners Angela and Eric Jones teamed up to start their business in April of 2008. They both had the technical know-how to achieve great results for their prospective clients in the aerospace industry, but needed help with their marketing and sales tactics. They worked with SCORE OC mentor John Pietro to create a thorough and thoughtful plan to keep their enterprise on track towards their goals. Angela reflects on N MAGAZINE |

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SBA BUSINESS

Larry Tucker, SCORE Chairman.

the start of their business saying, “We spent a lot of wasted effort reacting to issues we could have anticipated and addressed ahead of time, had we only done a bit of planning at the start. After working with SCORE Orange County, we gained critical business knowledge and management skills, and are in a better position to plan and strategize as well as operate our business effectively going forward. Compared to the alternative, I much prefer having a ‘map’ directing us where we are going, with a plan for addressing hurdles when they arise.”ViArch now boasts an impressive list of clients including The Boeing Company.

Orange County’s second national award winner caters to a slightly different clientbase: pet lovers! Dog is Good, a

SCORE mentors are there to assist “For the Life of Your Business.”

pet-themed retail operation in Los Alamitos, took home the 2013 SCORE Outstanding Veteran-Owned Small Business award. Owners Jon and Gila Kurtz knew being entrepreneurs was in their blood. In 2005 the couple recognized a void in the pet marketplace and seized the opportunity to start their own business. By 2008, Jon (an active captain in the U.S. Navy) and Gila (a professional dog trainer) began designing and selling dog-themed apparel at small retail events such as charity dog walks and fundraisers. Eventually they began selling their products in retail stores in Orange County and Los Angeles

FRONT ROW: Chair, Larry Tucker; Vice-Chair Outreach, David Harris | BACK ROW: Secretary, Lynn Dines; Treasurer, Zach Smith; Vice-Chair Operations, Rico Becerra; Vice-Chair Events, Bruno Windegger; Assistant Secretary, Elissa Warantz.

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County. By the end of 2009, their revenues had nearly quadrupled, and sales have grown every year since then. When Jon and Gila needed help taking their business to the next level they turned to SCORE OC and met with Tom Patty, a marketing expert and SCORE mentor, who helped them focus their message to keep it centered on their core audience. With these defined goals in mind, the Kurtzes have begun licensing other products and are now branching into cat and horse products as well.

ViArch Integrated Solutions and Dog is Good are just two of the 10 million small business owners who have benefited from working with SCORE mentors over the past 50 years. And SCORE Orange County is just one chapter of more than 320 across the country that is dedicated to helping small businesses start and grow. With free expert business advice just a click or call away, why not take advantage of the wisdom and insight a SCORE mentor can bring to your business? Get started at www.score.org or by calling 1-800-634-0245.

Technology

CONSTANCE FREEDMAN

Talks to NAWRB about

Founder and Managing Director of REach™ Vice President of Strategic Investments

C

onstance Freedman took some time out of her extraordinarily busy schedule to talk to us about Second City Ventures and REach. REach is NAR’s program to hand-pick technology startup companies that can provide value to the Real Estate Industry, and help them grow and integrate with the industry.

The Second Century Ventures Fund (SCV) is a fund set up by the National Association of Realtors (NAR) six years ago, after their 100th anniversary (hence the name Second Century). Constance Freedman manages all aspects of the fund, from cultivating investment opportunities to helping portfolio companies achieve their strategic goals.

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REach

NAR’s

Constance Freedman Managing Director at Second Century Ventures

PROGRAM

Constance is also Managing Director of REach™, Second Century Ventures’ technology accelerator program.

It is a known fact that Real Estate represents 15% of the U.S. economy, over $7 billion of ad spend and 2.5 million jobs. If you were a technology company that developed a hot product, how do you break into the Real Estate market? You apply for REach, and if selected, NAR partners with you to make your name synonymous with Real Estate. It’s literally a dream come true for tech startups that can benefit the industry.

“NAR is the nation’s largest trade organization, and they literally hold your hand and give you access to their 1 mil-

lion plus members. It’s more than just acceleration,” says Constance.

To clarify and give some background, we are really talking about two different entities here, Second Century Ventures, and REach. SCV is the investment arm of NAR, providing capital and resources to companies that can benefit the Real Estate Industry. Some past SCV investments include such familiar brands as ePropertyData, ZipLogix, Sentrilock, ifbyphone, Move Inc., and DocuSign.

SCV actually funds the tech startups, whereas REach mentors and fine tunes the tech startups, then introduces them to the Real Estate Industry as preferred partners, accelerating their growth without providing actual startup capitol.

Technology

REach mentors and fine tunes the tech startups, then introduces them to the real estate industry

Most companies that are considered for either SCV or REach have a product or service that can serve a number of different industries, including Real Estate. For example, DocuSign provides enormous value to any industry with tight deadlines and that requires authenticated signatures, but the revolutionary value and convenience if offered the Real Estate Industry was enough to make SCV give them financial backing and literally roll out the red carpet to present DocuSign to the Real Estate Industry.

“Some companies don’t meet SCV’s investment threshold, but still have great potential, so we created REach to help them accelerate into the Real Estate Industry with mentoring, exposure, access to investment opportunities, and guidance on how to target this crazy industry,” says Constance.

REach helps companies tailor their product or service specifically to the Real

Estate Industry. REach mentors (some of the most highly regarded executives and entrepreneurs in the industry from companies with combined revenues of several billion dollars in real estate alone) guide them in optimizing both their marketing efforts and product offering to be real estate specific. REach also provides focus groups comprised of real estate professionals, to give real feedback on the product before it hits the market.

But by far, the greatest benefit of REach is being associated with, and introduced by, the National Association of Realtors.

Having NAR introduce you as a preferred product and technology partner carries some serious weight; real estate professionals will not bother to stop and compare your product to your competitors’ after NAR has given their seal of approval.

For real estate professionals, both SCV

and REach help them sort through the thousands of technology options, and immediately know which ones to choose, as they’ve been researched, tried and tested by NAR. The result is a true win-win situation for NAR, their chosen technology partners, and the Real Estate professionals who will come to rely on them.

“Some companies don’t meet SCV’s investment threshold, but still have great potential, so we created REach to help them accelerate into the Real Estate Industry with mentoring, exposure, access to investment opportunities, and guidance on how to target this crazy industry.”

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Technology

“NAR is the nation’s largest trade organization, and they literally hold your hand and give you access to their 1 million plus members. It’s more than just acceleration.”

The 2013 REach Program GRADUATES Are:

• BombBomb – Provides a complete e-mail and video marketing platform for developing, sending and tracking results of traditional and video e-mail campaigns from any device.

• Lumentus – Gives companies a measurable edge in identifying, understanding and engaging social media communities keeping social media communications on brand and on mission.

• Planwise – Offers a financial planning service that enables individuals to plan for major life events by simply and visually testing real-life scenarios.

• Reach150 – Provides a turnkey referral platform for service professionals to quickly build a positive reputation online.

• Updater – Provides a free service for anyone who is moving to easily forward mail, update accounts, transfer utilities, and sign up for home services in a single location.

• Workface – Offers a unique, quick-to-deploy live chat (text, audio, video) software platform for real time oneon-one conversations at a customer’s moment of interest.

The COMPANIES ENTERING the REach accelerator program for 2014 are:

• Back At You Media – A complete lead generation and communication technology for social media.

• Deductr – Helping independent contractors and small business owners keep their hard-earned money by automatically tracking expenses, mileage and time.

• Desktime – Helps brokers, business owners and landlords build relationships and earn extra income by helping clients turn unused office space into cash.

• Fundwell – Connects small businesses with prequalified lenders that will fund their real estate needs and business expansion plans.

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• Goby – Software as a Service platform that tracks energy utilization in buildings to optimize efficiency and regulatory reporting.

• SendHub – All-inclusive business phone suite that features mobile, flexible, and connected telephony for real estate professionals.

• SmartZip – The national leader in real estate analytics and predictive marketing.

• WeVideo – The easiest online video creation platform, providing video editing, collaboration, and sharing across any device, including mobile, tablets, laptops and PCs.

sheSHOWCASE KRISTIE ARSLAN

SHOWCASE

she

Executive Director, WIPP Kristie leads the organization in its efforts to advocate for women and minority business owners on economic policy and current legislative initiatives that impact business health and growth.

AMANDA BROWN

NWBC Executive Director The National Women’s Business Council (NWBC) announced its new Executive Director: Amanda Brown. Amanda was most recently the National Political Director for Rock the Vote. She is a Forbes 2014 30-under-30 recipient and has previously served as an Advisor for Strategic Planning to the U.S. Department of Energy Secretary Steven Chu.

YURI BLANCO

RE/MAX Executives Yuri was nominated as one of the Top Business Leaders for the State of Idaho. Yuri says, “It was encouraging and humbling to receive the email and just the fact that I was nominated is more than rewarding!

Thanks to my ROCKSTAR team!”

ANGELA MACIEL-GIBBONS

Home Smart Professionals Angela Maciel-Gibbons received her green designation from NAR as well as CRS designation.

SHOWCASING

WOMEN WHO ARE

‘ON THE MOVE’ in the Housing Economy

MARIA CONTRERAS-SWEET SBA Administrator Maria Contreras-Sweet became the 24th Administrator of the U.S. Small Business Administration and a member of President Obama’s Cabinet in April of 2014.

KELLY WOOD

Wood Realty Group Kelly Wood received her WOSB Certification.

State of the INDUSTRY

BIG Who is AFRAID of the

BAD

reit?

Are REITs and Bulk Sales hurting the housing market? Will lenders bypass the real estate industry with bulk sales?

L

et’s start with REITs.

REITs, or real estate investment trusts, are often referred to as “real estate stock.” REITs are corporate entities that own a portfolio of properties and/or mortgage loans. Anyone can buy shares in a publicly traded REIT, and they are an attractive option for investors, since they offer the benefits of property ownership without the hassles of being a landlord.

REIT shares can be sold quickly, providing the key advantage of liquidity.

There is also higher yield and less risk, since the investment is in an entire portfolio of properties, not just one or two.

REITs came into being in 1960, when Congress decided to made it possible for smaller investors to invest in largescale, income-producing real estate via the purchase of equity, the same way one can buy stock in corporations in any industry.

Types of REITs REITs generally fall into three categories: equity REITs, mortgage REITs, and hybrid REITs, with equity REITs (a.k.a. eREITs) being the largest category. Equity REITs own and manage

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income-producing real estate, which are acquired through bulk sales at discount prices directly from banks. Mortgage REITs, on the other hand, earn money either in the form of interest on mortgage loans or through the acquisition of mortgage-backed securities. Hybrid REITs invest in both properties and mortgages.

Investment trust firms benefit from the discount prices obtained from bulk purchases, enabling them to yield higher and faster returns. Banks enjoy the clear and much-needed benefit of being able to dispose of large volumes of non-performing assets without having to pay administrative costs, maintenance costs and broker fees to list each one separately. However, what is good for banks and investors is seldom good for the average homeowner.

Concerns Some argue that regulators should expand their oversight of the large REITs that use borrowed money to invest in mortgage-backed securities, as the rise in interest rates may lead the firms into asset sales that destabilize markets and potentially damage the broader U.S. economy. The reliance by the industry on short-term loans to invest in gov-

ernment-backed mortgage securities involve interrelated risks, and should be monitored closely to reduce the risk of a cascading failure of counterparties with systemic implications. Sizable disruptions in the secondary mortgage markets against the possibility of rising mortgage rates could also have macroeconomic implications, jeopardizing the already-fragile housing market recovery.

The New Landlord Most of us thought the single family rental market was robust before the housing market crash, with sixteen million SFRs already designated as rentals in 2010. If we add to the mix approximately five million foreclosed homes, and consider that many of them will become investor-owned rental units, we begin to see the enormity of the impact of bulk SFR sales that are allocated as rentals.

Thus, the REO-To-Rental market has emerged as an institutional asset class.

The bulk sale-to-rental model provides a long-term rental income stream as well as the opportunity for appreciation. Consider the fact that these bulk sales are contributing to an inventory shortage on the open market, which

State of the INDUSTRY

home ownership - our government has historically recognized the stability that home ownership brings to communities, particularly urban communities.

Programs such as the Community Reinvestment Act of 1977 served to boost ownership amongst those who would otherwise be shut out of the home ownership opportunity. Transferring increasing numbers of properties to big fund investors may turn the U.S. into a nation of renters instead of a nation of owners.

means the model itself is ensuring faster appreciation as home prices increase due to limited supply. Many argue that this win-win for investors is a no-win for prospective homeowners, especially those who are rapidly getting priced out of the market. And those who get priced out of the market most likely end up renting, further feeding into the bulk sale investor’s win-win scenario.

thousands of foreclosed assets weighing down their books, banks began to quickly follow suit to dispose of bulk assets. When you consider that Fannie and Freddie own approximately 200,000 homes, and the nation’s banks own close to 600,000 homes, it is a feasible argument that the shift toward bulk sales will inevitably slow or halt the recovery of the housing market.

“Many argue that this win-win for Although economic indicators show that housing market investors is a no-win for prospec- the is improving, many that tighttive homeowners, especially those believe ened lending restricwho are rapidly getting priced tions, negative equity, the deleveraging of borrowers and lendout of the market." ers, and the overhang of delinquencies will continue to suppress owner-occupied What do critics say? home sales while increasing the perMany housing industry professionals centage of renters. If a large chunk of are objecting to bulk foreclosure sales, purchases are by investors and REITs, considering them a gift for investors at only investors benefit, and individual the expense of taxpayers and prospective buyers and real estate professionals are home buyers, and calling for changes at excluded from the marketplace. We are the Federal Housing Finance Agency looking at an entirely different real estate (FHFA), the agency that initiated the market with rapid gains in momentum program. While the bulk sale-to-rent down this path. program was initiated by the FHFA to help Fannie and Freddie unload Bulk Sales inhibit the social benefits of

In an industry already devastated by dramatic reductions in earnings and inventory, bulk sales are forcing more and more real estate professionals to abandon their careers. The ‘shadow inventory’ or 2nd wave, that was once a buzzword that held promise among real estate professionals, has not yet made it to the market, and it is hard to predict at this point how much (if any of it) will. Another looming concern is that bulk sales may lead lenders to move back into the practice of direct selling in competition with agents, a clear conflict of interest.

Conclusion While bulk sale purchases may yield significant ROIs for investors, the housing market at the MLS level will suffer from the loss of properties, which feeds a rise in home prices bolstered by the massively disruptive speculator intrusion. Many housing industry professionals will leave the industry. Future home buyers are left to wrestle with the consequential inflated housing prices, as critics accuse the FHFA of choosing to support investors instead of Americans that want a home to own and live in.

Despite such concerns, there is reason to believe that bulk sales to REITs, under a watchful eye, can help lighten the burden of REO inventory, which remains heavy.

RealtyTrac estimates that the industry still has some 600,000 bank-owned homes to sell, and they can’t all go to bulk sale. Will the industry adapt?

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sheCENTER(FOLD)

MARGARET KELLY

CEO of RE/MAX

RE/MAX's CEO Powerhouse

Margaret Kelly

NAWRB is honored to have had the opportunity to have an insightful and candid interview with Margaret Kelly, CEO of RE/MAX. Kelly is responsible for the day-to-day operations and strategic direction at RE/MAX across North America and in more than 95 countries around the world. She is recognized by countless organizations for her exceptional leadership skills, commitment to community involvement, and for being an advocate for businesswomen around the globe. Kelly has not only had a phenomenal, 27-year career with RE/MAX, she is an incredible person with valuable insight to both personal and professional matters.

N

AWRB: I've read a lot about you, particularly that you've learned some valuable life lessons and developed a solid work ethic from working in your family's factory throughout most of your youth. Could you share some of those lessons and experiences that have helped shape and motivate you?

M. KELLY: You know, it's funny. I'm in this position, and still to this day, I remind myself that I'm CEO of RE/MAX. It wasn't a goal. My biggest goal growing up was to go to a community college, get a bookkeeping degree and just be a bookkeeper somewhere. My parents would say, "Don't go to college; get married and have kids."

I didn't want to work in the factory that my family owned.

It was noisy, dirty, and I had been working there 10 years. I thought education would get me out, so all I cared about at the time was to go to a two-year college. I didn't think of going to a four-year college at the time because the message my parents inadvertently gave to us was, "All of those things are for other people. We don't have a lot of money‌we work, and that's what we do." So, I always thought that things like vacations, new cars and store-bought clothes were for other people, not for us. The first time I ever questioned it was when I decided to go to college.

Once I was in community college, I saw the other students moving on and getting four-year degrees. I realized that may be the next step, so I ended up getting a finance degree. The opportunities that came my way paved the road for me. I never had my eyes set five years down the road. I just took advantage of various opportunities that came, one at a time.

One of the first and most valuable lessons that my father gave me was when one day I wanted to take time off work in our factory, but I literally had thousands of pieces on one side of a machine that needed to be worked on. I had an empty bin on the other side to put the finished pieces in after I worked on each one, and I was extremely discouraged. I complained to my father, "I'll never get this done,� and he said, "Margaret, don't look at what you have to do, because if you look at what you haven't completed, or what you haven't got in life, you'll never be happy. Look at the other side of the machine at what you've completed and celebrate the things that you've got.� It was such a strong lesson to me that over the years, I've come to rely on it. I had to always plan my free time around my workload in addition to school. Sometimes it was tough, especially when I wanted to do things like go on a date when I was covered in machine oil with cuts, burns, and scrapes on my hands.

But, I learned a phenomenal work ethic that I am grateful for.

Instead of having goals that were planned far out, I had to learn "How do I survive at what I'm doing now?" which is what a lot of real estate people have to do. For example, I know a real estate agent in Arizona that, for many years, only handled high-end properties. When the market turned, she said, "Ok, what do I have to do now?" and started handling distressed properties, short sales, and anything she could to keep earning the same income. Regardless of what industry someone is in or what the market is, you've got to look at what's going on and learn to be flexible.

NAWRB: I read that you are a cancer survivor, and that you have been through some trying and difficult times in addition to surviving two types of cancer. Were there moments when N MAGAZINE |

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sheCENTER(FOLD) you felt like giving up, and if so, what inspired you to conquer such adversity?

M. KELLY: Yes, you know, I had a very difficult time in my life where within 23 months, I was diagnosed with breast cancer, had a mastectomy, and not long after that, my father passed away. I ended up with cancer again and had to have a complete hysterectomy. Only eight weeks after the hysterectomy, I had to have emergency back surgery for a herniated disk that caused me to lose control of a leg. All of this in 23 months, and it was a very difficult time. And yes, I actually sat back and said, "God, what is it? Am I not supposed to be working? Should I slow down?" I even had one holistic professional state that because I work in a man's world, my body is trying to throw off my woman parts. I obviously didn't go back to that person, but it's amazing the kind of things people will say and do.

I had to sit back and think through "What do I want in my life?” I have a great marriage, two sons, and I really enjoy my career. I decided that if I don't go back, cancer wins. The reality

“People have forgotten that buying a home should be a place where you live firstly and an investment secondly. We got into trouble when people started buying and selling homes like stock, as opposed to actual residences.” is that I love what I do, and I really enjoy the people I work with. They are like family, so I went back.

A few things happened after I returned to work. First, the Susan G. Komen Foundation came to us and asked if we wanted to be a national sponsor of the Race For The Cure. It worked out great. For 10 years, I was a survivor, a sponsor and a speaker about women's health, breast cancer, and the things we need to do to take care of ourselves. What a great thing to be involved in.

Also, it wasn't too long after I came back to work that I found

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an anonymous suicide note in our office mail. To make a long story short, I figured out who it was. They tried to commit suicide a couple of times. They reached out because they knew of the hardship that I had been through and thought I would understand why they were giving up. That was almost 13 years ago, and that person is still working with us, they are happy and doing phenomenally well. I look back and say, "Wow, what would have happened if I didn't come back?" It was a tough yet easy decision to come back. Since then, I've been able to see the impact it's had on other people's lives.

We are all connected, and if you only see the negative, you miss the positive. Personally, my faith has helped me get through it.

I also had family, friends, and co-workers. Somehow all those things come together to help you through and eventually, pay it forward.

NAWRB: Circling back to our earlier discussion about housing industry professionals having to navigate the changing landscape of the market, what can you say about the volume of properties being sold? Wouldn't that affect one's ability to make a living in the housing industry?

M. KELLY: A lot of investors and analysts ask, "What do you see in terms of the market?" The low inventory…sure, it's an issue and we need to look at it, but we're still talking about 4.9 -5 million sales. With that many properties available for sale, agents should be asking themselves, "What's really going on in the market?” as opposed to reading the press and saying, "Oh my God, I should just give up!" They should look at the market, analyze, and say, "How can I capture a piece of this inventory?"

NAWRB: Speaking of how to get a piece of the smaller inventory, we now see tightened loan restrictions, making it harder for first time buyers, as well as an influx of foreign investors with programs like EB5. How do those factors come into play, and what does it mean for Main St. as opposed to Wall St. in terms of being able to participate in the market?

M. KELLY: Those factors do play a big part, but look at the overall market right now. The Federal Reserve is continuing their taper, but then GDP comes out at one tenth of one percent which is literally stalled. Then days later, unemployment comes down to 6.3%, and we've just added 288,000 jobs. So, all of these things are contrary to each other. When you factor in the CPFB, all the federal regulations and Dodd-Frank, it's as though we have so much stimulus going on in our industry that it's impossible to make a prediction where we will be in the next one month or even six months. To me, that's the tough part right now.

The Fed taper is fine, but it's time to get all artificial stimulus out of the market and let it level out to where it ought to be.

Now they're adding the consumer protection that was based upon Dodd-Frank which changes the application for mortgages, down payments, etc. This makes it harder to predict

what the effect will be going forward on the market and the availability of mortgages, specifically for first time home buyers. All these things are entering our industry from all different sides and until the market settles down, how can we ascertain what impact all those factors are going to have?

NAWRB: Agreed. It used to be the case where we could rely on the cyclical nature of the market, plus some key market indicators, but the influx of stimulus and changing regulations make it hard to determine which sectors will perform and what areas of our business we should focus on or redirect.

M. KELLY: From 2007 until recently, there was no seasonality within our industry, whereas before, we could tell where the up and down markets were. Now we are starting to get seasonality again. For example, housing sales were down in November and December, just like historical trends.

One thing that irks me is when I hear things like, "Housing was down from last month.” Yeah, so? People have forgotten that buying a home should be a place where you live firstly and an investment secondly. We got into trouble when people started buying and selling homes like stock, as opposed to actual residences. People get into homes and they stay in them for approximately seven years on average, so a change from month to month should not be a big deal when it comes to a long-term investment.

It's no doubt that there is too much regulation overall. It seems like the government is trying to protect people from themselves. I don’t think that's what the government should be doing, at least not to this extent. I believe in an open market and free trade. That’s what's going to allow the real estate market to settle where it's supposed to be. Let's get back to common sense protection, common sense lending, and allow the market to handle itself.

NAWRB: You oversee RE/MAX franchises in more than other countries; how different are foreign markets from the US market?

Spain, South Africa, Australia and New Zealand, are very sophisticated like the U.S., and Japan is getting there. But then, look at China, where you can buy the home but you can't buy the land (you have to lease it from the government). We have to take all those things into consideration before partnering with a franchisee.

NAWRB: Is there anything that you would like to comment on that has been meaningful to you throughout the years?

M. KELLY: Overall, the thing that really hits home to me is that over the years, with changes in technology, changes in financing, changes in you name it, the heart of real estate remains the same, which is: the number one thing that most people want is the American Dream, to own their own home.

They want to provide for their family and they want their own piece of 'terra'. The reality is that this is not going to go away.

“ It's time to get all artificial stimulus out of the market and let it level out to where it ought to be” Real estate agents should remember that if you take away all the marketing, technology, Facebook, Twitter and everything, the core of home ownership has not changed. As long as you focus on what your business should be, a trusted and knowledgeable professional who is there to help the buyer and seller navigate, all the other things will fall into place appropriately.

Don't forget the core of your business.

M. KELLY: We have about 6,500 offices worldwide but only 21 are company-owned. The rest are franchised. All of our overseas offices are franchised. It wouldn't be worth it for us to try to open an office in a country and market we know very little about. Licensing requirements, regulations, lack of structured MLS systems…our franchisees are already aware of these factors and know how to navigate through them to sell real estate. So, I look at what happens in each country, but the franchisees are really heading up their local operations.

There are many countries we will not go into even though we've had inquiries, either because the government is unstable, or they don't have at least a fairly sophisticated housing sector for our franchisees to utilize. There are countries that do not have licensing laws, no MLS, and no websites to share listings which makes it difficult to operate in. Some countries, such as N MAGAZINE |

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Regulatory

The

DODD-FRANK

I

PRIMER

t is no doubt that the DoddFrank Wall Street Reform and Consumer Protection Act is the most comprehensive financial regulatory reform measure to be executed since The Great Depression. While the comprehensive bill consists of sixteen titles, with numerous provisions spelled out over thousands of pages, herein is an attempt to summarize key points, for a broad understanding of how Dodd-Frank relates to those of us participating in the housing economy.

The aim of the legislation is to secure the financial stability of the U.S. financial system by requiring accountability and transparency, to protect taxpayers by eliminating bailouts, to protect consumers from abusive lending practices, to create rules regarding executive compensation, to eliminate loopholes that led to 2008 economic recession, and more.

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Financial Stability and Agency Oversight Reform

The numerous government agencies regulating financial institutions had varying standards led to some entities having little or no financial oversight, as compared to their peer financial firms which are classified according to different charters. The Dodd-Frank Act overhauls the existing agency oversight system in an attempt to maintain standards and visibility across all financial institutions and the agencies that govern them.

The Dodd-Frank Act changes the existing regulatory structure by establishing new oversight agencies while combining or eliminating others, to increase transparency of the regulatory process, and also to tighten oversight of specific financial institutions that pose ‘systemic risk’. The changes are purported to cre-

ate economic stability, while a council was formed to act as a warning system to prevent future crashes.

Securitization Reform New regulations affect the registration, disclosure, and reporting requirements for asset-backed securities and other structured finance products. Financial institutions are required to absorb more of the credit risk from securitizations, as well as implement accounting changes.

Before Dodd–Frank, investment advisers were not required to register with the SEC if they had less than 15 clients during the previous year, and did not present themselves to the public as an investment adviser. This exemption is now eliminated, thereby rendering numerous investment advisers, hedge funds, and private equity firms subject to the same

Regulatory Compensation and Corporate Governance

requirements and larger institutions and investment groups. Certain non-bank financial institutions will be supervised by the Fed in the same manner as if they were a bank holding company.

In response to growing concerns over executive compensation in public companies, specific provisions now require new stock exchange listing and proxy statement standards, and further regulated disclosures for all public companies soliciting proxies or consents. As a result, corporations will have to change the structure of their compensation committees, as well as implement new governance and compensation policies.

Derivatives Regulation Title VII, also known as the Wall Street Transparency and Accountability Act of 2010, demands a comprehensive regulatory reform on derivatives (derivatives are one of the three main financial instruments, the other two being equities such as stocks, and debt, such as bonds/ mortgages). A derivative’s price is dependent upon (derived from) one or more underlying assets; its value is determined by fluctuations in the price of the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives, such as futures contracts, forward contracts, options and swaps, are characterized by high leverage, and therefore should be considered to have systemic reach.

Mortgage and Banking Dodd-Frank has an enormous impact on loan officers and mortgage brokers, requiring that all loan originators must now be licensed, registered, and issued a unique identifier. They are prohibited from charging more than three percent for all loan origination costs, which inhibits the ability of banks to offer mortgages on homes priced below $160,000.

Restrictions apply to ensuring that borrowers meet debt-to-income requirements to prevent predatory lending, and interest-only and negative amortization loans are greatly limited.

Other rules were aimed at limiting debit card fees, such as interchange fees, protecting consumers while costing banks billions of dollars in transaction-related fees.

In response to the costs that the legislation places on banks, some banks have ended the practice of giving their customers free checking, and some small banks are no longer able to provide mortgages and car loans. Borrowers now have the ability to sue lenders for mis-

judging their ability to repay a loan, forcing smaller lenders to exit the mortgage lending market due to increased risk.

Credit Reporting Agencies The Act established the SEC Office of Credit Ratings, since some credit rating agencies were accused of giving inaccurately positive investment ratings that helped contribute to the financial crisis.

The goal of the office is to make certain that agencies provide reliable, accurate credit ratings.

Office of Minority and Women Inclusion The bill establishes an Office of Minority and Women Inclusion that promotes employment and contracting opportunities to address diversity matters. The offices will coordinate technical assistance to minority-owned and women-owned businesses and establish diversity requirements throughout various industries.

The Volcker Rule Named after former Federal Reserve Chairman Paul Volcker, the Volcker Rule was enacted based on the premise that speculative trading played a significant part in the financial crisis.

The provision bans banks from making speculative trades with their own money, and limits their activity in certain private funds, as this activity may contribute to systemic risk). Therefore, most US banks are prohibited from proprietary trading, and covered institutions are prohibited from owning, sponsoring or investing in hedge funds or private equity funds.

Investor Protection Unaware as to how auction rate securities and the secondary securities market functioned, many investors did not see the financial crisis coming. Numerous ponzi schemes were exposed, causing investors to lose millions, and eventually lose faith in those with custody of their funds. The provisions of the Dodd-Frank Act aim to boost investor protection and confidence, hoping to bring investors back to capital markets.

Conclusion There have been mixed reviews regarding the Dodd-Frank Act. Some critics argue that the legislation is too severe, that it limits job opportunities and prevents competition among financial institutions, however, we can perhaps all agree that industry needed oversight, overhaul and accountability.

The Act requires that regulators and oversight committees create 243 rules and conduct 67 studies, many of which are not complete. Therefore, it is premature to attempt to theorize on the efficacy of the legislature until the market begins to correct itself after the new regulations are in effect. You can expect more on the topic in future issues of N Magazine, as the Dodd-Frank Act begins to put down more solid roots in the U.S. economy.

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Prospect Has

Renovation Loans for Every Need

Renovation loans are a great option for people who are looking to buy or refinance a property in need of repairs or upgrades. With one loan, and one set of fees, buyers can close on a home and get the cash for major to minor repairs. Unlike many lenders, Prospect offers a full line of renovation mortgages. Here are a few basics to help you understand the differences.

FHA 203(k) Renovation Loan: n

Allows complete home renovation with a Consultant loan or, smaller projects that cost $35,000 or less with a Streamline loan*

Fannie Mae HomeStyle® Renovation Mortgage: n

Purchase and renovate most residential properties and even include luxury items like pools that cannot be done with the 203(k)

Fannie Mae HomePath® Mortgage: n

Purchase a Fannie Mae-owned property that is designated for a HomePath® Mortgage and include the cost of renovation

With our renovation background and experience with timely dispersal of funds for the project, we can help your buyers buy and create their perfect home. Contact us today!

888-685-1576 *Please speak to your Loan Officer regarding the differences between Consultant and Streamline FHA 203(k) Renovation loans. HomePath® and HomeStyle® are registered trademarks of Fannie Mae. Rev 3.19.14 (1213-0787) Equal Housing Lender. Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA 91403. Prospect Mortgage, LLC (Unique Identifier #3296) is a Delaware limited liability company; Licensed Banker-NJ Dept. of Banking and Insurance #9932414, branch located at 200 Continental Drive, Suite 207, Newark, DE 19713. This is not an offer for extension of credit or a commitment to lend. Terms and conditions apply.

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Conference REVIEW increased marketability and focus skill set - the timing was perfect!

Agent training sessions were provided on Sunday by BLB Resources, Green River Capital, Round Point Mortgage, Precision Asset Management, PEMCO, RIO Genesis, iServe Real Estate Operations, Matt Martin Real Estate Management, LRES, Noteschool, Wells Fargo, and Equator to help serve the attendees with direct connection with their clients.

REOMAC ANNUAL

2014

®

EDUCATION SUMMIT AND

EXPO

very good networking opportunities. The caliber of attendees was very high.”

C

hange, connection, and collaboration were the themes of this year's spring REOMAC® annual education conference, held at the JW Marriott Desert Springs in Palm Desert, Calif. REOMAC® is a non-profit trade association serving the mortgage default servicing industry nationwide for over twenty-five years.

“REOMAC® has a long tradition of holding conferences in Palm Desert,” said Desirée Patno, CEO and founder of the National Association Women in Real Estate Businesses (NAWRB).

“The conference was well-received with

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NAWRB hosted its 3rd Annual Salon Day, prior to the REOMAC kick off, which received rave reviews from participants who enjoyed being pampered while being educated. Kyle Wagoner, of the California Small Business Development Center (SBDC) in Coachella Valley, spoke to the group about various opportunities for free business consulting and low-cost training services (including working with a personal mentor). Wagoner discussed opportunities and provided handouts for attendees to leverage their existing skill sets to expand their business portfolio and grow their business. There's nothing quite like walking out looking marvelous, including new hairstyles and colors, combined with the

Otis Felton, FDIC's Corporate University Class Liaison, opened the conference, speaking about his personal and professional journey on overcoming several obstacles to come out stronger than ever. He is extremely happy and thankful for his blessings and gifted us with his words of wisdom.

A REOMAC Speaker veteran, economist Christopher Thornberg, spoke about the market changes for 2014 and beyond. Thornberg gained national recognition after he made accurate predictions in 2006 of the housing crash and recession. Thornberg predicted the housing recovery to rebound by the end of the year, with the possibility of apartment oversupply in some locations. He said that 2013 ended on a strong note, with solid acceleration in the second half as consumers moved past the tax hit. State and local governments were beginning to come around by yearend 2013, and Thornberg said that the weather issues at the beginning of 2014 would have only a temporary effect on the economy. Commercial real estate will continue its slow recovery, and the energy sector will continue to boom. All in all, Thornberg said, 2014 will be better than 2013, but he warned attendees not to get too excited, because future economic challenges include debt-strapped local governments, tight bank credit and mortgage lending, and aging infrastructure. He did state that he expects a three percent growth range in 2014, to be exceeded in 2015, and another real estate market bounce in 2014.

That evening, a charity auction featured sports memorabilia, jewelry, and purses,

Conference REVIEW

Kyle Wagner, Maria Barrigan, Heidi Robinson, Angelica Suarez, Desirée Patno, Brandy Nelson and Silvia Hernandez.

Can It Benefit You” breakout session.

“Third party certification gives you accountability and showcases your classification,” said Patno. “It’s an articulation of what you are about, and it’s important to Breakout sessions were held on Tues- have it on your capability statement and day morning, and attendees had time to email signature to maximize your available opportunities.” connect with outside A women-owned vendors, clients, and “Events like these are business whose work future clients. NAWis in the housing RB member Brandy a necessity to help economy can certify Nelson, broker and as a NAWRB Certiowner of Red Top us unite and learn fied Women-Owned Realty, Palm DesBusiness or Minoriert, CA, attended from each other, ty Women-Owned two of the breakout so that we are not Business. The four sessions. The “Note other federally-recSales and the Curoperating completely ognized diversity rent Market” session certifications include addressed the new as individuals.” minority-owned, practice of banks veteran-owned, disselling off pools of notes rather than handling individual abled veteran-owned, and Historically foreclosures. “It was an informative ses- Underutilized Business Zones (HUBsion,” said Nelson. “I am very interested zone). Certification qualifies businesses for incentives, programs, and set-asides in learning more about notes.” that would otherwise not be available to Patno served as a panelist in the “Diver- them. “It’s well worth the time and enersity Certification—What It is and How gy to get certified,” said Patno. “You want with bidding wars and exciting wins.

Monies from the silent and live auctions benefited the REOMAC® Foundation’s Scholarship Program.

to use the best marketing strategies and practices to quantify what classification is your business, whether you are selling a home, working with other businesses or bidding on contracts.”

Other breakout session topics included “Community Revitalization” as well as “Best Practices for Selling Distressed Properties.” “The Best Practices for Selling Distressed Properties session gave us useful tools for our business,” said Nelson.

Lender/servicer/outsourcer roundtables were also valuable parts of the summit, and relaxing massages were available at the Relaxation Lounge. Vendors at the event used the opportunity to discuss best practices and other helpful topics, while networking with clients.

“The camaraderie and conversations at the summit gave us valuable insights,” said Patno. “Events like these are a necessity to help us unite and learn from each other, so that we are not operating completely as individuals.” We look forward to more REOMAC conferences.

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Turbulence Training, or metabolic resistance training, is comprised of short, no-equipment, bodyweight workouts that you can do anytime, anywhere, that can even replace your bodyweight cardio programs. Turbulence training is based on functional, full-body fitness techniques that are now the industry standard exercises, combined with interval training to effectively build muscle and burn fat in less time than you thought possible.

Think about it, if you jog or take a cardio class for an hour, about 10 minutes in, your body already adjusts to that level of exercise. The concept of Turbulence Training is that by combining short intervals full body exercises, such as Jumping Jacks, Prisoner Lunges, Spiderman Climbs with moderate or low exertion exercises such as Jogging in Place, we vary the intensity and pace of the exercises, causing the body to constantly adjust to different movements at varying intensity, thereby maximizing the effectiveness. Therefore, a 4-minute Turbulence Training work-

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out is as effective as a 30-minute cardio workout. That means you can get in a really effective workout in the time that it takes to brew your coffee in the morning.

What's the best part about Turbulence Training? It's FREE. Just go to the official Turbulence Training channel on YouTube, and choose from their variety of free workouts. No gym or equipment needed.

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Reprinted by permission from City of Hope.

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what WOMEN WANT

Have you read or watched something lately that impacted you? Share your thoughts with N Magazine’s editorial staff and readers. Send reviews to info@nawrb.com

BOOKS

FILMS

THRIVE

CAPTAIN AMERICA: THE WINTER SOLDIER

By Arianna Huffington In this deeply personal book, Arianna Huffington, cofounder and editor-in-chief of the Huffington Post Media Group, talks candidly about her challenges of managing time between her career and personal life.

After collapsing from exhaustion she came to realize there is more to living a successful life than a higher salary and more power. She states individuals need a third metric for success and she defines that as our wellbeing. Huffington not only draws on personal experience, but also on the latest research and scientific findings in psychology, sports, sleep, and physiology. Thrive is a testament for all of us struggling to balance a career and personal life.

THE SNOW QUEEN

By Michael Cunningham Pulitzer-Prize winning author Michael Cunningham achieves an enlightening and dramatic story with The Snow Queen. Cunningham follows the Meek brothers, Barrett and Tyler, as they endure life’s tribulations. Barrett sees a curious translucent light in the sky as he strolls through Central Park. Perplexed, he is drawn to the light and turns to religion to answer his questions. Meanwhile, Tyler struggles to write a loving and passionate wedding song for his fiancé who is also seriously ill. While Barrett uses religion, Tyler uses drugs to cope with his creative struggles and fiancés illness.

The Meek brothers experience a remarkable journey as they learn and cope with life’s challenges.

THE PRESENCE PROCESS: A JOURNEY INTO PRESENT MOMENT AWARENESS

By Michael Brown In the second edition of Brown’s Presence Process, he looks into the ways we can embrace our authentic personal responsibility. This book is a guide for looking deep into one’s self to be truly aware of the present. In this edition, Brown speaks about presence as a state everyone is part of, a common place we all share. This deep insight of Brown can be revealed to everyone once we decide to take on the journey of presence.

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Starring Chris Evans, Samuel L. Jackson, and Scarlett Johansson After the events Captain America and his fellow Avengers faced in New York City, Steve Rogers moves to the Nation’s capital and attempts to assimilate to the modern world.

However, his quiet life is disrupted when a fellow S.H.I.E.L.D. colleague comes under attack. Captain America soon finds himself in a web of intrigue that threatens to put the world at risk. With the help of Black Widow and new ally, the Falcon, Captain America struggles to expose the growing conspiracy and protect the world.

DRAFT DAY

Starring Kevin Costner, Jennifer Garner, and Denis Leary Costner brings the excitement, anticipation, and strategy of the NFL Draft to the screen for all to experience. He plays general manager Sonny Weaver who has the opportunity save football in Cleveland when he trades for the number one pick. Drama ensues when he lets his personal and professional life blur and is questioned by the members of his team. Costner and the rest of the cast deliver a performance that is sure to make the audience feel like one of the few hundred young players with dreams of playing in the NFL.

THE GRAND BUDAPEST HOTEL

Starring Saoirse Ronan, Ralph Fiennes, and Bill Murray This movie recounts the adventures of a legendary hotel concierge at a famous European hotel during the time between the World Wars. The story follows Gustave H and his lobby boy, Zero Moustafe, who soon becomes his protégé and most trusted friend. It revolves around the theft and recovery of a priceless Renaissance painting during a time in of change that transformed Europe.

With a powerful cast, this is a must-see.

what WOMEN WANT

GO HOME AND CHANGE AFTER WORK BEFORE GOING OUT? AIN’T NOBODY GOT TIME FOR THAT. Here are some helpful, effective tips to transforming your office look into an evening look.

1. The Little Black Dress: Worn with blazer and flats, plus sensible hair and makeup during the day, the LBD transforms with the help of a pair of heels, a statement necklace, and some smoky makeup. Stash the big purse in your trunk and take along a small clutch instead, and you are ready.

2. The Pantsuit: Who knew that lurking under your conservative blazer was a strappy camisole, just dying to be seen? Who knew you had heels and a set of pearls in your bag? Just glamorize the makeup, and you’re ready. Waiter!

INGREDIENTS • • • • • • • • • •

2 sheets frozen puff pastry, thawed 1/2 cup blueberry preserves 2 tablespoons cornstarch 2 tablespoons brown sugar 1/2 teaspoon grated lemon zest 1 cup fresh blueberries 1/2 teaspoon pure vanilla extract 1 egg, beaten with 2 teaspoons water 2 tablespoons granulated sugar 1 cup of sliced almonds (optional)

DIRECTIONS Lightly flour a work surface. Roll out the puff pastry sheets into squares 12 inches by 12 inches; the pastry will become slightly thinner. Cover with plastic wrap and chill.

Heat the oven to 375 degrees F. In a small mixing bowl, stir together the preserves, cornstarch, brown sugar, and lemon zest. Fold in the fresh blueberries and vanilla, and chill while you cut the dough. Using a sharp knife, cut each puff pastry sheet into 4 (6-inch) squares.

Lay a pastry square on a work surface and brush the edges with egg wash. In the center of the square, place 2 heaping tablespoons of blueberry filling. Brush the edges of the pastry square with egg wash and fold it in half to create a triangle.

Carefully press the edges together to seal them well with fork tines. Transfer to the cookie sheet and keep refrigerated. Repeat with the remaining ingredients, placing the turnovers 1-inch apart.

Brush the tops with the egg wash and sprinkle with granulated sugar. Bake until golden brown, 20 to 25 minutes.

Top with sliced almonds.

Serve warm or let cool to room temperature.

Serve within 1 day.

Recipe from: www.foodnetwork.com/recipes/blueberry-turnoversrecipe.html?oc=linkback

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ARE YOU GETTING 30% ROIs? Chrimata, Inc. is a real estate investment corporation with more than 12 years of experience in buying, selling, rehabbing and maintaining single-family properties in Southern California. Its team of office and field resources specializes in niche areas to provide maximum acquisition opportunities and returns on investments.

Invest for real profit. Contact Chrimata, Inc.

I

CHR MATA NC.

CHRIMATA, INC. Phone: (714) 396-6622 • Email: chrimatainc@gmail.com

Speak  Carolyn McNamara of Phelan, CA, and broker/owner of The McNamara Group, Inc., hosted a HUD Home Sales Seminar for brokers, agents, lenders & escrow officers on the topic of “Successfully Keeping Up With The New Changes in HUD”.

May 28th, 2014.

 Desirée Patno and Sylvia

Gutierrez spoke at the NAWRB Business Development Seminar at the Lutron Center in Irvine, CA. Gutierrez is an economic development specialist with the Santa Ana District Office of the Small Business Administration.

They discussed the many benefits of using the SBA’s SCORE mentorship program, as well as outlining simplified procedures for obtaining women-owned or minority-owned certification to apply set-asides on government contracts. The event was an enormous success, and further seminars in other cities are being planned.

 NAWRB member Susan Jenkins, Principal Broker/Owner of Better Homes and Gardens Real Estate, Native American Group, in VA, served on a panel at the Better Homes and Gardens Top Producers Retreat in San Diego at the Hotel del Coronado. The panel discussion topic was “What Sticks with Talent Attraction,” with 5 top producing agents from the San Diego market discussing what attracted them and retained them to their current brokerage house.

 Renee Marie Smith Esq., best-selling author and Short Sale Guru, headlined an event with MWIRE and RMS to discuss the topic, “Are Short Sales Really Dead?” May 12, 2014.

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Write

SMITH & ASSOCIATES MONDAY EDITION RENEE MARIE SMITH ESQ. ON-GOING WEEKLY EDITIONS Renee Marie Smith Esq., Attorney at Law at Smith & Associates Title Services, Inc, publishes an internet newspaper called Smith & Associates Monday Edition, with a wealth of informative housing industry content. You can find the publication at http://paper.li/ mygurupublishes/1397837436.

“MI CASA ES TU CASA” SHERRI SAAD LATINO PRESS (APRIL 2014) Sherri Saad, Associate Broker with RE/MAX Leading Edge, Dearborn Heights, MI, recently placed a 12-page supplement in Latino, a weekly newspaper serving the Hispanic, as well as non-Hispanic, community in Detroit. Saad, who is bilingual, provided a variety of real estate articles in English and Spanish.

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Attend

1

2

3

6

5 4

7 1. On May 6, Desirée Patno attended an Eastland Financial luncheon featuring speaker Michelle Patterson. Patterson is President and CEO of The Women Network and The California Women’s Conference, a 28-year-old national conference for women.

2. NAWRB member Melinda Harris (left) participated in a recent fundraiser for the Carolyn E. Wylie Center which serves children with special needs. Wylie Center alumna, Lauren Potter, from the TV series, “Glee,” was at the event that day (center). P. Dennis Mattson (right) serves on the board of directors for the Wylie Center. Melinda Harris is the broker and owner of EXIT Prestige Realty in Anaheim Hills, CA.

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8 Ali Karkaba, Marketing Manager Brenda Nunez, Patty Leyva, Assistant to Sherri Saad, and volunteer Ali Saad who is Sherri’s son.

5. Yuri Blanco attended the NAMPA Association of Realtors luncheon on April 9 in Nampa, ID and was the recipient of a check for NAHREP. She is pictured alongside NAHREP board member Veronica Hernandez.

3. Chase’s Women’s Business Symposium featured a panel of successful female business leaders, including Lori Greiner, a member of ABC’s Shark Tank. The symposium took place in Universal City, CA on April 30.

6. NAWRB founder Desiree Patno attended the 51st Annual Small Business Awards in Anaheim, CA on May 21. The Orange County Hispanic Chamber of Commerce rolled out the red carpet for the event which honored recipients in many categories such as California Small Business Person of the Year and Women in Business Champion. Left: Ursula Mentjes, winner of Women in Business Champion award, and center, Sylvia Gutierrez, SBA Economic Development Specialist.

4. NAWRB member Sherri Saad participated in Southwest Detroit’s Cinco de Mayo parade on Sunday, May 4, with her own float. Saad is an Associate Broker with RE/MAX Leading Edge, Dearborn Heights, MI. Left to right: Sherri Saad, volunteer Leila Bazzi, Reo Director

7. NAWRB member Zoritha Thompson (center) was installed as 1st Vice President of the Sacramento Realtist Association. Left: Stephen T. Webb, Past President, Sacramento Realtist Association, and right, Preston Collier, 2014 President, Sacramento Realtist

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9 Association. Thompson was also recently voted 2nd Vice President, California Association of Real Estate Brokers.

8. The City of Lake Forest held the 8th Annual Secrets & Strategies to Business Success (SSBS) on May 9, 2014. The free event discussed topics such as marketing, how to find and leverage capital, and how to get the most out of your time.

9. NAWRB founder Desiree Patno and husband Jay Jones attended a City of Hope event on May 18 in Rancho Palos Verdes, CA. The event created an open dialogue for participants to discuss trends in cancer research with Michael A. Friedman, MD and City of Hope faculty.

Network

upcomingEVENTS May 12-13// National Multifamily Housing Council (NMHC) Apartment Strategies/Finance Conference (Boston, MA)

May 18-20, 2014// ICSC RECon Las Vegas: The Global Retail Real Estate Convention (Las Vegas, NV)

The NMHC Apartment Strategies/Finance Conference brings the apartment industry's CEOs, CFOs, lenders, investors and senior-level staff officers together for high-level exchanges and frank conversations. Open to NMHC members and non-members, the conference will address what is going on in the current marketplace.

RECon is the global convention for the shopping center industry and provides networking, deal making and educational opportunities for retail real estate professionals from around the world. With over 32,000 attendees and 1,000 exhibitors it is the largest industry convention. Meet retailers to discuss new or existing leases in your centers, view the latest industry products and services that are critical to your business, attend educational sessions or find the next deal, then you need to attend RECon.

May 12-17// REALTOR® Party Convention & Trade Expo (Washington, DC) The REALTOR® Party Convention & Trade Expo is where NAR members take an active role to advance the real estate industry, public policy, and the association. Join us in Washington, DC, for special issues forums, committee meetings, legislative activities, and the industry trade show.

May 13-15// 2nd Annual Spring Single Family Aggregation: The REOto-Rental Forum, a forum for private equity, REITs, institutional investors, NPLs, fix and flips and finance.

(Boca Raton, FL) The forum covers the latest trends regarding the single family investment market and features 800+ executives, 120+ speakers, 200+ funds, REITs and investors, and 24 panel sessions so you can stay up-to-date on strategies, trends, and financing methodologies.

May 15, 2014// Honest Buildings Real Estate Innovations Summit (New York Academy of Sciences) Honest Buildings features the most recent innovations that are generating positive ROI for real estate investors, owners, and developers.

May 18-21// MBA’s National Secondary MarketConference & Expo 2014 (New York, NY) Opportunities abound for those who know how (and when) to show off their most bullish qualities: strength, persistence, confidence.

Attend MBA's National Secondary Market Conference & Expo 2014 to get started.

May 19-20// 2014 NH&RA National Housing and Rehabilitation Association (NH&RA) Spring Developers Forum (Marina del Rey, California) Two days of state-of-the-art sessions that will explore developing affordable housing in today's evolving industry. Our Spring Developers Forum program is designed by and for multifamily developers involved in low-income housing tax credit, HUD-assisted, and USDA Rural Housing Services affordable housing.

May 21, 2014// SBA Small Business Awards Luncheon (Anaheim, CA) National Small Business Week identifies the contributions of small business owners and entrepreneurs in the United States.

During this week, celebrate the hard work and success of small business owners and entrepreneurs at the Small Business Awards Luncheon. The luncheon honors those who have made exceptional strides with their small businesses. Included with the luncheon is an “ExpandingYour Business Beyond Our Borders” trade seminar, business expo, and networking.

May 29-30// 3rd Annual Bank & Financial Institutions Special Asset Executive Conference on Real Estate Workouts (Atlanta, GA) Join executives from specialized backgrounds such as Special Assets,Credit, Loan Review, Risk Management, REO and C-levelcan discuss trending CRE credit and workout issues. Some of the topics on this year’s agenda include long and short sales, loan and REO pricing, turnaround strategies, and C & I loans. Each conference features 3-6 experts from different fields and a moderator to ensure diverse viewpoints on pressing real estate issues.

June 2-6 MISMO Spring 2014 Educational Summit and Workshop (Dallas, TX) Standards developed by the Mortgage Industry Standards Maintenance Organization (MISMO) have never been more important to our industry. Why is that? It is because recent changes have resulted in a dramatic increase in demand for data and information exchanges. Everyone has new business partners with whom they need to exchange information.

Regulatory demands have and will continue to significantly impact the way we transact business. In order to effectively communicate, we all need to be speaking the same "language."

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index ADVERTISERS C City of Hope........................................52 Chrimata, Inc.......................................43 D Desirée Patno Enterprises, Inc............19 DSNEWS..............................................3 H Harmony Escrow................................33 Herbert Landy Insurance.....................49 N NAWRB..............................2, 32, 19, 34 P Prospect Mortgage..............................32

COMPANIES B Back At You Media.............................22 Benjamin Moore.................................. 10 Better Homes......................................44 BLB Resources...................................34 BombBomb.........................................22 BrightNest........................................ 10 C Chairish...............................................10 Choremonster......................................10 City of Hope...............................7,38, 39 Color Capture......................................10 CPFB...................................................28 D Deduct.................................................22 Desktime.............................................22 DocuSign........................................20,21 E ePropertyData.....................................20 Equator................................................34 EXIT Prestige Realty..........................46 F Facebook.............................................29 Fannie..................................................24 FHFA...................................................24 Freddie MAC...................................9,24 Fundwell.............................................22

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G Gardens Real Estate............................44 Goby....................................................22 Goodguide...........................................10 Gore & Thompson Real Estate..........................................46 Green River Capital............................34 H Huffington Post Media Group..............................................38 Information Management Network...........................................47 I iServe Real Estate Operations...........................................34 L LRES...................................................34 Lumentus.............................................22 M Matt Martin Real Estate Management...................................34 Mortgage Bankers Association......................................47 Mortgage Industry Standards Maintenance Organization..............47 Move Inc.............................................20 MWIRE...............................................44 N NAR.................................7,20,21,22, 47 Native American Group......................44 NAWRB...............................27,28,29,42 Noteschool..........................................34 O OMWI.................................................31 P PBS NewsHour...................................14 PEMCO...............................................34 Planwise..............................................22 Precision Asset Management..............34 R Reach......................................7,20,21,22 Red Top Realty....................................35 REOMAC...........................................34

RIO Genesis........................................34 RMS....................................................44 Round Point Mortgage........................34 S SBA.......................................7,16,42, 47 Score.................................7,16,17,18,42 Secondary Century Ventures...................................7,20,21 SEC...............................................30,31 SendHub..............................................22 Sentrilock............................................20 SmartZip.............................................22 Smith Associates Title Services Inc.............................45 Susan B. Komen Foundation......................................28 T The McNamara Group, INC...............44 The Woman Network..........................46 Twitter.................................................29 U Updater................................................22 V ViArch Integrated Solutions....................................17,18 W Wells Fargo.........................................34 WeVideo..............................................22 Workface.............................................22 Z ZipLogix.............................................20

PEOPLE A Arslan, Kristie.....................................23 B Bachman, Michele..............................12 Baucus, Max.......................................13 Barragan, Maria..................................35 Bazzi, Leila..........................................46 Bellatoni, Christina.............................14 Bhatia, Ravi, M.D...............................39 Bhatia, Smita M.D., M.P.H.................39

index Blanco, Yuri................................ 23, 46 Brown, Amanda................................. 23 Brown, Christine................................ 38 Brown, Michael.................................. 40 C Cantwell, Maria.................................. 13 Chambliss, Saxby............................... 14 Chen, WenYong, Ph.D....................... 39 Coburn, Tom...................................... 13 Collier, Preston................................... 46 Contreras-Sweet, Maria..................... 23 Costner, Kevin................................... 40 Cristea, Mihaela, M.D........................ 36 Cunningham, Michael........................ 40 E Evans, Chris....................................... 40 F Felton, Otis......................................... 34 Fiennes, Ralph.................................... 40 Forman, Stephen M.D........................ 38 Freedman, Constance........................... 7 Freedman, Constance.................... 20,21 G Garner, Jennifer.................................. 40 Gingrich, Newt................................... 13 Grimes, Allison Lundergan................ 14 Gutierrez, Sylvia........................... 44,46 H Hall, Rachel J..................................... 38 Harkin, Tom ...................................... 13 Harris, Melinda.................................. 46 Hastings, Doc..................................... 13 Hernandez, Sylvia.............................. 35 Hernandez, Veronica.......................... 46

Htut, Myo, M.D................................. 36 Huffington, Arianna............................40 J Jackson, Samuel L..............................40 Jenkins, Susan.....................................44 Johansson, Scarlett..............................40 K Karkaba, Ali........................................46 Kelly, Margaret..................7,26,27,28,29 Kortylewski, Marcin, Ph.D.................39 Kurtz, Gila...........................................18 Kurtz, Jon............................................18 L Landrieu, Mary L.................................13 Leary, Denis........................................40 Levin, Carl.....................................13,15 Leyva, Patty.........................................46 M Maciel-Gibbons, Angela......................23 Madison, James...................................14 Mattson, Dennis..................................46 McCarthy, Carolyn..............................12 McConnell, Mitch...............................14 McKeon, Howard...........................13,15 McNamara, Carolyn............................44 McNamara, Francis.............................36 McNamara, Kathleen..........................36 Mentjes, Ursula...................................46 Miller, George.....................................13 Murray, Bill.........................................40 N Nelson, Brandy ............................34, 35 Nunez, Brenda.....................................46 Nunn, Michelle....................................14 Nunn, Sam Jr.......................................14

P Patno, DesirĂŠe...............7, 11, 34, 44, 46 Patterson, Michelle............................ 46 Patty, Tom.......................................... 18 Pietro, John........................................ 18 Popplewell, Leslie.............................. 38 Potter, Lauren..................................... 46 R Robinson, Heidi..................................35 Ronan, Saoirse....................................40 Rossi, John, Ph.D................................39 S Saad, Ali..............................................46 Saad, Sherri...................................43, 46 Smith, Renee Marie.......................42,43 Sullivan, Ann.................................12,15 T Tester, Jon...........................................13 Thompson, Zoritha..............................46 Tucker, Larry.......................................18 V Volcker, Paul.......................................31 W Wagner, Kyle.................................34, 35 Waxman, Henry.............................13,15 Webb, Stephen T.................................46 Wood, Kelly........................................23 Wyden, Ron.........................................13 Y Yu, Hua Eleanor, Ph.D........................39 Z Ziegler, Ruth...................................... 39

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N C O N C L U S I O N

“ Never believe that a few caring people can’t change the world.

For, indeed, that’s all who ever have.”

-Margaret Mead

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