Real Estate Articles

Home : Publications : Real Estate Articles

REALTOR®: Number of Real Estate Licensees Slowly Declining

DRE increases community outreach to help troubled homeowners

Monday, February 18, 2008

In light of the slowdown in the housing market, the California Department of Real Estate is starting to see the number of real estate licensees decline, the state’s top real estate officials told local Realtors. He also indicated the department has increased its community outreach services to help financially troubled homeowners.

DRE Commissioner Jeff Davi told approximately 90 brokers and managers who are members of the San Mateo County Association of REALTORS® that the department today sees 35 to 50 real estate license applications a week, compared with 1,000 a week just a few months ago. Last year, the DRE saw the number of licensees peak at 549,000; as of last week, there were 548,306. Davi expects the number to decline further this year.

Davi reported more online activity via the DRE Web site has cut down the licensing processing time from 175 days to 41days. He indicated 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.

Davi announced soon, the licensing process will be further expedited by electronic license exams. The project is underway, plans are being finalized, and construction of the project should be completed by spring.

Even as the number of licensees has more than doubled since 1991, Davi said his staff of 342 employees has remained the same, operating on an annual budget of $46.6 million.

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 had a little over 5,000 cases. FY 2006-2007 saw over 8,000 cases; he expects 11,000 by the end of the 2007-08 fiscal year.

Year-to-date, audit findings show 34 percent are major violations, resulting in a revocation or restriction of a license; 23 percent are minor violations, usually resulting in suspension of a license; and 21 percent result in a corrective action letter. Most of the violations – 46 percent – stem from trust funds/records; 21 percent, licensing and employment; 19 percent, disclosure; 3 percent mortgage loans; 4 percent, supervision; and 2 percent, broker escrow.

Davi painted a grim picture of the market to brokers and managers: Foreclosures are occurring around the state and many families are being hurt. He said 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,” said Davi.

Concerned about rising foreclosures, the DRE has expanded consumer outreach by increasing participation in consumer workshops and town hall meetings throughout the state; conducting an aggressive mortgage advertising review campaign; appointing Maria Giuriato, a new consumer/real estate industry liaison; providing translation of “Using the Services of a Mortgage Broker” into Spanish and Chinese.

The DRE also revamped its Web site, which 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) 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,” said Davi. “I would encourage everyone to check out our Web site.”

The DRE commissioner invites Realtors, as well as the public, to visit the DRE Web site at http://www.dre,ca.gov/ for e-license processing, to check on the status of a license, new requirements, or to file a complaint. He stressed the DRE is very much complaint-driven.

“We need you to report violations. We are always looking for better ways to reach consumers,” said Davi. “I can’t stop homeowners from being victims of fraud, but I can promise you this. 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.”

The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR 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 San Mateo County.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Julie Ziemelis, Director of Public Affairs, e-mail , or phone (650) 696-8214.

» Back to Real Estate Articles