Press Releases – National Association of Real Estate Brokers

Selling Houses While Black

Olga Labovich — Wed, 18 Jan 2023 14:17:57 +0000

About 6 percent of real estate agents and brokers in the United States are Black. Their white peers make almost three times as much, according to data and surveys.

Tye Williams feels the heat. It’s 95 degrees out, and the North Carolina sun is beating like a drum. He’s in a full suit and tie and thinking about the tasks ahead. When he gets to the home he’s showing, will he arouse suspicion because he has trouble opening the lockbox? Will neighbors call the cops when they see him circling the property and peeping in its crawl spaces? Or will his extremely professional — and very warm — attire protect him? As a Black real estate agent, “I’m always sure I have my license ready,” he said.

Black agents say thoughts like these often run through their heads when they are out showing houses to their clients.

Despite groundbreakers like Philip A. Payton Jr., whose Afro-American Realty transformed Harlem into an international center of Black culture in the early 20th century, a history of racism in the real estate industry has shut Black people out and has discouraged them from becoming agents. Though the National Association of Realtors (N.A.R.) permitted Black people to join and to access its benefits in 1961 when the organization officially ended the exclusion of Black agents, the group still lobbied against the 1968 Fair Housing Act, a law to end housing discrimination.

Today about 6 percent of real estate agents and brokers in the United States are Black, though 14 percent of Americans are Black. White real estate agents make almost three times as much as their Black peers, according to the N.A.R.. To make it in the industry, Black agents say they are taking precautions and making concessions, including changing their names or omitting their photos from promotional materials to hide their racial identities.

The discrimination they face can be life-threatening: In August 2021, police officers in Michigan handcuffed and pointed guns at Eric Brown, a Black real estate agent, and his Black clients as he showed them a home.

Lydia Pope, 53, president of the National Association of Real Estate Brokers (N.A.R.E.B.), an organization founded in 1947 as an alternative for Black agents and brokers excluded from the N.A.R., recalled how in 2017 she had a listing in a majority-white neighborhood. “Police cars started surrounding the whole area,” said Ms. Pope, who lives in Cleveland.

When she asked the police what was happening, they told her they had a report of a break-in, she said. “I showed them the computer, the information on my phone. I showed them the work order that I had. I showed them my business card, my license, everything, and they ran my plate,” Ms. Pope said.

Luckily, the situation resolved peacefully, but it was still upsetting enough for Pope to refuse to return to the property. “I gave the listing back.”

‘I’m Not Supposed to Be Here’

In 2018, Chastin J. Miles, 33, a Black real estate agent and investor in Dallas, was excited to hold his first open house of a super-high-end home (about $3 million). It was a 6,000-square-foot colonial-style home with four bedrooms, five bathrooms, three living areas and a pool on an oversize corner lot on one of Dallas’ highest price-per-square-foot streets. His excitement disappeared abruptly, when would-be buyers, an older white couple, walked in and immediately walked out upon seeing him. “She opened the door and literally stopped there in the door frame and said to me, ‘Oh, you’re not who we were expecting,’ and her and her husband turned around and walked away,” he said. “They weren’t expecting me to be in that house on this street in this ZIP code.”

Some Black agents said they have come to expect bigotry, especially from older white people.

Darryl Dibbs, 33, a Black agent in Detroit, said many potential clients grew up under segregation and with laws like interracial marriage bans, “so I’m not convinced that this 60-year-old white man completely trusts me with selling his home when he lived in a time where I couldn’t even buy one.”

After the experience with the older couple in Dallas, Mr. Miles concluded: “I’m not supposed to be here.”

Mr. Miles didn’t host any more open houses at the mansion and considered selling less expensive houses. But then he came up with a new approach: He started “buddying up” with white agents, hiring them to come to his open houses and work as greeters at the door, while he remained a distance away in the kitchen. When a greeter referred potential clients to Miles to get answers to their questions about the home or buying process, they were often surprised that he was the one in charge. And while these potential buyers were always polite, they seemed unwilling to engage with him as they would have with his white colleague. They asked him simple questions that lacked the depth of those that buyers of multi-million-dollar homes usually ask. In these interactions, Mr. Miles was “left asking, ‘Are you sure that that’s it? You don’t want to know anything else?’”

Even before showing up at open houses with white buddies, some Black agents employ other tactics to hide their racial identity. Though it is standard practice for agents to include a headshot on their business cards and marketing materials, some Black agents omit photos to hopefully persuade prospective clients to work with them based on credentials and knowledge.

The longtime tradition of the lawn sign can be threatened by racism. When a white couple commissioned Fee Gentry, 54, a Black real estate consultant in the Austin area, to list their house for sale, they asked her to display a lawn sign that did not include her photo.

Mr. Williams, 36, the well-dressed agent in Raleigh, N.C., decided to take a different tactic at initial racial ambiguity to further avoid prejudgment: Tye Williams is actually Tyrone Williams. He has been going by Tye for many years and thought deeply about the impact of using Tye versus Tyrone when he started in real estate in 2020. “Having ‘Tyrone’ on a sign may put me in a position where it’s like, oh, that’s a Tyrone,” he said. Although he’s proud of the name, he knows that it’s stigmatized. “Unfortunately, there would be someone that will see this name and go the other way.” (Studies have shown that employers discriminate against applicants with names closely associated with Black people.)

Do Brokerages Share the Blame?

According to a survey from the N.A.R. of its members, the median for white real estate agents’ residential sales was $356,000, while the median for those of Black agents was $246,000. The median sales volume for white real estate agents was $1,998,000, while the median sales volume for Black agents was $474,500.

Discrimination means a smaller pool of potential clientele and smaller commissions from properties at lower price points, since homes owned by Black people are undervalued, priced 23 percent lower than homes owned by white people.

But an agent’s background and their clientele are not the only reasons Black agents generally earn less than their white peers, Black agents said.

They said brokerages are also to blame for the earnings gap.

As a new agent nearly 20 years ago, Ms. Gentry was offered 20 percent of the 3 percent commission she was due as a buyer’s agent. And in 2016, at Mr. Dibbs’s first brokerage, a white woman he befriended, who started at the same time as him, shared that she was getting a significantly better commission split than he was. He left for another brokerage.

Black agents also said that listing agents who are not Black often do not respond to their calls and require their Black clients to jump through hoops, like showing proof of funds or IDs, before they can view properties.

In 2020, the N.A.R.apologized for its past complicity in racist housing practices and is implementing its ACT Initiative to hold bad actors in the industry accountable. But many Black agents would like to see more done — and the ACT measures can only go so far if anti-Black racism remains rampant in society.

Pamela Chambers, 53, a Black agent in Tucson who is sure to wear her company badge in unwelcoming neighborhoods, recalled how white agents mocked the lesson in a required fair housing class that she has taken every two years since getting licensed in Arizona in 2017.

She said she lost faith in the course’s efficacy. Agents are “just taking it because they have to to keep their license,” said Ms. Chambers. To avoid classmates’ comments doubting that anti-Black housing discrimination still happens, she now plans to take these classes online.

‘You’re Missing Out’

Still, Ms. Chambers loves real estate and believes it’s a great career path: You don’t need a college degree, have uncapped earning potential, are poised to get into real estate investing, and get to participate in one of the best days of people’s lives.

She has encouraged other Black people to get into the business and started a mentorship program to increase the diversity of the brokerage where she works, which until recently only had two Black agents, Ms. Chambers and her ex-husband, out of about 500.

Many other agents I spoke to are similarly starting mentoring groups, affinity groups, and even buying real estate courses, “$67 on Groupon!,” for Black friends to encourage them to get into the business.

Mr. Williams makes sure to always post photos of real estate wins to social media, so that Black people considering getting into the business will see more people who look like them. He’s also involved in diversity, equity, and inclusion work with his local N.A.R. chapter, and tries to make changes on the ground. For example, after many experiences of walking into show homes and turning a corner to have the shock and insult of racially-charged posters, flags, and magnets, saying things like, “If you kneel for the national anthem, you don’t deserve to live,” he’s working to educate his colleagues on how listing agents should handle such situations. If it’s OK to tell clients to “paint their houses, redo their cabinets,” or “cut down a tree,” why can’t agents tell them to remove racist paraphernalia, he said.

The work is very much an extension of the Fair Housing Act, educating white colleagues, white homeowners and trying to ensure that Black people have an equal chance of buying a house. This summer, N.A.R.E.B. will begin a new mentorship program, which will support young people looking to get into the sector, in an effort to diversify the industry on a large scale.

It took Barbara Lowery, 50, of Indianapolis, decades of dreaming about being an agent to make the jump. “I only knew what I saw,” she said about her hesitance in her 20s. “I was just like, would I fit in?”, given her image of real estate agents as white men in business suits. “I did have kind of a fear, will they accept me?” The answer, unfortunately, is often no.

At her first showing in the spring of 2021, someone called the police. But she said she’s not going anywhere.

“I come home, and I vent, and I keep it moving,” she said. “This is my real estate game. And if they don’t like me, if they dismiss me because of me and who I am as this Black woman, shame on you. You’re missing out.”

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NAREB RELEASES ANNUAL STATE OF HOUSING IN BLACK AMERICA REPORT AT BLACK WEALTH SUMMIT FEATURING LAWMAKERS, AGENCY HEADS, POLICYMAKERS & EXPERTS

Olga Labovich — Wed, 30 Nov 2022 15:29:19 +0000

WHO:

U.S. Senator Sherrod Brown (D-OH)
Lydia Pope, President NAREB
Alanna McCargo, President, Ginnie Mae
Lisa Rice, President & CEO National Fair Housing Alliance
Sandra Thompson, Director, Federal Housing Finance Agency
Teresa Bryce Bazemore, CEO, Federal Home Loan Bank of San Francisco
Katrina Jones, VP, Racial Equity Strategy & Impact, Fannie Mae
Pamela Perry, VP, Equitable Housing, Community & Affordable Lending Fredie Mac
Jim Carr, SHIBA Report Author
Moderator Ashley Thomas, III NAREB 1st Vice President
Maurice Jourdain Earl, Managing Director ComplianceTech
Phyllis Dickerson, CEO, African American Mayors Association

WHAT:

The National Association of Real Estate Brokers (NAREB) releases its 2022 State of Housing in Black America (SHIBA) report that provides a comprehensive analysis of Black home ownership and the historic barriers Blacks face when seeking to purchase a home. The new report will be unveiled at a day-long event featuring panel discussions and speakers, including lawmakers, private lenders, government housing officials, and housing experts. For the first time, the SHIBA report assesses the impact of environmental factors, such as Hurricane Katrina on the Black residents of New Orleans and the water crises in Flint, MI. Topics at the event include congressional perspectives, appraisal bias and GSE Equitable Housing Plans. There will be a special panel with banking industry leaders on the hot topic in lending circles: Special Purpose Credit Programs. For a complete schedule of events visit HERE.

WHEN:

Wed. November 30, 2022

9 AM to 4 PM

WHERE:

Howard University Cramton Auditorium

2455 6^TH Street NW Washington, DC 20059

Media Contact: Michael K. Frisby 202-625-4328/mike@frisbyassociates.com

The post NAREB RELEASES ANNUAL STATE OF HOUSING IN BLACK AMERICA REPORT AT BLACK WEALTH SUMMIT FEATURING LAWMAKERS, AGENCY HEADS, POLICYMAKERS & EXPERTS appeared first on National Association of Real Estate Brokers.

Reckoning with the past: Associations apologize for discriminatory practices

Olga Labovich — Mon, 14 Nov 2022 15:31:55 +0000

The California Association of Realtors is the most recent association to express regrets for past practices that marginalized groups based on race or ethnicity.

Key points:

Real estate associations in Atlanta, Minneapolis, Chicago and St. Louis have also offered formal apologies for past discriminatory practices.
Practices and policies included endorsing restrictive covenants and redlining, making it difficult for minorities to get loans.
Significant disparities remain in both homeownership rates among people of color and the share of Black agents.

The California Association of Realtors (C.A.R.) has issued a formal apology for past discriminatory practices that included endorsing restrictive covenants and supporting redlining, which has resulted in the denial of home loans to prospective buyers based on race or ethnicity.

“We have continued to unpack our difficult and sometimes obscure history of opposing fair housing laws, promoting segregation and racial exclusion prior to the Fair Housing Act of 1968,” said Otto Catrina, president of C.A.R.

“The Association was wrong. We not only apologize for these actions, we strongly condemn them, and we will continue working to address the legacy of these discriminatory policies and practices,” Catrina said in a statement.

C.A.R. joins a handful of other real estate trade associations that recently issued statements of regret about policies and practices toward people of color and underserved communities.

‘Now show us that you want to do better’

The National Association of Real Estate Brokers (NAREB), a trade association for minority real estate professionals, called the apologies an important first step but also told Real Estate News that more needs to be done “to create an environment where everyone is treated equally.”

“NAREB believes these apologies are very important and can begin authentic movements that go beyond the bias and create real estate environments where everyone is created equally,” said Lydia Pope, NAREB president. “The first step towards any reconciliation is acknowledging the wrong. We take these apologies as acknowledgement that discrimination took place. Now, we can begin to build trust and work together on providing fairer opportunities for families and individuals regardless of their race, ethnicity, gender or sexual orientation,” she said.

Pope also urged more action and greater awareness. “We are comfortable in accepting these apologies, but we also want them to be the initial action. Now show us that you want to do better, that you are willing to do more to help create an environment where everyone is treated equally,” Pope said.

MAR: ‘It’s a call to action’

The Minneapolis Area Realtors (MAR) issued a “letter of apology” in October that offered “profound regret for discriminatory practices that denied equal access to housing.”

“Most importantly, it’s a call to action for ourselves and others to do the work that’s needed to achieve an equitable housing market for all people,” the group said on its website.

MAR Board President Denise Mazone said the group’s apology and policy changes were overdue, noting the significant homeownership gap among Minnesotans: “The disparity gap for Black homeownership is in the top five in the nation,” she told Real Estate News, adding that the formal, public apologies by leading real estate groups like hers help to “shine the light on why these disparities exist and what can be done to address them.”

“When associations apologize and are accountable for the actions that set up a system that is locking people out of homeownership, they are better positioned to take action toward meaningful change and persuade others to do the same,” she said.

Real estate groups in Atlanta, Chicago and St. Louis have issued similar apologies over the past year.

In 2020, the National Association of Realtors offered an apology for past discriminatory practices and policies, and promised to work to correct unfair practices and unequal treatment in housing.

“President Charlie Oppler said unequivocally that NAR’s past policies in support of racist practices, including steering, redlining and creating covenants that prohibited non-white people from living in certain communities, were wrong,” according to a NAR statement.

Agents of color also underrepresented

The homeownership gap mirrors the racial gap in the agent community. NAR acknowledged that for decades it denied membership based on race and gender. The association also opposed the passage of the Fair Housing Act in 1968. NAR’s 2021 member profile found that only 7% of real estate professionals are Black, even though Black Americans represent about 13% of the U.S. population.

A novel program sponsored by HomeLight and the National Association of Real Estate Brokers seeks to increase the number of Black agents and associates in the real estate industry. The Black Real Estate Agent program provides training and education. It also helps to cover some startup costs, such as pre-licensing classes, agent exams, marketing and technical needs. Participants are paired with a mentor who acts as an advisor.

NAREB is encouraging more initiatives to diversify all areas of the real estate industry: “There could be more programs to train and mentor Black and Hispanic agents. There could be more programs that channel Blacks and Hispanics into pathways to become appraisers, mortgage counselors and brokers. These would be concrete steps that move the industry and our society forward.”

At MAR, the trade group has been taking steps to encourage diversity and better represent buyers and sellers in the greater Minneapolis area, starting with the organization’s leadership. “We have been diversifying our leadership and I am an example of that, as the first African American president of the association,” Mazone said.

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NAREB: Supporting ‘democracy in housing’ for consumers, agents

Olga Labovich — Mon, 14 Nov 2022 14:50:19 +0000

Lydia Pope, who leads the National Association of Real Estate Brokers, discusses narrowing the racial gap in homeownership and opening doors for Black agents

Key points:

NAREB, founded in 1947, is the nation’s oldest trade association for Black real estate professionals.
‘Our goal is equal housing,’ said Pope, whose own real estate career spans nearly three decades.
The association offers targeted education for consumers and career opportunities for agents and other industry professionals.

As president of the nation’s oldest trade association for Black real estate professionals, Lydia Pope said she keeps her focus on the organization’s mission: “democracy in housing.”

“Now, what does that mean to real estate professionals? What does it mean to the consumer? It means that our goal is to make sure that we, number one, narrow the racial gap in homeownership,” Pope said. “African Americans should have an opportunity to buy a home, no matter the location.”

Pope discussed the vision of the National Association of Real Estate Brokers, which was founded in 1947, her commitment to supporting affordable homeownership, and the inspiration for her own career in real estate, which spans nearly three decades.

Equal housing for consumers, equal opportunities for agents

“Our goal is equal housing. It’s about making sure that we have the right to do the right thing,” Pope told Real Estate News. “We want to make sure that as real estate practitioners we’re given the same rights when it comes to purchasing properties, when it comes to selling properties for our clients and showing properties.”

After real estate groups in Atlanta, Minneapolis and Chicago apologized in October for past discriminatory practices — including supporting restrictive covenants and redlining — Pope challenged the industry to “do better” and put their words into action.

“Now, it’s all about where to go from here,” said Pope, noting that her knowledge and activism were borne from her own difficulties in buying a home many years ago. “When I went to buy my home, the agent just took me to a neighborhood that I did not want to be in. He didn’t give me a choice,” she said.

“That’s why I got my real estate license. I said, ‘Well, you know, I’m going to learn how to do this myself, because I should be able to live wherever I want to live,’” Pope said.

Outreach helps Black buyers — and agents

Pope, the third woman to lead NAREB, is making affordable homeownership a priority, which feels even more urgent during this time of stubbornly high home prices and rising interest rates. Many consumers are being locked out of the market and don’t feel like they have any options.

NAREB’s initiatives in 2022 have included community days, when the organization provides free credit counseling and education about home purchases and loans through a HUD-approved counseling agency.

Encouraging homeownership among Black women is a specific area of focus, Pope said. NAREB offers financial literacy courses specifically geared to African American women. “One of the highest target markets when it comes to loan level pricing and discrimination has historically been against Black women,” she said. “So we educate the community about the tools they need, so they know how to go to lenders and how to talk with them.”

These initiatives are ultimately good for agents and brokers too. “We are teaching our Black community about the services out there. And that helps NAREB members because they get the leads that help them to sell homes,” she said.

“These are services that a new agent can take advantage of … Those services not only help agents to grow their wealth, but they also help the Black community,” Pope said.

Networking, mentorship and the next generation of real estate professionals

Pope wants to see the industry as a whole — brokers, agents, property managers, appraisers and others — better represented by Black professionals. She considers making connections, providing education and supporting Black agents and associates essential to success.

“As the largest and oldest Black real estate trade group in this country, we get to network with thousands of Black real estate practitioners,” she said. “And people new to the business who are members get an opportunity to be able to learn and glean and find that mentor within the organization,” she said.

NAREB’s networking efforts extend to college campuses. In late November, NAREB will host an educational summit at Howard University, a historically Black college in Washington, D.C. “To have a career in real estate is one of the best fields you can ever be in, but [young people] need to know about it,” she said.

Pope hearkens to lessons from the past as she reaches out to future generations. “A reason why we formed in the beginning was to make sure that Blacks have the right and privilege — to be able to not just buy and sell properties, but also the privilege to be educated in the real estate field, whether they are a consumer or an agent or a licensee,” she said. “So we open up the doors to our organization, to all our conferences.”

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Clyburn Re-Ups Support For G.I. Bill Restoration Act On This Veteran’s Day

Olga Labovich — Fri, 11 Nov 2022 13:01:52 +0000

Americans disagree on many social issues, but one we’re strongly united on is appreciation for our fellow countrymen and women who have served in our nation’s military – especially today, Veteran’s Day. It’s likely that the greatest expression of gratitude our nation has ever given to those who have worn the uniform is the Servicemen’s Readjustment Act of 1944 (and its successors), popularly known as the G.I. Bill.

This legislation gave educational and home-buying benefits to returning World War II service members, lifting millions of Americans into the middle class. But not everyone got to take advantage of this national thank you gift. More than a million Black veterans were denied the chance to buy a home because of a discriminatory real estate practice known as redlining.

Some members of Congress want to right this wrong for the surviving spouses and direct descendants of these disadvantaged WWII vets, and they proposed a G.I. Bill Restoration Act on 2021’s Veteran’s Day to do just that. House Majority Whip James E. Clyburn (SC-06) and Marine veteran Rep. Seth Moulton (MA-06) introduced the legislation in the House, and Sen. Reverend Raphael Warnock (D-GA) introduced its Senate companion. It hasn’t passed yet on its own, or been attached to any must-pass bills, but Clyburn still wants to ensure its passage, he said in a statement:

“On this Veterans Day, I believe we ought to acknowledge this injustice. We have a responsibility to address the wealth gap exacerbated by the government’s failure to guarantee that the federal benefits earned and deserved by all veterans were accessible to World War II veterans of color. I remain committed to helping our country repair this fault and ensuring the families of these forgotten heroes have a pathway to the middle class.”

Affordability Crisis

That pathway is harder than ever to navigate. With rising home prices and mortgage rates, and a scarcity of affordable and workforce housing, buying a home is challenging to millions of aspiring homeowners, but particularly to Black borrowers. These individuals often have lower credit scores and less money to fund a purchase, adding to their home-buying difficulties. “Discriminatory practices have contributed to the lack of intergenerational wealth for Black families,” notes Lydia Pope, president of the National Association of Real Estate Brokers, a professional organization focused on the needs of minority colleagues, clients and communities.

She cites homeownership being “44.6% for Blacks and 74.2% for Whites, a 29.6% gap,” strongly contributing to Black households having a median net worth of $24,000 compared to $188,000 for White families. “The cycle can only be broken by improving the major driver of Black wealth – intergenerational homeownership that yields prosperity and family economic security,” she asserts.

NAREB is strongly in support of the Clyburn bill’s passage, Pope shares, but says more is still needed. “Many Black families can afford monthly mortgage payments, but don’t have the funds or savings for the down payments.” VA loans typically don’t require down payments, so this legislation would lower that particular barrier.

Interest Rate Fairness

Another financial issue Pope cites is interest rate inequities. She points to a January 2022 study showing that Black and Hispanic borrowers pay significantly higher rates on various government-insured loans, particularly in minority neighborhoods. “Researchers estimate that these rate differences cost minority borrowers more than $450 million yearly,” she declares. “Loan-Level Price Adjustments (LLPAs) are the culprit. Even if someone qualifies for a loan, lenders are allowed to adjust the interest rate based on credit scores,” she explains. “NAREB seeks an end to LLPAs and establishes that if a family meets the qualifications for a mortgage, they get the loan without additional fees.” That would seem to be doable within the framework of this legislation too.

Appraisal Fairness

This issue has started to get more media attention. In one eye-opening CNN segment, a Black couple in the San Francisco Bay Area got an appraisal that was far lower than they expected, given the market and improvements they’d made. So they asked a White friend to show their home, stripped of all artwork and photos that would indicate the race of the owners, and the appraisal came back nearly half a million dollars higher than when they showed it themselves.

This incident — and others like it covered in the New York Times, Washington Post and other national outlets — probably wouldn’t surprise Pope. “A Brookings Institution study shows that homes in Black neighborhoods appraised for 23% less than similar homes in White neighborhoods,” she shares. She also calls the appraisal review process itself “deeply flawed.”

Since the appraised value determines the loan amount, and since less than 3% of appraisals are ever revised, Pope says, the homebuyer faces an insidious new form of discrimination. “NAREB wants a revamped appraisal review process,” Pope says. That may also need to be built into Clyburn’s G.I. Bill Restoration Act for it to fulfill its potential.

Last Words

Passing this legislation and ensuring that it can achieve its purpose of righting a historic wrong can benefit more than the families of those denied benefits in the 1940s and 50s. It can also benefit our neighborhoods with greater stability and reduced crime, our communities with greater civic engagement, our school systems with greater achievement, and our public health systems with reduced racial health disparities. These social goods are all described in the Minnesota Homeownership Center’s Welcome Home blog.

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When the demography of the members is considered

Olga Labovich — Sat, 15 Oct 2022 15:29:31 +0000

Our mission at Bankrate is to assist our clients in making smarter monetary decisions. Apart from ensuring every editorial policy is met, we have referenced some of our products from our partners in this post. We have explained how we generate revenue here.

The National Association of Real Estate Brokers (NAREB) is a trade network and organization of black professionals in real estate popular for the promotion of democracy in housing and soliciting public policies that offer security and improve sustainable homeownership.

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The members of the firm known as Realtists are dispersed in different chapters across the United States. These Realtist members are real estate brokers and experts from other industries like appraisers and £mortgage brokers.

NAREB acts as the major network of Black Real Estate experts. Its president, Lydia Pope stated that its objective improves the business and professional situation of the members of the NAREB Realtists by solidifying the consumer situation of minority, Black, and new target industry sectors that are served by Realtors.

Also, NAREB is responsible for promoting the real estate market using the political, economic, social, and legal advantages to remediate differences and prejudiced property and housing ownership practices in the country.

History of NAREB

NAREB was established in 1947 in Tampa Florida. Initially, it was a civil right advocacy and opportunity firm for African American real estate experts, consumers, and communities.

For many years now, NAREB has influenced and assisted in the execution of fair housing, equal rights, community growth legislation, and equal opportunity throughout the country. According to NAREB, it has assisted in the implementation of several regulations and policies which includes the first local fair housing policy in New York, which was enacted in 1962. Also, NAREB has labored in the creation of fair housing policies enacted in 1963 in California.

Currently, the firm is admitting any individual that promotes democracy in housing.

What do people call the members of NAREB?

NAREB members are popularly called Realtists. Realtist is a trademarked name for a member of NAREB, just like Realtor is a trademarked name used to refer to the professional members of the National Association of Realtors (NAR).

Pope stated that the realtist name is very vital to members as it offers them a sense of belonging and becoming a part of something huge.

Pope stated that it is crucial when the demography of the members is considered. NAREB members usually perform in individual real estate locations that do not fall under any significant franchise system.

What differentiates a Realtist from a Realtor?

Part of the members in NAREB could be Realtors. However, a Realtist might stand in the gap for other real estate market disciplines. Realtist can also be loan officers, mortgage lenders, or appraisers.

History of housing discrimination in the United States

In the US, homeownership has been considered an avenue to build wealth and create financial security for a long time. However, based on history, the nation’s laws were developed to benefit households that are white.

Over the past century, Black households, for example, were exempted from acquiring affordable homes. For example, while the Federal Housing Administration (FHA) provides white families with private loans to secure low-cost home buys. State benefits and subsidies are usually not available to black households.

Environments, where families of colored lived, were usually red-mapped, demarcated, or color-coded on maps. Loans for these families and households are usually not insured by the FHA as well as private lenders.

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https://issuetracker.google.com/issues/253785834

Other discriminatory activities that are carried out are racial prejudicial agreements that indicated that a specific home can only be acquired by a white household. In a couple of other examples, veterans that served in World War II, that are African American were restricted from the GI Bill benefits that offer home loans secured by the federal government with zero advance payment. Private lenders with prejudice towards black borrowers created this loan.Subsequently in the 1960s, community zoning policies that demands significant lot sizes for homes increased the prices of homes, which caused more discriminatory entrenchment of housing and reduced home buying options for black households.

These are just a few of the instances of unfair housing prejudice in the United States, which has its consequences.

Pope said that the current racial wealth gap is caused by the distinctiveness in homeownership and home equity is the key to family wealth.

Note: Many Government Agencies have to be approved by a background screening company in order to work with various patients.

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What is a Realtist?

Olga Labovich — Thu, 15 Sep 2022 14:13:06 +0000

Whether you’re looking to buy or sell a home, you’ll see a wide range of terms attached to professionals who can help with the transaction. As you work to understand the difference between a broker and an agent, you may also wonder what a Realtist does.

What is a Realtist?

A Realtist is a real estate professional who belongs to the National Association of Real Estate Brokers (NAREB). While plenty of Realtists are real estate brokers and agents, they also serve a wide range of other important functions in the housing industry – appraisers, lenders, housing counselors, developers and more.

What is the NAREB and why was it formed?

The National Association of Real Estate Brokers was founded in 1947. The local boards of the National Association of Realtors prohibited Black real estate professionals from becoming members – a policy that didn’t change until 1961. To combat the rampant discrimination that stood in the way of Black individuals who wanted to purchase property, the NAREB worked to help pass legislation that helped advance civil rights in the country including local fair housing laws in New York City in 1962, state fair housing laws in California in 1963 and the nationwide Fair Housing Act in 1968.

How housing discrimination has shaped the U.S.

Housing in the U.S. follows the country’s troubled path of racist policies. At the start of the 20th century, just 20 percent of adult Black males owned homes compared with 46 percent of White males, according to data from the National Bureau of Economic Research. Throughout the majority of the century, the government actively worked to suppress Black home ownership. The Federal Housing Administration – known for helping borrowers achieve the dream of owning a home today – used to refuse to insure mortgages for homes that were located in Black neighborhoods.

The country made positive strides in the decades following the passage of the Fair Housing Act with the rate of Black home ownership increasing 52 percent by 1990. However, those rates have moved backward. The Black home ownership rate now stands at 43 percent – nearly 30 points lower than the White home ownership rate, according to data from the National Association of Realtors. And even after buying a home, Lydia Pope, president of the NAREB, highlights that discrimination continues to impact the Black community. Pope points to a recent study conducted by Redfin that shows that homes in predominantly Black neighborhoods are valued at an average of $46,000 less compared with similar homes in White neighborhoods.

“The appraisal review process is deeply flawed,” Pope says. “When an appraisal is disputed, the burden is on the real estate agent or lender to provide data supporting a change in the valuation. But that rarely happens – less than 3 percent of appraisals are ever revised. NAREB wants a revamped appraisal review process. In addition, NAREB calls on the public and private sector to help increase the number of Black appraisers. There are 78,000 appraisers across the country but only 2 percent are Black.”

Realtists are working hard to fuel progress and help more Black Americans buy homes. “Our members are trained to work with all facets of buyers in all areas,” Pope says. “The NAREB Investment Division operates a HUD-approved housing counseling program that provides the kind of information that buyers – especially first-time buyers – find valuable. Further, we have been aggressively working with Capitol Hill lawmakers to get a national down payment program enacted. In fact, I testified at the House Financial Services Committee hearing in June to discuss the need for the program.”

What is the difference between a Realtor and a Realtist? Can you be both?

While a Realtor is a licensed real estate agent who is a member of the National Association of Realtors, a Realtist – also often spelled in all capital letters – is a licensed real estate agent who is a member of the NAREB. However, Pope points out that individuals can be both. “Some of our members have the ‘Realtor” designation because they need to leverage MLS listings,” she says.

The key distinction between a Realtist and a Realtor is that a Realtist works to deliver NAREB’s mission of democracy in housing – specifically for the Black community. “NAREB is focused on our member Black brokers/realtors, consumers and communities,” Pope says. “There are other trade associations that focus specifically on Hispanic or Asian communities. We think it is important to tell our story from a Black perspective.”

How to work with a Realtist

If you’re looking to find a Realtist who can coach you through the homebuying or selling process, use the NAREB’s membership portal to sort through more than 18,000 Realtists who belong to local chapters across the country. Additionally, if you are hoping to find down payment assistance, the organization’s website offers a helpful tool to match you with programs based on your location, income and special circumstances.

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What is the National Association of Real Estate Brokers (NAREB)?

Olga Labovich — Wed, 14 Sep 2022 14:27:02 +0000

The National Association of Real Estate Brokers (NAREB) is a trade organization and network of Black real estate professionals known for promoting “democracy in housing” and advocating for public policies that “protect and expand sustainable homeownership.”

The organization’s members, who go by the title of Realtist, are spread throughout chapters across the United States. NAREB’s Realtist membership includes real estate brokers as well as professionals from other disciplines within the real estate industry such as mortgage brokers and appraisers.

“NAREB is the premier network of Black Real Estate Professionals,” NAREB President Lydia Pope said. “Our purpose is to enhance the professional and business conditions of NAREB Realtist members by strengthening the consumer capacity of Black, minority, and emerging target market segments that our Realtists serve.”

NAREB also works to promote the real estate industry through economic, political, legal, and social leverage and seeks to remediate disparate and discriminatory housing and property ownership practices in this country.

What is the history of the NAREB?

Founded in Tampa, Florida in 1947, NAREB began as an equal opportunity and civil rights advocacy organization for African American real estate professionals, consumers and communities.

Over the years, NAREB has helped influence the implementation of equal rights, fair housing, equal opportunity and community development legislation around the country. NAREB says it has worked to ensure passage of a variety of notable laws and measures such as the first local fair housing legislation in New York City, which was adopted in 1962. NAREB also worked to bring about passage of fair housing legislation in California in 1963.

The organization is currently open to anyone who promotes the goal of democracy in housing.

How are members of the NAREB referred to?

Members of NAREB go by the title of Realtist. The term Realtist is the trademarked name for NAREB members, similar to the way the term Realtor was trademarked by the National Association of Realtors (NAR) to describe members of that professional organization.

The Realtist designation is important to members, Pope said, giving them a place to belong and be a part of something bigger than them.

“This is important when you look at the demographics of our typical member,” Pope said. NAREB members typically operate independent real estate offices that do not belong to any of the major franchise operations.

What is the difference between a realtor and a Realtist?

Some of NAREB’s Realtist members may be realtors, but a Realtist may represent various other occupations in the real estate industry. A Realtist could also be an appraiser, loan officer or mortgage broker.

A brief history of discrimination in housing in the U.S.

Homeownership has long been viewed as a method of wealth-building in the United States and a way to establish financial security. Historically however, the laws in this country were designed to benefit white households.

Black families’ over the past century, for instance, were excluded from purchasing affordable homes. This took place in a variety of ways. For instance, while white families were provided with private loans insured by the Federal Housing Administration (FHA) in order to help them secure low-down-payment home purchases, Black families did not have access to the same benefits and subsidies.

The practice of redlining, or color-coding maps, was used to demarcate areas where households of color lived.The FHA would not insure loans in communities that had been redlined, nor would private lenders.

Some of the other forms of discrimination included racially restrictive covenants that specified a home could only be sold or resold to a white family. In still other instances, Black veterans who served in World War II, were unable to benefit from GI Bill benefits that provide federally guaranteed, low-interest home loans with no down payment. These loans were provided by private lenders, who rejected Black borrowers.

Later, during the 1960s, community zoning rules that required large lot sizes for homes drove up home prices, further entrenching housing segregation and limited home buying opportunities for Black families.

These are just a few examples of the history of housing discrimination in the United States, an issue that continues to have ramifications.

“Today, disparities in homeownership are a key contributor to the ongoing racial wealth gap and home equity still plays a central role in shaping family wealth,” said Pope.

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NAREB Calls on White House and Congress to Boost Black Homeownership and Close Wealth Gap

Olga Labovich — Wed, 07 Sep 2022 15:12:00 +0000

Organization Will Hold Elected Officials Accountable

The National Association of Real Estate Brokers (NAREB) called on the White House and Congress to enact legislation aimed at increasing Black homeownership after provisions approved by the House were excluded from the Inflation Reduction Act, which Congress passed and was signed into law by President Biden.

Rep. Maxine Waters (D-CA), chair of House Financial Services Committee, championed $150 billion of assistance for renters and potential homebuyers in House legislation, including support for first-generation homebuyers and improved fair housing enforcement. After it was eliminated, Rep. Waters summed up her disappointment in a speech on the House floor: “There is not one nickel, not one dime, not one dollar, for the development of housing in this bill.”

NAREB President Lydia Pope said organization members are disappointed that down payment assistance for first-generation homebuyers, as well as other measures, were stripped from the legislation before passage. She called for Congress and the White House to work on legislation to address lagging Black homeownership and the racial wealth gap in America.

“Certainly, we recognize that compromises were made for the bill to pass, but those cannot come at the expense of African Americans, who have experienced decades of housing discrimination, and its intergenerational impact,” said Pope. “Too many elected officials, corporations, and others talk about their equity agenda, then do far too little to make it a reality. It is time that they be held accountable.”

Pope acknowledged that Rep. Waters and Sen. Sherrod Brown (D-OH), who chairs the Senate Banking Committee, continue to press for down payment assistance. Pope called on Congress to pass legislation in a lame duck session after the midterm elections. “This is an area where we need immediate action,” she said. “Too many families are denied the American Dream of homeownership. The ugly legacy of housing discrimination must end, and a new chapter must begin that helps Blacks generate intergenerational wealth.”

Pope noted that homeownership for Blacks dropped nearly 20% since 2008. Fifty-four years after the 1968 Fair Housing Act, the homeownership gap has widened. In 1960, a 27-point gap existed with 38% of Blacks owning homes compared to 65% of Whites. The gap is now 29.6% with 44.6% of Blacks owning homes and 74.2% of Whites, the largest spread since 1890.
The House legislation had addressed one of the most difficult hurdles for Black homeowners – the down payment costs. Studies find that many Black families have the income to qualify for a mortgage but struggle to come up with the upfront costs. The House had included a $10 billion down payment grant program for first-time, first-generation homebuyers. “The nation needs that legislation to be revived,” said Pope. “Homeownership is the largest component of wealth for African Americans. To reduce the wealth gap, which spurs inequities throughout our society, there must be a significant boost in homeownership.”

Specifically, NAREB has identified four areas that need to be addressed.

Down Payment Assistance. Currently, there are options for down payment assistance available for families, but most come with conditions that hurt their ability to get a home loan. Some programs tack on a second mortgage or stricter wage and credit score requirements. Others link down payment assistance to a tax credit, but that kind of relief does little to help a family that cannot close on house because they cannot afford the down payment. NAREB supports a grant program for down payment assistance so that participation does not impact the ability to qualify for a mortgage.
Student Loan Debt. Four years after college graduation, Black people owe an average of $25,000 more in student loan debt than their White counterparts, and Black people leave school with an average of $52,726 in student debt, according to the Brookings Institution. The student loan debt impacts the ability of Black people to purchase homes. One of the biggest issues is the inconsistency in determining how student loan debt is calculated in the debt ratios of the mortgage underwriting process. Essentially, while the future debt is factored in, anticipated future wage increases are not. There has been some progress with Fannie and Freddie acknowledging income-based payment plans that lower the monthly debt ratio calculations, but it does not address the fact that the actual student loan debt continues rising. It is critical that a uniform standard is created that guides the Federal Housing Administration, Fannie Mae, Freddie Mac, and Veterans Administration in calculating the debt, so it is not left to lenders.
Loan-Level Price Adjustments (LLPAs). A comprehensive study by the Journal of Financial Economics found that risk-equivalent Latinx/Black borrowers pay significantly higher interest rates on GSE-securitized and FHA-insured loans, particularly in minority neighborhoods. Researchers estimate that these rate differences cost minority borrowers more than $450 million yearly. The LLPAs are the culprit. Even if someone qualifies for a loan, lenders are allowed to adjust the interest rate based on credit scores. Further, Private Mortgage Insurance companies are also increasing their rates for mortgage insurance based on credit ratings. Thus, the consumer can get hit with higher rates twice creating price increases that can push potential buyers out of the market. NAREB seeks an end to LLPAs and established that if a family meets the qualifications for a mortgage, they get the loan without additional fees.
Fair Appraisals. NAREB seeks an end to appraisal bias when Black people are selling their homes or need a valuation on new ones. A Brookings Institution study shows that homes in Black neighborhoods appraised for 23% less than similar homes in White neighborhoods. A 2021 Redfin study found that homes in Black neighborhoods are undervalued by $46,000 on average, a gap that has been constant over the past decade. Furthermore, the appraisal review process is deeply flawed. When an appraisal is disputed, the burden is on the real estate agent or lender to provide data supporting a change in the valuation. But that rarely happens – less than 3% of appraisals are ever revised. NAREB wants a revamped appraisal review process. In addition, NAREB calls on the public and private sector to help increase the number of Black appraisers. There are 78,000 appraisers across the country but only 2% are Black.

“NAREB will be publicly calling on lawmakers and the Biden Administration to take action on these issues, particularly pressing elected officials who rely on votes from Black communities,” said Pope. “Rhetoric no longer counts for much. Our communities need action, and this organization will hold elected officials accountable to the people who elect them.”

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For 75 Years, NAREB Has Advocated for Black Homeownership

Olga Labovich — Tue, 02 Aug 2022 14:54:42 +0000

Annual Convention Returns to Tampa Where Organization was Founded

Lydia Pope, NAREB President

The National Association of Real Estate Brokers (NAREB) kicks off its national convention in Tampa this week, as the organization celebrates its 75th anniversary. Founded in 1947 with the goal of securing equal housing opportunities for all Americans, NAREB advocates for policies and practices that increase homeownership for African Americans.

“We are proud of our accomplishments,” said Lydia Pope, NAREB’s President. “America is at a crucial moment as our struggle for justice and equality faces strong opposition from segments of the population, as well as established institutions, such as the Supreme Court. But NAREB is relentless in the fight to build equity in Black & Brown communities, especially the benefits and family economic security that comes with home ownership.”

Tampa Mayor Jane Castor welcomed NAREB, noting the organization was returning to its roots in Tampa, where it was launched.

“NAREB was established in 1947 in Tampa, Florida, as an equal opportunity and civil rights advocacy organization for African American real estate professionals, consumers, and communities in America with a founding principle of Equal Housing Opportunity for All,” Mayor Castor wrote in a welcoming letter. “It has become the nation’s oldest and largest Black real estate trade association. Advocating for Building Black Wealth Through Homeowners, its primary goal is Democracy in Housing.”

Hillsborough County Commissioner Gwendolyn W. Myers commended NAREB members for the years of advocating to build Black wealth through homeownership.

“Organizations committed to helping increase Black home ownership are so crucial to communities across the world,” she wrote. “With the largest rent increases that we have seen in history, professionals in organizations like yours is a beacon of hope for so many people looking for an affordable place to call home for their family. NAREB’s commitment to improving Black Americans’ economic strength and promoting homeownership is more important than ever for communities.”

Gov. Ron Desantis also offered a warm welcome to NAREB, saying, “It is my pleasure to welcome you to Tampa for the National Association of Real Estate Brokers 75th Anniversary celebration. I applaud your work to enhance democracy in housing and elevating home ownership for Floridians.”

Held at Tampa’s JW Marriott Hotel, the convention theme is “Restore, Rebuild, Retain.” It includes a host of training and break-out sessions for attendees, receptions, workshops, an expo, and opportunities for networking.

Among the highlights are:

Wednesday 10:15 AM NAREB Opening Ceremony

Special Guest: Mark O’Donovan, CEO, Chase Home Lending, JPMorgan Chase

Partner: Cerita Battles, Managing Director, Head of Community & Affordable Lending, Chase

Q&A with NAREB Past & Honorary Presidents Guest Speaker: Roland Martin, Journalist

Thursday 11 AM Legislative Update

Shaping U.S. Housing Policy, Dynamic Black Women Take the Lead

America’s housing industry is 15% to 17% of the total national economy, with residential housing alone valued at $33.8 trillion. For the first time in history, at the helm of the agencies designing and impacting housing policies are Black women. They discuss priorities and what they do to increase Black homeownership.

Presenters: Sandra Thompson, Director, Federal Housing Finance Agency; Alana McCargo, President, Ginnie Mae; Grovetta Gardineer, Sr. Deputy Controller, Bank Supervision Policy, Office of the Comptroller of Currency

Partner Remarks: Leslie Rouda Smith, President, National Association of Realtors; Lisette Torres, Director, State Government and External Affairs, Rocket Companies

Facilitator: Ashley Thomas, III, 2nd VP and Government Relations, NAREB

Thursday 1:30 PM

FREDDIE MAC: Reaching Diverse Communities, a Conversation

Join Tamela Thurman with Freddie Mac’s Equity team alongside Ewunike Brady and Scott Willis as they discuss homeownership opportunities for Black families. This session will focus on important resources and tactics that can be deployed to overcome the challenges facing homeowners in communities of color and reduce the homeownership gap.

Presenters: Ewunike Brady, VP, African American Segment Lead, Wells Fargo; Scott Willis, DVP, Business Development Manager, US Bank

Moderator: Tamela Thurman MBA, Director, Single-Family Equitable Housing, Freddie Mac

Partners: Carmen Mercado, Senior Affordable Lending Business Development Manager, Freddie Mac

Facilitator: C. Renee Wilson, Executive Director, NAREB

Friday 12 PM

Women’s Council of NAREB Scholarship Luncheon Join us as we celebrate and recognize Realtist Achievers!

ACME Award Honorees: The Honorable Val Demings, U.S. Congresswoman; Florida’s 10th Congressional District; LaTisha Grant, President, Women’s Council of NAREB

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