RT 2018 by Son Nguyen

HOW THE NEW TAX LAW WILL AFFECT MILITARY FAMILIES PAGE 17

WHERE LIES THE FATE OF THE 900 U.S. MILITARY DREAMERS? PAGE 25

CFPB RELEASES TOOL TO HELP MEASURE FINANCIAL WELL-BEING PAGE 11

SAVE THE DATES

JUNE 3 - 5, 2018 | WASHINGTON D.C.

OCTOBER 14 - 16, 2018 | PHOENIX, AZ

CONGRESSIONAL BILL “GIVE VETERANS HOME LOAN CHOICE ACT 2017” (H.R. 2777) - UPDATE VAREP’s advocacy efforts for the past couple of years, especially VAREP DFW and VAREP Tucson, have resulted in the introduction of Congressional Bill H.R. 2777, “Give Veterans Home Loan Choice Act 2017,” by Congressman Marc Veasey (D-TX), co-sponsored by Congresswoman Kyrsten Sinema (D-AZ), on June 8, 2017. PAGE 11

JANUARY 2018

VAREP NATIONAL NEWS

A Letter From Our President

ROGER THAT JUNE 2018

Dear VAREP Members, I present you “RT – ROGER THAT – January

EDI TOR I AL

2018” E-Zine Newsletter. This is the best way

PUBLISHER USA Homeownership, Inc. DBA Veterans Association of Real Estate Professionals

for VAREP National to communicate happenings within our organization to our membership. VAREP experienced tremendous growth and

EDITOR Denise DiSalvo

recognition in 2017 for the important work

CR EATI VE

that we do. Each of you should be proud

SENIOR DESIGNER Jesus Lopez

and stand tall knowing that your passion to empower veterans to realize the American Dream of homeownership has enabled VAREP to be recognized by key leaders in the real estate, financial, and government sectors as the authority on, and voice of, military and veteran financial-literacy and homeownership. VAREP ACCOMPLISHMENTS FROM 2014 - 2017 •

24 homes donated mortgage-free to deserving heroes across America.

•

750 military and veteran families realized the American Dream of homeownership through our

GRAPHIC DESIGNER Danielle Macedo WEB DEVELOPER Francisco Labias CON TACT VAR EP HEADQUARTERS 951 · 444 · 7363 info @VAREP. net 462 Corona Mall Suite 102 Corona, CA 92879 w w w . V A R E P. n e t

programs and services. •

6,000 real estate and lending professional were trained as a result of the 80 live events and online membership training.

•

• •

2,600 military and veteran families educated about homeownership, financial literacy, and the

ABOUT SON

VA loan program through the live Veteran Housing Summits events hosted by VAREP local

Son Nguyen is the founder and president of the

chapters across the country.

Veterans Association of Real Estate Professionals

361 military and veteran families were provided food, utilities payment, rent back payment,

(VAREP). Mr. Nguyen creates, implements, and

basic supplies, clothing, and blankets during the 2017 holiday season. This was made possible

overseas the programs within VAREP including

through our VAREP Cares program implemented by the VAREP local chapters.

working with government agencies and policy makers

$60,000 in the form housing assistance grants for down-payment, closing costs, and adaptive

to create and reform veteran housing policy to

needs. This was in partnership with the Asian Real Estate Association of America (AREAA).

remove barriers to homeownership.

$5 million spent on home rehabilitation for mortgage-free donations and veteran first resale program.

He is frequently called upon as a subject-matter expert by government agencies, the real estate

HOW TO EXPLAIN WHO WE ARE AND WHAT WE DO I frequently receive phone calls from our membership on how to explain VAREP as an organization. Depending on your audience, you may want to adapt the points listed below to introduce VAREP.

industry, the lending industry, and real estate trade organizations to consult on a variety of veteran housing issues. Mr. Nguyen has more than 19 years’ experience

•

VAREP is a 501.c.3 nonprofit organization that was founded to directly educate the 1.4-plus

in real estate, public speaking, supplier diversity,

million active military and 22-plus million veterans on sustainable homeownership, financial-

curriculum development, and non-profit management.

literacy education, VA loan awareness, and economic opportunity.

His record demonstrates innovation and leadership at

VAREP is the only organization that educates military and veteran families on the importance

the highest level.

of financial health on the road to homeownership. •

VAREP is the only organization that educates the real estate practitioner on the important housing-policy and lending initiatives that affect the military and veteran communities.

Mr. Nguyen established VAREP as a housing non-profit for vets, by vets. He believes VAREP’s proactive stance of providing financial-literacy education and advocating homeownership can greatly

VAREP Comparison to Other Veteran Nonprofits

impact homelessness among the veteran community,

The comparison chart to the right shows that we fill a much needed gap in financial-literacy and

by both reducing the current epidemic and preventing

housing components that the other veteran service organizations simply do not offer…In other words: We complement them and do not compete with them. Our organization has only scratched the surface of creating awareness and having people rethink how to better serve underserved military and veteran housing needs. To a great 2018...Cheers!

future occurrences, one veteran at a time. Mr. Nguyen entered the Navy in 1996 and served as a Radioman on the USS Vincennes (GC-49) and USS Constellation (CV-64). A proud serviceconnected disabled veteran, Mr. Nguyen holds a bachelor’s degree in Public Relations from of the

Son Nguyen

University of Florida and a Master’s in Organizational

VAREP Founder and President

Management. He currently resides in Corona, CA, with his wife, son, and Labrador.

VETERAN NON-PROFIT COMPARISON CHART Target Audience

VAREP Veterans = 22+ Million Active Duty = 1.4+ Million

MILITARY WARRIORS FOUNDATION Wounded Warriors OEF, OIF, ND = 51,849

OPERATION HOMEFRONT Active Duty Family of E1 - E6 = 1.1 Million

WOUNDED WARRIOR PROJECT Wounded Warriors OEF, OIF, ND = 51,849

USA CARES Post 9/11 Servicemembers & Family

Financial Assistance

Emergency Food

Emergency Home Repair

Critical Baby Items

Home and Appliance Repair

Furniture and Household Items

Local Moving Assistance

Apartment Transitional Housing

Permanent Housing Placement

Employment Job Board

Rehabilitation with Recreational Therapy

Peer-to-Peer Counseling

Family Support Retreats

Peer Mentoring

Information Technology Training Academy

Financial Literacy Education

VA Home Loan Program Education

Housing Education

Housing Counseling

Credit and Debt Management Education

Credit and Debt Management Counseling

Military and Veteran First Look Affordable Housing Purchase Program

Mortgage Free Donated Homes for Wounded Warrior and Spouses of Deceased Warriors

Community Outreach

Live Community Housing, Financial Literacy, and Employment Fair Outreach Events

REALTOR, Housing Professional, and Lender Military and Veteran Certification Course

Military and Veteran Friendly Database

Advocay with a Written Policy Plan

X Military and Veteran Housing Lending Policy

Housing and Lending Policy Conference

Military and Veteran Financial Literacy, Housing, and Employment Resource Center

X Wounded Warriors

NOTE: The non-profit comparison chart does not list the national minority real estate trade organizations including AREAA, NAHREP, and NAREB because we are not structurally set up as a trade organization. We have our membership whom we educate to better serve the military housing needs, but ultimately we are all here to serve the military and veteran communities. 2

January 2018 TABLE OF C O NTE NTS

About VAREP University

National Events: The 2018 Policy and Convention Event

2018 Policy Conference Gala Speaker Cedrick King

HUD Counseling Division 2017 Review

CFPB Releases Tool to Help Measure Financial Well-Being

2018 Policy Conference Luncheon Speaker Sammy L. Davis 13 Freedom Flippers & House A Vet 2017 in Review

For REALTORS®, Lenders, and Housing Professionals Members and Non-members are Welcome. What is VAREP University?

How The New Tax Law Will Affect Military Families 17 Congressional Bill “Give Veterans Home Loan 19 Choice Act 2017” (H.R. 2777) - UPDATE

As the voice for veteran real estate, our goal is to arm practitioners with the right tools so they can better serve the active-duty and veteran communities’ housing needs. VAREP University is the centralized learning platform for the Veterans Association of Real Estate Professionals. Members and non-members can earn designations by creating a VAREP University user account, select from the course library, pay and complete the course with a minimum 70 percent score on the final exam.

Where lies the Fate of the 900 U.S. Military Dreamers?

2018 NATIONAL EVENTS

FEATURED COURSES The MVHC is designed for a comprehensive understanding of the Department of Veterans Affairs’ (VA) Home Loan Guarantee Program. We want our members to have an industry recognized course needed to effectively serve the housing needs of our military and veteran communities. Our goal is to educate and empower attendees to embrace the VA loan program instead of shying away from it. Can be taken live or Online.

UPCOMING EVENT

Policy Conference JUNE 3- 5, 2018 · WASHINGTON D.C.

The SCRA is designed for a comprehensive understanding of the Servicemembers Civil Relief Act (SCRA). We want our members to have an industry recognized course needed to effectively serve the housing needs of our military and veteran communities. Our goal is to educate and empower attendees to understand the protections provided by the SCRA for servicemembers. The knowledge from this course can prevent violations like the mortgage violations during the housing crisis 2008. Online Only.

The Fair Housing course is designed for a comprehensive understanding of the Fair Housing Act. We want our members to have an industry recognized course needed to effectively serve the housing needs of all persons interested without Housing

LEADERSHIP ACADEMY OCTOBER 14- 16, 2018 · PHOENIX, AZ

discrimination in which an individual or family is treated unequally when trying to buy, rent, lease, sell or finance a home based on certain characteristics, such as race, class, sex, religion, national origin, and familial status. Online Only.

TESTIMONIALS FROM VAREP MEMBERS

The Military and Veteran Housing Certification (MVHC) is an

This detailed and comprehensive Military and Veteran Housing

essential component to add to every Realtor’s arsenal of experience.

Certification (MVHC) course for REALTORS®, Lenders and Housing

The course provides a wealth of information to professionally assist

Professionals was very empowering and enlightening. The MVHC

over 23 million veterans and active duty personnel, and we must

Resource Manual downloaded from the course is a great and useful

properly serve this important sector of our population. Utilizing the

reference tool. This course helped me develop more confidence

MVHC resources is a great way to say “Thank you.”

in my ability to professionally service my Military and Veteran Chris Prendergast

Families in all aspects of the VA loan process. It required a detailed

VAREP Honolulu Chapter Community Outreach, REALTOR®

review of the entire process and reinforced my ability to become a knowledgeable VA Real Estate Professional.

After taking the MVHC course I realized that though I was pretty

General Bob Hipwell

educated and experienced on VA loans, but there were still certain

VAREP Sacramento Chapter President, Associate Broker

aspects about the program that I was not aware of or perhaps just needed some extra polishing up on. It is about time an independent

This course was very informative and helped build my confidence in

3rd party took the time to both educate and monitor those of us

all aspects of the VA loan. It required a detail review and reinforced

in the real estate and finance world that see Veterans as our niche

the need to be or become an expert VA loan expert. I was able to

clients. I am very happy to be associated with VAREP and to serve

share my experience with other veterans and colleagues.

the honorable men and women of the US Armed Forces.

Ricardo Pacheco Eric Kandell

Marine, VAREP Sacramento Chapter Treasurer, Lender

VAREP Member, Lender

Enjoy the Education, Enjoy the Experience, and Enjoy Serving Those Who Have Served Us! 4

VAREP NATIONAL EVENTS

OCTOBER 14 - 16, 2018 | HYATT REGENCY PHOENIX, AZ

The 2018 VAREP National Convention will educate, develop, and empower current and future leaders within the VAREP organization. The Academy equips VAREP leaders with the necessary tools to serve the military and veteran housing needs.

FOR MORE INFORMATION AND TO REGISTER 5

www.varep.net/convention

LIVE CLASS TRAIN THE TRAINER

JUNE 3 - 5, 2018 | GRAND HYATT WASHINGTON | D.C. The Policy Conference gives our members the opportunity to literally be the voice for veteran homeownership during pre-set Capitol Hill Visit appointments. Hill visits give members the opportunity to meet with members of Congress and the senate to advocate VAREPâ&#x20AC;&#x2122;s 2018 Policy Positions that affect military and veteran homeownership.

FOR MORE INFORMATION AND TO REGISTER www.varep.net/policyconference

2018 POLICY CONFERENCE GALA KEYNOTE SPEAKER

Master Sgt.

CEDRIC KING Master Sergeant Cedric King entered the

With the love and support of his wife Khieda

United States Army in 1995. During a career

and daughters Amari and Khayma, he began

that took him from an infantry private to a

rebuilding his life.

position of leadership in the elite Rangers, King graduated from a number of distinguished Army schools. These included the United States Army Jumpmaster Course, United States Army Pathfinder course, Air Assault course, The United States Army Ranger Course, and others. He is the recipient of the Bronze Star, the Purple Heart, the Meritorious Service Medal, and is a four-time Best Ranger Competition competitor. On July 25, 2012, during his second tour in Afghanistan, King was severely injured by an improvised explosive device. The blast caused major internal injuries, permanent loss to part of his right arm and hand, and the amputation of both legs. He applied the same determined, can-do mindset to his recovery that he had relied on to succeed as an elite Army Ranger. 7

Just 21 months after losing both legs, King completed the Boston Marathon, running on prosthetic blades. He has gone on to compete in a number of physically daunting events, including a 70.3 mile half Ironman Triathlon, the 2014 New York City Marathon, and the 48.6 mile Disney Marathon series. There, he successfully completed four runs in four days -a 5k, 10k, half marathon, and full marathon. King has shares his inspirational story of endurance with audiences across the country, including schools, churches, the National Football League, and Fortune 500 companies. Just as he led and motivated men in combat, he now leads and motivates others to see the possibilities in their own lives.

You can take my hands, you can take my eyes, you can take my hearing but one thing you cannot take away from me is that spirit inside of me that wants to win - Master Sgt. Cedrick King

THE THE PATH PATH TO TO SUSTAINABLE SUSTAINABLE HOMEOWNERSHIP HOMEOWNERSHIP VAREP’s Housing Department is a HUD Approved As a non-profit for vets byCounseling vets and a HUD-approved counseling Housing Counseling Agency providing homebuying, credit, budget, post affiliate #90312; we understand your situation, we will provide purchase and foreclosure prevention counseling services to Veterans, Active you with the education, counseling and resources necessary to get Military and the community nationwide. Over the past year, from January to you mortgage-ready. you are the readyfollowing to realize thehousing American counseling services: December 2017, weOnce provided Dream, you will have access to a network of veteran-friendly real

2017 COUNSELING & OUTREACH STATISTICS

estate, lending and other housing specialists to help you on the

path to homeownership. If we can’t help you we will refer you out

416

306 84 222

to the right veteran resource that will assist you.

GROUP WORKSHOP PARTICIPANTS FROM VHS CHAPTER EVENTS

CLIENTS WE AREFOR A SERVICES HUD APPROVED HOUSING COUNSELED INQUIRIES

1 ON 1 HOUSING COUNSELING CLIENTS

COUNSELING AGENCY PROVIDING:

TYPES OF COUNSELING PROVIDED

· Credit, Budget and Financial Counseling · Homeownership Counseling

124 27

· VA Loan and Down Payment Assistance Counseling

· Foreclosure Prevention POSTCounseling PURCHASE PRE-PURCHASE HOMEOWNERSHIP · Rental Counseling

FORECLOSURE PREVENTION

FINANCIAL HOMEOWNERSHIP SUSTAINABILITY COUNSELING

CREDIT COUNSELING

Visit www.VETHOMEOWNERSHIP.com or Call: 888.273.7267 9

VISIT WWW.VETHOMEOWNERSHIP.COM OR CALL: 888.273.7267

3,300 LMI HOUSING INQUIRIES INTERNET, TELEPHONE & COMMUNITY EVENTS

975 LMI FAMILIES RECEIVED PRE-PURCHASE, CREDIT & HOUSING COUNSELING

750 VETERAN FAMILIES SUCCESSFULLY PLACED IN HOMES THROUGH OUR PROGRAMS

200 VETERANS WERE REFERRED TO HUD VASH PROGRAM

250 VETERANS ENGAGED IN CREDIT COUNSELING TO IMPROVE FINANCIAL READINESS

1,000 VETERANS & SERVICEMEMBERS EDUCATED ON VA HOME LOAN BENEFIT, IMPORTANCE OF GOOD CREDIT & HOME BUYING PROCESS THROUGH COUNSELING & OUTREACH EVENTS VISIT WWW.VETHOMEOWNERSHIP.COM OR CALL: 888.273.7267

CFPB Releases Tool to Help Measure Financial Well-Being Resource Will Provide Questions Financial Educators Can Use to Assess the Financial Wellness of Consumers

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) is releasing a tool to measure consumer financial well-being, based on a definition that the Bureau released in January 2015. This first-of-its-kind tool provides questions that educators and others working to build financial capability can use to accurately and consistently quantify the financial well-being of consumers. “A key part of our mission is providing resources that aid and

working with consumers to quantify the consumer’s financial wellbeing. Financial educators can use the scale in a variety of ways: • Initial assessment: The scale can be used to assess a person’s financial well-being when a financial educator first begins working with a consumer, and help guide an initial conversation about the consumer’s financial situation. • Tracking progress over time: The scale can be used at

empower people to lead stable and healthy financial lives,” said

different intervals to track a consumer’s financial well-

CFPB Director Richard Cordray. “Our financial well-being tool

being over time. Changes in answers to certain questions

will give financial educators an important means by which to

can provide additional insights to how a consumer’s

evaluate and support consumers’ financial health.”

financial well-being is evolving.

In January 2015, the CFPB released a report that provided a definition of financial well-being, drawing on interviews with consumers across the country, relevant research, and consultations with leading financial education experts. The report defined financial well-being as “a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow them to enjoy life.”

• Assessing program outcomes: The scale can be used to gauge how well a program is improving the financial wellbeing of the individuals it is designed to serve. • Financial well-being survey research: The scale can be used in survey research to analyze the relationship between financial well-being and other factors.

The new tool is comprised of 10 questions that financial educators can use when working with clients to measure their financial security and overall sense of financial well-being. The questions that make up the scale are built around the four elements of financial well-being that were published in the January 2015 report. The four elements are: Procedures Act (RESPA).

• Financial security in the present: This element focuses on whether consumers feel they have control over their dayto-day and month-to-month finances. • Financial security in the future: This element focuses on whether consumers feel they have the capacity to absorb an unexpected financial shock. • Present financial freedom of choice: This element focuses on whether consumers feel they have the ability to make choices that allow them to enjoy life. • Future financial freedom of choice: This element focuses on whether consumers feel they are on track to meet their longer term financial goals.

The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. www.Consumerfinance.gov CFPB COMPLAINT CONTACT INFORMATION: Hours of Operation: Monday through Friday, 8am - 8pm EST Toll Free Number: (855) 411-CFPB (2372) Español: (855) 411-CFPB (2372) TTY/TDD: (855) 729-CFPB (2372)  Fax Number: (855) 237-2392 Consumer Financial Protection Bureau P.O. Box 4503

While consumers already have a sense of their financial wellbeing, this tool is designed to allow educators and others who are

Iowa City, Iowa 52244 www.Consumerfinance.gov/Complaint 12

2018 POLICY CONFERENCE LUNCHEON KEYNOTE SPEAKER

In fact, it was actually Davis’ body with the head of Forrest superimposed on it that you see. Granted, Davis never actually dropped his pants to show the President his rear side bullet wound, but for much of the footage, you get to see some real history in action. Then again, if you really want to see history in action let’s talk about what led Davis to receive the real Medal of Honor and led to his place in movie lore as “The Real Forrest Gump.”

Sammy L. Davis THE REAL “Forrest Gump”

As if sharing a name with the famous Sammy Davis Jr. of the Rat Pack were not enough cause for notoriety, Sammy L. Davis would be thrust into the national spotlight thanks to the 1994 classic film Forrest Gump. The movie had a remarkable ability to inject Tom Hanks into real historical footage in a manner not often seen in films before. And when it came time to award Forrest the Medal of Honor, they took the footage straight from the ceremony that honored Sammy L. Davis. 13

Upon enlisting in the Army, a young Davis volunteered for the artillery because his father was an artilleryman in World War 2. While artillery will often find themselves behind the front lines due to the range of their weapons, the use of fire-support bases throughout Vietnam would put them dangerously exposed to a direct assault. Knowing the risk, Davis requested to be sent to Vietnam after completing training. On November 18th, 1967, a young PFC Davis and his unit were helicoptered in to a fire-support base west of Cai Lay. Less than 24 hours later, Davis would find himself in a fight for his life and the lives of those around him. Mortars began to r ain down on the American position in a relentless assault while an estimated 1,500 Viet Cong soldiers emerged from the jungle in an attempt to overrun the base. With the enemy surprising the Americans in close proximity, Davis jumped on a machine gun to provide covering fire while his crew operated the 105 mm howitzer. During the assault, Davis’

howitzer team would take a direct hit from a recoilless rifle that sent Davis flying into a fox hole and his crew off the weapon. Despite the burning gun and disregarding his own injuries, Davis jumped back on the howitzer to fire as many rounds as possible on the approaching enemy. The Viet Cong were advancing five deep in front of him when Davis loaded a Beehive round which utilizes 18,000 beehive darts in each shell and fired it point blank at the enemy. When another mortar shell knocked Davis off the gun again, he returned to his feet and continued to fire from the damaged howitzer until there were no more rounds left. However, Davis wasnâ&#x20AC;&#x2122;t done disregarding his own safety just because he was out of ammo. Assisting the Americans in their defense of this position was a river that ran between them and the main assault of the Viet Cong. When Davis was done firing his howitzer, he heard the screams of wounded Americans from across the river. Despite not being able to swim himself and being wounded, he grabbed an air mattress from the camp and paddled across the river to retrieve his wounded comrades. Followed by other soldiers, they found three American servicemen on the other side of the river. Davis fired into the jungle to slow the enemy advance while the most seriously wounded man was carried across the river. He

then protected the other two with small arms fire until he could get them back across. Once back and still in disregard for any personal injuries, Davis joined another howitzer crew and continued the gallant defense of the fire-support base. Sometime before dawn, Davis received severe injuries to his back and, yes in true Gump fashion, even his buttocks. While in the hospital, he petitioned General Westmoreland to be allowed to stay with his unit rather than be sent home. His request was granted, but due to his injuries limiting his ability to execute his normal duties as an artilleryman, he was made a cook. Sammy L. Davis was awarded the Medal of Honor by President Johnson a year later in what seemed like a routine ceremony. But thanks to remarkable digital effects and the wanderings of one Forrest Gump, the world has been able to see a young Davis receive his Medal time and time again. And while the fact that they were both mutually wounded in the buttocks makes for a hilarious point of historical accuracy, the Real Forrest Gump kept his pants up. Fiction often finds its inspiration from real life and though we enjoy the virtue of a good piece cinema, let us not forget about the virtue and gallantry of men like Samuel L. Davis who make such stories possible. Article by Jeff Edwards, sourced from War History Online

2017 REAL ESTATE DIVISION IN REVIEW

featuring Freedom Flippers and House of Vet Programs

Our servicemembers, veterans, first-responders, civil servants and teachers protect, serve and care for our country and community on a daily basis. It is now our turn to give them a hand up to realizing homeownership though our Freedom Flippers First-Look Home Buyer Program. We receive donated homes, transform and resale them to qualified families around the country through our partners Bank of America, Chase and Wells Fargo.

HOMES REMODELED & SOLD TO

LMI, VETERANS, MILITARY, 1ST RESPONDERS, TEACHERS & CIVIL SERVANTS

$1,181,000

SPENT REHABING TURNING BLIGHT TO BRIGHT WITHIN OUR COMMUNITIES

Learn more at www.freedomflippers.org 15

8 Veterans Given a Home in 2017 Mackenzie Beaucejour US Army

Graham Dorsey US Marine Corps

Fort Lauderdale, FL

Phoenix AZ

Darryl Thomas US Marine Corps

Davis Edgar US Marine Corps

Waco, TX

St. Louis MO

Leif Apag USA Army

Nidia Fleming US Army

Reno NV

Sacramento CA

Jamell Holmes US Army

Gena Tilstra US Army

Cleveland OH

Saylorsburg PA

More stories found at houseavet.net

HOW THE NEW TAX LAW WILL AFFECT MILITARY FAMILIES By: Leo Shane III

ASHINGTON — The sweeping tax reform measure passed by Republican lawmakers this week includes few items specific to service members, but significant repercussions for military families in years to come. At the least, troops will see a host of new tax brackets and rules when they file taxes next year. The tax reform package drops rates for most taxpayers who make more than $10,000 annually, and supporters estimate that about three-quarters of Americans would get a tax cut under the plan. Kelly Hruska, government relations director for the National Military Family Association, said most of the issues she has seen with the tax changes 17

involve changes in child tax credits, income rate changes and state tax issues — items that affect all taxpayers, not military members specifically. Earlier drafts included some troublesome spots for military-specific issues, like moving expenses and uniform costs, “But it looks as if a lot of those things have been addressed now,” she said. Here’s a look at how the tax changes could affect some typical military families:

• • • •

Example: An unmarried young sailor Rank: Petty Officer (E-4) with four years service Assignment: Naval Base San Diego, California 2016 income: $28,500

Individuals in the lowest tax brackets will see the least benefit

from the new tax plan, but that doesn’t mean they won’t see any benefits at all. For single filers making between $9,526 and $38,700, that means a shift from a 15 percent bracket to a 12 percent one, boosting their take-home money. For this example, the sailor would see a savings of about $500 a year. But that can vary wildly depending on a service member’s circumstances. That $500 calculation assumes the sailor doesn’t have more than $10,000 in deductions — things like charitable contributions, uncovered medical expenses or mortgage interest costs. Lawmakers raised the standard deduction for single filers from $6,500 to $12,000, but also reduced the amount of personal deductions in the reform bill. As a result, some individuals with more unusual financial situations will see their taxes rise slightly, as those exemptions disappear. In addition, Congress put a cap on state and local tax deductions of $10,000 annually. For states like California — which has one of the highest individual income state rates in the country — the cap could significantly add to troops’ taxable income. But that is unlikely to hit lower-ranking troops. • Example: A married soldier with two children • Rank: Sergeant First Class (E-7) with 12 years service • Assignment: Just moved to Fort Bliss, Texas • 2016 income: $96,000

This soldier’s salary doesn’t include more than $17,000 in housing stipends over the course of the year, because those allowances aren’t taxable. And while the new tax reform bill does eliminate some deductions for moving expenses, the military was given an exemption, meaning those changes shouldn’t hit troops wallets. Assuming each spouse in this example earns roughly the same salary ($48,000 for the soldier alone in 2016), their family would end up in the third tax bracket, which drops from 28 percent to 22 percent under the new reform bill. The tax credit for children doubles to $2,000 per person, and the standard deduction for couples goes from $13,000 to $24,000. All those mean a significant boost in the family’s tax return under the new plan, somewhere in the range of around $3,000. Again, depending on how many deductions they lose under the plan, that refund could shrink. But the family is unlikely to pay more in taxes as a result of the changes. • Example: A married Marine officer with one child • Rank: First Lieutenant (O-2) with three years service • Assignment: Owns a home near Marine Corps Base Quantico, Virginia

Lawmakers changed some of the rules for mortgage interest deductions in the tax reform plans, but also added an exemption for military families after advocates voiced concerns about frequent moves hurting troops who own a home. As a result, this Marine family should not see any changes in that aspect of its tax bill. This example uses only the Marine’s salary, assuming the spouse is a full-time caretaker for the child. Their income puts them squarely in the middle of the 12 percent tax bracket, and they’ll see the same benefits as the examples above from the standard deduction increases and the child tax credit boosts. Since Virginia has among the highest state tax rates in the country, they’re at higher risk of hitting that new $10,000 cap on deduction of local taxes, and could lose out on some previous savings. Still, the family is likely to see a tax refund increase around $1,500 under the new plan. • Example: An unmarried senior Air Force officer • Rank: Colonel (O-6) with 18 years service • Assignment: Nellis Air Force Base, Nevada • 2016 income: $112,000

Even with an income over $100,000 annually, the officer in this example still falls in the middle of seven tax brackets (the fifth bracket starts after $157,000 for single filers). Under the tax reform changes that drops from 28 percent to 24 percent. The new highest tax brackets — where income is hit at a 37 percent rate — start over $500,000 in yearly earnings. Because this example is a high-income single filer (and, without children, may have more unexempted financial investments than some married peers) the officer is more likely to run into the problem with eliminated deductions. They could swing the final tax bill by a few thousand dollars, depending on the specifics of what still can be claimed and what now becomes a new liability. Still, that range all falls on the side of more money for the taxpayer, somewhere between a few hundred dollars and more than $3,000.

About Leo Shane Leo covers Congress, Veterans Affairs and the White House for Military Times. He has covered Washington, D.C. since 2004, focusing on military personnel and veterans policies.

• 2016 income: $55,700

LEGISLATIVE CORNER “To maintain the momentum from the Policy Conference, I have appointed G-II Varrato, AZ State Director; William Process, Northern Nevada Chapter President; and Laureen Trent, Southern Florida State Director, to form VAREP’s National Legislative Committee (NLC). The NLC’s task is to do the background and heavy-lifting work necessary to move our mission and the bill forward.” - Son Nguyen, VAREP Founder & President

G-II Varrato II Arizona State Director

G-II (G2) Varrato II is husband to Lori Klindera and have been in the real estate industry nearly 3 decades as licensed REALTORS®. “G-II” is retired USAF. As a REALTOR® with Coldwell Banker Residential Brokerage in Phoenix, Arizona and business partner at Lori & G-II’s Real Estate Team, Lori & G-II have continually been ranked in the top 1% of all REALTORS® for all Arizona, with Coldwell Banker Residential Brokerage, for the past 17 years and have been ranked 6th in the state in overall production and are ranked in the top 2% of all Coldwell Banker Agents in the United States since 2011. Lori & G-II are ranked as the No. 1 Short Sale REALTOR® team for Coldwell Banker Residential Brokerage in Arizona.

Yeimalis Acevedo-Rasmussen National Board of Director Yeimalis Acevedo-Rasmussen is the President and Real Estate Broker for Las Comadres Inc. Las Comadres Inc, a minority and women own company is here in the Bay Area serving our diverse and growing Multicultural and Latino Markets in Real Estate and Taxes services. Currently serves on the National Corporate Board of Governors for NAHREP, Chair of CCAR Diversity Committee, CHCC Housing Force Task founding member and is an active member of CAMB (California Association of Mortgage Broker) AREAA, CREAA and NAR (National Association of Realtors) just to mentioned a few. She has been in the real estate industry for nine years becoming an independent Broker since 2006. Started her career as an Operations Manager at GT Capital, Lafayette CA where she had the opportunity to developed and successfully run the Latino and Multi-Cultural division for the company providing services within Contra Costa County and Alameda County.

William Process

Northern Nevada Chapter President “As the 2017 Immediate Past President of the Reno/Sparks Association of REALTORS®, 2018 State Vice President of the Nevada Association of REALTORS® and the current President of the Northern Nevada Chapter of the Veterans Association of Real Estate Professionals (VAREP), I apply the REALTOR® code of ethics and observe the principles of honesty and integrity in every aspect of Real Estate and helping veterans. These ethics and principles have been ingrained in me through my service as a Navy Hospital Corpsman, Firefighter, Emergency Medic and other professional experiences, and will be the guiding principles in EVERY interaction that I am involved in.”

Gary Johnson Legislative Committee

I joined the Air Force when I was 17 years old and served in the Air Force for 6 years. I went to American River College for two years and received my Associate of Art Degree in Political Science. I wanted to give more back to my country and joined the active Coast Guard Reserve where I served for 26 years. I became a law enforcement officer with the Placer County Sheriff’s Department for two years and then accepted a position and worked as a Senior Investigator with the Department of Consumer Affairs and then transferred to the Department of Justice as a Special Agent. My whole life has been devoted to volunteerism and I have served in the education community for 18 years as a School Board member in three different school districts. I have served on the Sacramento Chapter of VAREP for 4 years as Treasurer and President. I continue to volunteer as a Major in the United States Volunteers Honor Guard where I do Honors to veterans who pass away.

Because H.R. 2777 amends relative portions of Titles 10, 12, and 38 USC (United States Codes), the bill was sent to the House Financial Services Committee and to the House Armed Services Committee. Upon close review by National Legislative Committee (NLC) Chairman, GII Varrato, and staff members in the offices of Representatives Veasey and Sinema, we concluded that a sound strategy would be to convince the House Committee on Armed Services to “waive jurisdiction” and release full review of the bill to the remaining committee, the House Financial Services Committee.

With H.R. 2777 in hand, over 200 VAREP leaders from 35 chapters across the United States visited over 120 United States representatives and senators during VAREP’s annual Policy Conference in June 2017. VAREP leaders received verbal support for the bill, but the journey to making this bill become law has just begun.

Introducing VAREP’s National Legislative Committee (NLC) To maintain the momentum from the Policy Conference, Son Nguyen, VAREP President, appointed GII Varrato, AZ State Director; William Process, Northern Nevada Chapter President; and Laureen Trent, Southern Florida State Director, to form VAREP’s NLC. The NLC’s task is to do the background and lifting necessary to move the bill forward. 20

LEGISLATIVE CORNER Led by its Chair man, GII Varrato, the NLC was busy during August 2017. The committee quickly and effectively communicated with key members of the House and Senate Financial Services Committees and spent countless hours over a period of weeks calling and emailing the following organizations to promote the positive benefits of H.R. 2777:

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Mortgage Bankers Association (MBA)

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Financial Services Roundtable

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American Bankers Association (ABA)

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National Association of Local Housing Finance Agencies (NALHFA)

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National Credit Union Administration (NCUA)

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Five Star Institute

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USFN America’s Mortgage Banking Attorneys®

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National Association of Mortgage Underwriters® (NAMU®)

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National Association of REALTORS® (NAR)

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National Association of Federally Insured Credit Unions (NAFCU)

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Credit Union National Association (CUNA)

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Association of the United States Navy

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National Military Family Association

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Association of the United States Army and the Reserve Officers Association

This effort resulted in securing a written endorsement of H.R. 2777 by the National Association of REALTORS®, and VAREP expects a second written endorsement soon from the Mortgage Bankers Association (MBA). Over the next few weeks, it is expect that the NLC will secure additional written support in the forms of endorsement letters or letters of “non-opposition.” This part of the process is critical because the House Financial Services Committee will need assurances that they will not run into any headwind from their constituencies.

NLC Chairman Varrato’s August 2017 Washington, DC, Visit NLC Chairman Varrato traveled to Capitol Hill and visited with key House and Senate staff with a focus on advancing H.R. 2777 through the committees. Varrato met with senior staff 21

members of Congressman Mac Thornberry (R-TX) (Chairman of the House Committee on Armed Services). Their conversation concluded with a general agreement that NLC’s point of contact would encourage Congressman Thornberry to affirm a “waiver of jurisdiction” of H.R. 2777, once Congress returns to Washington, DC, in the first week of September. Varrato left that meeting confident in “mission accomplished”!

The next task was to lay the groundwork for recruiting Republican senators to either sponsor or co-sponsor a companion bill to H.R. 2777. Varrato met with military legislative staff in the offices of Senator Joni Ernst (R-IA); Senator Dean Heller (RNV); Senator John Cornyn (R-TX); Senator John McCain (R-AZ); and Senator Joe Manchin (D-WV).

Varrato also stopped by the Senate Committee on Veterans Affairs and discussed the benefits of H.R. 2777 and the minimal impact the minor changes to USCs 10, 12, and 38 would have on the mortgage industry.

Once Congress is back in Washington, DC, the VAREP National Legislative Committee will begin to dispatch VAREP Chapters to work on various aspects of creating a collaborative effort to build bipartisan House Sponsorship of H.R. 2777, while the National Legislative Committee will begin work on recruiting Republican Senators to craft our Senate companion bill.

H.R. 2777 Summary H.R. 2777, “Give Veterans Home Loan Choice Act 2017,” closes a long-overdue gap in the disclosure process of loan options available to veterans. Of course, the revised FNMA 1003 (Uniform Residential Loan Application, which is scheduled to go into full use by December 2018) begins that process by prompting the loan professional to ask the applicant if he or she has ever served in any branch of the U.S. military. Finally, the bill enables the Department of Veteran Affairs to provide counseling on home loan services and housing-assistance benefits to members of the armed forces.

2017 VAREP LEADERSHIP ACADEMY

ADVOCACY CORNER August 18, 2017 William E. Brown 2017 President Bob Goldberg Chief Executive Officer Dale A. Stinton Chief Executive Officer Emeritus GOVERNMENT AFFAIRS DIVISION Jerry Giovaniello, Senior Vice President Gary Weaver, Vice President Joe Ventrone, Vice President & Deputy Chief for Regulatory Affairs Scott Reiter, Vice President Jamie Gregory, Deputy Chief Lobbyist 500 New Jersey Ave., NW Washington, DC 20001-2020 Ph. 202-383-1194; Fax 202-383-7580 WWW.NAR.REALTOR

The Honorable Marc Veasey United States House of Representatives 1519 Longworth House Office Building Washington, DC 20515 Dear Representative Veasey: The National Association of REALTORS® is a strong supporter of housing opportunities for veterans. The VA home loan guarantee program has been successful in raising the homeownership rate for veterans to more than 75%, a level much higher than the national average. However, some veterans are not even aware of their VA home loan benefit. REALTORS® support H.R. 2777, which will ensure veterans know their options when wishing to purchase a home. The VA Home Loan Guaranty is part of the benefit entitlement promised our nation’s veterans. Private banks provide the loans, and the VA guarantees the first 25% of the loan. VA loans have more flexible underwriting, using a variety of methods to provide credit-worthy veterans a loan. However, the greatest benefit to veterans may be that the loans require zero downpayment and no mortgage insurance. However, according to a recent study of the National Association of REALTORS®, only 54% of veteran homebuyers used their VA benefit.1. H.R. 2777 would ensure that all veteran homebuyers are aware of the VA home loan benefit. This legislation is a common sense fix that will make sure our men and women in uniform do not miss out on the benefits of this program. The VA home loan guarantee program is a vital homeownership tool that provides veterans with a centralized, affordable, and accessible method of purchasing homes as a benefit for their service to our nation. The 1.2 million members of the National Association of REALTORS® thank you for this legislation, and look forward to working with you towards its passage. Sincerely,

William E. Brown 2017 President, National Association of REALTORS®

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1 2016 National Association of REALTORS® Veterans and Active Military Home Buyers and Sellers Profile.

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Spencer Platt/Getty Images

About 900 undocumented immigrants known as

The enlistees are a small proportion of the 800,000

“DREAMers” are currently serving in the United

immigrants who have received quasi-legal status

States military, the Pentagon says — which

under the program known as DACA, or Deferred

could prove a major challenge for the Trump

Action for Childhood Arrivals.

administration as it tries to wind down the Obamaera program that protected those immigrants from

But they are also among the most symbolically

deportation.

important faces of the program, now that President Trump has called on Congress to resolve the fate

Those service members — all of whom have health

of immigrants whose parents brought them to the

care or language skills the U.S. military considers

country illegally as children.

vital — would be forced to leave the military under Trump policy that would rescind their protected

The DACA enlistees are part of a Pentagon pilot

status beginning next March.

project called Military Accessions Vital to the National Interest. The program waives certain

Over 30 American military members recite their oath of allegiance as they are sworn in as naturalized citizens Photo by US Embassy Kabul Afghanistan.

citizenship requirements for green card holders,

The Pentagon declined to say whether how those

refugees and DACA recipients with skills that the

who lose their protected status would be given an

military considers essential to the national interest.

honorable, general or administrative discharge.

The group includes doctors, nurses, and

The White House has said the question of legal

service members with proficiency in a language

status of undocumented childhood immigrants is

considered to be of strategic importance. Spanish

up to Congress. Asked specifically about military

is not one of those languages, but Arabic, Russian,

enlistments, White House press secretary Sarah

Chinese and Korean are.

Huckabee Sanders said, “We have confidence that Congress is going to step up and do their job.”

Homeland Security spokesman Dave Lapan said his agency and the Pentagon were still reviewing

“This is something that needs to be fixed

how to handle the military status of DACA

legislatively, and we have confidence that they’re

recipients who are serving.

going to do that,” she said.

Under the policy adopted by the Obama

Alan Gomez reported from Miami.

administration, those whose DACA protections expired at any point in their service — on active

Alan Gomez is an immigration reporter at USA Today.

duty or under contract — would no longer be

He has covered Florida, Congress, hurricanes, the Tea

eligible to serve, Lapan said.

Party, Iraq, Afghanistan, Gitmo, cops, courts, high school football and suicide squirrels.

“We’re still figuring out what the different outcomes are,” Lapan said. 26

“The willingness with which our young people are likely to serve in any war, no matter how justified, shall be directly proportional to how they perceive veterans of early wars were treated and appreciated by our nation.” - George Washington

VETERANS ASSOCIATION OF REAL ESTATE PROFESSIONALS info@VAREP.net

w w w . V A R E P. n e t

951- 444 -7363