Category Archives: NAWRB Magazine

Nonprofit Counseling: Protecting and Preserving a Vital Service to American Homeowners and the Finance Community

Posted on by Zeeda Daniele
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05 Dec

The past decade has taught us a great deal about housing loss and preservation. Many of us were personally affected, or know someone affected, by the 2007-08 economic downturn period our country experienced.

There have been several lessons learned. Most of all, we learned that too many U.S residents have too much debt and lack the necessary reserves to weather the slightest bump in their financial lives.

History will argue about what went wrong and who to blame. There were lots of mistakes but there were several good lessons. One was the reminder of the value and need for nonprofit housing advocates, educators and counselors.

We learned that homeowners and homebuyers who took advantage of homeownership, credit and financial literacy counseling fared far better during the housing and economic crisis and avoided foreclosure and delinquency more than homeowners who did not. We learned that pre-purchase education, credit and budgeting courses prevented many homebuyers from buying more than they could afford and taught them to avoid the pitfalls of over leveraging their home and excessive debt.
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4th Annual NAWRB Conference

Posted on by NAWRB
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05 Dec

Scores of executive women and industry leaders came together for women’s economic growth, million-dollar contracting opportunities and invaluable resources at the 2017 NAWRB Nexus Conference: Women’s Collaboration for the Future. From July 16th-19th, 2017, NAWRB’s expert panelists equipped attendees with actionable solutions and specialized forecasts, providing a comprehensive inside look at the near future of the housing ecosystem.

The excitement was palpable as attendees filtered into the Hilton Orange County/Costa Mesa and settled into their seats next to future strategic partners and collaborators. Desirée Patno, NAWRB CEO and President, kick-started the event by recognizing the hard work that went into making the conference possible and the professionals who made time in their busy schedules to be a part of the diversity and inclusion (D&I) movement.

The Investment Opportunities: Access to Capital Facilitator workshop commenced sessions with Robert Fragoso, Realtor, CEO, Investor, who with over 28 years of experience in real estate investing and flipping homes described the importance of recognizing industry trends when making investments that will maintain profitability in the future.

“I came with the intent to share some of my experiences and knowledge—having been a part of so many homes that have been flipped—and what I see in the marketplace,” stated Fragoso. “Not necessarily what’s going on today, because that’s ever-evolving, but to have attendees learn how to spot the changes and the next opportunity so that they can be not just following the trend, they’re essentially the trendsetter.”

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Addressing the Concerns of American Families

Posted on by Sarah Chamberlain
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05 Dec

Since founding the Women2Women Conversations Tour in 2014, I have joined six of Main Street’s Congresswomen and many state officials across the country to speak with local women business owners and community leaders who are a seeking a greater voice and role in their government.

I wanted the tour to give female members of Congress a chance to talk to women about what is happening on Capitol Hill; however, the most valuable piece has been the interest in legislative priorities and thoughtful, conservative governing from the next generation of female leaders. Together, we have used feedback from women across the country to move legislation on some of our nation’s biggest issues—from addressing the opioid epidemic and providing better mental health care to combating human trafficking.

After three successful years of the Women2Women tour, our mantra has become: “All issues are women’s issues.” Women make up more than 50 percent of our nation’s population and want to see action across a wide breadth of issues like increased job creation, improving access to health care and education, and helping those struggling with addiction to receive the help and resources they need.

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Life of a Female Veteran: U.S. Army Combat Veteran Erica Courtney

Posted on by Erica Courtney
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05 Dec

I am proudly part of the 1.4 percent of American women who served in the military. The day I signed the paperwork to join as a teenager the Gulf War kicked off and I watched tanks fire through the night on TV thinking, “What in the world did I do?” Having grown up in surf city USA (Huntington Beach, CA), I was never exposed to the military. To emphasize this point, the first time I walked into an Army recruiting office I had sand in my hair and sun-kissed skin; I was with a friend of mine and said, “Hi, I am thinking about joining the Marines,” not even understanding the difference in services. The recruiter took a few looks at us, confused, and had to be thinking, “Sucker!” Having always been athletic and adventurous, I thought why not. I would rather try something and hate it than wonder what it would have been like. College was a bore and I was ready for the unknown.

“Get off the bus, you maggots!” Welcome to Military Police Basic Training. What was wrong with these people? Why so much yelling? Okay, bag in hand off the bus I went into the barracks. This is actually where Hollywood gets it right. There’s lots of yelling, climbing, learning, bonding and trying to stay under the radar. Except, I learned early on that was pretty hard for me. I was a runner breaking six-minute miles, and one particular drill sergeant could not stand that there was a female in his fast group and did whatever he could to break me. He was an infantry man where they did not work with women. There were many days of unnecessary hazing to the point he was counseled by the officers. He tried to make me cry, but failed. Many more attempts would follow. I learned early, never let them see you sweat and there is no crying in uniform.

Congratulations. First assignment, Germany. Away from everything I knew. I showed up and was nicknamed Private Benjamin. I was tasked with 12 to 15-hour patrol days and nights responsible for enforcing the Post Commander’s rules and regulations. I was 19 carrying a side arm and had authority most 19-year-olds couldn’t fathom. For any accident that involved an American within 200 miles I would drive out in my VW van with no heater and a blanket draped over me. I’d get out, wipe snow off signs, and arrive to some horrific scenes thanks to the autobahn and no speed limits. The Polezi refused to show up so I had to handle the situations; my first taste of being a first responder and having to show calm and exude control of situations. Our wartime mission dealt with POWs, security and convoy assistance. As the lowest ranking, I got assigned an M60 machine gun then a SAW and had to sleep with this metal thing in my sleeping bag. I was so cold at times I could barely get my fingers to work to shoot, but it’s amazing how warm it gets once in use. After winning over my superiors they assigned me to work with the Criminal Investigation Division infiltrating drug rings and other rackets. This was not my thing. I had a hard time lying about my identity and it did not help that I never touched drugs so I was very uncomfortable. They needed females but I could be put to use better somewhere else.

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The Gender Gap: Women as Mortgage Consumers

Posted on by NAWRB
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05 Dec

In the last 200 years, women’s voice and role in society has evolved quite substantially in the United States and around the world. The mortgage industry is no exception. As first-time homebuyers, women face patterns of discrimination. These discriminatory lending patterns, in violation of many regulations including those promulgated by the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA), limit women from becoming homeowners and result in fair lending violations, regulatory actions and litigation against lenders.

As regulatory requirements in the mortgage industry have tightened, lenders are taking note that discrimination is having an adverse effect on the mortgage industry and our economy as a whole. In some cases, programs are being established to target specific categories of women in the market that are faced with discriminatory obstacles. Yet, there is much more that needs to be done.
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Attracting Millennials to Homeownership

Posted on by NAWRB

Are Millennials interested in settling down into homeownership? This question is subject to heavy debate in the housing industry. In the first part of our “Attracting Millennials” series, “Attracting Millennials into the Housing Ecosystem,” we discussed how we can encourage this young and thriving generational segment as leaders in the housing ecosystem. This second installment will explore how to incite their interest as homebuyers by addressing the perceived and real obstacles they face.

Myth: Millennials Are Not Buying Homes

NAWRB’s article “Millennials and the Homeownership Puzzle” explored whether this generation’s desire for homeownership has mitigated because they are delaying “independent living, marriage and parenthood much later than older generations did.” These three milestones, it continues, “all contribute to homeownership and the desire to own a home.”

Millennial women, especially, are prioritizing their education and careers over marriage and buying a home of their own. Many of them are college students still living at home. Of women living with their families, 56.1 percent are between the ages of 18 and 24. Moreover, women are marrying into their late twenties and older. In 1940, women on average married at 21.5 years of age; today, the average age has increased to 27.
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Breaking Down The Barriers: Unconscious Bias and its Effects on Women in Commercial Real Estate Careers

Posted on by Holly Neber

According to research published last year by the Commercial Real Estate Women (CREW) Network, the industry median annual compensation for women in commercial real estate fields is $115,000, compared with $150,000 for men—an income gap of 23 percent. The gap is actually widest in the C-suite at nearly 30 percent. While there are examples of women being intentionally paid less for the same role, it is likely that a large part of the difference can be explained due to unconscious bias.

What is unconscious bias? These biases are subtle thought patterns and assumptions we carry about others based on our background, upbringing, and personal experience. Both men and women carry unconscious biases—it’s just part of being human. It helps us categorize situations and other people quickly based on past experience. The harmful consequences of unconscious biases often dissipate once they are brought to light and can be dismissed based on more accurate information.

Common types of unconscious biases include the halo effect (the tendency to think that everything a person does is good because we like a person), the affinity bias (the tendency to be friendliest with people who are most like us), perception bias (forming stereotypes about groups that influence our thinking about individuals) and confirmation bias (the tendency to seek information that confirms our pre-existing beliefs).

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Women Business Owners Are Missing Out On Billions in Tax Incentives & Investments: Congress Can Change That

Posted on by Jane Campbell
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10 Oct

When her short-term corporate housing company started to draw sizable revenue, Chicago-based business owner Francine Manilow realized she needed to change how her business was organized in order to take greater advantage of tax breaks.

Women-owned businesses like Manilow’s represent more than a third of all U.S. companies. Yet they are often disadvantaged by the tax code because of their legal classification or service-based industry.

Manilow figured that out, saying, “The S-Corp wasn’t any good for me. I switched to C-Corp.”

Her story, however, is rare. A new report by Caroline Bruckner of American University’s Kogod Tax Policy Center, which drew upon a survey conducted by national advocacy organization Women Impacting Public Policy (WIPP) as part of its analytical foundation, found that many women entrepreneurs can’t take full advantage of tax incentives because the kinds of companies they own don’t benefit from provisions designed to stimulate growth and attract investment.

The good news is, rather than small businesses having to undergo the byzantine process of changing their legal structure, we have a huge opportunity to change the system for the better. For the first time in 30 years, Congress is looking seriously at revamping the tax code—a once-in-a-generation chance to transform it into a tool that empowers women entrepreneurs.

For the report Billion Dollar Blind Spot: How the U.S. Tax Code’s Small Business Expenditures Impact Women Business Owners, Kogod researchers surveyed 515 women business owners across the country to determine how they use four small business tax provisions. An online survey of WIPP members—companies with at least 51 percent female ownership who represented more than 15 different types of
industry—found that they were predominantly small business owners, with 96 percent reporting 100 or fewer employees.

A startling fact of the Kogod research is that 84 percent of women surveyed operate businesses in service industries that are excluded from those key provisions. There were other problematic trends revealed by the survey:

– Only 12 percent of respondents organize their businesses as C-corporations, meaning the remaining 88 percent are excluded from significant small business tax incentives.

– Only 0.6 percent of women surveyed reported at tracting capital for their businesses from non-corporate investors by using a portion of the code that allows them to issue qualified small business stock.

– 53 percent of respondents said they didn’t fully benefit from Section 179, a provision allowing businesses to deduct equipment purchased  and placed into service. They said they either didn’t know about the provision or don’t buy the kind of equipment qualifying under the provision.

– 86 percent of respondents said they’d never claimed a tax loss under a provision that permits an ordinary loss on the sale or exchange of qualified business stock.

The bottom line is three of the four tax provisions studied either explicitly exclude service firms or effectively bypass companies that are not C-Corporations or have few capital-intensive equipment investments. Given that most women-owned businesses are concentrated in service industries or are organized as something other than a C-Corp and have few capital-intensive equipment needs means they’re missing out on more than $255 billion in tax help.

What’s more, Kogod’s research found a complete lack of government analysis about the effects of tax expenditures on women-owned firms. This situation raises real questions about whether the tax code’s small business tax expenditures are operating as Congress intended. Clearly, policymakers have a billion-dollar blind spot when it comes to understanding how effective such expenditures are with respect to women-owned firms.

Members of both houses of Congress have reviewed Kogod’s research and are considering the importance of its findings. Yet, to date, neither the U.S. Senate Committee on Finance nor the House Committee on Ways and Means—the two primary bodies undertaking reform—has held a full hearing to assess the impact of the tax code’s small business tax expenditures on women business owners.

In addition to sounding the alarm on tax reform, in its 2017 Economic Blueprint, WIPP also highlighted numerous potential reforms in capital infrastructure needed to spark greater investment in women-owned businesses. A key recommendation includes developing more female fund managers through the Small Business Investment Company’s “Emerging Managers” Program with the likelihood that it would lead to more investment in women entrepreneurship.

The 2016 State of Women-Owned Businesses Report affirms that between 2007 and 2016, the ranks of women entrepreneurs grew at a rate five times faster than the national average. Yet, in 2016, less than 5 percent of venture capital deals went to women-led businesses, according to PitchBook. Research from the U.S. Senate Committee on Small Business and Entrepreneurship also shows that women receive only 4 percent of the total dollar value of all small business loans, and CrunchBase reports that between 2010 and 2015, just 10 percent of venture dollars globally went to startups with at least one female founder.

Correcting these inherent inequities carries the potential to dramatically impact our economy. The percentage of firms owned by women has skyrocketed from 4.6 percent in 1976—the first time the Census released a report on women’s business ownership—to 36 percent today. There are 10 million women-owned businesses, and they employ 9 million people and contribute $1.6 trillion to the economy, according to the U.S. Census Bureau.

Clearly, women entrepreneurs’ economic might is significant and growing. But they could accomplish even more if the tax code created stronger investment opportunities and if a greater number of women were positioned to make investment decisions to help businesses run by other women.

Things might not have gone so well for WIPP member Francine Manilow had she not figured out that inequities in the tax system were keeping her from greater prosperity.

“Many women have not been part of the inner workings of policymaking,” Manilow said. “I have no doubt I would have been even more successful if there had been a fairer tax code.”

Congress must use a tax reform and opportunities to improve access to capital to harness the economic energy generated by women.

Jane Campbell
President of Women Impacting Public Policy

The Truth about the Creative Drive

Posted on by Monica Kang
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10 Oct

You know when you lack sleep. You might feel a bit disoriented, crave sugar, and start noticing random details around the room instead of focusing on what you wanted to do. Unfortunately, as a full-time, bootstrapping female entrepreneur this scenario is far too familiar.

Being a great entrepreneur takes effort, dedication and persistence, and it comes at a cost. In our efforts to develop and grow, we often stretch ourselves too thin. When we say yes to everything, we utilize time that would have otherwise been used to explore projects and opportunities that are more in alignment with our personal visions. At the end of the day we’re left to figure out how to balance work with life and self-care.

Sometimes you can’t reach that goal even if you do everything to manage your resources. However, creativity holds the power to help achieve your milestones by marinating in them. How can you be more creative?
When we ask this question, we are often asking how to be creative with ease. We want the results without the hard work. At times, when we don’t see immediate results, we are instantly crushed. Even though we know certain things will take a bit more effort and dedication, when we are used to ordering food, cars, lodging and dry cleaning with a click of a button, we unconsciously want things more instantly and perfectly.

It’s the same when we are creating something. As entrepreneurs, we know that every form of action is an act of creation. Whether it’s creating a new product that will revolutionize your industry or creating a new advertisement to market your message in a new way, we are always wearing our creative hat. What makes a difference between a thriving creative leader and a mediocre one is how they decide to interpret and utilize their creative strengths.

Thriving creative leaders are not just great with ideation; they know how to find connections in unassuming places, recognize opportunities in the most devastating moments, and thrive with limited resources. They let their imagination take their vision to a whole new level because they see things with an abundance mindset with patient persistence.

And yes, at times that means they may be working late hours and lack sleep, but they are using every insight and experience to learn, connect and create. This is a really important reminder for entrepreneurs, and especially for female entrepreneurs who often lack the resources, support and funding opportunities male founders have and believe that is the reason for our failure or delay in success. I know this may sound contradictory but lack of resources can be the key source to your growth, as long as you have the abundance creative mindset.

There are tools and strategies to be creative but they only scratch the surface. You have to do the work to learn what makes you creative and, most importantly, why you want to be creative. Why do you want to do this business? Why should others care? You have to dig deeper and reflect to understand your creative drive. Without fully understanding why you have a drive to do what you do and why you love doing what you do, you are half blind in your journey. When you understand your drive, not only do you understand what causes your excitement, you also understand what pushes you away from mediocrity. When you understand your drive, you understand why every form of creation and action you are taking is making a difference in building the bigger goal you want to fulfill.

When was the last time that you truly pushed yourself and asked why you are doing what you do? Have you truly been giving your 100 percent? If you’re not, why not?

Stop using the need for perfect balance as an excuse to not fully dive into your potential. When you recognize every piece of your experience is a puzzle piece that will help fill the gaps then you stop worrying so much about
balancing; rather, you focus on how the pieces all fit together to reach the goal. In cooking, marrying the flavors and spices is important. Sometimes you need equal amounts of two ingredients, sometimes a little less of one and more of another, sometimes even replacing an ingredient with something different.

At times you may lack sleep, the funding or the network to reach where you want to go, but you shouldn’t see that as something that’s stopping you from reaching your dreams. Take a step back to see how it all connects and can help you get to the next goal. You may be surprised at what you find.

The truth is, you already have the creative drive. You just need the courage and patience to recognize the diamond in the rough.

Monica Kang
Founder and CEO
InnovatorsBox

How I Reinvented my Career without Reinventing Myself

Posted on by Ralph Armenta
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10 Oct

Baby Boomers are living longer, retiring later and, the truth is, we’re finding that one lifelong career just isn’t enough. Long gone are the days when a high school or college graduate finds a dream job, spends the next 30-35 years moving up the company ladder and retires with a pension at 62. In fact, graduates are changing jobs nearly three times, on average, within the first five years of graduation; a pace that has nearly doubled versus just 20 years ago, according to LinkedIn Economic Graph data.

Whether you’re a Millennial, Baby Boomer or somewhere in between, if you’ve spent any time in real estate or financial services over the past five to 10 years, chances are you’ve experienced long and lean times as a regular course of doing business. With the ongoing interest rate movement and uncertain times ahead, there is no better time than now to consider where you stand in your career, how much it fulfills you and what might lie ahead.

My own employment, some 30 years of trials and successes in financial services, has taken me over a lot of winding roads. I’ve had to make a number of adjustments to my career path—either preemptive or forced—most recently several years ago when my employer (a very large and well-established insurer in the mortgage banking ecosystem) descended into receivership.

As with twists and turns I’d experienced before, the writing had been on the wall. Banks were substantially cutting back from residential lending and servicing. The once robust non-agency market was anemic and unlikely to emerge as its former self. Warehouse lending, title services, mortgage insurance, appraisal services and others survived, but were (and are) very competitive commoditized value propositions that expand and contract based on market need.

Fortunately for me, I had diversified jobwise. Since 2005 I had been following a passion and teaching evening college classes in finance and macroeconomics. So while the sudden change stung, it didn’t sink me.

As both a student and professor, I’ve spent a lot of time studying employment trends. Virtually every generation has faced changes in both opportunity and employment requirements due to advances in technology. In real estate and mortgage lending, automation of workflow has been a driver of technology in loan originating, appraisal, loan processing, underwriting, servicing, brokerage services segments and much more. I had been exploring how to capitalize on my 30+ years of mortgage banking, structured finance and capital markets experience to refresh my career. My research led me to financial technology companies that were quietly making inroads into the space, but with improved value propositions.

Shortly after things went south with my employer, I accepted a position at a fintech company in San Francisco called Alight. It was a leap for me—I was a died-in-the-wool mortgage guy and while Alight was exciting, I have to admit to having a bit of trepidation about becoming a tech sales guy. But I was hooked from the start. Alight’s value proposition suited my expertise, my educational background and my view of where the mortgage industry needed to head. It was a win-win for me from day one to the end of my time at the company.

Back to you. Chances are your industry—your livelihood—is (or will be) undergoing substantive change, change that will likely affect the way things run. You need to be prepared for any surprises that may come your way. But where to start?

1. Do your research.
First, study the advancement of tech companies and the
inroads they made during periods of change. Tech advancements are the proverbial writing on the wall and typically herald significant change coming. Technology that enhances productivity may curb manpower needs, while technology that opens up new areas previously undiscovered may require additional manpower, so education and training—even just some self-study—may be necessary. Investigate the field you’re in now (if you’re satisfied), and some other industries where you can leverage your expertise and about which you think you can be excited.

2. Take the five-year plan and stay relevant.
Use your imagination to consider where the industry might be five years from now; it’s a reasonable and practical timeframe on which to base decisions. Read thought leaders and influencers, not only in your industry but also in related industries and broad, innovative areas like technology, sciences, economics. And then, instead of focusing on the job you would like to have five years from now, begin by considering what types of employment will be part of the future economy. Play to your strengths, your experience and your skillsets, and educate yourself in unfamiliar areas that have potential. Be sure to only pursue things that excite you and will be worth really working for.

3. Get in touch & stay in touch.
If you’ve been working in an industry for a while, you’ve likely accumulated a lot of contacts. Take the time to reconnect with old colleagues as those contacts will come in handy as you look for new opportunities. Begin to grow your network out beyond the borders of your industry, particularly into areas you are exploring. People like to refer and hire people they know.

4. Find your paper route.
Develop a hobby, passion, talent or value proposition into a business that is economically rewarding, convenient timewise and psychologically liberating. Start it as a paper route, something you do in your spare time that can add a second or third source of regular and predictable incremental income. Your paper route may start off small, but with time and energy you can grow it into a meaningful source of income. Get certified or licensed, and keep it active. When I first started teaching 12 years ago, what I made was laughable. I taught one class and earned $400 for an eight-week session, and today I am an adjunct professor. My teaching income is not inconsequential and the benefits are substantive. Best of all, I love teaching and it is something that I can do well into semi-retirement.

5. Develop an achieveable, but not too slow timeline.
Life is busy and there are a million things that can get in the way of making changes, particularly when it comes to revamping a career. It’s much easier to continue on the same trajectory than to change course. Take a breath and reevaluate. The things you start today, the things that require extra effort, the things that require a journey, are the very things that will contribute to your success sometime in the future. I once had a boss who always said to me, “Ralph, the only way to eat an elephant is one bite at a time.” Well, go ahead and take that first bite.

Expanding your career into a new area or converting a hobby into an income-producing enterprise requires a lot of care and feeding, a whole lot of discipline and some sacrifice. But, once you’ve done it, you won’t remember the pain, you’ll be basking in the rewards. Things like supplemental income, or a “side hustle,” as the Millennial demographic calls it, can turn into a meaningful addition to your personal bottom line. Money is fungible, $3,000 to $25,000 per year in extra cash can be very additive to lifestyle, savings or whatever you decide.

Start thinking about what may lie ahead for you—life’s big milestones—kids, houses, weddings, college, rainy days, retirement—and factor those into your plan first. Once you have those cornerstones laid, the only limits to what comes next are the ones you impose. Live your best life many times!

Ralph Armenta
Technology and Mortgage Banking Consultant & Adjunct Finance Marcoeconomics Professor