by RICHARD J. LACIVITA, ESQ.

REIMER LAW CO. *

USFN MEMBER (KY, OH, WV)

During the COVID-19 pandemic, the federal government passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Consolidated Appropriations Act of 2021 (CAA) to address financial distress caused by the resulting economic slowdown. Both acts contained provisions addressing the bankruptcy process and nonpayment by debtors, including new alternatives to address delinquent mortgage payments. By March of 2022, the CARES Act and CAA had sunset. Loss mitigation programs from lenders have filled in the absence created by these two expiring laws. One loss mitigation alternative that has seen increased usage for Federal Housing Administration (FHA) loans is the COVID-19 forbearance coupled with a COVID-19 Recovery Standalone Partial Claim.

            At the outset of the COVID-19 pandemic, the secretary of the Department of Health and Human Services declared a Public Health Emergency (PHE) in late January 2020, pursuant to the Public Health Service Act. A PHE lasts for 90 days and must be renewed to remain in effect. The PHE for COVID-19 has been renewed several times including most recently in Mid-July 2022 and is currently scheduled to expire in October 2022. The end of the PHE is important for FHA loans as it effects the length of COVID-19 loss mitigation programs including forbearances.

Borrowers, who are delinquent on their mortgages due to a COVID-19 related reason, can seek mortgage payment relief through a temporary suspension or reduction of monthly mortgage payments. This temporary suspension or reduction of payments is known as a forbearance. An initial forbearance period, entered into after October 2021, may be up to six months. A borrower can request an additional six months for a total of 12 months of forbearance. No extension period may extend beyond six months after the end of the PHE or September 30, 2022, whichever is later. After the forbearance period, the borrower can be reviewed for COVID-19 Recovery Options, including the partial claim to address unpaid forbearance payments.

            For borrowers in a forbearance who are owners and occupants of the property and can resume making their current mortgage payment at the end of the forbearance period, but cannot afford to pay missed payments, a partial claim could be the best resolution. It allows the mortgage default deficiency to be placed in a zero-interest, subordinate lien against the subject property with no added fees. The terms of the partial claim indicate the mortgaged amount does not require repayment until the borrower makes the last payment on the primary mortgage, refinances the loan, or sells the property; whichever occurs first. Also, the COVID-19 Recovery Standalone Partial Claim is limited to 25% of the borrower’s unpaid principal balance. The borrower enters into a partial claim by executing a new promissory note and mortgage to the secretary of Housing and Urban Development for the amount of the mortgage delinquency. The FHA is part of the U.S. Department of Housing and Urban Development (HUD), which is the reason the partial claim is payable to HUD. The partial claim is not made payable to the present holder of the note and mortgage.

As a servicer or attorney who represents mortgage lenders, there are issues to consider if a debtor in a Chapter 13 Bankruptcy enters into a partial claim. The debtor is entering into a new loan with a new entity, so the partial claim will have to be approved by the court as the debtor is engaged in borrowing. This approval would be accomplished by a motion and order to approve the partial claim and a possible hearing.  These motions have been set for hearings either by opposition from the bankruptcy trustee or the court to determine the effect on the bankruptcy as the loan would be brought current under the terms of the partial claim. The partial claim does not require payment until the loan ends, which is regularly after the bankruptcy concluded, and, thus, would not require payments by the trustee or debtor. For FHA loans, a mortgage forbearance coupled with a COVID-19 Recovery Standalone Partial Claim will be an available possibility to address mortgage delinquencies for the foreseeable future.

Copyright @2022 | USFNews

* Law firm is a 2021 USFN Award of Excellence recipient

By Brian Vaughn

McCalla RaymerLeibert Pierce, LLC*

USFN Member (AL, CA, CT, FL, GA, IL, KY, MS, NV, NJ, NY, OH, OR, TX WA)

Diversity, Equity, and Inclusion (DEI) is top of mind for most people these days.  We see and hear about the importance of DEI in the news, social media, and at conferences. Starting a meaningful conversation about DEI for many companies may seem daunting or the timing may seem like climbing a mountain during the greatest pandemic in our lifetimes. Honestly, the time is past due and the pandemic, in a way, has offered us an opportunity as many companies are having to rebuild their teams.

A tougher question may be: Are our current standards on Minority and Women Owned Business (MWOB) outdated?  Are we acknowledging those that have moved past the standard goal of what was originally intended with MWOB?  We push our companies to a broader image of what diversity is from an overall staffing level; should we be doing the same for our companies’ ownership? We could start by increasing each type of minority owner, rather than trying to achieve the goal of fitting into the small box by simply achieving a particular status of women-owned, or veteran-owned, or African American-owned business, for example, as set forth by the government. While there are certifications that seek to allow for an expanded definition of “minority-owned” to be more inclusive, rather than exclusive (for example, Chicago’s Minority and Women-Owned Business Certification Program, which certifies firms who have 51% ownership by a minority OR a woman), the federal classifications do require your firm to fit into one specific area to obtain certification.

DEI has evolved to expand inclusion and suggested staffing models that reflect our society.  We strive to create an encompassing group of people to bring in all visions and ideals to better our organizations.  We look to have a well-rounded team from a spectrum of all genders, races, ethnicities, ages, religions, disabilities, and sexual orientations; yet when it comes to our ownership, we only recognize those that are owned by at least 51% of one diverse group.  Is it time for our acknowledgement of ownership that surpasses the standard model to be our new goal?

Let’s review a couple of examples. An organization’s ownership is made up of 40% women, 15% minority, 25% LGBTQ and 20% other non-women or non-minority. This makeup is 75% diverse, yet according to our current standards, we do not acknowledge this organization for reaching what we hope our DEI goals aim to achieve.  Another organization’s ownership is split evenly by four owners into 25% portions.  The diversity makeup of the ownership is African American, Latinx, Women and LGBTQ, making this 100% diverse ownership.  For these suggested organizations to meet the 51% current standards, the ownership would have to reduce its diversity to only allow one diverse segment the majority ownership.  So, in effect, this dilutes their ownership’s diversity, moving us away from a true goal of any DEI ownership program.

While many still fall short of the basic 51% standard, is it time to expand our understanding of diversity in ownership to better match our overall DEI goals?   For decades, since its inception, the 51% rule has been the line in the sand for DEI ownership, but government and corporations are looking to suppliers that more closely match their overall diversity goals.

Expanding the standards to include organizations with ownership that meet a higher level of combined women and minority threshold is key to moving all DEI initiatives forward. This doesn’t mean removing the current standard of 51%, but rather adding expanded options for firms that meet a 70% or higher combined women and minority ownership.

Copyright @2022

USFN August e-Update

By William R. Dziedzic

Bendett & McHugh, PC*

USFN Member (CT, ME, MA, NH, RI, VT)

In the case of [T]he Vermont House Condominium v. Salese et al, a Vermont Superior Court Judge issued a decision effectively refusing to expand the condominium association’s super-priority lien over a first mortgage beyond the statutorily mandated six-month priority.

In this action, the Plaintiff (“association”) submitted a proposed judgment decree that sought to extend its statutory “super-priority” lien to all common expense assessments that became due from the defaulting unit owner and not just the six months that accrued before it filed its action. The mortgagee objected.

An association’s six-month super-priority lien derives from the Vermont Common Interest Ownership Act (VCIOA.) However, while VCIOA allows common expense assessments that became due from the defaulting unit owner, absent acceleration, during the six months prior to the condominium association filing its action, in the past decade there have been a number of superior court decisions expanding the lien beyond six months, often including common assessments that become due during the pendency of the action, as a matter of fairness. The courts looked to factors such as the increase in loss mitigation efforts by lenders, the implementation of a state mortgage foreclosure mediation program, and other factors that have led to longer foreclosure timelines and their impact on the six-month priority lien. As such, the priority lien was expanded in certain counties beyond the six months.

The association argued that under the “fairness” doctrine the statute in this matter should be interpreted to include the entire amount of common assessments that became due as, it alleged, lenders and servicers often “abuse” VCIOA “by dragging their heels in condominium foreclosure proceedings…because the Association is forced to serve as their property manager for free for years at a time.” The court declined to expand the reading of the priority statute beyond the six months prior to the action under a plain reading of the language of the statute, a review of the history of the statute demonstrating legislative intent, rules of construction, and settled common law principles.

The decision is important because, although it is only a trial court decision, it is persuasive on the judges in Vermont. This decision will be a much-needed tool in the toolbox when loan servicers request and negotiate priority lien payoffs throughout this county, and hopefully a trend other trial court judges will adopt statewide.

It should be noted that until the Vermont Supreme Court addresses the split of interpretations of the priority statute, it will continue to be a county by county, judge by judge, interpretation. As always, it is important to contact local counsel when requesting association lien payoffs. 

Copyright @2022

USFN August e-Update

By Peter Mehler, Esq.

Reimer Law Co.*

USFN Member (KY, OH, WV)

On May 10, 2022, Louis Blessing, III, a Republican member of the Ohio Senate from the Cincinnati area, introduced Ohio Senate Bill 334. The legislation intends to give local residents and tenants of properties going through the foreclosure process a leg up on out-of-town, deeper pocketed investors. State Senator Blessing argues that out-of-town investors are buying substantial numbers of properties throughout the state and then either flipping the homes or renting them out to local residents.

Often, local residents get outbid by the investors, which, State Senator Blessing argues, has a deleterious impact on the local community by decreasing local ownership, decreasing home values, and generally raising rents in marginalized communities.  As a result, Senator Blessing is attempting to level the playing field by expanding the opportunities for local owner/occupants to purchase property at auction.

The proposed law would require the county sheriff or private selling officer to post notice on the property at least three weeks prior to all sales advising “eligible-tenant buyer(s)” or “eligible bidder(s)” that they have the right to purchase the property by matching or exceeding the highest bid placed at sale. “Eligible-tenant buyer(s)” are defined as a party either living in the property or intending to live in the property within 60 days of purchase for a period of at least one year.   An “eligible bidder” is defined as an owner occupant or locally based nonprofit organization whose primary purpose is to provide affordable housing.

Moreover, SB 334 would give additional time after the date of sale for the “eligible-tenant buyer” or “eligible bidder” to arrange financing to close the transaction.  There are several additional administerial steps involved with the proposed law, but in essence, the local tenant/buyers would be given an additional 45 days to deposit funds with the sheriff or private selling officer.

While the goal of the law is laudable, it is unlikely to have the intended impact.  Most tenants will be unable to secure financing, even with additional time after the sale, and “eligible bidders” will be few and far between.  The more likely impact of the law, as introduced, will be to delay the foreclosure process and decrease the number of bidders at foreclosure auctions.  It might have the tangential effect of limiting the bulk buying of properties by out-of-town investors, but chances are low this will decrease rents or increase homeownership in marginalized communities. Thus, Senator Blessing’s proposed law is misplaced at best.

In fact, recent statistics show an overwhelming majority (84%) of buyers at foreclosure sales[1] purchased only one home over the last calendar year, which indicates that the number of properties being purchased in bulk by out-of-town investors is grossly exaggerated.

A better approach would be to make it easier to buy properties at auction, not harder.  County sheriffs throughout the state were supposed to have a centralized online auction platform in place two years ago, wherein buyers could view all properties being auctioned throughout the state in an easy-to-use format, but the roll-out has been piece meal and remains behind schedule. Furthermore, additional funding to assist those in marginalized communities to purchase homes is what is needed, not additional time within which to do so.

Kentucky Flooding Update

Eastern Kentucky has been hit hard with flooding. It was so bad that entire towns, including some courthouses, have been washed away. The President has declared this a major disaster. Please keep those effected in your thoughts and I encourage everyone to contribute something if they can. Many have lost everything, and even more horrible many lives have been lost.

The following counties are all CLOSED for Judicial activity according to the KY Supreme Court

·        Floyd (Prestonsburg, KY) (federal - individual assistance)

·        Harlan (Harlan, KY) (not yet part of federal disaster declaration)

·        Knott (Hindman, KY)(federal - individual assistance)

·        Lee (Beattyville, KY) (not yet part of federal disaster declaration)

·        Letcher (Whitesburg, KY) (federal - individual assistance)

·        Magoffin (Salyersville, KY) (federal – public assistance)

·        Perry (Hazard, KY) (federal – individual assistance)

Knott County is officially closed by Supreme Court order, and times are tolled during the period of closure. See the attached Supreme Court Order.

In addition, the flooding impacted (see FEMA map attached):

·        Breathitt (Jackson, KY) (federal – individual assistance)

·        Clay (Manchester, KY) (federal – individual assistance)

·        Pike (Pikeville, KY) (federal – individual assistance)

·        Johnson – (federal – public assistance)

·        Wolfe – (federal – public assistance)

·        Leslie – (federal – public assistance)

·        Owsley – (federal – public assistance)

Post Offices in most of these counties are also closed: Flood Resources - Kentucky Governor Andy Beshear

The Governor’s emergency web page is: Flood Resources - Kentucky Governor Andy Beshear

Kentucky Housing Corporation: Programs - Resources for Kentuckians in Need (kyhousing.org)

The FEMA Website is: 4663 | FEMA.gov – disaster declaration DR-4663-KY

If you have any additional questions, please contact Rich Nielson, Managing Shareholder Kentucky, at (502) 371-1510, or by email at rielson@reimerlaw.com. 

By Kim Jenkins, Esq.

Baer & Timberlake,P.C.*

USFN Member (Ok)

We all know the stereotypes of older people and technology. Honestly, many of them apply to me. For instance, seniors are supposed to hate change and dread updates to software they already don’t know how to use properly. In an overused comedy trope, seniors struggle to use a remote control or call their grandchildren to set the clock on the microwave. While society laughs or rolls its metaphorical eyes, keeping older people engaged in the workforce presents real struggles.

The U.S. Government Accounting Office predicts that by 2025, 30% of the United States population will be over the age of 55, and older workers can be an invaluable asset to an organization. They typically stay in a job longer and take fewer days off than workers with young children. Including seniors in the workspace provides a diversity of viewpoints and perspectives. They have many years of experience and skills, and they have established connections in the business community – it’s both what they know AND who they know. However, there are also challenges to be faced, technology being the most obvious. The National Bureau of Economic Research conducted a study of 50,000 businesses and 11.6 million workers and found that the faster a business incorporates new technology, the faster it loses its older workers. Identifying and solving the problems faced by seniors will help create a diverse and productive office environment.

COVID necessitated the use of technology to enable remote work, which can be beneficial to those older workers facing the greatest risk of exposure in a public workplace. Even the courts transitioned to online platforms for hearings during the crisis. However, many seniors experience aggravation and anxiety when faced with learning new technology and the prospect of using unfamiliar features or programs. Some may also have physical limitations, which could make using technology difficult. In a 2014 study, The Pew Research Center found that 23% of older adults have a condition which makes reading difficult. Unflattering stereotypes can also lead management to view an older employee as uncooperative or unwilling to learn new skills.

Failing to address these issues can result in lower productivity and frustration throughout the office, but many businesses fall into a Catch-22 type dilemma: It takes more time and money to train older workers, but the older employees will likely leave the workforce sooner than their younger counterparts. This article offers ideas for making that training more effective.

When training, keep it simple and speak in a language that seniors understand. Remember, for most older workers, digital technology is not intuitive. Never assume that there is a base of knowledge. For instance, in preparing for this article I visited with an older friend in a related field who confirmed that he did not know how to cut and paste, search within a document using “control f,” enlarge the print on his screen, save and retrieve documents, or use Boolean operators. Most IT personnel would assume that this was common knowledge in preparing a training module. Try to discover the base level of understanding before moving on to more complex ideas and avoid using technical terms when a simple word might be more effective.

Face-to-face training works best when an older employee is learning a new program. Online training often makes a bad situation worse, as the employee is struggling with navigating the training instead of concentrating on the content. This approach is more time consuming and expensive than simply providing an online tutorial, but if the end result is a fully trained, functioning user of the technology, it is time and money well spent.

Consider a mentorship learning program. Businesses can pair an experienced user with a novice to teach a new skill. This approach can be gentler and less intimidating than formal training. An added fringe benefit might be that crossing the age barrier can create stronger relationships among the workforce.

Older workers have a more difficult time dealing with distractions, particularly digital distractions. E-invites, calls, e-mails, Zoom messages, and pop-up ads sidetrack most seniors more than their younger colleagues. Training should include advice on how to handle these distractions. Perhaps they can block a specific time for production during which these notifications can be turned off. Using email folders and rules can also help those who struggle with deciding which tasks need immediate attention and which can wait.

Motivation is the key to learning any new skill. Seniors should understand that not only may a new program help the business, but the investment in learning a new skill will also make the employee’s life easier and more productive. It will accelerate finding answers to their questions and provide quicker access to documents or information. The attitude of the trainee should be positive and excited, never fearful. Humor can be a valuable tool. Try naming your device. It is harder to get upset with “Sparky” or “Mac” than “this horrible machine.”

If you are creating a website, training module, or program for older users, it is important to keep it simple. You may use fewer buttons, contrasting colors, simple terms, and larger fonts. You should avoid using acronyms and technical jargon. Testing your program with older users can provide valuable insight for making its use more effective.

Older users are far more likely to want to learn a new skill if they think they are capable of learning and that they will receive a benefit. The technology must be useful to them. Seniors now use smart phones, texting, email, social media, and take photos with their phone because they find these tasks worthwhile. By showing them how new technology in the workplace will be similarly worthwhile, and by training them in ways that make sense to them, modern businesses can have the best of both worlds: technology that makes the office more productive, and an engaged and excited mature workforce.

Copyright @2022

USFN Summer Report

By Michael J. Anselmo, Esq.

Codilis & Associates, P.C. *

USFN Member (IL)

If you mention associations and management companies related to fees to an Illinois practitioner, you will likely cause them inner turmoil. For years, associations and related management companies have been charging what many real estate practitioners and unit owners perceive to be exorbitant fees for the release of documents that are required upon resale of a unit by Section 22.1 of the Condominium Property Act (the “Act”). Any objection to these fees often causes unnecessary delays for a real estate closing – sometimes lasting months. Associations and their management companies have largely gone unchecked and held transactions hostage with this power. Recently, through case law and legislative action, some movement has been made in the direction of protections for owners and purchasers.

Channon v. Westward Management, Inc.

These excessive fees and delays were at the center of the issue in Channon v. Westward Management, Inc., 2021 IL App (1st) 210176, where a condominium unit owner filed suit against a property manager for same. Here, the Plaintiff alleged that $150 for a paid assessment letter, $20 for a budget income statement, and $75 for a condo questionnaire were arbitrary and excessive.[1] Defendant filed a motion to dismiss alleging that Section 22.1 of the Act was intended to protect prospective purchasers and, also, did not govern charges by property managers – only those charged by associations and boards.

Unpersuaded by the defendant’s argument, the trial court certified the following question to the appellate court: “Whether the Act provides an implied cause of action in favor of a condominium unit seller against a property manager, as agent of the condominium association or board of directors, based on allegations that the property manager charged excessive fees for the production of information to be disclosed to a prospective buyer under that statute.” The appellate court allowed review and held that such implied cause of action exists.

While the ruling does not necessarily provide a clear limit on what associations and their management companies may charge, it should give them pause. Whereas it was previously unclear whether a seller of a unit could bring a cause of action for such fees, the appellate court made it clear that they now can.

Condominium Property Act – House Bill 5246

Coincidentally (or maybe not), House Bill 5246 was passed into law on May 27, 2022. It changes the Act with respect to providing information to a prospective buyer by a unit owner. It requires that the principal officer of the unit owner’s association or other designated officer shall provide the information within 10 business days, rather than 30 days, of the request by the prospective purchaser. It also changes the fee to be imposed on the unit owner from “a reasonable fee” to “a reasonable fee not to exceed $375” covering the direct out-of-pocket cost of providing and copying the information. An association may also charge an additional $100 for rush service completed within 72 hours.

Thank you to our attendees for helping USFN kick off our first two IN-PERSON events in more than two years! It was so great to see everyone in person at both the USFNdustry Forum in DFW in June and the Legal Issues Seminar, which we just wrapped in Chicago. If you couldn’t join us, here’s a few highlights you missed from each event.

At USFNdustry Forum:

• Our members and servicers discussed a variety of topics during a full slate of education sessions, which included high-level overviews during our five general sessions and deep-dive discussions in our 12 breakout sessions focused on foreclosure, bankruptcy, REO/evictions, operations, and diversity, equity and inclusion.

• Our servicers enjoyed open and honest conversations on the challenges they face in today’s environment during a Servicer-Only Roundtable and Networking session.

• Members engaged with each other during face-to-face committee meetings and received valuable industry and organizational updates during a Member Town Hall.

• More than $1,000 in monetary donations was raised for the Boys and Girls Clubs of Collin County, and attendees donated school supplies and incentive gift cards for the youth the organization serves.

• Of course, there was lots of catching up and networking during the President’s Welcome Reception (and lots of great selfies taken in front of the beautiful USFN selfie wall)!

• And to top it all off, our members and servicers enjoyed a fun offsite experience at TopGolf for food, drinks, and a chance to perfect their golf swing!

At Legal Issues Seminar:

• During this one-day event, our members and servicers packed in a ton of learning with education sessions that targeted litigation challenges and legal ethics in today’s environment.

• Many attendees earned their much-needed CLE credits.

• Again, servicers discussed and collectively collaborated on their most pressing legal issues during a Servicer-Only Roundtable and Networking session.

• Members and servicers enjoyed the amazing Chicago view while networking and dining at The Signature Room at the 95th, one of Chicago’s finest restaurants.

Stay tuned to USFN’s events site, USFNevents.org, for dates, locations, and details for each of these events in 2023.

We’ll close out our 2022 in-person gatherings with our signature Executive Servicer Summit (ESS), followed by USFN’s Member Retreat. ESS is scheduled for Sept. 29 through Oct. 1 at The Ritz-Carlton, Amelia Island, FL. A lighter version of the USFN Member Retreat is scheduled for Dec. 1-2 at The Bellevue Hotel in Philadelphia, PA.

In the meantime, get timely and relevant updates during our complimentary monthly USFN Briefings. Visit USFNevents.org/briefings for the full schedule and to register for the next Diversity, Equity & Inclusion Briefing on Aug. 23 to join an insightful discussion on diverse gender identity and gender expression.

Learn more about USFNextGen, an exclusive member benefit program to help elevate the next generation of firm and industry leaders, during a free Virtual Open House from 1 to 2 pm CT, Aug. 9. Register today.

Finally, if you missed our Speaker Resource Group webinars and would like to strengthen your speaking skills, you can access the recordings at USFNevents.org, as well as sign up to join our growing roster of in-person and virtual presenters.

USFN Summer 2022 Report

Aldridge Pite, LLP (USFN Member – AK, CA, FL, GA, HI, ID, NY, OR, UT, WA) would like to congratulate two of its attorneys for receiving recent recognition.  Cheyenne M. Zokaie has been named a “Super Lawyer” in Texas for the second consecutive year.  Matt Mashburn was recently awarded the prestigious 2022 George A. Pindar Award by the Real Property Law Section of the Georgia State Bar. The Pindar Award is the highest award presented by the Real Property Law Section to attorneys who have demonstrated a lifetime of the highest quality of legal services, ethics, and professionalism throughout their careers, and who serve as role models to those who come after them.

USFN Summer 2022 Report

Schiller, Knapp, Lefkowitz & Hertzel, LLP (USFN Member - NY, NJ, PA, VT) announces the additions of Marika Dagounis, Kathy McCullough Day, Alexa Scarpaci, and Amanie Akarah as Associates to the firm.  Dagounis joined the firm in May and has over seven years of experience in creditors’ rights. Her primary focus will be handling NY foreclosures, evictions, litigation, loss mitigation and post-sale matters. Day joined the firm in March as lead bankruptcy attorney. She has been handling bankruptcy matters for 15-plus years and handles mortgage, auto and complex bankruptcy matters. Scarpaci was admitted to practice law in 2021 and joined the firm in January handling NJ foreclosure matters. Akarah started with the firm in November 2021 and focuses her practice in the areas of NY foreclosure and NY litigation and has been handling these types of matters for more than eight years.

USFN Summer 2022 Report

McCalla Raymer LeibertPierce, LLP (USFN Member - AL, CA, CT, FL, GA, IL, KY, MS, NV, NJ, NY, OH, OR, TX, WA) announces the opening of its new Oregon office at 10151 SE Sunnyside Road, Suite 490, Clackamas, Oregon 97015. The firm also announces the addition of two lawyers, CarrieMajors-Staab and Cara Richter, who will be based in the Oregon office. Additionally, Laura Coughlin has joined the firm as Managing Attorney of its Washington foreclosure practice, based in the Bellevue, Washington office.  Majors-Staab, Richter, and Coughlin have many years of combined legal experience in financial services representation.

Copyright @2022

USFN Summer Report

USFN’s Diversity, Equity, and Inclusion Section periodically spotlights professionals promoting DEI and enacting education initiatives within the industry. Janice Nakano, Director of Client Relations and Business Development for Aldridge Pite, LLP, describes how she champions diversity and draws from her personal experiences to better understand and learn from others. Learn more about Janice and her efforts and discover small ways you can support DEI in your own work/life.

How would you describe your current thinking about diversity, and how has your thinking changed over time?

As an older adult, I’m more educated about what diversity means and how differences can and should be used to create a rounded perspective and understanding of different people, cultures, and identities. Traveling to foreign countries has certainly opened my mind to the fact that even though we may be from different backgrounds and cultures, we are all striving to have the basics: a roof over our head, a job, a family, friends, and a social existence. Before my foreign travels, I was definitely more self-centric (aren’t we all when we’re teenagers and in our 20s)?

Can you share some examples of how you championed diversity?

Participation: I have always been supportive of diverse communities. Since the late 1970’s, I have supported the LGBTQIA+ community in any way that I can by participating in parades, charities, galas, and events. I have to thank my two best friends growing up for enabling me to be a part of this community.

Support: Supporting women is also something I’ve felt a natural affinity with. I have mentored several young women who have grown into incredible professionals in their careers and continue to do so. I’ve worked with organizations that help women in various manners. Dress for Success is one of those organizations that give women the power to achieve economic independence by giving them tools, aka business outfits and self-care packages. The Mom Project and Path Forward are two organizations that I am just becoming familiar with. These companies help women who want to return to the workforce by equipping them with the tools they need, job prospects, and a community to support them.

Education: Currently, I’m educating myself in racial equality and the history of racism. Two books that stand out are, “How to Be an Antiracist” by Ibram X. Kendi, and “The 1921 Tulsa Race Massacre: A Photographic History” by Karlos K. Hill.

How would you serve diverse groups or traditionally underserved communities?

I live in New York City, which is filled with cultural, racial, socio-economic, and religious diversity to say the least. I try to buy groceries, clothing, and other necessities from my local shops or go to specific neighborhoods where I can find ethnic items.

What challenges do you think you will face working with a diverse population?

I like to think that I can communicate with any community. Language can be a challenge, but having lived in France before I could speak the language has taught me patience and understanding when communicating with a non-English speaker, or someone with very little English or a strong accent.

Growing up in a Buddhist household, when all my friends came from other different religious backgrounds, helped me to understand that we may have different faiths, but on a fundamental level, we are all taught to be kind, love thy neighbor, and be honest and caring.

Describe your ideal corporate approach to diversity, equity, and inclusion. What obstacles do you see in implementing the ideal approach?

Firstly, create a group or committee, state the group’s mission, create goals, and implement a path to achieving goals. Obstacles: making sure this does not become a group that is used to solely voice complaints.

How do you measure success in diversity, equity, and inclusion?

In business, through reporting and analytics, we can look at performance, pay equity, talent recruitment, and retention. Focus on measuring influence and power (people), rather than representation (numbers).

What positive outcomes do you think you will encounter by working with a diverse population?

Different perspectives offer a well-rounded understanding of a situation/topic/task. Learning about other cultures helps me to understand about others’ choices and decisions.

How would you advocate for diversity education and diversity initiatives with individuals who don’t see its value?

The best way to convince others to see the value in DEI, is to educate through discussions, suggested readings, providing information on events, and how to participate in DEI activities.

How would you handle a situation in which someone made a sexist, racist, homophobic, or otherwise prejudiced remark in a professional setting? In a social setting?

In both professional and social settings, I would let people know immediately that the behavior/comment is not acceptable. I have absolutely no problem confronting the person in a respectful and non-aggressive way.

How has your education/work experience prepared you for working with a diverse population?

As a chef in California, many of my co-workers were Mexican. In Europe, many of the support kitchen staff were from Africa. In both cases, these groups were, at the time, considered sub-standard groups.

Being a part of a DEI group has definitely expanded my knowledge and given me more tools for working and living with a diverse population.

Has your background prepared you to be effective in an environment that values diversity?

Growing up in a traditionally Japanese American household, but in a predominantly Caucasian

neighborhood, I always thought of myself as different. My family was the only Japanese family in our neighborhood and there was only one other Asian student with me kindergarten through sixth grade. My appearance has always been mistaken for either Latin American, an Islander, or Caucasian. I’m certain the inability for people to put me into a specific category enabled me to be part of every category in a sense, but at the same time, I wanted to be like “all the other girls” and identify as Caucasian. As I’ve grown older, I’ve embraced my diversity even more. Living in New York City has also allowed me to be part of and value the many cultures that exist.

Are you actively engaged in a group or organization that promotes diversity?

Yes, I am Vice Chair on the Diversity, Equity & Inclusion Committee with USFN.

What is the most challenging situation dealing with diversity that you have faced and how did you handle it?

I remember one time when a teenage girl was slinging offensive comments to a much older man, complaining how long it took for him to unload his groceries from a shopping cart. I turned to this girl and told her that she should have more respect for the elderly, and how would she feel if someone spoke to her grandparents like that. Her response was “whatever.” I honestly don’t think she got it. I’m a firm believer that karma will handle people and their actions.

Have you ever realized that you said or did something that may have been offensive to a colleague/co-worker/friend? How did you respond to that realization, and what was the outcome?

I remember telling a joke once to a friend, only to realize later just how offensive it was. My friend didn’t say anything at the time, but later, I did bring it up and apologized for being so disrespectful and insensitive. As I’ve grown older, I realize the impact words have and how important it is to think about what you say and how you say it.

How would you ensure that you are inclusive of everyone’s viewpoints and what is your approach to understanding different cultural viewpoints?

I believe asking questions is a big part of communication and learning. I’m interested in hearing about what other people think, even when they have very different viewpoints and perspectives than I do.

How do you go about ensuring that you are removing bias from your day-to-day work/life?

I am a work in progress. Confirmation bias is something I am trying to change in myself by reading and listening to different opinions and points of views. I still find myself using gender-specific language such as ‘guys,’ ‘dudes,’ “hey man,’ and similar terms when speaking with other women, or a group that includes women. I’m working on being consciously aware of what I’m saying and who I’m saying it to.

@Copyright 2022

June 2022 USFN e-Update