Legal Updates
Register here for the next Legal Live Webinar on the New and Revised Forms taking place on December 10th at 1:30pm. 

The Standard Forms Committee met during the Fall Business meetings and is working through changes to the forms that will be updated in the December release. As soon as the draft forms are available for review, we will make sure to share the documents. As a reminder, please send all suggestions for standard forms to [email protected].

Continue to check the Broker Compensation Compliance page on car.org as new updates and information are being added. 

Legislative Update - Important Announcements Concerning Homeowners Insurance in California
Catastrophe Modeling - California homeowners received two important announcements this month about programs that impact homeowner’s insurance in fire prone areas.

Insurance Commissioner Ricardo Lara announced last week that the California Department of Insurance (DOI) has submitted the final wildfire catastrophe modeling regulation to the Office of Administrative Law (OAL) for approval.

Under current law, insurance companies must file for approval of rate increases from the Department of Insurance. They are currently not allowed to use forward looking catastrophe modeling in those rate filings. With the uncertainties and potential for extreme fire losses created by climate change, the insurance industry has argued this tool is essential. Catastrophe modeling provides insurers with additional risk assessment and pricing tools which if incorporated into rate filings should make coverage more available to homeowners and businesses who live and operate in wildfire-prone areas. To be clear, it does not guarantee that rates will go lower, but it should increase availability, and it could also result in lower rates because such modeling allows insurance companies to account for the significant investment California has made into wildfire risk reduction over the past several years. 

In exchange for the use of catastrophe modeling, insurance companies will be required to increase their offerings of coverage in wildfire-prone areas. By increasing availability of insurance in wildfire-prone areas, the financial pressures on the FAIR plan should be reduced as fewer persons make use of its policies. 

The catastrophe modeling is part of the Insurance Commissioner’s Sustainable Insurance Strategy, a comprehensive overhaul of the state’s insurance market designed to increase resilience in the face of the ongoing climate crisis. 

The Office of Administrative Law is now reviewing the new regulation for compliance, and once approved, it will become effective by the end of December 2024. 

Cancellation Moratoriums - In a related development on November 7, Governor Gavin Newsom proclaimed a state of emergency covering Ventura County due to the Mountain Fire. Therefore, no admitted or non-admitted insurer shall issue a notice of cancellation or non-renewal due to wildfire risk for one year, starting on November 7, 2024, in specified zip codes within Ventura County. 
 
The Governor also declared a state of emergency on November 1, 2024, for Siskiyou and Sierra Counties due to wildfires in those counties. Similarly, insurers are prohibited from issuing a notice of cancellation or non-renewal due to wildfire risk for one year in specified zip codes in those two counties. 
 
This protection for homeowners were created by legislation (Senate Bill 824, authored by Commissioner Lara when he was a legislator, and passed in 2018), which requires a mandatory one-year moratorium on insurance companies canceling or non-renewing residential insurance policies in certain areas within or adjacent to a fire perimeter after a declared state of emergency is issued by the Governor.

Market Update 
The economy continued to do well last month with consumer spending remaining resilient and businesses turning more positive. Overall price level, meanwhile, inched up in October, but the Inflation rate was in line with economists’ expectations. With consumer prices rising only modestly in October, the Federal Reserve should remain on track to lower its policy rates again in the upcoming FOMC meeting. The outlook for inflation next year, however, is murkier than a few weeks ago as the election outcome has raised new questions about the path ahead for price growth. As such, the uncertainty is keeping mortgage rates elevated and could slow down the Fed’s rate cut pace in 2025. Read the full weekly report here.
  
California housing market bounces back in October as both home sales and median price post increases from previous month and year, C.A.R. reports  

• Existing, single-family home sales totaled 264,870 in October on a seasonally adjusted annualized rate, up 4.7 percent from 253,010 in September and up 9.5 percent from 241,910 in October 2023. 
• October’s statewide median home price was $888,740, up 2.4 percent from September and up
• 5.8 percent from $839,990 in October 2023. 
• Year-to-date statewide home sales edged up 1.7 percent. 
• Read the full October sales and price report here. 

Key Read of the Week
Top housing industry experts from across the state and nation gathered last month for the Center for California Real Estate's flagship event of the year, the CCRE Housing Summit: Charting California’s Future. The forum brought together academics, state and local officials, and private sector experts to examine California’s political and socioeconomic landscape, homeownership trends, and strategies to expand housing supply. 

Featuring keynotes from Senate President pro Tempore Emeritus Toni G. Atkins and Nobel laureate Dr. Douglas W. Diamond, the forum sparked critical conversations on the state’s housing crisis, drawing hundreds of attendees across California. The event built upon a year of CCRE dialogue on many converging issues around housing — yielding important emerging insights and setting the stage for crucial conversations in 2025. Read the C.A.R. Press Release here.

INFORMATION FOR YOU AND YOUR AGENTS

HAF’s Holiday Cooking Class with C.A.R. Officers! 
The Housing Affordability Fund is thrilled to announce its annual Holiday Cooking Class, hosted by our esteemed C.A.R. Officers, on November 21, 2024, from 5:00 PM to 7:00 PM. Break free from the ordinary and dive into something exciting this holiday season!

Cook up some fun as they guide you through preparing simple, mouthwatering meals straight from their own kitchens, using ingredients you probably already have at home. Create a memorable culinary adventure together, all while staying safe and cozy in your own space!

Beyond the joy of this culinary adventure, your support will help us raise funds for the Pathway to Home Closing Cost Assistance Grant Program. This vital program assists first-time homebuyers from underserved communities by providing up to $10,000 in closing cost assistance. Your involvement can make a significant difference in bridging the affordability gap for these aspiring homeowners.

Let's make this holiday season special together! Learn more about tickets and sponsorship opportunities.

Nominate a Diversity or Fair Housing Ambassador
Know a REALTOR®, Broker, Team, or Local REALTOR® Association making a real impact on diversity and fair housing? Now’s your chance to shine a spotlight on their outstanding work in promoting inclusion and equal housing opportunities. Submit your nominations by December 1.  

Below are the award categories and their criteria:  
Diversity Ambassador: Local Association  
This award recognizes a local REALTOR® association that has implemented a significant initiative or program driving measurable and sustainable change in membership or leadership diversity, inclusion, culture, awareness, or equity.  

Diversity Ambassador: Broker or Team  
This award honors a Broker or Team that has established impactful practices or programs to promote diversity, inclusion, cultural awareness, or equity within their team or organization.  

Diversity Ambassador: State or Local Association Leader  
This award celebrates a REALTOR® association leader whose leadership style and practices actively foster and promote diversity, inclusion, and equity within their community.  

Fair Housing Advocate (Individual or Organization)  
This award acknowledges an individual or organization that has gone above and beyond to advance fair housing, expand homeownership opportunities, or make a meaningful impact as a volunteer leader or through business practices. 

Financing the Dream of Homeownership
Give your agents the tools they need to help more people become homeowners! The STEPS Toward Homeownership program is focused on empowering REALTORS® to educate a wide range of clients—from renters and first-time buyers to Baby Boomers supporting family members. Register for the upcoming event taking place on December 4th at 10am. 

This event will equip REALTORS® with:

• Strategies for Financial Health
• Trends in the Economic Environment
• Guidance Through the Homebuying Process
• Loan Products & Down Payment Assistance Options

Attendees will gain financial literacy skills, learn how to build stronger referral pipelines, build partnerships and fill their toolkit with resources for future transactions.

Register now and empower your REALTORS® to become a greater resource for their community!

Resources for You and Your Staff

FIVE WEEKS - Time is Almost Up! 
Have your agents completed their Ethics class requirement for NAR?? Make sure your agents take advantage of the FREE 45CE – their C.A.R. member benefits! They can get a free Ethics course that automatically records with NAR once completed. Have them sign up today! 

HARASSMENT PREVENTION – Is it Time to Renew? 
In 2022, a large portion of C.A.R. members completed sexual harassment training. This kind of training is required every two years for CA employees. Check your with your office manager to see if your employees are due for renewal. Learn more and sign your employees up at the link here. 

Diversify in 2025 
How is your office going to expand its revenue in the new year? C.A.R. Education offers a Certification to help agents like yours familiarize themselves with the practices, terminology, and strategies for the Property Management field. Sign up for this discounted bundle of classes on store.car.org and expand your business. 

C.A.R. Speakers for your next event - we created a resource for you to book one of our speakers, access the most recent presentations and find out what topics are available for you and your agents here.