N.A.R. Commercial Report INDUSTRY NEWS AND EVENTS Headline News REALTORS® Commercial Alliance Video - Delivering on the Promise NAR Encouraged by Health Provision in State of the Union Commercial Trade Mission to Nevada NEW NAR Midyear Course: Developing Commercial Member Services PUBLIC POLICY UPDATES NAR Moves to Monitor Treasury's Regulation-Making Power in Real Estate Mortorium Extended on New ILC Banks by Commercial Firms Senate Small Business Tax Package Passes Commercial Legislative and Regulatory Updates RESEARCH, RESOURCES, LEGAL Q1 2007 RCA Report Released Commercial Real Estate Insurance: Meeting the Challenge T&I Briefings Hot Off the Press & Into Your Mailbox E&O Insurance Deductible Discount with NARs RELAY" Program Keep Tabs on Global Business Trends NAR President's Podcase: Equality in Our Business Optimize Your Earning Potential RCA Offers TIC Brochure AFFILIATE NEWS CCIM Career Center Receives a Facelift INDUSTRY NEWS AND EVENTS HEADLINE NEWS Headline News. REALTORS® COMMERCIAL ALLIANCE VIDEO - DELIVERING ON THE PROMISE Learn about the 2006 accomplishments of the REALTORS® Commercial Alliance. The RCA is working to expand the relationship between NAR and the commercial real estate industry -- take a look at how that translates into business-focused products and services for commercial real estate professionals. Read more. NAR ENCOURAGED BY HEALTH PROVISION IN STATE OF THE UNION "Providing health insurance for all Americans working for small businesses or as independent contractors is a priority for NAR, and we are pleased to see that President Bush has made access to affordable coverage a cornerstone of his 2007 agenda," said NAR President Pat Vredevoogd Combs. President Bush announced his health plan initiative in his State of the Union speech, which he delivered to a joint session of Congress Jan. 23. With nearly 30 percent of its 1.3 million members unable to obtain affordable health insurance, NAR is committed to working with the president and Congress to get small business health insurance legislation enacted as quickly as possible. "The president has taken a step forward in laying out his health coverage plan, which includes language that will allow small businesses to pool together, strengthen their buying power and cross state lines. There are many details to iron out and differing view points to be addressed, but the good news is the real work starts now," said Combs. Read more. COMMERCIAL TRADE MISSION TO NEVADA Join the REALTORS® Commercial Alliance and the Reno/Sparks Association of REALTORS®, for a trade mission to Reno, Nevada; June 4-7, 2007. The trade mission is an opportunity to create your own network of brokers, resources and experts to guide you through a commercial transaction in Nevada. View a schedule and download a registration form. Registration closes May 21. Read more. NEW NAR MIDYEAR COURSE: DEVELOPING COMMERCIAL MEMBER SERVICES Association Executives: If you're interested in boosting services to your commercial members, participate in a six-hour course on how to organize commercial member services. Create the right type of group for your board, and learn how to communicate effectively with this unique segment of your membership. The course will cover different business characteristics, information and business tool needs, and the distinct activities of commercial members. Seating is limited and registration is required for this ticketed event. The course is held the day before the scheduled meetings at the 2007 NAR Midyear Meetings start, so mark your calendar for May 14, 9 a.m. to 4 p.m. CONTACT: Carol Kairis (ckairis@realtors.org), 888/648-8321. PUBLIC POLICY UPDATES NAR MOVES TO MONITOR TREASURY'S REGULATION-MAKING POWER IN REAL ESTATE A report by the U.S. Treasury's Financial Crimes Enforcement Network entitled "Money Laundering in Commercial Real Estate" prompted the NATIONAL ASSOCIATION OF REALTORS® to apply for a seat on the Bank Secrecy Act Advisory Group to more closely monitor the Treasury's actions. Specifically, NAR believes the government office's efforts to develop regulations governing persons involved in real estate settlements and closings will increase. The commercial report, along with another report entitled "Mortgage Fraud," made reference to the presence of real estate professionals in suspicious activity reports, particularly property managers and appraisers. NAR believes that real estate brokerage should not be covered under the Treasury's Financial Crimes Enforcement Network. CONTACT: Tom Heineman (theineman@realtors.org), 202-383-1090. MORTORIUM EXTENDED ON NEW ILC BANKS BY COMMERCIAL FIRMS In a move backed by NAR, the Federal Deposit Insurance Corporation (FDIC) has extended its moratorium on industrial loan company (ILC) applications from commercial firms. ILCs are a type of state-chartered, federally insured bank that may be owned by commercial firms. NAR has strongly urged the FDIC to extend the moratorium so Congress can decide whether to tighten or close the ILC loophole. In the House, Rep. Paul Gillmor (R-Ohio) and Financial Services Committee Chairman Barney Frank (D-Mass.) have introduced a bill that would do that. The Industrial Bank Holding Company Act of 2007 (H.R. 698) would permit only financial firms (those with no more than 15 percent of their revenue from commercial activities) to apply for ILC ownership. In a letter to FDIC Chairman Sheila Bair, NAR President Pat Vredevoogd Combs thanked the FDIC for extending the moratorium, explaining that commercial ownership of banks results in conflicts of interest and unfair competition, putting the financial system at risk. To read NAR's letter to the FDIC, click here. For more info, contact: Jeff Lischer, 202/383-1117. SENATE SMALL BUSINESS TAX PACKAGE PASSES A small business tax package that includes real estate provisions has passed the Senate as part of a minimum wage bill, but prospects for passage of the real estate items by the House are uncertain. The tax package includes an extension of the 15-year leasehold improvements provision through March 31, 2008, and an extension of the $100,000 expensing rules through 2010. The House has neither considered nor passed a similar tax package, although it did pass the minimum wage increase. Ways and Means Committee Chairman Charles Rangel (D-N.Y.) does not support enactment of a tax package at this time. Accordingly, there is presently no plan to take the legislation (H.R. 2) to conference. Thus, the timing for enactment of the minimum wage increase is also uncertain. For more info, contact: Linda Goold, 202/383-1083. COMMERCIAL LEGISLATIVE AND REGULATORY UPDATES The Commercial Issues Tracker is updated for January. Get updates on NAR legislative advocacy for commercial issues. The House Financial Services Committee indicated that it plans to move legislation addressing terrorism insurance this spring, with hearings likely in early March. Natural disaster and catastrophe insurance, commercial real estate lending, money laundering and the financing of terrorism are among the noteworthy items in this update. Download the Issues Tracker. RESEARCH, RESOURCES, LEGAL Q1 2007 RCA REPORT RELEASED From wireless to green, savvy commercial real estate professionals are finding innovative ways to enhance value - find out how in the cover story, Value Outside the Box, in the Winter 2007 RCA Report that mails this week, The Legislative Update features news that NAR is in a good position to make progress on critical commercial real estate issues during the 110th Congress. View the issue online here or contact rca@realtors.org to order a free copy that includes the latest T&I Briefing audio CD. COMMERCIAL REAL ESTATE INSURANCE: MEETING THE CHALLENGE 2007 may become a historic year for commercial real estate professionals. Two key issues will come before Congress in the months ahead. The new Hot Topic from the RCA gives background information on terrorism insurance and natural disaster insurance - key issues that could significantly impact profit margins on many commercial real estate deals. The RCA's Hot Topics, a quarterly educational series that includes guidelines on targeted issues that impact your business with a focus on providing information for practical application. The Hot Topic mails with the RCA Report that goes out this week. Read more. T&I BRIEFINGS HOT OFF THE PRESS & INTO YOUR MAILBOX The Technology & Intelligence Briefing enclosed with your copy of the RCA Report mailed this week. Learn on the go with the T&I Briefings audio CD. The Q1 '07 issue features Rich Boyle CEO of commercial listing portal LoopNet who will discuss the current state and future of commercial on-line investment listing aggregation. Rich will be followed by Randy Hertz, the 2006 National President of RLI, the Realtors Land Institute who will share his insights for using the latest tools to deliver high quality brokerage and management services to land owning clients. And to wrap things up, Jon Tull, CEO of eReal Estate Integration, Inc. will brief us on the state of the art for analyzing commercial real estate information into useful decision making tools and reports. Subscribe to the podcast from iTunes or REALTOR.org or contact rca@realtors.org to order a free audio CD with the interviews. Learn more. E&O INSURANCE DEDUCTIBLE DISCOUNT WITH NAR'S RELAYTM PROGRAM Subscribers to NAR's RELAYTM transaction management system may now earn a reduction of up to $2,500 in the deductible amount on Error and Omissions insurance provided by Geo. F. Brown & Sons. This discount is in addition to the existing 50 percent reduction in the E&O deductible NAR members receive through Geo. F. Brown & Sons under the REALTOR Benefitssm Program. RELAYTM is the easy to use transaction management tool developed in partnership with NAR, which integrates directly with ZipForm®. Geo. F. Brown & Sons offers E&O insurance tailored to the unique needs of the real estate firm, as well as the SecureALease product for property managers. Read more at RELAYTM, 866-736-7328 or Geo. F. Brown, 888-372-6262. AFFILIATE NEWS CCIM CAREER CENTER RECEIVES A FACELIFT The commercial real estate job market remains very active, and the CCIM Career Center is fully equipped to help members find and fill jobs. Recently, the site was redesigned to feature a new navigation system that makes it easier for both job seekers and employers. The new pages include separate comprehensive Employer and Candidate areas, a new FAQ section and a much-requested listing of available job packages. The CCIM Career Center is part of the Real Estate Job Network powered by SelectLeaders, which formed an alliance of the top professional and trade associations in the U.S. to assist job seekers and employers. Visit to learn more. Report compiled by Bobbie Albrecht, balbrecht@realtors.org, 312/329-8464. QUESTIONS on this report? Visit the INS FAQ and online feedback area on REALTOR.org. Click here. NATIONAL ASSOCIATION OF REALTORS® 430 N. Michigan Avenue Chicago IL 60611 800/874-6500 www.REALTOR.org