AREAA Update June 2008

IN THIS ISSUE...

GSE Policy Changes Reflect AREAA Recommendations
American Business Finds Opportunities in China
Board Member Spotlight: Rob Mehta, President-Elect, Minnesota Association of REALTORS
AREAA Reaches Local Markets through Chapter Development
CCIM Opportunities in Seattle, Bay Area and Honolulu

GSE Policy Changes Reflect AREAA Recommendations

Government-sponsored enterprises Fannie Mae and Freddie Mac have made policy changes that should help Asian American homeowners across the nation. In a move to make home loans more accessible, Fannie Mae rescinded its \"Declining Market\" policy, which lowered the maximum attainable LTV by 5% in markets deemed declining. These markets included many densely populated metro areas such as Los Angeles. The modification of declining market policies was a key issue in the Five Point Plan collectively drafted by AREAA, NAHREP and NAREB aimed at easing the credit crisis and returning liquidity to the mortgage market.

In addition, Fannie Mae and Freddie Mac lowered rates on jumbo conforming loans. Conforming loan limits were temporarily increased as a part of the Economic Stimulus Act of 2008, to as high as $729,750 in some high cost areas. Until recently, the rate spread on loans over the previous loan limit of $417,000 was close to one percent. Now that the GSEs have priced all loans more consistently, jumbo loans will be easier to access in high cost markets, where the majority of Asian Americans live.

American Business Finds Opportunities in China

Recent economical growth and legislative developments have opened the door for foreign real estate service firms looking to expand operations in China. While new business doesn\'t come without challenges, the opportunities are great. According to First Title (Beijing), newly originated personal mortgage volume in China skyrocketed from 334 billion RMB in 2006 to 715 billion in 2007.

First Title (Beijing) Real Estate Guaranty Co., Ltd. is the first wholly foreign-owned enterprise dealing with real estate guaranty in China. This subsidiary of the First American Corporation was established in 2007, shortly after the passage of China’s Private Property law, enacted to protect private assets. As one of the first companies certified by the Beijing government agency to provide escrow service, President of First Title (Beijing), Gene Shi, says the greatest challenge has been educating the government, public and media on the importance of escrow service and neutral third party fund supervision.

Gene and First Title (Beijing) have done an impressive job of overcoming those obstacles, opening two branches in Beijing, one in Shanghai, and a total of 11 branches planned by 2009. In addition, First Title (Beijing) has created a website that serves as a resource for Chinese real estate purchasers and owners with the most up-to-date information on mortgage product options, the Chinese version of escrow and other services for residential and commercial property transactions.

For more information, please visit: www.zhongyian.com

Board Member Spotlight: Rob Mehta, President-Elect, Minnesota Association of REALTORS

AREAA Update recently spoke with Rob Mehta, CIPS about all things real estate. The Minnesota Association of REALTORS President-Elect and associate broker with RE/MAX Results shared his thoughts about international expansion and involvement in real estate associations.

After getting his start in real estate in 1997 and opening his own RE/MAX franchise in 2000, Rob earned the Certified International Properties Specialist (CIPS) designation in 2006 and founded the International Properties Group. He has an office in Thailand and forms relationships with developers in Asia to market properties in the States. Rob stresses that if you want to get started in international business…

To read the complete article, click here

AREAA Reaches Local Markets through Chapter Development

With a goal of increasing AREAA\'s influence in all communities with a significant Asian population, AREAA Chair Emily Moerdomo Fu has dedicated her time and efforts to developing local chapters during her tenure as the organization\'s chief director. The chapters provide a local platform for real estate practitioners focused primarily on the Asian market to share their knowledge and connect with other members of the community.

According to AREAA Las Vegas President John Fukuda, the chapter has three distinct beneficiaries:

The first is the Asian/Pacific Islander (API) practitioner who is yearning for pragmatic real estate education, training and information. Next is the non-Asian practitioner who wants to learn more about doing business in our dynamic community. And finally, several businesses, both large and small have stepped forward to offer support and sponsorship for our events to increase their exposure to our membership. We quickly realized that the local chapter is the bridge that brings together all of these diverse entities into one vibrant forum to share ideas and enhance the real estate business environment here in Las Vegas.

Thanks to community leaders much like John, AREAA chapters are becoming increasingly popular with each new installment. Here are the markets where AREAA chapters have been established or are currently in development:

To find out more about these chapters, or to initiate chapter development in your local area, please contact Julia Chang

CCIM Opportunities in Seattle, Bay Area and Honolulu

AREAA is proud to partner with the CCIM Institute\'s Cultural Diversity Education Program to offer CCIM\'s Introduction to Commercial Investment Real Estate Course:
June 25-26th in Seattle
July 28-29th in Pleasanton, CA
Aug 18-19 in Honolulu

Applicants must apply through CCIM to be considered for the program. Students pay an application fee of $30 only. The course tuition fee of $350 is covered by the CCIM Institute. Course times and details can be found on the AREAA Event Calendar.
To apply online, please visit CCIM