The Room Where It Happens

This past week, the National Association of Realtors (NAR) invited me to participate in a meeting with the NAR leadership and Jonathan Kanter, the Assistant Attorney General of the United States, Antitrust Division. The parties agreed in advance that to encourage an open and frank discussion, only high-level elements of the conversation, which took place in a large conference room in the Department of Justice building in Washington D.C., should be shared with the public. Of course, I intend to do my part in honoring that agreement. 

Kevin Sears, the current NAR president, led the discussion on NAR's behalf. Jonathan Kanter, the Assistant AG, accompanied by about 15 government attorneys from his office, led on behalf of the government. Following the meeting, Mr. Sears sent a letter to the 1.6 million members of NAR describing the highlights of the meeting. Rather than paraphrase the contents of his letter, I have included it in its entirety at the end of this blog. 

What I can share is how critical it was that I was there. Not surprisingly, out of almost 30 people, I was the only Latino in the room. I believe this is important because the decisions made by the people in that room will likely profoundly affect how residential property is bought and sold in America. Considering that Hispanics are projected to account for the large majority of homeownership gains nationwide over the next two decades, I think it was critical that someone able to speak on behalf of that cohort was present. 

The meeting was part of a larger process to explore whether there was enough common ground between NAR and the U.S. government to avoid litigation on the part of the government. For those who think the settlement agreed upon in March represents the end of the lawsuits against the real estate industry, the meeting with the DOJ confirmed there is much more work in front of us.  

The DOJ called the meeting, and early on, it became clear that the viewpoint I was there to express was not part of the agenda. I wasn't really deterred. I have been in a number of exchanges with powerful people in the past and have learned never to get emotional and always play the long game. 

While I didn't get to make the statement I had prepared about how the disruption to the market would likely have a devasting impact on Hispanic homebuyers, I did get to make a few points. I did say that Latinos were the largest share of first-time buyers in the market, and any changes to industry practices that required buyers to bring more cash to a transaction would disproportionately affect Latino buyers and potentially exacerbate homeownership disparities in the market. I also said that the current system, with all its flaws, created a 75% homeownership rate for White Americans, and now when for the very first time in U.S. history, the majority of new homebuyers are expected to be Hispanic, there are calls to dismantle that very system. 

For those who question whether representation matters, believe me, it does. Major decisions that affect the livelihood of hundreds of thousands of Latinos and millions of future homebuyers are made by a handful of people who sit in a room like the one I was in last Wednesday. While I was in the meeting, I couldn't help but allow my eyes to wander to the portraits of Teddy Roosevelt and Robert F. Kennedy and think about meetings that took place in that room and how I hope there aren't future meetings like the one I was in without a Latino with a seat at the table. 

I am grateful to the NAR leadership team for including me in the meeting. I look forward to the next opportunity to meet with the DOJ and other government members about the role of Latinos in housing and the U.S. economy. 

“Dear NAR members,

I’m reaching out to share...