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FICO Reduces Impact of Medical Debt By Roger Hance, President, and David Walker Southland Regional Association of Realtors® Until earlier this month, an individual could have a decades- long flawless credit history and debt repayment record, but due to an outstanding major medical bill would be unable to obtain a loan to buy a home because that one medical crisis shredded their credit score. But as of Aug. 7 at least one agency has taken steps to ease that burden in a decision that could see a 25-point increase in an individual’s credit score. The Fair Isaac Corporation, known as FICO, introduced what they called “a more nuanced way to assess consumer collection information” that offers a sophisticated treatment designed to differentiate medical from non-medical collection agency accounts. ADVERTISING SUPPLEMENT Easing that burden is a decision that could yield a 25-point increase in an individual’s credit score Realtor ® Roger Hance 2014 SRAR President REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. THE VOICE FOR REAL ESTATE IN THE SAN FERNANDO AND SANTA CLARITA VALLEYS www.SRAR.com | Real Estate Questions? E-mail Roger Hance, SRAR 2014 President, c/o [email protected] Commercial Real Estate Forum, Tuesday, Aug. 26 How Trends, Events in Commercial Real Estate Impact Home Sales Commercial and residential real estate are linked in profound ways that impact entire communities and local economies, just look at the nexis between Rockedyne and real estate in the west San Fernando Valley. Yet the link often can be invisible or difficult to predict, which is why a panel of experts will provide an economic forecast and insight into what’s ahead for local commercial real estate. The Commercial Real Estate Forum will be on Tuesday, Aug. 26, from 8 a.m. to noon at the Sportsman’s Lodge in Studio City. “A good example of how events in the com- mercial world impact communities is when the Rockedyne plant in the Santa Susana Moun- tains closed in the 1990s,” said Arnie Garfinkel, one of the organizers of the event. “The entire San Fernando Valley housing and apartment market went into a nosedive as many people liv- ing in the Canoga Park area were out of work.” A panel of experts will gaze into the crystal ball in an effort to see what’s ahead for commercial real estate, including Rockedyne’s recent decision to layoff 100 workers. Lawrence Yun, the top economist for the 1-million member National Associa- tion of Realtors, will present the keynote address, which is designed to offer a forecast into what’s ahead for com- mercial real estate and its likely impact on residential sales and the local and national economies. Yun also will join three other expert speakers on the panel, including: Greg McWilliams, president of Newhall Land and Development; Fred Sands, the head of private equity group Vintage Fund Manage- ment, which is one of the top performing equity funds in the nation; and Jan Perry, general manager of the Los Angeles Economic and Workforce Development Department of the City of Los Angeles. The panel discussion will be moderated by Jean Maday, director of Commercial Development for the National Association of Realtors. The cost is $20. For a registration form, go to www.commercialdataex- change.com or call 818-947-2255. Seating is limited. Breakfast is included. Register today. The forum is possible through a generous grant awarded from the National Association of Realtors. The forum is presented by the Com- mercial & Investment Division of the Southland Regional Association of Realtors. Lawrence Yun, Keynote Speaker Greg McWilliams Fred Sands Jan Perry Jean Maday, Moderator This will help ensure that medical collections have a lower impact on the score, commensurate with the credit risk they represent. These enhancements also help lenders because they result in greater precision. At the same time, the median FICO Score for consumers whose only major derogatory references are unpaid medical debts is expected to increase by 25 points. The decision was praised by Realtors nationwide. Realtors welcome the announce- ment from Fair Isaac Corp. that it will no longer penalize borrowers for certain debt-collection activities when calculating credit scores, the National Association of Realtors announced. “This move ultimately will make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher mortgage inter- est rates because of flawed cred- it scores,” said Steve Brown, NAR president. “Since the housing crash, overly restrictive lending has been the greatest obstacle to homeownership.” Realtors will continue to support efforts to broaden access to credit for qualified homebuyers. The Southland Regional Association of Realtors® is a local trade association with more than 8,900 members serving the San Fernando and Santa Clarita valleys. SRAR is one of the largest local associations in the nation. First Environmental Summit Convened Continuing dramatic changes in the environment that will impact where and how people live are also likely to transform local real estate markets. That’s why Realtors recently held the first environmental summit in the nation’s capitol that included a slate of distinguished speakers, such as Dan Glickman, who served as Secretary of Agriculture under President Clinton, and Tom Ridge, the first Secretary of the U.S. Dept. of Homeland Security. The summit offered Realtors a chance to assess and prioritize the wide variety of environmental risks that could influence the way people buy and sell property. The Green Resource Council was created in 2008 to educate Realtors about green practices. Since the program’s inception, nearly 9,000 Realtors have earned the designation. International Buyers Favor Los Angeles Los Angeles leads the list of U.S. cities searched during June by pro- spective home buyers from around the globe. Here’s the complete top 10 list, in descending order: Los Angeles, Miami, Las Vegas, Orlando, Detroit, New York, Houston, Fort Lauderdale, San Francisco, and San Diego. Data from realtor.com shows the countries from which consumers were most active on realtor.com and realtor.com International in June 2014. It also shows which U.S. cities they were most searching during that month. •Canada: Detroit, Las Vegas, Los Angeles, Fort Lauderdale, Naples • United Kingdom: Los Angeles, Orlando, New York, Kissimmee, Houston • Australia: New York, Los Angeles, Detroit, Las Vegas, Houston • Brazil: Miami, Orlando, Los Angeles, New York, Boca Raton • Germany: Los Angeles, San Antonio, Colorado Springs, Miami, Cape Coral • Mexico: San Diego, San Antonio, Laredo, El Paso, Chula Vista • India: New York, Los Angeles, Chicago, Las Vegas, San Jose • France: Los Angeles, Miami, New York, San Francisco, Miami Beach • Italy: Miami, New York, Los Angeles, Miami Beach, Detroit • Japan: San Diego, Honolulu, Fort Scott (KA), Los Angeles, San Antonio • Spain: Miami, Los Angeles, Miami Beach, New York, Washington • Russian Federation: Los Angeles, New York, Miami, Orlando, Chicago • Netherlands: Los Angeles, New York, Miami, Las Vegas, Houston • China: Los Angeles, Irvine, Houston, San Francisco, New York • South Korea: Los Angeles, Honolulu, San Antonio, Las Vegas, Irvine • Ireland: Los Angeles, New York, Orlando, Chicago, Beverly Hills • Switzerland: Philadelphia, Los Angeles, Miami, New York, Miami Beach • New Zealand: Los Angeles, New York, Detroit, Atlanta, Las Vegas • United Arab Emirates: Houston, Los Angeles, New York, Orlando, Allen (TX)
