REALTORS ARE THE HEART OF THE DEAL

2012 Issues and Challenges

Letter from President-Elect Moe Veissi

For more than 100 years, REALTORS have answered many calls. The most important, of course, comes from our clients and consumers seeking our unique and expert knowledge on residential and commercial real estate. On a larger canvas, we responded to the call to build stronger and more vibrant communities and we replied with professionalism and vision when shaping our industry for the greater good of our nation. There is no doubt we have given our hearts to our clients, our communities and our exceptional nation. I have said it before, and Ill say it again, I firmly believe that REALTORS are the Heart of the Deal. 2012 will be no different, except we will be giving more of ourselves than ever before. The challenges we face are daunting, but not insurmountable. To ensure our hearts are in the right place we must first identify those critical issues and challenges we are certain to encounter this year. First, for REALTORS to remain at the heart of the deal we must focus on three critical aspects to every transaction our influence, consumers thinking and the professionalism we bring to the table. Second, we must have faith that pumping new blood into public policy issues affecting real estate will create the confidence to rebuild our industry for the coming century. This includes sticking to our principles when it comes to maintaining current tax benefits, yet also focusing on the future of the secondary mortgage market. Third, 2012 is a year where sharing our hearts will be essential to our success. We can achieve this by enhancing collaboration between NAR and state and local associations, expanding member benefits and applying social media to our advocacy, marketing and member development. This document outlines each of these challenges and provides you with information on critical solutions that you can use to help our members address them. With each solution, we have provided contact information for NAR staff experts, who can answer questions and help you in the year ahead. Please make the most of these resources. The year ahead asks that all of us work together to help our members prosper and succeed. In my heart of hearts, I am confident that the indomitable spirit of REALTORS will prevail. This is why REALTORS are the Heart of the Deal. Sincerely,

Moe Veissi 2012 NAR President 2

Contents
2012 Issues and Challenges ................................................................................. 1 Letter from President-Elect Moe Veissi ............................................................... 2 REALTORS ARE THE HEART OF THE DEAL ........................................................... 5
Issue: REALTORS Are at the Heart of Influence ...............................................................................5 Challenge: Focusing On Our Priorities .................................................................................................. 5 Challenge: Pumping Up Our Presence .................................................................................................. 6 Issue: REALTORS Are at the Heart of Consumers Minds .................................................................7 Challenge: Reaching Consumers with Positive Messages..................................................................... 7 Challenge: Helping REALTORS Grow Their Businesses ........................................................................ 8 Issue: REALTORS Are at the Heart of Professionalism ................................................................... 10 Challenge: Providing Resources to Meet Changing Demands ............................................................ 10 Challenge: Keeping REALTORS Relevant through NARs 2nd Century ................................................ 12 Challenge: Reaffirming Our Commitment to the Code of Ethics ........................................................ 15

PUMPING NEW LIFE INTO THE REAL ESTATE MARKET ....................................... 16

Issue: Preserving Home Ownership Tax Benefits ........................................................................... 16 Challenge: Protecting Long-Established Tax Incentives for Home Ownership ................................... 16 Issue: Focusing on the Future of the Secondary Mortgage Market ................................................. 17 Challenge: Ensuring Mortgage Liquidity in All Conditions .................................................................. 17 Issue: Providing Access to Affordable Mortgage Products .............................................................. 17 Challenge: Keeping Home Ownership Opportunities Available ......................................................... 17 Issue: Ensuring Affordable and Available Property Insurance ......................................................... 18 Challenge: Creating Stability in Flood Insurance ................................................................................ 18

Issue: Protecting Property Rights While Preserving Water Quality ................................................. 19 Challenge: Balancing Water Quality and Property Rights................................................................... 19

SHARING OUR HEARTS ...................................................................................... 20

Issue: Enhancing Collaboration between NAR and State and Local Associations ............................. 20 Challenge: Developing Resources of Value for Associations .............................................................. 20 Challenge: Strengthening the Bond between NAR and REALTORS ................................................... 22 Challenge: Stabilizing Communities Hurt by Foreclosures ................................................................. 23 Challenge: Encouraging Diverse Membership and Leadership .......................................................... 23 Issue: Expanding the Benefits of Membership ............................................................................... 24 Challenge: Creating Partnerships with Industry Leaders .................................................................... 24 Issue: Applying Social Media to Advocacy, Marketing and Member Development .......................... 26 Challenge: Utilizing Digital and Social Media Tools Effectively........................................................... 26

REALTORS ARE THE HEART OF THE DEAL

For more than 100 years, REALTORS have been at the heart of the deal that opens the door to private property ownership. In the face of unprecedented challenges, real estate is seeking to redefine itself for a new generation. Three aspects of the deal influence, consumer thinking and professionalism are crucial for REALTORS to remain at the heart of the deal in 2012.

Issue: REALTORS Are at the Heart of Influence

If REALTORS are the heart of the deal, then our more than one million members bound together become The Voice for Real Estate. That voice reverberates through the corridors of power and in our communities. Now, with once-in-a-generation challenges facing our industry, REALTORS must be the beating heart that influences the real estate industry for the good of our members and the economic strength of our nation.

Challenge: Focusing On Our Priorities Solutions

My REALTOR Party The gateway for every REALTOR association to custom design your own package of community involvement and political leadership programs is through My REALTOR Party. By accessing any number of the more than 60 tools, funds and turn-key implementation services offered through My REALTOR Party, you can custom build the community outreach and advocacy package that best fits your associations unique needs. My REALTOR Party is there to help you make it happen Staff Contact: Gerry Allen, (202) 383-1109 Learn more about My REALTOR Party URL: www.myrealtorparty.com REALTOR Party Initiative The real estate industry is facing monumental issues in Congress, in the regulatory agencies that govern mortgage financing, in the statehouses dealing with critical budget crises and declining property tax revenues and in municipalities and counties. Each of these issues impact the ability of REALTORS to do business and serve clients. The REALTOR Party Initiative is a partnership between NAR and state and local associations to help REALTORS be influential at all levels of government, to share our collective expertise about the industry and to advocate for the rights of the nations home owners. Staff Contact: Gerry Allen, (202) 383-1109 Learn more about the REALTOR Party Initiative URL: www.realtor.org/topics/membership/qa_2012dues_increase
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REALTORS Political Action Committee The REALTORS Political Action Committee raises funds that are invested in candidates that support the values of REALTORS. The money to accomplish this comes from voluntary contributions. REALTORS who contribute to RPAC, recognize how important campaign fundraising is to the political process. RPAC doesnt buy votes. RPAC enables REALTORS to support candidates who support us. Staff Contacts: Scott Reiter, Political Disbursements, (202) 383-1072, or Ed Lawler, Fundraising, (202) 383-1156 Learn more about the REALTORS Political Action Committee URL: www.realtoractioncenter.com/rpac/

Challenge: Pumping Up Our Presence Solutions

Public Advocacy Campaign Home ownership, as well as all of real estate, including the commercial sector, is facing daunting challenges. The National Association of REALTORS is confronting these issues head on. Through the Public Advocacy Campaign, NARs national advertising efforts are now focused on the advocacy issues that affect REALTORS and their clients ability to buy, sell and own real estate. Those issues include access to affordable mortgage financing, tax incentives to home ownership, overly stringent credit requirements and cumbersome short sales and foreclosures. Television, radio, print and online ads that emphasized the connection between housing and jobs began running earlier this year. This fall, watch for new campaigns that allow NAR to deliver our messages quickly and effectively to consumers and public policymakers. Staff Contact: Stephanie Singer, (202) 383-1050 Learn more about the Public Advocacy Campaign URL: www.realtor.org/advocacycampaign REALTOR Action Center REALTOR Action Center allows REALTORS to stay informed about national, state or local legislative issues and to take action regarding public policies critical to the real estate industry. This online tool can be used to target Calls for Action, communicate with other members and provide REALTORS with the option to e-mail lawmakers at the state and local government level. Staff Contact: Claire McDonough, (202) 383-1080 Learn more about the REALTOR Action Center URL: www.realtoractioncenter.com

Issue: REALTORS Are at the Heart of Consumers Minds

Consumers who are looking for a successful real estate transaction understand that a REALTOR provides unparalleled market knowledge and customer service. NAR promotes the unique qualifications of REALTORS in every way to ensure that REALTORS are at the heart of consumers minds every time they are looking to buy, sell or rent property.

Challenge: Reaching Consumers with Positive Messages Solutions

Home Ownership Matters Campaign NAR launched the Home Ownership Matters campaign to promote the value of home ownership to individuals, to communities, and to society and to counter media reports suggesting America might be better off as a nation of renters. Through advocacy and outreach to lawmakers, consumers, thought leaders and the media, NAR is working to preserve home ownership as part of the American Dream and provide REALTORS and state and local associations with valuable information and tools to address concerns about the value of home ownership from clients and the community. An integral aspect of the campaign is the Home Ownership Matters nationwide bus tour that brings the inspiring message of home ownership to communities across the country. Staff Contact: Pamela Geurds Kabati, (202) 383-1044 Learn more about the Home Ownership Matters campaign URL: www.realtor.org/homeownership HouseLogic HouseLogic, brought to you by the National Association of REALTORS, helps fulfill NARs strategic goal to build a strong relationship with consumers for the purpose of advancing NARs public policy agenda and helping consumers think of REALTORS as their trusted advisors on a broad set of home ownership related topics, beyond just the purchase and sale of a home. HouseLogic engages consumers through a website with free information about all aspects of home ownership. From time to time, NAR asks them to advocate with NAR for public policies of mutual self-interest, increasing NARs effectiveness in shaping federal housing-related public policy. The site also helps to positively shape consumer perceptions of REALTORS. Staff Contact: Anne Feder, (312) 329-8314 Learn more about HouseLogic URL: www.houselogic.com

Real Estate Today NARs nationwide talk radio program, Real Estate Today, strengthens the relationship between consumers and REALTORS. It became the fastest growing real estate radio show in America in 2010. The program positions REALTORS as the most credible and timely source of real estate information, while also promoting to consumers to use a REALTOR when buying, selling, or investing in real estate. The show is currently heard on 150 radio stations around the nation, including Washington, D.C., New York City, Portland, Ore., Seattle and more. Satellite radio subscribers can also hear the show on XM and Sirius stations. The show has as many as 3.2 million listeners a month. Staff Contacts: Stephanie Singer, Promotion, (202) 383-1050, or Stephen Gasque, Content, (202) 383-1172 Learn more about Real Estate Today URL: www.retradio.com

Challenge: Helping REALTORS Grow Their Businesses Solutions

CommercialSource.com and Commercial.REALTOR.com CommercialSource.com aggregates broker-loaded listings for individual REALTORS as well as commercial information exchanges and commercial real estate firms and displays them on commercial.REALTOR.com. REALTOR.com in turn aggregates commercial listings for MLSs and displays those on commercial.REALTOR.com. The result is one cost-effective solution for marketing commercial listings world-wide with no additional cost to REALTORS. Staff Contacts: Chere LaRose-Senne, (312) 329-84555, or Jan Hope, (312) 329-8574 Learn more about CommercialSource.com and Commercial.REALTOR.com URLs: www.commercialsource.com and http://commercial.realtor.com/

REALTOR.com The No. 1 real estate website, REALTOR.com, displays more than 3.8 million listings. To stay a step ahead of consumer search habits, REALTOR.com developed applications for mobile devices such as iPhone, iPad, Android and can be utilized on Windows 7 products. These applications have been downloaded more than 5.5 million times. Improvements to the userfriendly Find A Home search function make it easier and quicker for consumers to find properties. Consumers can view more pictures, locate open houses and learn more about communities and home values by using the upgraded map features supported by Microsoft Virtual Earth and Google Street View. REALTOR.com also credits REALTORS on their recently sold homes. The all-new Find a REALTOR directory offers every member and office a profile page at no cost, providing the most accurate and complete marketing directory on the internet. Staff Contacts: Tim Kline, (312) 329-8598, or Ken Burlington, (312) 329-8360 Learn more about REALTOR.com URL: www.REALTOR.com or www.BenefitsAtREALTOR.com REALTOR.com International Website To provide greater global exposure for members listings, NAR recently announced that REALTOR.com will expand to include worldwide listings beginning in November 2011. Enhanced features of the site include translations of U.S. listings in multiple languages, inclusion of international listings and area and currency conversions. Additionally, another resource available to REALTORS is the Certified International Property Specialist designation, giving REALTORS the tools and knowledge to capitalize on the rapidly growing global market. Staff Contact: Katie Stouffs, (312) 329-8272 Learn more about Global REALTOR.com URL: www.realtor.org/global REALTOR Trademark Awareness Program The term REALTOR is not only a trademark owned by NAR and protected by federal law, but more importantly, it is a valuable benefit of NAR membership. When used properly, the trademark helps members succeed because it distinguishes them from someone who is just another real estate agent. The REALTOR Trademark Awareness Program addresses this challenge by protecting and helping members and consumers recognize the meaning of NARs valuable trademarks. Staff Contacts: Michael Thiel, (312) 329-8373, Katie Johnson, (312) 329-8372, or Mary Newill, (312) 329-8380 Learn more about the REALTOR Trademark Awareness Program URL: www.realtor.org/law_and_policy/trademark_video

Issue: REALTORS Are at the Heart of Professionalism

From the beginning of the association, REALTORS joined together to improve the standards of real estate professionals. Over time professionalism has taken on different meanings, from creating the Code of Ethics, to providing vital skills and resources, to looking to the future with the 2nd Century Initiatives. In 2012, REALTORS will once again set the pace for the industry by being at the heart of professional development.

Challenge: Providing Resources to Meet Changing Demands Solutions

Broker Price Opinion Resource Certification With the changing real estate landscape and the increased use of broker price opinions (BPOs) by market participants, NAR created the Broker Price Opinion Resource (BPOR) certification. The new certification course provides REALTORS with knowledge and skills to reduce risk and increase opportunities to create professional and accurate BPOs. Members who earn the BPOR certification will be eligible to receive BPO orders through a partnership with various institutions that request BPOs. Staff Contact: Heidi Henning, (312) 329-8485 Learn more about the Broker Price Opinion Resource certification URL: www.bpor.org Center for REALTOR Technology The Center for REALTOR Technology (CRT) serves members as an industry advocate, an implementation consultant and a technology resource. CRT keeps members abreast of developments relevant to the real estate industry by evaluating technology tools and methodologies. CRT also publishes papers and surveys on the role of technology in real estate. Staff Contact: Chad Curry, (312) 329-8285 Learn more about the Center for REALTOR Technology URL: www.realtor.org/crt Commercial Real Estate Transaction Standards The Real Estate Standards Organization created a commercial real estate workgroup designed to publish data standards for the commercial real estate market. They create methods to collect and communicate commercial property information while working with stakeholders to determine standards of care, business practices and definitions. Staff Contacts: Mark Lesswing, (312) 329-8273, or Jan Hope, (312) 329-8574 Learn more about the Commercial Real Estate Transaction Standards URL: www.reso.org

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e-PRO Certification NARs e-PRO certification is a comprehensive and interactive educational program sponsored by the National Association of REALTORS and is specifically designed to help real estate professionals thrive in the competitive world of online real estate. e-PRO is not just about technology, but also it's about how REALTORS can leverage their most powerful asset, their people skills, into doing more business on the internet. Staff Contact: Heidi Henning, (312) 329-8485 Learn more about the e-PRO certification URL: www.epronar.com/ Graduate, REALTOR Institute Summit To ensure that NARs flagship designation Graduate, REALTOR Institute remains relevant and meets the needs of our members, the Professional Development Committee will be hosting a meeting with education directors from state associations. The agenda for this meeting includes reviewing curriculum, capturing ideas on what the Graduate, REALTOR Institute of the future should be and how NAR can better promote this program, which state associations rely on for critical non-dues revenue. Staff Contacts: Heidi Henning, (312) 329-8485, or Colleen Ryan, (312) 329-8264 Learn more about the Graduate, REALTOR Institute Summit URL: www.realtor.org/gri REALTOR Magazine NARs official publication, REALTOR Magazine, is the single source for REALTORS to find compelling, bottom-line focused business knowledge on how to increase their business success. The magazine advances real estate industry best practices and brings expert insights and context to the most significant industry trends. It also serves as a primary source of information for REALTORS in their purchasing decisions. Online, the magazine has hundreds of pages geared toward making REALTORS more profitable, including buyers guides, an architecture guide and customizable handouts for buyers and sellers. The site includes a number of popular blogs, video presentations and slideshows. The magazine staff also produces free daily news updates, an award-winning business tips e-newsletter and regular Hot Topics webinars. Staff Contact: Stacey Moncrieff, (312) 329-8496 Learn more about REALTOR Magazine URL: www.realtor.org/realtormag

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REALTOR.org REALTOR.org is the online face of the national organization to NAR members, staff at state and local associations, the media, federal legislators, academia and the general public. The site contains information, resources and tools relating to every program and event that NAR produces, including updates on legislative, regulatory and advocacy issues; economic research and commentaries; summaries of real estate legal cases; information about global real estate, commercial real estate and resort/second home properties; brochures and books for purchase; and professional development courses and webinars. Staff Contact: Hilary Marsh, (312) 329-8341 Learn more about REALTOR.org URL: www.realtor.org REALTOR University The mission of REALTOR University is to foster life-long student learning through highquality, entrepreneurial and career-oriented programs in real estate. REALTOR University will deliver applications-oriented, academic programs with an emphasis on business fundamentals, principles and skills that real estate professionals require to be successful. University programs will be delivered through a global online campus offering both professional development and masters level education. Staff Contact: Marc Gould, (312) 329-8564 Learn more about REALTOR University URL: www.realtoru.com

Challenge: Keeping REALTORS Relevant through NARs 2nd Century Solutions

HouseLogic HouseLogic, brought to you by the National Association of REALTORS, helps fulfill NARs strategic goal to build a strong relationship with consumers for the purpose of advancing NARs public policy agenda and helping consumers think of REALTORS as their trusted advisors on a broad set of home ownership related topics, beyond just the purchase and sale of a home. HouseLogic engages consumers through a website with free information about all aspects of home ownership. From time to time, NAR asks them to advocate with NAR for public policies of mutual self-interest, increasing NARs effectiveness in shaping federal housing-related public policy. The site also helps to positively shape consumer perceptions of REALTORS. Staff Contact: Anne Feder, (312) 329-8314 Learn more about HouseLogic URL: www.houselogic.com
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Real Estate Today NARs nationwide talk radio program, Real Estate Today, strengthens the relationship between consumers and REALTORS. It became the fastest growing real estate radio show in America in 2010. The program positions REALTORS as the most credible and timely source of real estate information, while also convincing consumers to use a REALTOR when buying, selling, or investing in real estate. The show is currently heard on 150 radio stations around the nation, including Washington, D.C., New York City, Portland, Ore., Seattle and more. Satellite radio subscribers can also hear the show on XM and Sirius stations. The listener base is 3.2 million listeners a month. Staff Contacts: Stephanie Singer, Promotion, (202) 383-1050, or Stephen Gasque, Content, (202) 383-1172 Learn more about Real Estate Today URL: www.retradio.com REALTORS Federal Credit Union NAR created a credit union to serve the special financial service needs of REALTORS. The credit union is 100 percent internet-based, with a U.S. call center, and handles loan applications and account transactions 24 hours a day seven days a week. The credit union has nearly $70 million in assets and is a wholly-independent, member-owned legal entity. Staff Contact: Bob Goldberg, (312) 329-8269 Learn more about the REALTORS Federal Credit Union URL: www.realtorsfcu.org REALTORS Property ResourceTM The REALTORS Property ResourceTM (RPR) is a national database of real property information, which is more than 147 million parcels of property and gives REALTORS an unparalleled way to serve their clients. It includes in-depth, trusted information on every parcel of real property, including public record information, details of prior transactions, information from multiple-listing services, zoning information, transfer tax information and other relevant data sets. RPR is currently contracted with 315 MLSs across the country, which represents a little more than 522,000 REALTORS. It is based on the collaborative efforts of REALTORS and the real estate community, including Commercial Information Exchanges and MLSs. It drives development and implementation of data standards and definitions and will increase the breadth, depth, immediacy and power of real estate information available to REALTORS. Staff Contact: Jeff Young, (312) 329-8255 Learn more about the REALTORS Property ResourceTM URL: www.realtor.org/rpr
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Second Century Ventures Through Second Century Ventures, NAR is continually monitoring new technologies and looking for partnership opportunities that keep REALTORS at the heart of the transaction and help them better service their clients. Partners include Ifbyphone, a marketing automation solution that ensures REALTORS never miss a call and allows them to focus advertising dollars on the mediums that are most impactful for their clients; DocuSign, an eSignature solution that saves REALTORS time and money allowing for paperless transactions; and ePropertydata, a CIE information exchange solution. Additional partnerships NAR has created over the years include ZipLogix, a real estate eforms solution, which works effortlessly with DocuSign; REALTOR.com and SentriLock. Staff Contact: Constance Freedman, (312) 329-8524 Learn more about Second Century Ventures URL: www.realtor.org/scv

Challenge: Tracking Business Activity and Market Trends Solutions

Profile of Home Buyers and Sellers The Profile of Home Buyers and Sellers provides in-depth research into how recent home buyers and sellers determined their preferences, how they chose an agent and how they found the home they purchased. In addition to the profile, NAR Research provides companion resources, including webinars that highlight recent trends in home buying and selling. Staff Contact: Jessica Lautz, (202) 383-1155 Learn more about the NAR Profile of Home Buyers and Sellers URL: www.realtor.org/topics/homebuyers_sellers_profile Profile of International Home Buying Activity We live in a global marketplace. While all real estate is local, not all property buyers are. A significant share of home purchases is made by people whose primary residence is outside of the U.S. The Profile of International Home Buying Activity is the most comprehensive study on the international housing market available. Staff Contact: Jed Smith, (202) 383-1022 Learn more about the Profile of International Home Buying Activity URL: www.realtor.org/research/research/reportsintl

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NAR Member Profile The NAR Member Profile is an annual snapshot of the business activity and characteristics of REALTORS including income, expenses and demographics of members. In addition to the profile, NAR Research provides companion resources, including webinars that highlight the major changes in members businesses. Staff Contact: Jessica Lautz, (202) 383-1155 For more information about the NAR Member Profile URL: www.realtor.org/topics/member_profile REALTORS Confidence Index The REALTORS Confidence Index is a monthly survey of REALTORS that provides information and insights about current market conditions as well as their expectations for sales and prices. Staff Contact: Jed Smith, (202) 383-1022 Learn more about the REALTORS Confidence Index URL: www.realtor.org/research/research/reps

Challenge: Reaffirming Our Commitment to the Code of Ethics Solutions

Code of Ethics Since 1913, when NAR created the Code of Ethics, every member of the National Association of REALTORS has subscribed to it. To keep members informed about the code, REALTOR Magazine includes a regular questions and answers section on the Code of Ethics. REALTORS are required to complete Code of Ethics training as a condition of becoming a member and every four years thereafter. Staff Contact: Member Policy Department, (312) 329-8399 Learn more about the Code of Ethics URL: www.realtor.org/Code Code of Ethics eProducts The store on REALTOR.org offers members products to adhere to and promote their understanding of the Code of Ethics in their business and how it sets them apart. All Code of Ethics and Standards of Practice printed materials are offered at low costs and are free to members as eProducts. The products offered in the store promote the value REALTORS bring to the table; squarely placing them at the heart of the deal. Staff Contacts: Colleen Doyle, (312) 329-3287, or Ken Burlington, (312) 329-8360 Learn more about the Code of Ethics eProducts URL: www.REALTOR.org/Store
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PUMPING NEW LIFE INTO THE REAL ESTATE MARKET

The crisis in the real estate market has prompted critics to question the importance of home ownership and real estate. As the leading advocate for home ownership, the National Association of REALTORS is willing to stand up to these unwarranted attacks. In 2012, REALTORS have a rare opportunity to show true leadership by pumping new blood into public policy issues that defend time-tested programs, as well as propose innovative long-term solutions.

Issue: Preserving Home Ownership Tax Benefits

Due to the current economic and political climate, federal policy makers have begun debating tax rules. While there are arguments for reforming the tax code, current tax benefits for home ownership must remain in place. The consequences of tampering with current tax rules promoting home ownership would seriously harm the real estate market one of the nations strongest economic engines.

Challenge: Protecting Long-Established Tax Incentives for Home Ownership Solution

Maintain Current Tax Rules Preserving tax rules that apply to home ownership is essential to a strong economy. Most of these rules, particularly the mortgage interest deduction and the property tax deduction, have been part of the tax system for decades and are deeply woven into the U.S. economic fabric. Congress must do no harm. The housing market has not yet recovered. Changing the tax laws would further impair the market. Staff Contact: Linda Goold, (202) 383-1083 Learn more about maintaining current tax rules URL: http://www.realtor.org/government_affairs/mortgage_interest_deduction

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Issue: Focusing on the Future of the Secondary Mortgage Market

A strong and stable secondary mortgage market has helped build the middle class in America. Ensuring that America maintains a vibrant secondary mortgage market is crucial to the countrys long-term economic stability

Challenge: Ensuring Mortgage Liquidity in All Conditions Solution

Enact Secondary Mortgage Market Reform Legislation NAR believes we must pass comprehensive reform legislation to restructure the secondary mortgage market in a manner that provides the federal government with a continued role. This will ensure a continual flow of mortgage liquidity in all markets under all economic conditions. Staff Contacts: Tony Hutchinson, (202) 383-1120, or Jeff Lischer, (202) 383-1117 Learn more about enacting secondary mortgage market reform legislation URL: www.realtor.org/gses

Issue: Providing Access to Affordable Mortgage Products

It has often been said that mortgage liquidity is the life blood of the real estate industry. That adage has never been truer than today. NAR is working diligently to ensure that it flows in all economic conditions.

Challenge: Keeping Home Ownership Opportunities Available Solutions

Eliminate Qualified Residential Mortgage Down-Payment Requirements Requiring a higher down payment does little to reduce risk of default, but strips home buyers of their savings and increases the number of borrowers who would be ineligible for home ownership. A narrow definition of the Qualified Residential Mortgage provision would have this effect. If down payment requirements increase to 20 percent, NAR estimates that it would take a frugal family more than 14 years to accrue the savings needed to buy a home. The commercial market could also be affected by a similar provision called the Qualified Commercial Real Estate. Staff Contacts: Tony Hutchinson, QRM, (202) 383-1120, or Jeff Lischer, QRM, (202) 3831117, or Vijay Yadlapati, QCRE, (202) 383-1090 Learn more about the Qualified Residential Mortgage proposal URLs: www.realtor.org/topics/qrm

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Make FHA, Fannie Mae and Freddie Mac Loan Limits Permanent Without congressional action, Federal Housing Administration, Fannie Mae and Freddie Mac loan limits will automatically decline from 125 percent of median sales price to 115 percent, along with a reduction in the maximum loan amount from $729,750 to $625,500 on October 1, 2011. Congress should make permanent the current loan limit levels for FHA, Fannie Mae and Freddie Mac-backed loans. Staff Contacts: Megan Booth, (202) 383-1222, or Jerome Nagy, (202) 383-1233 Learn more about FHA, Fannie Mae and Freddie Mac loan limits URL: www.realtor.org/fha Pass Covered Bond and Credit Union Legislation Passage of covered bond and credit union legislation is essential to restoring mortgage liquidity to the commercial market. To restore the flow of credit, NAR supports the passage of legislation aimed to create a covered bond market and to increase the cap on credit union business lending. Staff Contact: Vijay Yadlapati, (202) 383-1090 Learn more about covered bond and credit union legislation URL: www.realtor.org/politicaladvocacy

Issue: Ensuring Affordable and Available Property Insurance

Since September 2008, Congress has approved nine National Flood Insurance Program extensions and allowed five lapses. During the June 2010 lapse, 47,000 home sales were delayed or cancelled, according to NAR survey data. Mortgage lenders function better when there is certainty that flood insurance provides, and home buyers are safe in the knowledge that property insurance is available.

Challenge: Creating Stability in Flood Insurance Solution

Reauthorize the National Flood Insurance Program Congress needs to pass the long-term National Flood Insurance Program reauthorization bill to ensure continuity in the market place. This will provide access to affordable flood insurance, which otherwise would not be available. Staff Contacts: Austin Perez, (202) 383-1046, or Russell Riggs, (202) 383-1259 Learn more about the National Flood Insurance Program URL: www.realtor.org/politicaladvocacy/nfip

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Issue: Protecting Property Rights While Preserving Water Quality

Protecting water quality without restricting property rights and diminishing property value is a complex balancing act. The Environmental Protection Agency is seeking to establish jurisdiction over more bodies of water, which Congress has not authorized the agency to do. Proposed EPA rules would require onerous permitting requirements on property owners and inhibit economic development.

Challenge: Balancing Water Quality and Property Rights Solution

Prevent EPA from Overstepping Authority We need to prevent EPA from overstepping its authority and encourage Congress to clarify what EPA should regulate. NAR will oppose any new EPA regulations that overstep their congressionally-mandated authority to regulate water under the U.S. Clean Water Act. These proposed rules would impose onerous new requirements on property owners without congressional approval and would significantly impair many economic development activities. Staff Contact: Russell Riggs, (202) 383-1259 Learn more about water quality and property rights URL: www.realtor.org/governmentaffairs

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SHARING OUR HEARTS

NAR believes deeply in its members and in your success. For this reason, we focus on strengthening the relationship between the REALTOR organization and REALTORS. The association understands what its members need to be successful, and our members know what the association is working on to benefit their businesses. In essence, we work to share our hearts with you in every way we know how.

Issue: Enhancing Collaboration between NAR and State and Local Associations
The spirit of collaboration is what makes a team successful. Understanding our responsibilities maximizes the value we bring to the table. With enormous challenges facing our industry, NAR is working to strengthen the collaboration at every level of the organization for the good of our members and our communities.

Challenge: Developing Resources of Value for Associations Solutions

AE Member Toolkit The AE Member Toolkit is a storehouse of valuable resources and information for associations to help them welcome new members to the REALTOR family. It also provides ongoing tools and materials to help them communicate the various programs, benefits and education that NAR offers. The toolkit is mailed to state and local associations in January with a year supply of REALTOR pins for new members. Materials can also be found online. Staff contacts: Kim DiGangi, (312) 329-8387, or Karen Bebart (312) 329-8359 Learn more about the AE Member Toolkit URL: www.REALTOR.org/AEMemberToolkit Commercial Services Programs Three key programs are available to all state and local associations under the Commercial Services Program. First is the NAR Commercial Services Accreditation that provides a blueprint for offering customizable commercial services to the needs of each local and state associations demographics. Second, the REALTORS Signature Series Speakers Bureau provides negotiated rates and easy access to top commercial real estate speakers and trainers. Lastly, the Innovation Grant Program subsidizes game changing ideas for servicing and retaining existing commercial members and attracting new members. Staff Contacts: Emily Line, (312) 329-8212, or Jan Hope, (312) 329-8574 Learn more about Commercial Services Programs URL: www.realtor.org/commercial
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Housing Opportunity and Smart Growth Programs Housing Opportunity and Smart Growth programs provide grants, training, and technical assistance to state and local associations so they can become more involved in housing and growth issues in their communities. The Expanding Housing Opportunities class and EmployerAssisted Housing class improve real estate professionals skills for serving first-time homebuyers. The Land Use Initiative provides free critical analysis of proposed land use measures at the state and local level to state and local associations. Staff Contacts: Lora McCray, Housing Opportunity, (202) 383-7560, or Joe Molinaro Smart Growth, (202) 383-1175 Learn more about Housing Opportunity or Smart Growth URLs: http://www.realtor.org/government_affairs/housing_opportunity or www.realtor.org/smartgrowth Information Central NARs Information Central is an extra pair of hands for state and local associations. Its specialists can save time and money with quick and accurate first-call resolution of association and/or industry questions. Contact Information Central by texting AskNAR to 66746, calling (800) 874-6500 or emailing Information Central at Infocentral@realtors.org. Let Info Central do your legwork, get your problem solved or get you connected to the expert who can. Industry, association information and research is available 24 hours a day, seven days a week. Staff Contact: John Krukoff, (312) 329-8254 Learn more about Information Central URL: www.realtor.org/library RAMCO RAMCO, the association management system developed by AEs for AEs uses Microsofts new CRM 2011 to provide state of the art features and functions designed to strengthen and enhance the management of REALTOR associations. Staff Contact: Gar Anderson, (312) 329-3279, or ganderson@realtors.org. Learn more about RAMCO URL: www.RAMCOAMS.com

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Challenge: Strengthening the Bond between NAR and REALTORS Solutions

NAR Member Guide The guide is customized, online and mobile to fit all the ways our members do business. NAR facilitates promotion of comprehensive member benefits, education and events through the Member Guide and iPhone/iPad apps. It is free to state and local associations and available for member benefits updates at all times. Staff Contacts: Jennifer Cavendish, (312) 329-3285, or Karen Bebart, (312) 329-8359 Learn more about the NAR Member Guide URL: http://memberguide.realtor.org REALTORS CONFERENCE & EXPO The theme for the 2011 REALTORS Conference & Expo is SEIZE THE DAY! In this challenging market, NAR is seizing the day by offering a value-packed and affordable experience for REALTORS. It will help you gain timely knowledge to succeed, and encourage the sharing of ideas and networking to build their businesses. The REALTORS Conference & Expo, from November 11 14, 2011 in Anaheim, California, is the premier industry gathering for member-to-member communication where REALTORS, vendors and real estate professionals around the world come together to do business. The event provides education through more than 100 sessions, including a keynote address by Michael Eisner, networking with more than 400 vendors at the Expo and 18,000 industry professionals worldwide, motivation to grow your business and fun with events like the Celebrity Concert starring Diana Ross. Staff Contacts: Sue Gourley, (312) 329-8310, or Allison Fitch-Markham, (312) 329-8459 Learn more about the REALTORS Conference & Expo URL: www.realtor.org/conference REALTOR Safety Visit the REALTOR Safety page on REALTOR.org for a variety of tools including video, stepby-step instructions for conducting safety presentations, promotional materials, weekly safety tips, monthly articles, a widget and other resources to help keep members focused on safety. Its not just important during REALTOR Safety Month in September, but all year long. Staff Contacts: Tony Vorasorn, (312) 329-8313, or Karen Bebart, (312) 329-8359 Learn more about REALTOR Safety URL: www.REALTOR.org/Safety

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Challenge: Stabilizing Communities Hurt by Foreclosures Solution

REALTOR Neighborhood Stabilization Project The REALTOR Neighborhood Stabilization Project helps local and state associations whose communities have been hard hit by the foreclosures crisis. It provides education, technical assistance and contacts with local officials. Local and state associations take the lead in identifying the needs and requirements, which helps create more successful outcomes. Staff Contact: Bill Gilmartin, (202) 383-1102 Learn more about the REALTOR Neighborhood Stabilization Project URL: www.realtor.org/foreclosure

Challenge: Encouraging Diverse Membership and Leadership Solution

Leading with Diversity Leading with Diversity is a three-pronged approach that your association can take when it comes to planning for diversity in your association. The Leading with Diversity Workshop is a threehour planning workshop for your association leadership where you will identify and plan the critical role diversity will play in your associations success. The Diversity Toolkit provides blueprints and examples for successful diversity activities. Diversity Grants are also available to help fund your associations activities to position REALTORS as leaders in our increasingly diverse communities. Staff Contact: Fred Underwood, (202) 383-1132 Learn more about Leading with Diversity URL: www.realtor.org/government_affairs/diversity

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Issue: Expanding the Benefits of Membership

REALTORS know how to bring people together with their entrepreneurial spirit. This extends to partnerships that NAR develops with industry leaders that will help take our members and the industry to the next level.

Challenge: Creating Partnerships with Industry Leaders Solutions

DocuSign DocuSign is the official and exclusive provider of electronic signature services for NAR members under the REALTOR Benefits Program. DocuSign delivers a complete electronic process allowing REALTORS to quickly and easily electronically sign, track and store their documents. Staff Contacts: Rebecca Daly, (312) 329- 8379, or Kristin Stafford, (312) 329-8628 Learn more about DocuSign URL: www.realtor.org/realtor_benefits/benefits_partners/docusign Ifbyphone Exclusive provider of voice marketing automation applications that helps brokerages and agents drive sales, measure marketing effectiveness and improve customer experience. Staff Contacts: Rebecca Daly, (312) 329- 8379, or Kristin Stafford, (312) 329-8628 Learn more about Ifbyphone URL: www.Realtor.org/Ifbyphone REALTORS Federal Credit Union NAR created a credit union to serve the special financial service needs of REALTORS. The credit union is 100 percent internet-based, with a U.S. call center, and handles loan applications and account transactions 24 hours a day seven days a week. The credit union has nearly $70 million in assets and is a wholly-independent, member-owned legal entity. Staff Contact: Bob Goldberg, (312) 329-8269 Learn more about the REALTORS Federal Credit Union URL: www.realtorsfcu.org

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REALTOR Benefits Program NARs REALTOR Benefits Program offers practical solutions for business and personal use on the products and services REALTORS use every day. In 2010, member experiences through the program were estimated to be more than 2 million, with many members receiving savings from one or more partners that exceeded the amount of their annual NAR dues. The program includes offers from more than 30 industry-leading companies in a wide array of categories. Some programs with special relationships with NAR have even allowed us to play a key role in influencing product development and offers aimed directly at NAR members. Staff Contact: Kristin Stafford, (312) 329-8628 Learn more about REALTOR Benefits Program URL: www.realtor.org/realtor_benefits REALTOR Team Store REALTOR Team Store is NARs official supplier of REALTOR premium incentive products, offering a wide array of promotional items to let prospective clients know they are working with a REALTOR. Staff Contacts: Kristine Erickson, (312) 329-854, or Kristin Stafford, (312) 329-8628 Learn more about REALTOR Team Store URL: www.realtorteamstore.com/index.php?main_page=index&cPath=25 SentriLock SentriLock is the official lockbox solution of NAR, a majority owner in the company. Today, more than 550,000 lockboxes are in use by 250,000 agents from more than 207 different boards, associations and Multiple Listing Services in the U.S. and Canada. Staff Contacts: Rebecca Daly, (312) 329- 8379, or Kristin Stafford, (312) 329-8628 Learn more about Sentrilock URL: www.realtor.org/realtor_benefits/benefits_partners/sentrilock_llc zipLogix zipLogix is a subsidiary of Real Estate Business Services, Inc. (REBS) and is a joint venture between REBS and the National Association of REALTORS. Today, the zipLogix family of tech-savvy products is the recognized industry standard for electronic real estate forms (ZipForm) and the transaction management systems, (Relay) that are currently used by more real estate professionals than any other real estate software programs. Staff Contacts: Rebecca Daly, (312) 329- 8379, or Kristin Stafford, (312) 329-8628 Learn more about zipLogix URL: www.ziplogix.com/

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Issue: Applying Social Media to Advocacy, Marketing and Member Development

Social media has revamped the way communications occurs in our digital world. NAR is utilizing cutting-edge social medial tools in order to better connect with our members, as well as key constituencies.

Challenge: Utilizing Digital and Social Media Tools Effectively Solutions

NAR Blogs A blog, a blended term that combines the words web and log, is a type of website that consist of entries of commentary, descriptions of events or other material such as graphics or video. NAR has a family of blogs containing up-to-the-minute real estate news and topical perspectives in order to communicate with members in a quick and direct format. Learn more about all of NARs blogs URL: www.blogs.realtor.org NAR Facebook Pages The social network site Facebook is the largest of its kind in the world with more than 500 million members. NAR maintains several Facebook pages as a way to promote our programs, services and resources. Unlike a blog, which anyone can access, one has to have a Facebook account in order to access the page. Once you have an account, you should also join NARs Facebook pages by pressing the like button. You will automatically get updates from NAR fed directly to your Facebook page. Learn more about all of NARs Facebook pages URL: www.realtor.org/technology/nar_facebook NAR Twitter Accounts Twitter is a social networking service that enables users to send and read short messages. One must have a Twitter account in order to send and read messages. These messages are called tweets. Tweets are text-based posts of up to 140 characters displayed on the user's profile page. In order to receive a tweet, the user must follow another user. For users to receive your tweets, they must follow you. Join Twitter today, and then follow all of NARs Twitter accounts for the latest developments coming out of NAR. Learn more about all of NARs Twitter accounts URL: www.realtor.org/technology/nar_twitter

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REALTORS ARE THE HEART OF THE DEAL 2011 Issues and Challenges Index
Topic AE Member Toolkit Broker Price Opinion Resource Certification Center for REALTOR Technology Code of Ethics Code of Ethics eProducts Commercial Real Estate Transaction Standards Commercial.REALTOR.com Commercial Services Programs CommercialSource.com DocuSign Eliminate Qualified Residential Mortgage DownPayment Requirements Enact Secondary Mortgage Market Reform e-PRO Graduate, REALTOR Institute Summit Ifbyphone Home Ownership Matters Campaign HouseLogic Housing Opportunity and Smart Growth Programs Information Central Leading with Diversity Make FHA, Fannie Mae and Freddie Mac Loan Limits Permanent Maintain Current Tax Rules My REALTOR Party NAR Blogs NAR Facebook Pages NAR Member Guide NAR Member Profile NAR Twitter Accounts Pass Covered Bond and Credit Union Legislation Prevent EPA from Overstepping Authority Profile of Home Buyers and Sellers Page Number 20 10 10 14 14 10 8 20 8 24 17 17 11 11 24 7 7, 12 21 21 23 18 16 5 26 26 22 14 26 18 19 13

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Profile of International Home Buying Activity Public Advocacy Campaign RAMCO Real Estate Today REALTOR Action Center REALTOR Benefits Program REALTOR Magazine REALTOR Neighborhood Stabilization Project REALTOR Party Initiative REALTOR Safety REALTOR Team Store REALTOR Trademark Awareness Program REALTOR University REALTOR.com REALTOR.com International Website REALTOR.org REALTORS CONFERENCE & EXPO REALTORS Confidence Index REALTORS Federal Credit Union REALTORS Political Action Committee REALTORS Property ResourceTM Reauthorize the National Flood Insurance Program Second Century Ventures SentriLock zipLogix

13 6 21 8, 13 6 25 11 23 5 22 25 9 12 9 9 12 22 14 13, 24 6 12 18 14 25 25

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