REALTOR® Magazine-Daily News-Mansell: Each Member Can Make a Difference

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Daily Real Estate News | May 11, 2005 | Mansell: Each Member Can Make a Difference “The strength of one million begins with one—and that one is you,” Al Mansell, president of the NATIONAL ASSOCIATION OF REALTORS®, told an enthusiastic crowd at the Member & Director Forum on Tuesday. The forum took place during the 2005 REALTORS® Midyear Legislative Meetings & Trade Expo, being held May 9-14 in Washington, D.C. Mansell said the people attending the conference are local leaders who are the grassroots of the organization’s success. He urged these members to increase their grassroots participation to influence legislation, a theme that was echoed by several other speakers. On a recent NAR legislative Call for Action for the Class Action Fairness Act, the association received 13,000 responses from members. By comparison, AARP recently generated 500,000 responses from its members on an issue it backed, Mansell said. “We have to do better," he urged. Mansell has challenged the REALTOR® Political Involvement Committee to register 500,000 members by the end of 2005, said RPIC Chairman Bill Snowden. Currently, only 150,000 members are registered at the NAR Action Center, which provides a quick way for participants to send e-mails or faxes to their representatives. In a year when the REALTORS® Political Action Committee, or RPAC, has succeeded in getting 43 percent membership participation, Snowden exhorted REALTORS® to make a similar commitment to grassroots lobbying. “It’s time to put your mouth where your money is,” he said. The focus on grassroots efforts comes at a time when NAR is prepared to step up its aggressiveness on Capitol Hill. From keeping big banks out of real estate, enacting small business health plans, and taking a sound approach to regulatory oversight of secondary mortgage market entities Fannie Mae and Freddie Mac, REALTORS® are looking to showcase their strength more than in the past. “For the first time, our approach should be more aggressive,” said NAR President-elect Tom Stevens. “The approach we’ve had in the past has changed and [our efforts] should be stepped up.” Stevens gave attendees an overview of the key topics to cover when they visit Capitol Hill this week. While NAR favors independent regulatory oversight of the government-sponsored enterprises Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, it’s important to preserve the GSEs’ mission of maintaining liquidity in the mortgage markets and creating innovative finance programs that promote housing, Stevens said. At a point when real estate accounts for 20 percent of the gross domestic product and has fueled much of the current recovery, it makes no sense to change a successful formula, he added. Stevens also reminded REALTORS® who visit the Hill this week to urge support of legislation that would keep national banks out of real estate once and for all. He further encouraged members to lobby congressional leaders to support the Small Business Health Fairness Act, which would allow associations to offer national group health plans. “Today, 28 percent of our members don’t have health care coverage," he said. "We should have the same health care opportunities as unions and large corporations." He noted that the bill has failed to be taken up in the senate in previous years, and could fail again without NAR-member support. “We need 200,000 to 300,000 e-mails from members to show our support, so sign up at the NAR Action Center now,” he said. Both Mansell and NAR First Vice President Pat Vredevoogd focused on REALTOR® activities that benefited others during the year. Mansell reported that members had donated more than $1.5 million toward building new homes for victims of the Dec. 26 tsunami that devastated countries in Southeast Asia. Through NAR’s partnership with Habitat for Humanity International, the money will be used to build more than 1,500, 250-square-foot expandable homes in the hardest-hit areas. “We’re providing an opportunity for people to get a new start and exist as families again,” Mansell said. Vredevoogd reported ambitious goals for NAR’s Housing Opportunity Program. She told attendees that more than 200 programs had been created to address local housing needs since the initiative began three years ago. NAR is working to double that number this year. To help members reach that goal, NAR has created a toolkit of model housing programs and a guide on promoting affordable housing in the media. “Now is the time to step up if you’re not involved. It’s our business, and it’s the right thing to do,” said Vredevoogd. Vredevoogd also gave members a brief look at this year’s successful Public Awareness Campaign. The 2005 TV and radio spots, which have the tag line “Ask if your agent is a REALTOR®, a member of the NATIONAL ASSOCIATION OF REALTORS®, are currently appearing on venues such as the Today Show, Law & Order, and National Public Radio’s Morning Edition. Ads also will appear in Spanish for the first time. Vredevoogd also reported that the 2004 campaign had achieved the highest-ever level of recognition of the REALTOR® brand, with 72 percent of consumers saying that they would prefer to work with a REALTOR®. Just as the REALTOR® organization is prospering—with projected membership of nearly 1.2 million by year-end, according to NAR Treasure Michael Brodie—so is the real estate market. NAR Chief Economist David Lereah told attendees that the housing market will have another near-record year in 2005 and will continue to do well into the next decade due to demographic trends in the country. He expects appreciation to decline slightly from 9.3 percent in 2004 to 7 percent in 2005, and mortgage rates to reach 6.3 percent by year end. One “yellow flag” that Lereah sees on the horizon is the rise in speculative buying. He noted that the rise in interest-only and ARM mortgages as well as loosening standards in lender credit underwriting could make markets vulnerable if a local negative event occurs. “Real estate is on a good track, but we need to put the lid on speculation,” Lereah said. —Mariwyn Evans, REALTOR® Magazine Online