By Jodi Summers

Every year, the real estate industry specialists compile lists of the most influential people in real estate — outstanding individuals whose actions have influenced the business of buying and selling properties. We are particularly partial to Inman News, which annually assembles a grouping of the 100 leading people in real estate. Instead of boring you with a long list, we would like to share with you profiles on several individuals whose real estate related activities were noteworthy for California in 2005:

-Alan Greenspan. Everyone in real estate appreciates Alan Greenspan, the Chairman of the Federal Reserve Board, for overseeing the housing boom.

Greenspan originally took office as chairman of the Federal Reserve Board on Aug. 11, 1987, filling an unexpired term as a member of the board. On Feb. 1, 1992, Greenspan was reappointed to the board to a full 14-year term, which ends Jan. 31, 2006. He is credited with helping guide the U.S. economy through the crash of 1987, the recession of the early ‘90s, the dot-com bubble and the terrorist attacks of 9-11. According to ABC News, in 1998 unemployment reached a 24-year low, inflation hit an 11-year low and consumer confidence was the highest it had been in 30 years, thanks in no small part to Greenspan.

As chairman of the board of governors of the Federal Reserve of the United States, Greenspan’s decision to substantially lower the federal bank rate during the early 2000s fueled the housing boom. The federal bank rate, which the Fed’s open market committee controls, is not directly tied to long-term interest rates, but it almost inevitably affects them. His decrease and subsequent increase of bank rates (beginning last summer) make him one of the most influential and respected people in real estate.

- Erin Toll. Deputy Insurance Commissioner of Colorado and former title insurance researcher, launched an investigation of nine Colorado title insurers, which eventually led to the refunding of about $24 million to consumers by First American Title Insurance Co.

Her activities have lead to California’s insurance commissioner John Garamendi to ask the Department of Housing and Urban Development to pursue the home builders and banks that may have been involved in insurance kickbacks. Similar investigations are taking places in other states, including New York, Florida, Washington, Oklahoma and Minnesota.

The companies under investigation have been accused of issuing false reinsurance contracts between title companies and subsidiaries of real estate agents, developers and lenders. Under these alleged schemes, title insurers agreed to give about half of the premium on title insurance policies to captive reinsurance companies fashioned by co-conspirators. As one hand washed the other, the parent companies of the co-conspirators would refer business to the title insurer. It is suspected that these arrangements are forcing up title insurance rates.

- Alphonso Jackson. The Secretary of the U.S. Department of Housing and Urban Development, is continually devising ways to help lower income families better their housing scenario and/or become homeowners. Noteworthy to everyone, the housing agency has attempted to simplify the home-buying process for consumers by making changes to the Real Estate Settlement Procedures Act (RESPA), which regulates the closing process.

Among Federal Housing Administration non-disaster related accomplishments in 2005 were $23.7 million in grants to more than 100 rural communities nationwide in an effort to stimulate their local economies, produce more affordable housing and create jobs. Nearly $19 million in funding was aimed to help low-income individuals and families living with HIV/AIDS get permanent housing and access to care. In August, $10 million in funding was allocated to get chronically homeless persons who are addicted to alcohol off the streets and into a permanent residence. All of that money did not go to Santa Monica, even though our city of 100,000 residents is said to have a 2 percent homeless population.

And the accomplishments go on. Effective Jan. 1, 2006, the FHA increased its single-family home mortgage limits by more than 15 percent, up to $200,160 in standard areas and up to $362,790 in high-cost areas — this is nearly $50,000 more than last year. The loan limits for two-, three- and four-unit dwellings also increased. HUD also has recently awarded more than $710 million in grants to help very low-income elderly and people with disabilities find affordable housing, and they have issued $32.9 million in grants to public housing agencies to help public housing residents get jobs and buy homes.

“This administration is working to make home ownership more affordable and accessible so that more families can own a piece of the American Dream,” notes Jackson.

Additionally, in 2005, the FHA has been aggressively pursuing RESPA violations — tripling the department’s enforcement staff and doubling its budget.

- U.S. Justice Department’s Antitrust Division. The officials get credit for taking action to promote open competition in the real estate industry. In 2005, the department investigated alleged anti-competitive practices, warning regulators in several states not to pass rules or legislation that could restrict competition and harm some discount business models. In addition, the department is aggressively pursuing an antitrust lawsuit against the National Association of Realtors over the group’s policies for online property listings display. In 2005, the Justice Department was able to curtail real estate rebates in Kentucky and other states.

- Laurie Janik. The General Counsel for National Association of Realtors has been responsible for defending the association’s policies in the face of antitrust accusations. Janik, the chief legal advisor for NAR, protects the association from legal disasters and cleans up afterwards if trouble ensues. She has spent the better part of the past two years battling with U.S. Justice Department officials since the agency’s antitrust division opened an investigation of the trade group’s online property listings policies.

(Contact Jodi Summers at jodis@boardwalkrealty.com or call (310) 309-4219.)