Have you ever wondered what FICO stands for?  If you have, FICO is an acronym for Fair Isaac Corporation, the company that developed the FICO® credit scoring models that many lenders use to help accurately predict a consumer’s ability to repay a debt on time.

According to the Wall Street Journal, the calculation process for your FICO credit score, which is key to getting a loan for a house, a car, and even credit cards, is changing soon.  FICO makes these changes every few years based on the economy, consumer debt, and other factors. The new system will reflect two years, while right now, it reflects a monthly report.

Experts say the most recent change could mean a significant gap between people with good and bad credit.  “It won’t just be a snapshot of one month of your payment ability and your debt load,” said Angi Renna, president of the Sterling Financial Group. “It’ll be two years’ worth, so it is going to affect people on a longer-term.”

FICO said most consumers would see modest swings if anything. But, about 40 million people with higher scores are expected to see their scores jump, while 40 million people with lower scores can expect a decrease.  “Most consumers will see less than a 20-point swing in either direction,” David Shellenberger, FICO’s vice president, said in a statement on Thursday. “That’s roughly 110 million that will see only a modest change to scores, if at all.”

FICO is making the changes to its new version of its credit ratings, called FICO Score 10 Suite. Lenders, however, determine which version to use, and many may continue to rely on older, more lenient iterations. For example, FICO’s last update in 2014, was seen as bolstering credit scores. But the most-used FICO model is still the one released 2009, says Ted Rossman, industry analyst for CreditCard.com.

The updates, first reported by The Wall Street Journal, are likely to widen the divide between consumers already judged as good or bad credit risks.  Americans with high FICO scores of 680 or higher who continue to make loan payments or pay credit card bills on time will likely get ever higher scores while those who keep missing payments will see their scores drop more sharply than with previous FICO versions.

Settlements among states and the credit reporting agencies – Experian, Equifax, and TransUnion – removed most tax liens judgments from the reports, for example. The agencies and Fair Isaac also began figuring in information such as utility payments and bank account balances to give consumers with sparse credit histories more of a chance to get a loan.

FICO says its latest version “gives lenders unparalleled flexibility and predictive power to make more precise lending decisions.” The new FICO version will put more emphasis on how consumers’ debt levels have changed over the past few years.

So, beware of the new changes.  But Saints, rather than getting too hung up on which model a particular lender is using; we should practice fundamental good habits such as paying our bills on time and keeping our debts low.  This is good stewardship.

October was National Domestic Violence Awareness Month. Have you ever heard of the Blue Campaign? The Blue Campaign is a national public awareness campaign designed to educate the public, law enforcement, and other industry partners to recognize the indicators of human trafficking and how to appropriately respond to possible cases. Blue Campaign’s educational awareness objectives consist of two foundational elements, prevention of human trafficking and protection of exploited persons.
It is difficult to prevent or identify human trafficking if you don’t know what it is or its indicators. Human trafficking involves the use of force, fraud, or coercion to obtain some labor or commercial sex act. Every year, millions of men, women, and children are trafficked worldwide – including right here in the United States. It can happen in any community, and victims can be any age, race, gender, or nationality. Traffickers might use violence, manipulation, or false promises of well-paying jobs or romantic relationships to lure victims into trafficking situations.
Language barriers, fear of their traffickers, and fear of law enforcement frequently keep victims from seeking help, making human trafficking a hidden crime.
Traffickers use force, fraud, or coercion to lure their victims and force them into labor or commercial sexual exploitation. They look for people who are susceptible to a variety of reasons, including psychological or emotional vulnerability, economic hardship, lack of a social safety net, natural disasters, or political instability. The trauma caused by the traffickers can be so significant that many may not identify themselves as victims or ask for help, even in highly public settings.
Recognizing key indicators of human trafficking is the first step in identifying victims and can help save a life. Here are some common indicators to help understand human trafficking. You can also download or order the Blue Campaign indicator card, which is a small plastic card that lists common signs of traffic and how to report the crime.
· Does the person appear disconnected from family, friends, community organizations, or houses of worship?
· Has a child stopped attending school?
· Has the person had a sudden or dramatic change in behavior?
· Is a juvenile engaged in commercial sex acts?
· Is the person disoriented or confused, or showing signs of mental or physical abuse?
· Does the person have bruises in various stages of healing?
· Is the person fearful, timid, or submissive?
· Does the person show signs of having been denied food, water, sleep, or medical care?
· Is the person often in the company of someone to whom he or she defers? Or someone who seems to be in control of the situation, e.g., where they go or who they talk to?
· Does the person appear to be coached on what to say?
· Is the person living in unsuitable conditions?
· Does the person lack personal possessions and seem not to have a stable living situation?
· Does the person have freedom of movement? Can the person freely leave where they live? Are there unreasonable security measures?
Not all indicators listed above are present in every human trafficking situation, and the presence or absence of any of the signs is not necessarily proof of human trafficking. The best thing all of us can do for victims of Human Trafficking is to remain aware of the condition and, more importantly, if we see something, say something. Anonymity can be maintained. To report suspected human trafficking, there are many avenues of reporting:
–National Human Trafficking Hotline…1-888-373-7888;
–National Center for Missing & Exploited Children…1-800-843-5678;
–Call 911; or
— Text HELP or INFO TO BeFree (233733).

Homeowners have a love/hate relationship with their Homeowner Associations (HOAs).   You rarely hear someone say, “I love my HOA Board.”  The purpose of an HOA is to preserve, maintain and enhance the homes and property within the subdivision.  Sounds wonderful, doesn’t it?  But not all HOAs are equal.  An HOA that regulates that neighbor with a weed-ridden front yard or a broken-down Chevy in the driveway is a blessing.  However, when that same HOA tells us that when and where we can put our trash cans out, we aren’t appreciative.  I am not a fan of someone telling me what I can do with my property and land.  But I do understand the utility of an HOA Board.

Community living comes with its own dynamics. Close quarters and shared spaces can—and often does—lead to conflict: a conflict between neighbors, the association board of directors, and members; and also between the board or members and management.  Unlike other locales, Nevada requires that members of common interest communities go to the Office of the Ombudsman of the Nevada Real Estate Division for conflict resolution before filing a lawsuit.

Before any civil action can be taken regarding a dispute relating to governing documents of a common-interest community (homeowners association), the disputing parties must complete the Alternative Dispute Resolution (ADR) process under Nevada Revised Statutes (NRS) 38. Further, if a homeowner association provides a scheme of dispute resolution, that procedure must be exhausted before submitting an ADR claim to the Nevada Real Estate Division, Office of the Ombudsman.

The ADR programs include: 
• The Referee Program
• Mediation
• Arbitration

1. The Referee Program – The referee program allows disputing parties to present their case to an independent referee. Both parties must agree to participate in the program to proceed. The referee can bring the parties together, listen to both sides of the dispute, review the evidence and governing documents and then make a non-binding decision on the matter. The referee is authorized to make monetary awards of up to $7,500. The referee may not award attorneys’ fees. The parties may then proceed to civil court if they wish to pursue the matter further.
2. Mediation – As of October 1, 2013, NRS 38 mandates that mediation is the default method of resolution, should both parties not agree to participate in the referee program. The parties to the mediation provide the mediator a statement and relevant documents about the dispute, including a statement concerning an acceptable resolution. The mediator works with the parties to resolve the dispute with a written agreement.
3. Non-Binding or Binding Arbitration –This option is available if mediation fails and both parties agree to proceed through either form of arbitration in place of initiating a claim through civil court. Each of the parties has an opportunity to present his or her case and witnesses if any. The arbitrator upon conclusion of the hearing renders a decision, after which either party may proceed to civil court.

For more information, please contact the Nevada Real Estate Division, Las Vegas,
realest@red.nv.gov, P: (702) 486-4033.

Tanika M. Capers, Esq.

Last month, we noted May is “Mental Health Month” and that Nevada has a substantial shortage of mental health professionals but ranks near last in access to mental health care (Mental Health America, 2018). News 4 and Fox 11 in Reno on February 21 of this year, ran a story by Kim Burrows, named “Nevada is Dead Last for mental health, State working on a fix.”How mental health services are limited across Nevada. In Reno, one of the largest behavioral health service providers closed its doors last year. It cited a financial shortfall with government funding partners as a reason why. Since then, Renown opened the Stacie Mathewson Behavioral Health and Addiction Institute.
Charles Duarte the Chief Executive Officer for the Community Health Alliance says there’s a stigma associated with a mental health condition and there shouldn’t be. He runs a non-profit organization that has six community health centers in Washoe County that provide primary medical, dental and behavioral health and nutrition services for 30,000 patients every year.

Duarte is on one of four regional behavioral health policy boards created in 2017. Each submitted bills for this legislative session to address mental health care.
AB47 – Creates a pilot approach in rural Nevada to train law enforcement officers and first responders in crisis intervention training. It also provides funding to transport those people for evaluation and treatment.
AB66 – Proposes to create crisis stabilization centers in Washoe and Clark County. There would be eight-bed facilities and patients would stay no more than 14 days.
AB85 – Enhances the 72-hour legal hold to evaluate and stabilize a patient. Part of the bill would allow for transportation by someone other than law enforcement.
AB76 – Allows the four regional behavioral boards to hire additional staff to gather research.
Assemblyman Michael Sprinkle, D-Sparks, is the Chairman of the Assembly Committee on Health and Human Services. He says Nevada needs to step up its game when it comes to mental health services. “It’s horrible for the state of Nevada and what we need to be doing as state leaders are really addressing this issue,” he said. “We’ve been dealing with this since the 1980s and finally we’re having honest conversations about how important this is.”
A stabilization center in AB66 was modeled after a program in Maricopa County, Arizona. “The reports out of Phoenix for 2016 for this program suggested that over 300 million dollars in hospital savings were achieved by having these types of services available,” Duarte said. Maricopa County also reports that it saved the equivalent of 37 police officers who are no longer tied up dropping off patients at the hospital or jail.
Things are definitely looking up for our State. Nevada Governor Steve Sisolak said he’d make mental health a priority. He mentioned it in his State of the State address. “That’s why I recommend adding new staff that will focus on mental health and substance abuse,” he said earlier this year.

While the Legislature is at work in addressing our dire mental health needs in Nevada, there are some resources available. The National Alliance of Mental Illness (NAMI) is an advocacy organization helping to get people in touch with services and provide information about mental illness. If you need behavioral or mental health information or help, NAMI has a helpline. The HelpLine is a free service that provides information, referrals, and support to people living with a mental health condition, family members and caregivers, mental health providers and the public. A well-trained and knowledgeable team of volunteers, interns, and HelpLine staff will respond to your call or message.
The NAMI HelpLine can be reached Monday through Friday, 10 am–6 pm, ET. Call 1-800-950-NAMI (6264) or info@nami.org.