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�� VISIT US ONLINE @ DSNEWS.COM COVER STORY To ensure mortgage field service providers are as diverse as the properties they service, Citigroup embarked on an initiative for the purpose of training minority- and women-owned contractors to perform property preservation, maintenance, and rehab work on the bank���s defaulted and foreclosed vacant properties. To further these efforts, Citi formed a partnership agreement with POINT��� COUNTERPOINT Training Viable Partners Judging from participants��� feedback, ���Julius Cartwright, NAREB Greenbaum believes the classes have successfully achieved the purpose for which they the Foundation for Small Business Development, an organization established in 1995 and dedicated were organized. ���We���ve received a lot of feedback from contractors who participated saying how to the promotion of educational activities for beneficial the training has been and how it has small businesses, and Safeguard Properties, the helped them become a better small business,��� largest mortgage field services company in the he said. According to Greenbaum, Safeguard is United States. According to Travis Anderson, director of looking forward to helping even more minorvendor management for Safeguard, the program ity- and woman-owned contractor firms become kicked off in early 2012, with training sessions certified and ultimately improving their business beginning in August of that year. He said five operations and their profitability. cities where Citigroup has a large presence were selected to hold the project���s first training sesDiversity Growth sions���Chicago, Ft. Lauderdale, Dallas, Las Diversity within a firm���s own corporate Vegas, and Baltimore. culture and among its network of service ���The program was funded by the Citi providers and partners is not just good Foundation to help small minority- and woman- business, it���s a competitive advantage. Diverse owned businesses obtain official certification as organizations and professionals possess a keen qualified service providers for Citigroup-owned understanding of minority markets and a properties,��� Anderson explained. In addition to unique perspective on consumer behavior and providing technical training, he said other aspects market movements. They provide insight for of small business management were addressed, emerging markets and can help strengthen including how to raise capital, how to diversify relationships with community leaders and offerings, and other important factors that ensure influencers. success for small businesses. Diversity in real estate and mortgage ���We sent invitations to people who were banking, in particular, has become even more already doing work for us and others who had critical since the onset of the crisis. More expressed an interest in working with us,��� said companies and more professionals within Michael Greenbaum, VP of operations for Safethe industry are making diversity a basic guard. ���A lot of our contractors were really excited component of their business. Since 2008, about being formally certified as a minority- or Freddie Mac has spent more than $1 billion woman-owned company,��� he said. contracting with minority- and women-owned Although the initial training classes were companies. In 2010 alone, Freddie expended offered in only five locations, Anderson says upwards of $432 million for work done by the opportunity was quickly extended to diverse suppliers. Fannie Mae awarded an Safeguard���s entire network across the United estimated $172,500 in grant money during the States. Invitations were sent to 1,025 small 2011 fiscal year to support various initiatives business owners; approximately 250 of those aimed at improving outreach to diverse invited sent representatives to the classes, suppliers, providing education and professional with 193 businesses to date receiving their training to women and minorities in real official certification. ���Our goal is to get 400 estate and housing finance, and promoting subcontractors certified, and we will continue to encourage our contractors to take advantage supplier diversity in the marketplace. Fannie spent another $1 billion that same year to of this in the next few months,��� Anderson explained. The two-and-a-half-day classes are support foreclosure prevention and counseling conducted by consultants and various business programs specifically targeting minority experts. borrowers. MARKET PULSE down, according to Park. ���There continues to be a lot of interest in [distressed] assets from our members��� clients,��� he said. However, Park explained that AREAA���s support for the market is broader than just investing in distressed properties. ���Whether it���s distressed or not, we are for consumers purchasing real estate for personal use or investments because it is the best source of long-term wealth building,��� he said. Park points out that residential real estate is currently priced at the most affordable levels seen in decades. Housing is so affordable, in fact, Park says in many markets, it���s become cheaper to buy and own a home than to rent. Many AREAA members work with foreign investors who are looking for a safe place to put their money, according to Park. ���Asian investors feel there is nothing safer than investing in U.S. real estate,��� he said. ���Real estate may get sick, but it doesn���t die.��� The AREAA trade association represents Asian real estate professionals throughout the United States as well as overseas. At the AREAA Global Summit in Hawaii April 21-23, the agenda focuses on global investment opportunities and ensuring transactions are carried out correctly. Park says savvy real estate professionals must position themselves for future success, and he points to international real estate as one element for building that future. Park notes that AREAA has participated in several international trade missions overseas during the past few years. ���We���ve been to Vietnam, China, Korea, Taiwan, Thailand, and Japan to showcase what is happening in American real estate and build a bridge,��� he said. Park notes that AREAA members are making the most of the organization���s international focus and creating new business opportunities for themselves. INDUSTRY INSIGHT ���We know these communities inside out. We have members who are trained and certified to [perform] whatever services are needed in minority neighborhoods.��� 57

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