Heightened concern about the record number of foreclosures has prompted the California Department of Real Estate to increase its community outreach services by providing resources to help troubled homeowners.
California Real Estate Commissioner Jeff Davi tells Realtors the record number of foreclosures occurring around the state is worrisome. In 2006, there were 12,000 homes foreclosed upon; in 2007, the number jumped to more than 64,000.
"We can't stop it (foreclosures), but we can at least provide consumers with the resources from which to seek help," states Davi.
As a result, the DRE has expanded consumer outreach by increasing its participation in consumer workshops and town hall meetings throughout the state. Davi says he is always traveling around the state, giving talks and presentations that would help real estate agents as well as consumers. The DRE is also conducting an aggressive mortgage advertising review campaign and has appointed a new consumer/real estate industry liaison. In addition, the DRE publication "Using the Services of a Mortgage Broker" has been translated into Spanish and Chinese.
The DRE Web site now contains new tabs on consumer information, home buying, mortgage and links to financial counseling services, such as the toll-free confidential hotline 888-995-HOPE (or visit 995HOPE.org). HOPE is sponsored and funded by the Homeownership Preservation Foundation, a nonprofit dedicated to preventing foreclosures.
"The problem is 50 percent of those homeowners in trouble don't call their lender and seek help," says Davi. "I would encourage everyone to check out our Web site."
Davi says with the slowdown in the housing market, the number of real estate agents in the state has dropped, and so has the number of real estate license applications. The number of real estate licensees peaked at 549,000 in 2007; as of last week, Davi says there were 548,306. These days the department receives 30 to 50 real estate applications a week, a far cry from 1,000 a week just a few months ago. He expects both numbers to drop even more by the end of this year.
Davi proudly notes the DRE has taken great strides to facilitate the licensing processing. Online activity has cut down the licensing processing time from 175 days to 41days - 58 percent of license renewals and all miscellaneous license transactions and 78 percent of all examination scheduling requests are now conducted using e-licensing processing. The licensing process time will be further reduced once electronic license exams are in place, he promises. Construction of the project is expected to be completed this spring.
The DRE maintains a staff of 342 employees and operates on an annual budget of $46.6 million. Davi reports regulatory cases have increased steadily in the last six years because of the increase in the number of licensees and subprime loans problem. During fiscal year 2001-02, the DRE handled a little over 5,000 cases. FY 2006-2007 saw over 8,000 cases; Davi expects 11,000 by the end of the 2007-08 fiscal year.
The DRE commissioner invites Realtors and the general public to visit the DRE Web site at http://www.dre,ca.gov/ for updated information about the industry and to report violations.
"I can't stop homeowners from being victims of fraud, but if we get a complaint about someone committing such as crime, we will investigate and we can make sure they aren't around to do it again," says Davi.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
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Variations of this article have appeared in local area newspapers.
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