matters to realtors - santa cruz county association of ... · buyer is really intended to offer ......

Donrsquot Miss lsquoThe Datarsquo That Matters To REALTORS reg

insideSanta Cruz Countyrsquos Real Estate News Source

A publication of the Santa Cruz Association of REALTORSreg March 2010

REAL ESTATE

insideREAL ESTATE scaororg March 2010

2

In This Issue

Presidentrsquos Message - page 3

CAR Reports - page 4 - 7

Legal Notes - page 9

Government Affairs - page 10

Education Offerings - page 11

Legislative Watch - page 12

Foundation - page 13

Summit 2010 - page 14

RSVP - page 15

Affiliate News - page 16

Termite Talk - page 17

Calendar - page 18


3

Santa Cruz Association of REALTORSreg

2010 BOARD OF DIRECTORS

PresidentSteve Allen

President-ElectCandace Bradfield

SecretaryTreasurerBarbara Palmer

Immediate Past PresidentLela Willet

DirectorsBetty DannerDebra FreyJohn Hickey

Frank O MayBobbie Nelson

Anne Marie SorcenelliLauren Spencer

Marjorie Vickner

Chief Executive Officer SCAOR ampExecutive Director SCAORHF

Kathy Hartman RCE

Member Services DirectorNorma I Milete

Director of Educationamp Professional Services

Karen Kirwan

Advertising Communicationamp Marketing Director

Andrea Harbert

Government Affairs DirectorDale Gray

Administrative AssistantLeslie Flint

BookkeeperLinda Zoccoli

ADVERTISING INFORMATION

INSIDE REAL ESTATE Newsletter

For advertising and deadlineinformation please contact SCAOR

andreascaororg

Inside Real Estate is the official monthlynewsletter of the Santa Cruz Associationof REALTORSreg provided as a memberservice to inform educate and update RE-ALTORreg and Affiliate members on localstate and national news as well as theAssociationrsquos calendar of events


2525 Main Street Soquel CA 95073(831) 464-2000

(831) 464- 2881 (fax)

wwwscaororg

Presidentrsquos Message

Real Estate is MagicSteve Allen2010 Association President

Allen Property Group Inc831- 688-5100stevenallenpginccom ative that we work together and

defend our means of doing busi-ness Political Action Contribu-tions have never been moreimportant While most of us arein a mindset of reducing per-sonal and business expenses agovernmental change to one ofthose ldquoreal estate related eco-nomic benefitsrdquo could proveharmful to our industry just aswe gain traction on recoveryPlease consider this the nexttime you decide whether to con-tribute either time or resourcestowards our local state and na-tional political action commit-tees For more information onhow to contribute click here

Real estate is magic It can bebought sold leased insureddeveloped mortgaged man-aged and most importantly en-joyed Have you ever askedyourself why there are so manyreal estate related economicbenefits

The primary theme voiced atthe California Association ofREALTORSreg Winter BusinessMeeting in Indian Wells wasone of protectionism It is nosecret that our state and federalgovernments are in a horrificfinancial position Certain poli-ticians have painted a large tar-

get on the real estate industry asa means to offset some of theescalating government deficitsAmong other things CAR iscommitted to defending mort-gage interest rate deductibility(primary homes second homesand home equity lines of credit)protecting Proposition 13 taxlimits (for both residential andcommercial property) avoidingmandatory point of sale retrofitsand additional transfer tax pro-tecting the ability to perform anIRS 1031 tax deferred exchangeand avoiding additional ldquocarbontaxesrdquo for homes over a desig-nated size

Now more than ever it is imper-

Save articles to read later

There are just too many articles toread and sites to visit on the Inter-net You may go online to read anews story While reading the sto-ry you see links to three other sto-ries you want to read But you donthave time to read them right away

Thats where Instapaper can helpIt is a quick and easy tool for sav-ing Web pages You can then readthem later at your leisure Onceyou sign up with Instapaper youcan add a bookmarklet to yourbrowser Then when you want tosave something to read later clickthe bookmarklet

You can return later to read thearticles on your computer Youcan download the articles toprint out Or download them foryour e-book reader Theres evenan iPhone app Instapaper is agreat way to save articles forlater reading Its much moreconvenient than e-mailing linksto yourself

wwwinstapapercom


4

REALTORreg Political ActionCommittee

Candace BradfieldPremier Real Estate

831- 464-4330bradfieldcruziocom

Exciting NewsRPAC (REALTORreg PoliticalAction Committee) has part-nered with NAR whereby LocalAssociations may apply forNAR Fundraising grants of upto $5000 to be used for variousfundraising events such as

Silent Auctions

Champagne and Diamond Re-ception

REALTORreg Idol

Fundraising video or DVDproduction and distribution

Santa Cruz Association of RE-ALTORSreg will be applying forthis grant Submit your ideas toSCAOR CEO kathyscaororgby March 15 2010

The name Political AffairsCommittee will be changed toREALTORreg Action FundCommittee and the followingmission statement has been ap-proved as

The mission of the committee isto provide education and train-ing for politically involvedREALTORSreg to develop appro-priate structures for effectivecommunication with elected of-ficials at each level of govern-ment and to provide support forREALTORSreg in the areas offundraising education and theMember Mobilization ProgramThe committees primary func-tion is to raise funds through theREALTORreg Action Fund train

local associations and to providepolitical education to localmembers as needed (February2010)

Public Policy Committee

Lela WilletUnique Homes amp Land

831- 425-7920lelathewilletwaycom

Short Sale Scams andSchemes

REALTORSreg are cautionedabout the risk to themselves andto their clients when using thirdparty negotiators REALTORSreg

are advised to consult with inhouse attorneys to determine ifthe REALTORreg is covered byerrors and omissions insurancewhen working with a third partynegotiator on a short sale Addi-tionally there is concern regard-ing the Agency relationship ofthe third party to our clients

ldquoTransaction Related Pay-mentsrdquo in which a ldquocreditrdquo to theBuyer is really intended to offerpayout to a junior loan holderare to be avoided There is onlyone HUD-1 and it must accu-rately reflect the facts of thetransaction

A warning regarding ldquoSettlementSalesrdquo was issued An investorgets a power of attorney from thelegal owner The investor thenmarkets the property as though itwere his own

Agents who are writing numer-ous short sale offers for thesame buyer at the same time arein danger Per attorneys on the

panel the deposit does not needto be in an escrow in order tohave a valid contract Writingmultiple offers could obligateyour buyer to multiple con-tracts There is an implied obli-gation of good dealing whichprohibits a buyer from justbacking out subject to paragraph14 of the RPA

Should a Title Company requirea seller to sign that a lender maycome back after the short saleeven if the loan is non recoursethe seller should probably notsign it and should speak with anattorney and CPA immediately

Agents are advised that theyshould not reassure their clientsone way or the other regardingrecourse loans

The REALTORreg is urged tocounsel clients to seek the ad-vice of attorneys and CPArsquosThe advice needs to be bothwritten and verbal and shouldbe given numerous times in theshort sale process The agentshould not assume what the bestoption should be for the clientwhether it be Foreclose Shortsale Loan modification Deedin lieu of foreclosure or Bank-ruptcy

An excellent site for currentshort sale information iswwwrealestateriskmgtblogspotcom

REO Tips For a SafeTransaction

The REALTORreg needs to readthe banksellerrsquos rdquoaddendumrdquovery carefully The banksellerrsquosaddendum reads more like aCounter Offer The addendumoften sites the passive removalof contingencies After say 10days have passed for investiga-tions the bank deems that si-lence is approval Additionallythe addendum often states that

the buyer must take the propertywith occupants if anyThere have been personal injuryclaims wherein the lenderselleris sued by a tenant or past own-er The lendersellers have beenincluding the listing agent in theliability Caution is advised

Wrongful eviction is seldomcovered by E amp O insurance

Statewide many complaintshave been delivered to Associa-tion Grievance Committees re-garding REO agents notpresenting offers Offers mustbe presented to the sellerbankor the listing agent must showwritten instruction from thebank not to present more offers

As with Short Sales the biggestproblems arise when REAL-TORSreg working with REOproperties fail to advise clientsto seek the advice of an attorneyand a CPA

CAR is Working at theFederal Level Regarding

REO and Short Sales

Representatives from CAR arescheduled to meet with everymember of Congress as well aswith Fannie Mae Freddie Macand HUD Prominence is given tothe creation of uniformity be-tween banks in the forms that areused for short sales and for REOCAR has provided all agencieswith sample forms CAR is alsoworking toward a standardizedldquopre-approvedrdquo short sale and hasbeen successful in stopping lend-ers from negotiating commissionsdownwardContinued on Page 5

CAR MEETING DIRECTORSrsquoREPORTS


5

Standard Forms AdvisoryForum on Forms

Sandy KaplanSanta Cruz Real Estate

831- 471-8000kaplansantacruzproperties

com

New RPA-CA

The most exciting news is thatthere is finally a new RPA-CAPurchase Contract that is beingreleased in April 2010 Therewas a subcommittee thatworked long and hard and re-ceived a huge amount of inputfrom members on the numerousdrafts Gov Hutchinson isscheduled to do a class on thenew contract on March 12th

from 1-5pm at SCAOR Clickhere to register

Housing Affordability Fund(HAF)

The Mortgage Protection Pro-gram has been a huge successSince it began in April 2009HAF has issued over 3600 poli-cies to homebuyers in Califor-nia The Program is scheduledto end Dec 2010 or when thefunds run out whichever issooner Since it appeared themonies were going to be spentby March or April the commit-tee voted to allocate an addi-tional $300000 to fund theprogram

In 2009 HAF also funded sevenrequests from local associationstotaling $245000

There are two major fundraisersfor HAF They will be holdingtheir annual Golf Tournament at

Morgan Creek Golf Club onMon June 7th 2010 which is theday prior to the CAR meetingsin Sacramento

They are also asking each localassociation to hold a Bowl-a-thon One association last yearheld a Wii Bowling Tourna-ment that was really fun TheSanta Cruz Association ofREALTORSreg is looking forvolunteers to help put on thisevent Please contact AndreaHarbert the Association formore information at 831-464-2000 or andreascaororg

Professional StandardsCommittee

Bruce SouthstoneCoast Country Real Estate

831- 475-3525brucesouthstonecomcastnet

The Professional StandardsCommittee meeting began witha report by Kathy Mehringer aReal Estate Associate withColdwell Banker ResidentialBrokerage in Southern Califor-nia on the perils of Short Salesand the potential for violatingthe following NAR Code ofEthics

Article 1 requires thatREALTORSreg protect and pro-mote the interests of their clientsby referring to an appropriateprofessional any concern that isbeyond the requirements to ob-tain a real estate license Legaland accounting questions inshort sales must be referred toattorneys and accountants

Article 2 REALTORSreg

shall avoid exaggeration mis-representation or concealmentof pertinent facts relating to theproperty or the transaction IfArticle 1 werenrsquot sufficient thenthis article reinforces the notionthat REALTORSreg should notoffer advice beyond the scope ofthe knowledge required of aREALTORSreg

Article 3 Failure tocooperate with the selling bro-ker Meaning failure to disclosean accepted offer misrepresent-ing access

Article 4 Failing todisclose to lender buyer rela-tionship to seller

Article 6 Referringclients to service providerswithout disclosing an ownershipinterest Accepting compensa-tion for more than one sourcewithout full disclosure

Article 11 Workingunfamiliar areas outside thelicenseersquos field of competencewithout assistance from onewho is competent

Article 12 Honesty andtruthfulness in all communica-tions and advertising

Article 13 Failure torefer legal matters to an attorney

Third party negotiators shouldbe licensed

For additional information seeKathyrsquos blog here Kathy grantspermission to use the info on hersite

In addition one action item wassent forward from the committeeto the voting body ldquoThat CARadvocate a position to NAR thatNAR expand its policy so that asuspension or expulsion that isimposed by one Association ofREALTORSreg for violation of

the Code of Ethics may be per-missively upheld by all other As-sociations of REALTORSregwhere the REALTORreg concur-rently holds membershiprdquo Thismotion was approved on Febru-ary 6 2010

Realtor Risk Managementand Consumer Protection

Forum

Bobbie NelsonLongacre Real Estate

831- 688-3880bjnelsonearthlinknet

Mortgage and Loan FraudPanel

The Panel acknowledged the in-dustry needs to increase aware-ness of the issues regarding salesand loan scams According to theDepartment of Real Estate(DRE) and District Attorney themajority of complaints are beingreported in Southern Californiawith 66 in the Los Angelesarea and 16 in San Diego Thescams reported mainly deal withloan modification offers Alsooversized commissions madefrom purchases of property whenthe buyer had no intention ofmaking the mortgage paymentsafter close of escrow So whatrsquosthe next scam coming down thepike According to the Panel thenext scam will be Debt collec-tion agencies contacting home-owners who are in short saledemanding repayment of theloan balances that have alreadybeen forgiven

Continued on Page 6

CAR MEETING DIRECTORSrsquo REPORTS


6

Continued from Page 5

The Department of Real Estateurges every real estate profes-sional to report any unusualtransactions both the DRE andyour local District Attorneyrsquosoffice

The Home Warranty Associa-tion presented the heating andair conditioning issue that willarise this year R22 andHCFC22 Freon will phase outFreon will be replaced with Per-on Gentron

The Pest Control Board pre-sented that Orange Oil was deter-mined to be ineffective when usedfor dry wood termites Accordingto a UC Berkeley study OrangeOil does not kill these types oftermites For more informationon pest issues visit pcocorg cdprcagov or termittentingcom

Gov Hutchinson gave a reportabout new laws and calls to theLegal Hot Line Many calls arecoming form questions regard-ing short sales Please go tocarorg and look under Legal tosee the new QampA available onmany of these subjects Onecaution is to make sure you havethe seller sign the short sale ad-dendum and several times dur-ing the process log anddocument via signed addendumthat you have told then to con-sult a tax advisor and or anattorney

The new RPA contract willsupply new options such as op-tion for deposit to be directlywired to escrow time and datethe offer is presented to sellerand agency put at the top of thecontract classes will be held onthe new form that will be re-leased in early April

AB329 Reverse Mortgagemust supply free counselingabout the mortgage and can nothave a pre-payment penaltyanymore

Swimming pools all must beretrofitted by July 1st with antisuction entrapment devices ex-cept single family home but thisdoes apply to HOA

Land Use amp EnvironmentCommittee Report

Barbara PalmerBailey Properties Inc

831- 688-7434bpalmerbaileypropertiescom

Land Use amp EnvironmentCommittee Mission State-ment This Committee is a Pol-icy committee to developCARs land use and environ-mental policy

CAR opposes any Point-of-Salerequirements The House passedthe American Clean Energy andSecurity Act of 2009 This billoriginally included a Point OfSale requirement for energy effi-ciency retrofits CAR and NARopposed this bill (HR 2454) untilRepresentative Waxman agreedto amend the bill language to re-move the Point of Sale require-ment and only require energyefficiency labeling for new con-struction

A similar bill S 1733 was in-troduced in the Senate by Sena-tor Boxer but the bill hit aroadblock it has since been rel-egated to the Senate back burnerfor now

In a related issue the Environ-mental Protection Agency orEPA announced theirldquoEndangerment Findingrdquo - aconcern regarding Greenhouse

Gas emissions from residencesThis means that if the EPA de-cides to regulate Green HouseGas emissions through theClean Air Act that emissionsfrom real property would beincluded Thankfully when theHouse passed HR 2454 and itincluded a carve-out for real es-tate that stated that real propertyemissions could not be regu-lated under the Clean Air ActThe Senate bill however cur-rently does not include a carve-out but is on hold

State Air Resources ControlBoard Regulations AB 1085(Mendoza) - This is a bill thatwill shine ldquosunlightrdquo on impor-tant regulatory procedures at theState Air Resources BoardCAR supported AB 1085from the beginning and until itwas signed by the Governor lastfall

State Water Resources Con-trol Board Proposed NewDefinition of Wetlands andProposed Wetland RegulatoryProgram - Late last year sev-eral organizations and compa-nies including CAR met todiscuss the current wetlandsdefinition development processby the State Water ResourcesControl Board as well as thecreation of a new wetlands reg-ulatory program CAR withthis coalition is pursuing a veryaggressive campaign advocat-ing for regulatory efficiency be-tween the state and federalwetlands regulatory programs

Property Rights AB 291(Saldana) Coastal ResourcesCoastal Development PermitsCurrent law permits the Califor-nia Coastal Commission to pur-sue cease and desist ordersagainst land owners who engagein un-permitted developmentactivities This bill would haveallowed the staff of the Com-mission to halt the processing ofa permit application if the Com-mission staff asserted that a vio-

lation existed on either thatproperty or any contiguous par-cel owned by the applicantCAR worked hard to opposeAB 291 when it came up on theSenate Floor and so far havebeen successful

Resources Issue - Had this billpassed the Public Utilities couldspend no more than 10 of itsenergy efficiency program fundsfor administration expensesCAR supported this failed bill

AB 1105 (Blakeslee) BuildingEnergy Retrofit RevolvingLoan Program - This billwould require the State EnergyCommission to establish theBuilding Energy Retrofit Re-volving Loan Program for non-residential buildings built priorto July 1 1978 CAR sup-ported this bill that failed

AB 1107 (Blakeslee) Environ-mental Protection AgencyRules - This bill would haverequired the California EPAagencies and boards to completean economic analysis of proposedrules and regulations that evalu-ated the costs and benefits of aproposed rule at a level of detailthat is appropriate and practicablefor reasoned decision makingCAR supported but it failed

California Energy Commis-sion AB 1103 ImplementationCAR continues to participateas a key stakeholder in the devel-opment of the CommercialBuilding EnergyStar Bench-marking program The biggesthurdle at this point is getting ac-cess to sub-metered data withoutviolating tenant privacy It is ex-pected that the program will beready for implementation by Jan-uary 1 2011

California Energy Commis-sion AB 758 ImplementationThe highly anticipated firstround of stakeholder meetings

Continued on Page 7



7


has not yet begun but the Cali-fornia Energy Commission isready to begin a rule makingprocess to develop a compre-hensive program to achievegreater energy savings in thestates existing residential andnonresidential building stockby capturing all cost-effectiveenergy efficiency improve-ments CAR will be activelyparticipating in this process

California Energy CommissionIntegrated Energy Policy ReportFinal Recommendations - De-spite repeated comments fromCAR to the California EnergyCommission the final draft ofthe Integrated Energy Policy Re-port includes recommendationsfor point-of-sale legislation totrigger energy retrofits andHVAC tune-ups and that thestate require home energy auditsat point-of-sale as part of a pack-age of strategies to improve theenergy efficiency Fortunately

while CAR believes that thesestrategies will be introduced inthe AB 758 regulatory develop-ment process just mentioned wedo have that protective languagein place to avoid any unreason-able regulatory mandates

AB 300 (Caballero) Subdivi-sions Water Supply - Currentlaw requires housing projects inexcess of 500 units to receive ver-ification from the public watersystem that sufficient water sup-plies are available for the projectCAR supports AB 300 thatwould permit the estimated vol-ume of water needed for a projectto be reduced if the developmentvoluntarily implements water de-mand reduction measures

Onsite Sewage TreatmentSystems - The State Water Re-sources Control Board is man-dated to create a statewidestandard for operating and per-mitting septic systems CARhas actively participated in thedevelopment of the new stan-

dards since 2002 and continuesto argue aggressively againstpoint-of-sale requirements andhigh compliance costs and forthe rights of property owners

State Water Board StatewideSeptic Regulations - We wereanticipating that the State WaterBoard would have a writtendraft proposal of the revisedregulations available to stake-holders by about late June orJuly of last year but we have yetto see any new language Dueto the recommendation to com-pletely revise the proposed reg-ulations based on the publiccomments received were toldthe Septic Regulations are beingcompletely re-written to a newoutline approach where septicsystems would be classified intothree different tiers CAR an-ticipates the announcement ofstakeholder meetings by Marchwhich would then be followedby the official regulatory pro-cess which could begin some-time in summer of 2010

The Water Board may also needto modify or redraft the environ-mental impact report whichwill take more time to completeWater Board Staff is hopefulthat this work can be accom-plished within 12 months of theregulations being written

The REALTORreg Septic Work-ing Group will review anychanges as they are proposedand will prepare comments asnecessary Should the need ex-ist another REALTORreg RedAlert could be mobilized

State Water Board Stormwa-ter Run Off Regulations -Since 2007 a coalition of busi-ness local governmentpublicagencies transportation infra-structure labor and commercialand residential development in-terests including CAR havebeen advocating for a rationalcommon-sense general permitsthat regulate the runoff of stormwater from construction sitesacross the state


2010 REALTORreg Action Fund ParticipantsProtecting Local Real Estate

Steve AllenJane Badeaux

Paul BaileyRobert BaileyBrad Barkan

Debbie BennettCandace Bradfield

Judy BroseRandy BrownBetty DannerJohn Dixon

Lorraine Donner

Nicole FerreiraDebra FreyDale Gray

Russell GrossLea Haratani

Kathy HartmanJohn Hickey

Marilyn JohnsonJulie Jones

Sandy KaplanStephen KaronNeal Langholz

David LyngCharles LynnLinda LynnFrank May

Rose Marie McNairFrank MurphyBobbie NelsonCandie Noel

Barbara PalmerInez PandolfiPeg Popken

Rachel Shaffer

Karen SommerfeldAnne Marie Sorcenelli

Southstone BruceJerry Spodick

Barbara TownendMargie Vickner

Karen WadeLela Willet

Randy Ziganti

SCAOR would like to recognize and thank the following REALTORreg Action Fund participants Theirgenerous investment of $197 helps to protect the real estate industry and private property rights from the

threat of onerous and abusive anti-real estate legislation

To learn more about how you can contribute and what legislation these funds helped promote and preventclick here


8


9

Real Estate Legal Matters

Good Faith Versus lsquoFree Lookrdquo

By Lloyd WilliamsSCAOR Attorney

In the early 1970rsquos a REALTORreg

told me that a Buyer could alwayscancel a Real Estate Contract bydisapproving the condition of titleset forth in a Preliminary Reportbecause approval was a contin-gency in the Contract I askedhim whether his opinion wouldhold if there were no adverse titlematters against the Property Hereplied that the contingency in theContract concerning approval ofthe condition of title was essen-tially a ldquofree lookrdquo thus it didnrsquotmatter whether there were anylegitimate title concerns At thattime he was a co-owner of one ofthe larger real estate firms in theCounty

Over the years some other realestate agents have taken thissame position and applied it tothe Buyerrsquos contingency rightsunder Section 14 of the CARResidential Purchase Agree-ment (ldquoRPArdquo) Unfortunatelythis theory is in conflict withCaliforniarsquos implied covenantof good faith and fair dealingUnder this legal principle nei-ther party may take any actionthat deprives the other party ofthe benefits of the ContractFurther since it is a covenantfailure to perform the covenantcould result in a breach of theContract

In April 2010 CAR will bepublishing a revised RPAThe second sentence at thebeginning of Section 14 hasbeen modified to read(changes in bold type) ldquoAnyremoval of contingencies orcancellation under this para-graph by either Buyer orSeller must be exercised ingood faith and in writing(CAR Form CR or CC)rdquoAlthough the ldquogood faithrdquo lan-guage was not in the RPAbefore CARrsquos position hasbeen that the covenant of goodfaith and fair dealing was im-plied (see for example ldquoQampAAsk an Attorneyrdquo CaliforniaReal Estate May 2008)

Is there still a ldquofree lookrdquo rightif the Agreement specificallyprovides for one It is com-mon in commercial transac-tions for the Buyer to requirea short period of time eg 60to 90 days to investigate theProperty to check out the sta-tus of any existing govern-mental permits and to decidewhether to proceed either with(i) the purchase or (ii) therelease of a non-refundabledeposit to the Seller and pro-cessing application for a par-ticular development on theProperty eg a subdivision

A recent case that is presentlyunder review by the State Su-preme Court has raised thequestion whether the free lookwould be enforceable In thatcase although the parties en-tered into a Purchase Agree-ment the Buyer was notobligated under the contract topurchase the property -- theBuyer could have canceled atany time and would have re-ceived back its deposit How-ever the Buyer proceeded tospend substantial sums to ob-tain approval of a developmentproject on the property TheSeller canceled the contractwhich was upheld by the Ap-pellate Court on the basis that

in essence the transaction wasan Option in favor of the Buy-er for which the buyer paid noconsideration Without con-sideration there was no bind-ing contract and the Seller wasfree to cancel it This casecannot be cited since it is un-der review by the State Su-preme Court and the Courtrsquosdecision should be issued be-fore the end of April 2010

Whether a breach of the cove-nant of good faith and fair deal-ing or an implied option it isimportant to remember we mustbe wary of transactions that pur-port to give a Buyer a ldquofreelookrdquo

It is better to entertain an idea than to take it home tolive with you for the rest of your life

Randall Jarrell American PoetPictures From an Institution (1954)


10

In the United States mortgagesecuritization has been domi-nated by two government-spon-sored enterprises (GSEs)Fannie Mae and Freddie Mac aswell as by the combination ofthe Federal Housing Adminis-tration (FHA) and Ginnie MaeBy contrast private-label secu-ritization became a significantpresence in mortgage securitiza-tion only during the past decademotivated in part by develop-ments in financial engineering

The financial crisis has upset thelinkage between mortgage bor-rowers and capital markets andhas revealed a number of impor-tant problems in our system ofmortgage finance includingweaknesses in the structure andoversight of the GSEs and per-haps in the originate-to-distrib-ute model of credit provisionitself Private-label securitiza-tion has largely stopped andFannie and Freddie were placedinto conservatorship by theirregulator after they were judgedto be operating in an unsafe andunsound manner The task nowis to begin thinking about howto best reestablish a link be-tween homebuyers and capitalmarkets in a way that addressesthe weaknesses of the old sys-tem In light of the central rolethat the GSEs played and stillplay any such analysis must payparticular attention to how thoseinstitutions should evolve

The proximate cause of the fi-nancial crisis was the end of theUS housing boom which re-vealed serious deficiencies inthe underwriting and credit rat-ing of some mortgages particu-larly subprime mortgages with

adjustable interest rates Assubsequent events demonstrat-ed however the boom in sub-prime mortgage lending wasonly a part of a much broadercredit boom characterized by anunder pricing of risk excessiveleverage and the creation ofcomplex and opaque financialinstruments that proved fragileunder stress The unwinding ofthese developments is thesource of the severe financialstrain and tight credit that nowdampen economic growth

Although problems with mort-gage origination were not theonly cause of the crisis mort-gage markets have been deeplyaffected Banks and thrifts arestill making new mortgageloans but they have tightenedterms considerably essentiallyclosing the private market toborrowers with weaker credithistories Importantly with thesecuritization market for pri-vate-label mortgage-backed se-curities shut down Fannie MaeFreddie Mac and Ginnie Maecurrently are the only conduitsthrough which mortgages canbe securitized and sold to inves-tors By contrast in 2005 thesethree entities represented onlyabout 50 percent of the securiti-zation market

Eventually experience pro-vided three principles for suc-cessful mortgagesecuritization First for the ul-timate investor to be willing toacquire and trade mortgage-backed securities they must bepersuaded that the credit qualityof the underlying mortgages ishigh and that the origination-to-distribution process is managed

so that originators such as mort-gage brokers and bankers havean incentive to undertake care-ful underwriting Second be-cause the pools of assetsunderlying mortgage-backed se-curities have highly correlatedrisks including interest rateprepayment and credit risks theinstitutions and other investorsthat hold these securities musthave the capacity to managetheir risks carefully Finallybecause mortgage-backed secu-rities are complex amalgama-tions of underlying mortgagesthat may themselves be complexto price transparency aboutboth the underlying assets andthe mortgage-backed securityitself is essential

How can we ensure that in thefuture mortgage securitizationwill be feasible even duringhighly stressed financial condi-tions The Federal ReserveBoard in the past has advocateda three-part approach to GSEoversight a strong regulatorcapital standards adequate forthe risks the GSEs assume andan explicit and measurable pub-lic purpose for the GSEs portfo-lios

How might the GSEs be reorga-nized in the future to address theproblems that have been re-vealed with their traditionalstructure Are there approachesthat do not rely on GSEs to cre-ate a robust mortgage securitiza-tion market that will function inbad times as well as good

Privatization One option thathas been discussed is to priva-tize the GSEs and let them com-pete in the market as privatemortgage insurers and securitiz-

From the desk of Dale GrayGovernment Affairs Director

The Future of Mortgage Financein America

ers To eliminate the presump-tion of government support andto stimulate competition someproposals advocating privatiza-tion call for breaking up thecompanies into smaller unitsbefore privatizing them

Covered bonds GSE-type or-ganizations are not essential tosuccessful mortgage financingindeed many other industrialcountries without GSEs haveachieved homeownership ratescomparable to that of the UnitedStates One device that hasbeen widely used is coveredbonds Covered bonds are debtobligations issued by financialinstitutions and secured by apool of high-quality mortgagesor other assets These instru-ments are subject to extensivestatutory and supervisory regu-lation designed to protect theinterests of covered bond inves-tors from the risks of insolvencyof the issuing bank

Even closer ties to the govern-ment with or without share-holders A third approachbesides privatization and cov-ered bonds is to tie the govern-ment-sponsored enterpriseseven more closely to the gov-ernment In doing so thechoice must be made whether tocontinue to allow an element ofprivate ownership in these orga-nizations A public utilitymodel offers one possibility forincorporating private owner-ship In such a model the GSEremains a corporation withshareholders but is overseen bya public board Beyond simplymonitoring safety and sound-ness

Continued on page 12


11

Education andProfessional

Development

Your Guide to the ResidentialPurchase Agreement

Fri March 12 830-1230 pmEarly Bird Pricing availableuntil March 5th Instructor Gov HutchinsonAssistant General Counsel forthe California Association ofREALTORSreg

DRE Approved for 3 hrs inConsumer Protection Registerfor the RPA class and attend theafternoon legal update wGovfor only $5 (Regular price forSCAOR members is $15)THISCLASS WILL COVER THEREVISIONS COMING OUTIN APRIL 2010

The California Residential Pur-chase Agreement and Joint Es-crow Instructions (RPA-CA) isthe cornerstone of every success-ful real estate transaction in thestate and there are several essen-tial concepts principals andfacts about this form that all RE-ALTORSreg should know Objec-tives Become familiar with the

basic structure of the agreementLearn how to create modifycancel or close a transactionIdentify explain understand andremove contingencies Completeall mandatory and recommendeddisclosures Ensure all commis-sions are paid in full and on timeUnderstand all the importantterms of the contract

Legal Update with GovHutchinson

Fri March 12 130-330 pmEarly Bird Pricing availableuntil March 5thInstructor Gov HutchinsonAssistant General Counsel forthe California Association ofREALTORSreg

STAY INFORMED CriticalInformation You need to knowabout CAR Standard FormsRevisions Legal Updates RealEstate Cases and more

REGISTER FOR THE RPACLASS AND ATTEND THEAFTERNOON LEGAL UP-

DATE WGOV FOR ONLY$5 (Regular price for SCAORmembers is $15)

Red Hot Buyers

Wed March 24 1000-100pmInstructor Bob Barrie

Buyers will be asking YOU tosign the Buyer Broker Agree-ment Why have a Buyer Bro-ker Agreement Why consultwith your buyers first Moreefficient use of your time Ableto set expectations Informbuyers about the process Buildrapport Find out who all theplayers are See how motivatedthey are Show your value as aREALTORreg Client LoyaltyStops other agents from poach-ing Get true commitment fromthe buyer How to use aBuyerrsquos Book

Disclosure Disclosure or Howto Keep You and Your Client

out of Jail

Mon Mar 29 930-1230 pm

Instructor Guy Berry

Any real estate professional whowants to protect their buyerssellers and themselves againstbeing sued for a bad transactionshould attend this seminar Youwill learn why poor disclosure isthe 1 cause of litigation Whatldquofullrdquo disclosure is and what it isnot Why the TDS form is verydangerous How using Insp-ections protects your sellerWhat to do when a TDS is notrequired What to look for whenyou get the disclosures andmore

Click on Class Heading to See Entire Flyer


12

We are already way over lastyearrsquos rain fall and as I writethis article it is still rainingWater shortages and conserva-tion affect our daily livesthrough our usage and its costIt is our most valued resourceand can dictate our quality oflife As demand increases due towater shortages and water qual-ity we will start seeing its effecton housing availability housingaffordability building permitssewer hookups water meterhookups In the past month thesubject of water has dominatedseveral of our government agen-cies

The City of Santa Cruz has al-ready started discussions on a

The increase again is to be anincentive to reduce usage en-courage conservation andcover increased operation costsdue to inflation The Districthas geared the increase to effectthose who use larger amountsof water and who are not con-serving Those who use over50000 gallons every twomonth could see their rates in-crease 20 over the next 3years

The Pajaro Valley Water Man-agement Agency (PVWMA)remains mired with problemsas it relies on ground water formost of its water supply with85 being used for agriculturepurposes In addition the Pa-jaro Valley basin has been iden-tified as an area with criticalconditions of overdraft and be-ing continually plagued withseawater intrusion in thegroundwater supply Accord-ing to PVWMA General Man-ager Mary Bannister theAgency is ldquopumping about

Singing in the RainCandie Noel

Local Government Relations ChairBailey Properties Inc 831- 688-7434

cnoelbaileypropertiescom

water conservation program forthis summer

Soquel Creek Water District hadtwo rate hikes in the past severalmonths In November 2009 theDistrict increased user costs by5 for 2010 and 9 for 2011and 2012 The increase was toencourage conservation and tobe an incentive to reduce usageThe increase will be seen on theMarch 1 2010 bill for theirconservation efforts or lack offor January and February

Trailing close behind is theScotts Valley Water District InFebruary water officials ap-proved three years of rate hikesfor their residential customers

double what the basin can sus-tainrdquo Protecting the groundwa-ter and specifically how to payfor this protection remains a hottopic The new proposal createsa consumption based plan forthe agricultural users The newrate would range from $157 to$273 an acre foot of water andwould raise approximately $10million annually The new rateis based on estimated costs formetering ground wells billingdeveloping supplemental watersources delivering water tocoastal farmers paying off thedebt for the Watsonville WaterRecycling Plant (who reclaimswaste water for farmlands) anddeveloping new ways to solvethe imbalance between pumpingand replenishment The newrates comply with the require-ments of Proposition 218 whichdefines how fees can be levied

We are merely scratching thesurface of this topic Stay tunedfor more and please conserve

the regulator would also estab-lish pricing and other rules con-sistent with a promised rate ofreturn to shareholders

Regardless of the organizationalform we must strive to design ahousing financing system thatensures the successful fundingand securitization of mortgagesduring times of financial stressbut that does not create institu-tions that pose systemic risks toour financial markets and theeconomy Government likelyhas a role to play in supportingmortgage securitization at leastduring periods of high financial

stress But once governmentguarantees are involved theproblems of systemic risks andcontingent taxpayer involve-ment must be dealt with clearlyand credibly Achieving theappropriate balance amongthese design challenges will bedifficult but it neverthelessmust be high on the policyagenda for financial reform

Excerpts from speeches byChairman Ben S Bernankeand Secretary Henry PaulsonAlso from NAR Archives

The Future of Mortgage Finance in AmericaContinued from page 10


13

Increased Closing Cost Grant amp New Fundraising Campaign

become aware of the programand make sure that your under-writers will accept the program

3) Buyers cannot apply untilthey are in contract on a proper-ty but once they are in contractthey should apply as soon aspossible through their lender

4) Contribute to the program byusing the Escrow DonationForm at wwwscaorhforg

Applications for grants havebeen lower in 2010 than in pastyears The trustees of the foun-dation want to make sure we arehelping as many qualified firsttime homebuyers as we can Please make sure that you areinforming your clients of theClosing Cost Grant Thanks forall of your help

This month I want to let you allknow that Trustees of the SantaCruz Association of REAL-TORSreg Housing Foundationhave voted to increase theamount of the closing cost grantto $3000 (previously $2000) This increase improves thegrant and will cover more of theclosing costs for qualified firsttime homebuyers This is greatnews and will increase the helpthat we provide to these buyers

How can you help

1) Learn more about the pro-gram and make sure that you areable to inform your buyersabout the program and whetherthey qualify Read the guide-lines at wwwscaorhforg

2) All Affiliate lenders should

Mark JunodSCAORHFChairMetLife HomeLoans831-476-7880

FoundationRaises GrantAmount to

$3000In order to help fund the new$3000 grant amount we arelaunching a new campaignThe 300 Campaign 300 peo-ple giving $100 which funds$30000 to Santa Cruz Countyfirst time home buyers

300 is a grassroots fundraisingcampaign with a target goal of$30000 The concept is simplethe SCAOR Housing Founda-tion is looking for 300 individu-als organizations or sponsorsto donate $100 each In todayrsquoseconomy it is difficult to findcorporate sponsors and privatedonors who are able to makelarge donations The 300 cam-paign makes it possible for any-one who believes in thepossibility and satisfaction ofhome ownership to becomepart of an entire community ofsupporters

Why should I contributeHelp families and individuals

experience the joy of homeownership

The Housing Foundation is anon-profit arm of the Santa CruzAssociation of REALTORSreg

and all donations to the 300campaign are tax deductible

All contributors to the 300campaign will be listed asa sponsor on the Housing Foun-dation website and will be rec-ognized at all 2010 SCAORHFevents (such as Sip of Summerand A Taste of Santa Cruz)

Where does my money goContributions go directly to-ward the Closing Cost Assis-tance Grant Program thatprovides funds to cover closingcosts for qualified low incomefirst-time homebuyers

For more program informationgo to wwwscaorhforg andlook for information coming toyour local offices and officemeetings

SCAOR HFLaunchesThe 300

Campaign

Genie LawlessSCAORHFFundraisingChairDavid Lyng831-476-0100

The SCAOR Housing Founda-tion recognizes and thanks thefollowing individuals as our 1st

quarter Angel Investors

Laura GrenyoColdwell Banker

Residential Brokerage

Sandy KaplanSanta Cruz Properties

Barbara TownendMonterey Bay Properties


These members generously con-tribute funds to our ClosingCost Grant Assistance Programthrough escrow contributionsThese contributions help makethe dream of homeownershippossible to first time low in-come buyers To date we haveover 45 new homeowners whoare very grateful Thank youLaura Sandy Barbara and Lelafor your continued support

To learn how you can easilycontribute please visit the Hous-ing Foundation website at

wwwscaorhforg

Angel Investors


14

After receiving rave reviewsfrom our first Summit SCAORwill be holding its secondannual SummitThis yearrsquosevent will once again featurethree outstanding speakers JoelSinger - Executive VP ofCAR Richard Mendenhall -Past President of NAR andSean Saldavia - Santa CruzCounty Assessor

Highlights at the event will be astate and local economics over-view and Richard Mendenhallslsquodatarsquo that matters to REAL-TORSreg

Donrsquot miss out on this sell outevent Summit 2010 will beheld on March 22 2010 from1130 AM ndash 200 PM at theSeascape Golf Club in AptosFor registration informationplease click here

Richard MendenhallPast President of NAR

Richard A Mendenhall has co-owned WMWorks LLC a realestate consulting firm since 2004Resource Home Loans a realestate mortgage firm since 1995and has owned and served as abroker in a variety of real estatebrokerage firms affiliated withREMAX International Inc since1991 Beginning in 1974 he hasowned Boone Realty Corporationa real estate commercial brokeragefirm Mr Mendenhall served asPresident of the NationalAssociation of REALTORSreg in2001 and holds an MA and a BSfrom the University of Missouri

Joel SingerExecutive Vice President

CAR

CAR Executive Vice Presi-dent Joel Singer has held theAssociations top staff positionsince November 1989 afterserving as CARs chief econo-mist and heading the Associa-tions public affairs departmentSinger was instrumental in de-veloping Real Estate BusinessServices Inc (REBS) CARsfor-profit subsidiary and servesas its president He also is presi-dent and chief executive officerof RE FormsNet LLC Singerjoined CAR in 1978

SCAOR Summit 2010 ndash Donrsquot Miss the lsquoDatarsquo That Matters

Sean SaldaviaSanta Cruz County Assessor

The Assessor has the follow-ing basic responsibilities Lo-cate all taxable property in theCounty and identify the own-ership Establish a value for allproperty subject to propertytaxation List the value of allproperty on the assessmentroll Apply all legal exemp-tions and exclusions the As-sessor Does not computeproperty tax bills Does notcollect property taxes Doesnot establish property taxlaws Does not set rules bywhich property is appraised

A Huge Thank you to ourSummit Sponsors

Corporate SponsorMLS Listings Inc

Event SponsorBank of America


15

RSVP is a one day communityoutreach program that takesplace on May 3 2010 duringldquoAdopt-A-Seniorrdquo Week Theprogram provides free assis-tance to qualified seniors whocannot otherwise perform cer-tain household tasks due tophysical or financial constraints

Only a few hours of your timeis needed and makes all thedifference in the world to ourhomeowners You will beworking with a fun team whilehelping to make a difference ldquoIthink this is a wonderful pro-gram and it is very generous ofthe volunteers to donate theirtime to help those of us whoneed itrdquo said Joanne Peterson ahomeowner who participated in

RSVP last year

Click here for a Volunteer Ap-plication or contact Andreaandreascaororg or at 831-464-2000 for more information

If you cannot volunteer andwould like to help RSVP a taxdeductible donation in anyamount is greatly needed andwelcomed You can donate bysending a check to SCAOR2525 Main St Soquel CA95073 ATTN RSVP or bystopping by our offices

Please visit wwwscaororgrsvpfor complete details on the eventand to download a HomeownerApplication if you know ofsomeone who needs assistance

RSVP is Seeking Volunteers toHelp Local Seniors

Yahoo study reveals online re-sources vital to real estate profes-sional selection

Yahoo Inc released the resultsof a study on how online re-sources influence home buyersand sellers - specifically when itcomes to selecting a real estateprofessional

Yahoo found that online re-sources played a pivotal role inthe selection process and wascentral in helping consumersidentify agents While friendsand family are mostly responsi-ble for recommending agentsthe vast majority of home buyersand sellers still rely on the Inter-net to search for potential agentsin their local markets as well asto verify their choices

However there is a disconnectbetween advertising dollars andconsumer behavior Based onYahoos study 77 percent ofrespondents used an onlinesource for information during

their research process comparedto 34 percent for print But ac-cording to a recent analysis byBorrell Associates REALTORregadvertising dollars have yet tocatch up to where homebuyersare going - the Internet Whilethis years online media spenddid in fact double from2005 capturing 32 percent of theoverall advertising spendnewspapers continue to get moreshare of dollars with 40 percent

According to the Yahoo studyconsumers look to the Web toensure that the selected agentwill best meet their specificneeds

Key findings include

Home buyers and sellers con-sider approximately two agentson average before making a finaldecision

The Internet impacts consumertrust Forty percent of respon-dents credited a site in increasing

their trust in the agent

74 percent of people who ac-cessed an agent Web site gotthere with the help of a searchengine

The online research process isquick and intense consumersspent an average of 12 hours on-line researching agents and 75percent selected an agent withinone week of starting their search

Online resources provided intro-duction to new agents as well aspromotional deals

45 percent of respondents usedthe Internet to learn aboutagents they didnt know existed

41 percent discovered specialdeals and promotions offeredfrom an agent through the Inter-net

REAL Trends Inc

Study Shows Most Homebuyers Search For Agents andProperty Online

SCAORrsquos 2010Housing Expo isComing Soon

SCAOR is currently seekingsponsors and exhibitors for thisfantastic annual event that willbe held 582010 at Twin LakesChurch in Aptos This fourthannual event is free to the publicand will educate local consum-ers about the ins and outs ofhome buying investing andforeclosure avoidance Donrsquotmiss this opportunity to exposeyour business to this great audi-ence Click here for more infor-mation or contact Andrea at831-464-2000


16

Affiliate NewsDimitri Timm

Affiliate Committee ChairPrinceton Capital

831- 662-6591dimitriprincetoncapcom

Teach Our REALTORSreg AboutYour Business

Lisa has been in real estate lend-ing for over 16 years She be-gan her career as a LoanProcessor for Watsonville Fed-eral Savings and Loan whichlater became Monterey BayBank She spent 10 years withthe company exhibiting herleadership skills and passion forthe business by working herway up from Processor to Su-pervisor to Underwriter andeventually to AVPUnderwrit-ing Manager in 2003

When Monterey Bay Bank waspurchased by Union Bank in2004 she took the opportunity towork directly with her buyers bybecoming a Mortgage Consul-tant In Lisarsquos words ldquoapprovingtheir loans was one thing but Inever got to see the smiles ontheir faces when they closed ontheir new homerdquo

Lisa spent a year at Bank ofAmerica Mortgage and overtwo years at Santa Cruz Mort-gage where she earned both theVisionary Award and Top Pro-ducer in 2006

In June of 2007 she made theswitch to Blue Adobe Mort-gage an affiliate of SeattleBank Lisa feels so fortunate towork for Blue Adobe MortgageldquoAt the most challenging time inour industry (possibly in its his-

In the past few years everyonewho has been involved in realestate has been affected by all ofthe regulations and changes thatour industry has gone throughThat is why the Affiliate com-mittee believes that keeping upon education is more importantnow than it has ever been Sup-porting this belief the Affiliatecommittee has committed toprovide one additional educationclass each month that will beavailable for all members Withthese classes we will provide ed-ucation on many different topicsincluding but not limited to1031 Exchanges Title and Es-crow classes Appraisal ReverseMortgages Staging Insuranceand many others

If you are an Affiliate memberand would like to add an educa-tional class or have a recommen-dation for a class please feel freeto contact Dimitri Timm the2010 Affiliate Committee Chairor Karen Kirwan Director of

Education amp Professional Ser-vices at the Santa Cruz Associa-tion of REALTORSreg

Please donrsquot forget we are al-ways looking to expand our Af-filiate membership If you knowsomeone who you think wouldlike to become a member pleasehave them contact Norma Mileteat the Santa Cruz Association ofREALTORSreg

Also a reminder to mark yourCalendar for the upcomingSpring Fling coming up on May5 2010

Affiliate SpotlightLisa Mazzei

Mortgage ConsultantBlue Adobe Mortgage

831-626-2112lisablueadobemortgagecom

tory) I have associated myselfwith a company that has thevalues and level of commitmentthat I do Blue Adobe Mortgageis a mortgage banker and directlender to Fannie Mae andFHAVA We are large enoughto have the best technology andtools with which to assist ourclients but still small enough tobe nimble We can lend in Cal-ifornia Oregon WashingtonIdaho Utah and some otherWestern statesrdquo

Lisa is a third generation nativeof Santa Cruz County and anactive real estate investor Sheespecially enjoys the relation-ships she has built while helpingher clients achieve home owner-ship She enjoys spending timewith family camping watersports and traveling She livesin Santa Cruz with her husbandDean

Dimitri TimmLisa Mazzei

I acted so tragic the house rose like magicThe audience yelled ldquoYoursquore sublimerdquo

They made me a present of Mornington CrescentThey threw it a brick at a time

WFHargreavesldquoThe Night I Appeared as Macbethrdquo 1922 Song


17

There are basic signs of proba-ble infestations or infectionswhich are noticeable not only tothose who are licensed but alsoto anyone who is interested andinformed These signs will alertyou to obtain the qualified assis-tance necessary for a proper in-spection and recommendationsNotice that these areas are easilyincorporated in your existinginspections of grounds andproperty

The terms infestations andinfections can be segregatedinto two general groups Infesta-tions which are most com-monly noticed and easier toidentify are caused by the infil-tration of an outside source suchas subterranean termites Dry-wood termites or other wood-boring insects Evidence of ter-mite infestations is most com-monly seen in the insectsdietary residue (pellets) de-tached wings and tiny holes inthe wood The structural pestcontrol industry has made greatprogress in development ofEPA-approved toxins and moreeffective methods of applicationin the areas of localized termitetreatment While helping to alle-viate the traditional stigmas ofmandatory fumigation localtreatments also offer the bene-

fits of a residual barrier againstreinfestations at the treated ar-eas

Localized treatments performedin conjunction with the pressur-ized application of a desiccantleaves an obstacle to reinfesta-tions through the dehydration ofalates (wingedtermites) or swar-mers whose sole intent is estab-lishing a new colony

Infections are less obvious tothe untrained eye They are de-fined as moisture in direct con-tact with wood often identifiedin inaccessible areas This cre-ates the perfect environment forfungal growth due to lack ofventilation Fungus is a livingorganism that invades the woodcells and extracts the nutrientsfrom the cell walls This causesthe wood to lose its integrity andresults in dry rot which can leadto major wood replacement Thesimplest signs are discolorationin wood stains surface fungalgrowth constant dampness andcracks in deck coating Severecost usually is incurred withfungal growth and dry rot

Fungus and dry rot create farmore structural damage than ter-mites Fungus growth is causedby leaks and many times it is

caused by improperly adjustedsprinkler systems Fungusspores collect in wood as thetree grows The spores lie dor-mant in the lumber much like aseed in the desert When mois-ture reaches the spores theysend out a root type structurecalled mycelium The fungusfeeds on the cellulose which cancause the lumber to lose struc-tural integrity If this conditionis left uncorrected the end resultis dry rot damage wood replace-ment

Owners and REALTORS arebecoming increasingly aware ofthe advantages of utilizingstructural pest control firmswho are not only concernedwith the inspection and recom-mendations but also are knowl-edgeable concerning theuniform building code and localcodes and are licensed to per-form all structural repairs andreplacements Knowing whereto obtain professional help willminimize your maintenancecosts reduce liability exposureand provide warranties andguarantees required for escrow

As printed in the Orange CountyREALTORreg magazine

Termite TalkWhatrsquos the Difference

Between Infestations andInfections

Tony AngeloAngelo Termite

Make better food choicesWe dont always make the bestchoices when it comes to foodWe may choose unhealthy foodover healthier options or wemay buy frozen foods whenfresh is best and sometimes wechoose frozen foods for the sakeof convenience

But we may not realize whenyoure making a bad choiceReal Simple features a couple oftests that will help you makebetter choices Start with Should

I Eat ThishellipOr That Youre pre-sented with a series of optionsand must choose the one that ishealthiest Then try Buy ItFresh Or Buy It Frozen Again

youre presented with a series ofoptions Simply choose whetherto buy fresh or frozen After youanswer a question you get theanswer and an explanation Thetests are funmdashand informative

wwwrealsimplecom

Keep an eye onyour investments

I work hard for my money SoI keep a close eye on my invest-ments That means I monitorthe stock market and read fi-nancial news

These days thats not muchfun But its important to watchour investments After all ourfinancial futures are at stake

Bloombergs site makes it easyto stay on top of financial newsYou can read up on the latestheadlines Or dive right intostock positions

If youre a beginning investormake sure to check out the fi-nancial glossary It will helpfamiliarize you with all the im-portant terms

Others of you will head rightfor the calculators These willhelp you make financial deci-sions and put your finances inperspective

For example you can see ifdebt consolidation is right foryou Calculate your net worthOr see how 401(k) contribu-tions affect your take-homepay

Theres a lot of information onBloomberg I hope you are ableto put it to good use and have aprosperous future

TO VISIT THIS MONTHrsquoSCOOL SITE GO HERE

wwwbloombergcom


18

NEW MEMBERSFEBRUARY 2010

REALTORreg Members Affiliate Members

Farmers InsuranceJanna Clark

Blue Adobe MortgageLisa Mazzei

Bailey Properties IncImmanuel Munoz

Coldwell BankerResidential Brokerage

Teri Brager

David Lyng Real EstateSara Christiansen

Intero RE ServicesHarbor BeachGerardo Cortes

The Office ofBill Mills Broker

Bill Mills

Rose Homes ampInvestments

Kathleen Pasquali

Zip RealtyHaruo ldquoHarryrdquo Ishikawa

TRUE STORY

I gave the clerk at the McDon-alds take out window a $5 billOur total was $425 so I alsohanded her a quarter She saidYou gave me too much money

I said I know but this way youcan just give me a dollar backShe sighed and went to get themanager who asked me to re-peat my request I did so and hehanded me back the quarter andsaid lsquoWere sorry but they couldnot do that kind of thingrsquo

The clerk then proceeded togive me back $1 and 75 cents inchange Do not confuse theclerks at McDs

10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


2

In This Issue

Presidentrsquos Message - page 3

CAR Reports - page 4 - 7

Legal Notes - page 9

Government Affairs - page 10

Education Offerings - page 11

Legislative Watch - page 12

Foundation - page 13

Summit 2010 - page 14

RSVP - page 15

Affiliate News - page 16

Termite Talk - page 17

Calendar - page 18


3










Marjorie Vickner


Kathy Hartman RCE



Karen Kirwan


Andrea Harbert







andreascaororg




(831) 464- 2881 (fax)

wwwscaororg













wwwinstapapercom


4





Silent Auctions


REALTORreg Idol



























REO and Short Sales




5




com

New RPA-CA



























Forum





Continued on Page 6



6


























Continued on Page 7



7


















Lorraine Donner









Rachel Shaffer





Randy Ziganti





8


9















10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


3










Marjorie Vickner


Kathy Hartman RCE



Karen Kirwan


Andrea Harbert







andreascaororg




(831) 464- 2881 (fax)

wwwscaororg













wwwinstapapercom


4





Silent Auctions


REALTORreg Idol



























REO and Short Sales




5




com

New RPA-CA



























Forum





Continued on Page 6



6


























Continued on Page 7



7


















Lorraine Donner









Rachel Shaffer





Randy Ziganti





8


9















10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


4





Silent Auctions


REALTORreg Idol



























REO and Short Sales




5




com

New RPA-CA



























Forum





Continued on Page 6



6


























Continued on Page 7



7


















Lorraine Donner









Rachel Shaffer





Randy Ziganti





8


9















10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


5




com

New RPA-CA



























Forum





Continued on Page 6



6

Continued from

























Continued on Page 7



7


















Lorraine Donner









Rachel Shaffer





Randy Ziganti





8


9















10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


6


























Continued on Page 7



7

Continued from

















Lorraine Donner









Rachel Shaffer





Randy Ziganti





8


9















10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


7


















Lorraine Donner









Rachel Shaffer





Randy Ziganti





8


9















10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


8


9















10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


9















10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


10


















11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


11


Development











Red Hot Buyers




out of Jail

Mon Mar 29 930-1230 pm





12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


12



















13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


13







How can you help















Campaign











wwwscaorhforg

Angel Investors


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


14







CAR









15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


15



RSVP last year




















REAL Trends Inc





16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


16
























17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


17

















wwwrealsimplecom










wwwbloombergcom


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar


18







Teri Brager




Bill Mills


Kathleen Pasquali


TRUE STORY




10-03 Cover

10-03 Contents

10-03 Masthead

10-03 CAR Report 1

10-03 CAR Report 2

10-03 CAR Report 3

10-03 CAR Report 4

10-03 Good Times

10-03 Legal

10-03 GAD

10-03 Education

10-03 Leg Watch

10-03 Foundation

10-03 Summit

10-03 RSVP

10-03 Affiliate

10-03 Termite

10-03 Calendar

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