Event Coverage
DRE Commissioner Jeff Davi Speaks to SAMCAR Brokers, Managers
California Department of Real Estate Commissioner Jeff Davi spoke at SAMCAR’s Broker/Manager meeting at the Elks Lodge last Thursday and reported in light of the slowdown in the housing market, he is starting to see the number of real estate licensees go down. Today, there are 35 to 50 applicants a week, compared with 1,000 a week just a few months ago.
The DRE saw the number of licensees peak at 549,000 last year, and as of last week, Davi reported there were 548,306 and he expects the number to decrease further this year.
The drop in numbers is a natural occurrence with any industry, Davi said, but he noted he is also happy with developments that have taken place in the department. Online activity has cut down the licensing processing time from 175 days to 41days. Davi 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.
It is the DRE Commissioner’s goal to speed up the licensing process even more through electronic license exams. He said the project is underway, plans are being finalized, and construction of the project should be completed by next 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 dark 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 84,000.
“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 invited SAMCAR members 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.
For further information, please contact Rose Meily at SAMCAR Public Affairs, e-mail , or phone (650) 696-8200.
