A little-noticed section of the Wall Street reform law grants the federal government broad new powers to compel financial firms to hire more women and minorities -- an effort at promoting diversity that's drawing fire from Republicans who say it could lead to de facto hiring quotas.

Deep inside the massive overhaul bill, Congress gives the federal government authority to terminate contracts with any financial firm that fails to ensure the "fair inclusion" of women and minorities, forcing every kind of company from a Wall Street giant to a mom-and-pop law office to account for the composition of its work force.

Employment law experts say the language goes further than any previous attempt by the U.S. government to promote diversity in the financial sector -- putting muscle behind federal efforts to help minority- and women-owned firms gain access to billions in federal contracts.

For advocates of the measure, it is a past-due shove to an elite industry that is heavily male and white -- one in which Government Accountability Office studies show women and minorities have made only minimal gains in the past 15 years.

But to opponents, the provision signifies a brazen government intrusion into corporate practices, with language written so vaguely that some believe it could lead to an unofficial quota system.

"This expands exponentially the reach of the federal government in terms of auditing," said Peter Kirsanow, an attorney and Republican appointee to the U.S. Commission on Civil Rights. "This is an expansion of racial engineering that we haven't seen in a long time."

The law sets no quotas, not even ratios or goals for hiring. And the government has options other than termination at its disposal for contractors who fail to meet the "fair inclusion" standard, including referring the matter to the Labor Department.

But the law tiptoes up to the line of quotas, say critics -- a group that includes Sen. Susan Collins (R-Maine); four Republican-leaning members of the U.S. Commission on Civil Rights who wrote a letter of opposition; and some in the conservative blogosphere, where a debate has raged for weeks outside the view of the mainstream media.

"It is very sweeping, from my review of the legislation," said Collins, who voted for the bill. "It talks not just about federal offices and agencies. It also talks about contractors and subcontractors, and so the implications are very unclear and can be read to require quotas, and that's an entirely different and controversial debate and does not belong in the financial bill."

Supporters of the move are cheering the law, saying that for years the legislative language behind diversity efforts lacked teeth.

"It is arguably the best part of the bill," said Gary Acosta, co-founder of the National Association of Hispanic Real Estate Professionals, which lobbied for the section.

Advocates have pushed for this change since the economic crisis hit, when billions in taxpayer dollars flowed into struggling Wall Street giants -- without reaching many minority- and women-owned businesses. They didn't receive an adequate share of the legal, accounting and asset management contracts awarded through the $700 billion bank bailout bill and other emergency programs administered by the Treasury and the Federal Reserve, Democratic lawmakers and advocates say.

At the same time, they contend, the collapse of the subprime mortgage market disproportionately hit African-American and Latino homeowners.

"Considering the devastation that has taken place in the minority communities - that was done by irresponsible and predatory lending - this makes sense and helps them mitigate that," Acosta said of the financial industry. "Inclusion is a good thing, always. And sometimes we have to be compelled to make changes."

The 1,261-word section authored by Rep. Maxine Waters (D-Calif.) barely registered during the legislative debate. And even weeks after the legislation moved through the House and Senate, Washington groups tasked with protecting business interests on Wall Street and beyond say they have yet to study that part of the bill.

At its core, the section establishes at least 20 new Offices of Minority and Women Inclusion across the Treasury Department, Federal Reserve, Securities and Exchange Commission and other finance-related agencies. It orders the directors of these offices to develop standards that "ensure, to the maximum extent possible, the fair inclusion and utilization of minorities, women, and minority-owned and women-owned businesses in all business and activities of the agency at all levels, including in procurement, insurance, and all types of contracts."

This applies to "services of any kind," including investment firms, mortgage banking firms, asset management firms, brokers, dealers, underwriters, accountants, consultants and law firms, the legislation states. Every contractor and subcontractor must now certify that their workforces reflect a "fair inclusion" of women and minorities.

The government still must write the rules for the new diversity standards before deciding which contractors meet the bar and which fall short.

If the director determines a firm failed to make a "good faith effort," the contract can be severed or referred to the Labor Department's Office of Federal Contract Compliance for review.

"Too often, diversity is lacking among the workforce of contractors," reads a set of talking points from Waters' office. "It is important that just as the Federal government provided them with a contracting opportunity that they provide opportunities to minorities and women, who are underrepresented within the financial services industry."

Waters couldn't be reached for comment.

Diana Furchtgott-Roth, senior fellow at the Hudson Institute and chief economist at the Labor Department under President George W. Bush, nudged the issue into the mainstream last month with a column posted on RealClearMarkets.com.

The question is how these offices will define "fair inclusion," she wrote, and they could decide that it means an employer's work force must match the demographics of the area in which it operates or risk losing a contract.

"This is just extraordinarily costly to firms. It is a big change in employment law," Furchtgott-Roth said in an interview. "What if there aren't any Native Americans who qualify for the open slots at Bank of America? What would they do?"

Advocates of the language say "fair inclusion" can be loosely defined this way: If a contractor in, say, Brooklyn or Miami doesn't employ any minorities, it could be a problem. But the expectations would be different in Maine, for example, which has the highest proportion of whites in the country.

"Your workforce doesn't have to be exact, but you have to try to make an effort," said Pamela Bethel, a partner at O'Riordan Bethel law firm who testified before Waters' committee on behalf of the National Association of Minority and Women-Owned Law Firms. "Nobody is suggesting you hire someone who isn't qualified, but if you look just a little harder outside your country club, you might find someone who is qualified."

Also of concern to some on the right is that the law creates another layer of bureaucracy that small businesses will need to navigate.

Collins said there are already three federal offices similar in scope: the Civil Rights Center at Department of Labor, the Office of Federal Contract Compliance at Labor, and the Equal Employment Opportunity Commission. In addition, each federal agency is required to have an Office of Small and Disadvantaged Business Utilization whose mission is to assist minority and women owned businesses, Collins said.

But Marc Morial, president of the National Urban League, which pressed for the bill language, said existing efforts to ensure that women- and minority-owned firms receive contracts have "no visibility, no teeth."

"If they were doing their job, certainly people like me would know about it," Morial said. "This statute means business -- and you can no longer pay lip service and (play) pretend games."

Meredith Shiner contributed to this report.
© 2010 Capitol News Company, LLC

Gail Buck, a Latina REO broker in Arizona, has written a blog post blasting Arizona's new controversial immigration law.

"Unless you've been subjected to prejudice for who you are, this is a subject that's easy to dismiss," said Buck, in a blog post on the National Association of Hispanic Real Estate Professionals' website.

It's a different story for Latinos living in Arizona, however, she writes.

"Long before Gov. Brewer signed the immigration law, the air of fear and bigotry toward Latinos existed. The now infamous Sheriff Joe Arpaio and his posse of vigilantes have seen to that. The culture of prejudice these people have created here is something you don't ever want to experience in your hometown," Buck wrote.
She contends the new law is driving residents of Latin American decent to consider leaving Arizona, in what she says could further exacerbate the distressed housing market there.

"Arizona is one of the leading foreclosure states in the nation. We have more empty housing than we can fill. We don't need more problems that make properties harder to sell."

The new state law, passed in April, makes illegal immigration a state crime. It requires local law enforcement to question anyone they suspect of being an illegal immigrant about their residency status. The US Justice Department is seeking to strike down the law on the contention that immigration is a federal not a state issue.

Buck, with her red hair and light complexion, said chances are slim that she'll get stopped and asked to show her "papers" despite being of Mexican decent and fluent in Spanish.

That's not the case for others in her office, however. Estevan Medina, who works at Buck's Phoenix office, is among those who have been stopped and intimidated, she said.

"Estevan is dark skinned and a native of Mexico. He is bilingual and a proud US citizen. The Sheriff's posse pulled over Estevan and his college buddies one night. They handcuffed them with zip ties and shackled their feet. They bound them like criminals first; then they asked questions later," Buck wrote. "This practice and the discriminating way it is used to intimidate Latinos sends a loud, clear message to the Hispanic community: We don't like your kind."

A long-time advocate for the Latino community, Buck is the recent founder of Foreclosure Prevention Angels, a coalition of real estate professionals that provide resources and guidance to families facing foreclosure.

To read Buck's complete blog post click here. Then tell us what you think.

RISMEDIA (May 21, 2010) - The National Association of Hispanic Real Estate Professionals (NAHREP) announced plans to launch a brand new blog talk radio program this week. "The Voice of Hispanic Real Estate" will offer Hispanics in the industry a real time discussion forum for the issues facing real estate professionals and this minority consumer home-buying segment. The show debuts on June 1 at 9 am PST/11 am CST/12 pm EST at www.blogtalkradio.com/nahrep and will air every other Tuesday.

The Hispanic trade group plans to use the talk-show format to engage more practitioners in discussions about current events that are impacting Latinos and the real estate business. With Hispanic unemployment rates at 12.5 percent, disproportionate losses within the community due to the foreclosure crisis and rancor over state anti-immigrant laws, Hispanic practitioners are faced with impactful socioeconomic issues that are challenging them and their clients.

"This is an historic time in our industry and our nation. We want to offer members and, practitioners at large, a forum to air their opinions on the way the business is changing and how the Great Recession is affecting their clients," said NAHREP Chairman Alex Chaparro.

NAHREP Founders Gary Acosta and Ernie Reyes will be featured guests on the inaugural show entitled "NAHREP Then & Now: Why Hispanics Need Their Own Real Estate Trade Association" and will discuss the market forces that led them to create the Hispanic trade association in 1999. Chairman Alex Chaparro and Vice Chair Carmen Mercado will host the one-hour program that will include listener call-ins.
The show call in number is: (718) 664-9178.

Other prominent NAHREP leaders will take turns serving as guest hosts. The show schedule will include prominent industry leaders, Hispanic market experts, and cultural content that are relevant to practitioners doing business with Hispanic homebuyers. For more information about The Voice of Hispanic Real Estate, go to www.blogtalkradio.com/nahrep.

(SAN DIEGO/WASHINGTON D.C.) March 9, 2010 -- The National Association of Hispanic Real Estate Professionals (NAHREP) announced the appointment of Alex Chaparro, a Chicago-based independent real estate broker, as the 2010-2011 chairman of the nation's fastest growing trade association for Hispanic real estate professionals. Chaparro, who has held various leadership posts within the group since joining it in 2004, previously served as NAHREP's vice chair. Carmen Mercado, a Long Island, NY-based education and diversity-training manager, succeeds Chaparro as vice chairman. The pair was officially sworn in during NAHREP's annual legislative conference last week, held jointly with the Asian Real Estate Association of America and the National Association of Real Estate Brokers.

"Alex Chaparro is part of a movement of young NAHREP leaders that will carry the message of our group and the important role it must play in the housing recovery," said outgoing Chair Tino Diaz. "Alex is a strong leader and communicator in business, matters of policy and social media. His passion and advocacy will propel NAHREP to new heights."

Chaparro became an active member of NAHREP in 2003 with leadership roles on NAHREP Chicago's local board. In 2005, he was appointed to NAHREP's National Board of Directors and has successfully served on legislative policy and executive leadership committees. In 2006, Chaparro became the first Latino to be appointed as president of the 124-year-old Chicago Association of Realtors. That same year, Hispanic Business Magazine named him among the nation's Top 100 Most Influential Hispanics in business.

Carmen Mercado, a Long Island, New York-based broker, is a training and diversity manager for Coldwell Banker Brokerage. She is past president and co-founder of the NAHREP NYC chapter and has served in national leadership roles on the National Board of Directors and the Executive Committee as well as Communications and Event committees. A passionate advocate for the Latino community, Mercado has served as a volunteer homebuyer educator through work with local nonprofits. She has also actively volunteered in English As A Second Language programs at local schools.

Chaparro and Mercado will serve one-year terms in the current roles.

WASHINGTON, D.C. (MARCH 3, 2010) - The combined 70,500 members and affiliates of the National Association of Hispanic Real Estate Professionals, The Asian Real Estate Association of America (AREAA) and the National Association of Real Estate Brokers (NAREB) plan to share The Five-Point Plan: Creating A Sustainable Path to Minority Homeownership during their 2010 Multicultural Real Estate & Policy Conference this week in Washington, D.C. Leaders from the three national trade groups are appealing to lawmakers during Capitol Hill visits to take actions that stabilize the market, expand consumer protections, preserve liquidity and stop the spiral of losses in minority communities.

"Communities of color remain at great risk. We must take common sense actions that stop the spiral of losses, keep homeowners in place and prevent our neighborhoods from becoming renter communities," said incoming NAHREP Chairman Alex Chaparro. "Lawmakers are looking to the real estate industry to collaborate on solutions that balance the role of government and private enterprise. We believe this plan does that."

The three trade associations, which represent the most impacted communities, call for support of a five-point plan that:

"Our five-point plan, when adopted, will set a new course for this Nation's housing recovery, particularly within the minority community. The magnitude of our crisis requires us to act boldly and a decisively to put us back on the right track and restore consumer confidence in the real estate market," said AREAA Chairman John Fukuda. "Communities and people we serve deserve this kind of comprehensive approach."

Current government programs, while well intended, have had limited impact especially in minority neighborhoods where the incidence of expensive mortgages and higher unemployment is greater. (At the peak of the housing expansion, African Americans and Latinos held high cost mortgages at two to nine times the frequency of whites in some foreclosure regions.) According to a report from the Federal Reserve, African American borrowers were 1.8 times as likely as white borrowers to be in foreclosure and Latino and Asian borrowers were 1.4 and 1.3 times, respectively, to be in foreclosure.
"The collaborative effort of African American, Hispanic and Asian American real estate professionals signals a broad call to action. Our respective communities have experienced previously unimaginable losses since the onset of the mortgage loan debacle and the subsequent far-reaching economic crisis," said Vincent Wimbish, President and CEO of NAREB. "We firmly believe that the five-point plan offers a solutions-based approach to making homeownership, not only sustainable, but once again desirable for communities of color as well as for all Americans."

Homeownership among African Americans and Latinos varies by region. For Latinos, the greatest proportion of homeowners is based in the West and Midwest. Among African Americans, homeownership is most concentrated in the Midwest and the South. One-third of the nation's Asian population is based in California. The foreclosure crisis has turned into a regional phenomenon. Minorities reside in many of the states suffering the highest rates of foreclosures and home devaluations including: Nevada, California, Arizona, Florida, Illinois, Ohio and Michigan.

Leaders from the Hispanic, Asian and African American trade groups plan to discuss the tenets of the plan at a White House briefing during their policy summit this week. The associations have collaborated on joint positions in the past. This is the second time they have recommended a plan together. A copy of The Five-Point Plan: Creating A Sustainable Path to Minority Homeownership is available at www.nahrep.org, www.areaa.org or www.nareb.com.

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About NAHREP

The National Association of Hispanic Real Estate Professionals, a non-profit 501c6 trade association, is dedicated to increasing the homeownership rate among Latinos by educating and empowering the real estate professionals that serve them. Based in Washington D.C., NAHREP is the premier trade organization for Hispanics and has more than 18,000 members in 48 states and 62 affiliate chapters.

About AREAA

Established in 2003, the Asian Real Estate Association of America's membership represents a broad array of real estate, mortgage and housing-related professionals that serve the diverse Asian/Pacific-American market. AREAA is the only national trade association dedicated to representing the interest of the Asian real estate market throughout the country. It pursues initiatives that expand home ownership opportunities for more Asian/Pacific-American families, that increase business opportunities for its members, and that deliver tangible results for its national partners.

About NAREB

The National Association of Real Estate Brokers (NAREB) was formed in 1947 out of a need to secure the right to equal housing opportunities regardless of race, creed, or color. Since its inception, NAREB has instigated, participated in, or actively supported legislative initiatives and legal challenges to ensure fair housing for all Americans and access to business opportunity for minority real estate professionals. Today, NAREB has 88 chapters located nationwide. For more information, visit: www.nareb.com.

The National Association of Hispanic Real Estate Professionals (NAHREP) supports today's announcement from the Federal Housing Administration about new policy changes to strengthen the agency's capital reserves and protect it from rising defaults. Among the changes, the agency will increase the amount of up-front cash paid by all new borrowers and require higher down payments from those with the poorest credit.

Under the plan, FHA will increase upfront insurance premiums that borrowers pay at closing from 1.75 percent to 2.25 percent of the loan value. Most FHA borrowers will continue to make down payments of as little as 3.5 percent when they take out a loan, but those homebuyers with credit scores of less than 580 will have to come up with a down payment of at least 10 percent.

"These are necessary adjustments that will maintain standards that will keep the market healthy. Borrowers with less-than-stellar credit will still have access to credit but they'll have to bring more to the table," said Tino Diaz, Chairman of NAHREP "We commend Commissioner Stevens and his team for developing solutions that we believe will improve FHA's capital reserves while preserving the agency's ability to fulfill its mission."

FHA remains a critical source of mortgage insurance for Latino borrowers, accounting for nearly 50 percent of their 2008 home purchase loans.

The National Association of Hispanic Real Estate Professionals (NAHREP) announced its 2010 initiatives recently that include a new membership program, the launch of a multimedia website and the debut of NAHREP CONNECT, one of the first social networks for Hispanic real estate professionals. The 10-year-old Hispanic trade group also disclosed plans to add new members to its ranks this year with a strategic plan that targets top Hispanic markets where it already has chapters.

NAHREP Chairman Tino Diaz is among 10 new members named by the Federal Reserve Board to its Consumer Advisory Council. The Council advises the board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters in the area of consumer financial services. The Council meets three times a year.

The Council, which is made of business leaders, housing advocates and nonprofit leaders, serves a three-year term.

Having recently celebrated its 10th anniversary, the 17,000-member National Association of Hispanic Real Estate Professionals (NAHREP) holds its annual marketing conference for all types of real estate pros this month in Las Vegas. NAHREP Chairman and President Tino Diaz discusses the Hispanic community and its importance to mortgage brokers and the country's financial future.

Hispanic Real Estate Trade Group Appeals to Congress To Support FHA's Continued Expanded Role

SAN DIEGO (November 17, 2009) - The National Association of Hispanic Real Estate Professionals (NAHREP) issued an appeal to members of Congress this week for its support of the Federal Housing Administration's efforts to strengthen the housing market, calling it the only real vehicle for working families to buy homes. NAHREP joined other real estate and housing groups in a joint letter issued to members of the U.S. House and Senate.

Hispanic Agents and Loan Originators Say Stability for Family, Utility and Freedom to Create a Home of Their Own Liking Are Primary Purchase Motivators Though Challenges Remain

SAN DIEGO/LAS VEGAS (October 26, 2009) - Fifty-four percent of Latinos that participated in a phone survey conducted on behalf of the National Association of Hispanic Real Estate Professionals (NAHREP), expressed a strong interest in homeownership and plan to buy a home in the next five years. The poll was conducted among Latino renters living in the foreclosure-ravaged markets of Las Vegas, Los Angeles, Miami and Phoenix and coincides with a national survey of Hispanic real estate professionals announced this week during its annual member convention in Las Vegas. The survey findings reinforce what many of the 16,000-member Hispanic trade group's members report as strong consumer interest that could further fortify the first-time homebuyer market.

SAN DIEGO (October 12, 2009) - Hispanic and Asian Real Estate professionals and industry business
leaders will convene at the 2009 AREAA/NAHREP Real Estate and Marketing Conference on October 25-27 in Las Vegas at the Palazzo Resort & Casino to discuss the state of the current multicultural homebuyer market. Hosted by the Asian Real Estate Association of America and the National Association of Hispanic Real Estate Professionals, the meeting is the single largest industry gathering of multicultural real estate professionals and is expected to draw 1,500 practitioners that actively work with the underserved market.

The dream of homeownership has been severely threatened by an historic record of foreclosures, delivering the most significant losses to minority communities. Are Latinos still interested in homeownership and, if so, what are their primary motives for wanting to buy? Do any particular barriers or consequences of the recent crisis challenge them? The National Association of Hispanic Real Estate Professionals polled its members for insights about how their clients feel.

Town-hall forum includes foreclosure experts from PMH Financial, National Default Servicing, Fannie Mae and New Vista Asset Management as part of 2009 AREAA/NAHREP Real Estate and Marketing Conference

LAS VEGAS (August 27, 2009) - What are the secrets for selling distressed properties? What do asset
managers look for in listing real estate brokers? What are the foreclosure sales opportunities in the future?
The nation's leading REO asset managers will answer these questions and more in a rare exchange with real
estate agents at the 2009 AREAA/NAHREP Real Estate and Marketing Conference on October 25-27 at the
Palazzo Resort in Las Vegas. This is the single largest industry gathering of Hispanic and Asian real estate
professionals that work with multicultural homebuyers.

SAN DIEGO (JULY 9th, 2009) - The National Association of Hispanic Real Estate Professionals
supports the proposed legislation to expand tax credits to all homebuyers and increase the
incentives from $8,000 to $15,000 as recommended by the Business Roundtable Housing
Working Group and now included in the Homebuyer Credit Act of 2009 (S. 1230).