A Guest Blog Post from Stephen Crispin, CRP
Vice President, GenEquity Mortgage

Overview

It is widely agreed upon by economists that home loan interest rates are going to rise. What is not agreed upon, however, is when rates will rise and to what level. To be clear, there are signs currently that rates are on the increase as evidenced by an increase on the average 30 year fixed rate from a low of 3.29% in November of 2012 to a rate of 3.70% in early March, 2013 (according to Mortgage News Daily). While rates are still well below the 52 week high of 4.09%, recent reports of economic strength suggest that rates are on the way higher. Near term, the impacts of this are not expected to be significant. However, longer term, assuming rates continue to rise, the impacts will be felt more severely by relocating employees and their families.

What does this mean?

Home Selling – By virtually all measurements, the U.S. residential housing markets look to be improving. Home values are increasing, albeit from depressed levels, and list to sale times are decreasing. This has been fueled by the previously referenced low interest rate environment and economic strength. However, as rates continue to rise, one of the pillars of strength driving the housing markets will be slowly removed. This may result in a lengthening of marketing times for your employees as they try to sell their homes.

Home Purchase – For the past several years, relocating homeowners have been the beneficiaries of ever lowering interest rates. Consider the transferring employee who was moved in March of 2007 was able to secure a loan with a 6.25% interest rate. That same employee, being moved three years later, was able to secure a rate at roughly 5%. A subsequent move in March of 2013 would allow that same employee to receive a rate of roughly 3.75%. Most of the relocating homeowners over the past 10-15 years have enjoyed this rate differential. But, as previously noted, this trend is likely to reverse, making homeowners reluctant to accept assignments. To entice homeowners to accept moves in this environment, employers may need to offer incentives to these homeowners.

The incentives need to be carefully considered to not only achieve the desired benefit, but to be fully compliant with the ever changing regulations emanating from Washington, D.C. Dodd-Frank legislation has, among other things, created the Consumer Protection Financial Bureau (CFPB). The CFPB is in the process of enacting a number of new regulations which impact the mortgage markets. The regulation that is most impactful to employee benefits is the Qualified Mortgage (QM) rule. It is widely acknowledged that the vast majority of loans made will need to be compliant with QM. This rule states that in order for a loan to qualify as QM the total fees charged to the borrower cannot be in excess of 3% of the loan amount. This applies whether or not the fees are reimbursed by the consumer’s employer. With that in mind, let’s review some possibilities for incenting employees to move:

• Reimbursement for Discount Points – A discount point (a one-time fee of 1% of the mortgage amount) paid by the employer will allow a reduction in interest rate from as low as one-eighth (1/8%) of a percent to three-eighths (3/8%) of a percent, depending on the specific factors of a loan, for the life of the loan. This will help mitigate the mortgage interest differential. Caution is needed, however, when offering discount points due to the QM rules 3% fee cap. Since governmental fees (recording fees, transfer fees, etc.), closing costs (Attorney, Lender’s Title Insurance, and closing/escrow fees, etc.) can make up 1-2% of the loan amount, the Discount Point benefit will likely need to be limited to 1% so that the employee’s loan still qualifies as a QM loan.
• Buydown – A buydown is when a lump sum is paid up front to temporarily reduce a borrower’s interest rate for set period of time. Examples of this are a “2-1-0” or “3-2-1” buydown. A tangible example is as follows: A borrower who has secured a 5% interest rate and a 2-1-0 buydown. The amount of the first 12 payments will be as if the interest rate was 3%. The amount of the subsequent 12 payments will be as if the interest rate is 4%, and all ensuing payments will be at the note rate of 5%. The CFPB has not specifically addressed this per se, but there is no basis for excluding these from the 3% cap rule. Due to the high cost associated with a buydown, this benefit would in the vast majority of instances result in exceeding the 3% cap thereby resulting in the loan no longer qualifying as a QM loan.
• Mortgage Subsidy – Employers have the option of designating a set amount, generally expressed as a percentage of the loan amount, as a mortgage subsidy to reduce an employee’s monthly payment. Example, a 2%, 3 year subsidy would result in an employer paying 2% of a loan amount. This amount would be used to offset the employee’s mortgage costs for 3 years. In the instance of a $250,000 loan, the cost to the employer would be $7,500. The employee would then receive $208.33/month for the first 36 months of the mortgage to offset their costs.

The bottom line is that the next few years are likely to bring about substantial changes in the mortgage market and those changes have far reaching effects on corporate relocation.

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Paragon is excited to announce our year-to-date customer satisfaction numbers are on the rise with our overall end-of-move transferee satisfaction 5 Star Service rate coming in at 97% and our interim survey satisfaction rate being 97.4%. Enforcing our commitment to our new mission statement of providing an extraordinary customer experience, one family at a time, Paragon Consultants have continued to delight our transferees.

Additionally, Paragon offices across the globe are developing a healthy competition to see who will reign as the customer service office champion. Currently, our offices in Warrenville, IL and Hong Kong, China are neck and neck, averaging satisfaction rates as high as 97.5% and 98.7% respectively on the two surveys.

Paragon is thrilled to be able to provide this level of service around the world.

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A Guest Blog Post from
Craig Selders, SGMS, SCRP
President, Paragon Relocation

So what is the current state of the economy and the real estate market?  And how does this affect relocation policy?
The U.S. economy has taken quite the beating over the last few years and, by some accounts, now seems to be improving. This improvement can have a positive effect on the willingness or desire of corporate employees to relocate for the benefit of the company.

U.S. economic indicators are encouraging, but we are by no means out of the recession.  Fourth quarter 2012 annual GDP growth rate was actually not a growth rate—it was -0.1%.  This is the first shrinkage in the GDP rate in three years.  Economists believe this is mainly due to a decrease in military spending, which was down 22%, representing the biggest drop since 1972.  The full year GDP growth rate in 2012 was 2.2%, compared with 1.8% in 2011.  A “normal” GDP growth rate is 3% or greater.  Although private industry added 1.2 million jobs in 2012, the unemployment rate is still too high at 7.6%. Additionally, a large number of the unemployed have taken themselves out of the market, so actual unemployment is higher.

But is the economy poised for growth?  In many respects, it depends on the consumer. The consumer spend is approximately 70% of GDP, so if consumer spending decreases, then the overall economy will feel the pain.  The good news is that consumer spending did increase in Q4 2012 by 2.2%, and since interest rates are low, spending and borrowing have increased. Sales of new and existing homes are up; as are automobile sales.  Borrowing is up, which means people have more discretionary income, feel better about the economy and their jobs, and are willing to take on new debt.  So signs are encouraging that the consumer is spending, which drives the economy.  The bad news is that the payroll tax has increased by 2%, which means disposable income is down.  This could translate into less spending, which so far in 2013, we have not seen.

To put things into perspective, from 1950-1999, average GDP growth rates were 3.6%, and unemployment averaged 5.7% during this period.  From 2000–present, GDP has averaged less than 2%, and unemployment 6.3%.  What does this mean? Simply that post World War II development and spending does not continue forever, and we now see less advancement in GDP growth rates, even though we see some efficiencies and advancements in society such as robotics and technology…but not enough to fuel solid growth.  We also see excessive government debt and a fragile banking system, all of which can have macroeconomic impact on the economy.

So how does this translate into the real estate market, which is so critical to the potential relocation of company employees?  In this area of the economy, there is finally some good news. After being in the doldrums the past three years, we are beginning to see the fruits of improved real estate markets:

• According to the S&P Case Shiller report for January, 2013, for the 20 composite cities across the U.S., the average appreciation gain was 8.1% over the past 12 months.
• According to the National Association of Realtors, the average home price in the U.S. in 2012 of $173,600 was up 12.3% from 2011.
• At the end of December, there were 1.74 million homes for sale in the U.S., the lowest since 1999.
• New home sales in January, 2013, were 29% higher than January, 2012.
• On average, homes are selling in 71 days vs. 99 days one year ago, per the Wall Street Journal.
• And, distressed sales are down 35% compared to last year—a strong sign that foreclosures are clearing the market; however, distressed sales still represent 23% of the total market.

Some of the cities that were not doing very well are now doing exceedingly well. For example, Phoenix, which got hit very hard by recessionary factors and houses lost a great deal of value, had the highest year-over-year gain of 23.2%, for the 12-month period ending January, 2013.  Phoenix also had 540 “flash” sales in the past five months—or homes selling in 24 hours or less—which is higher than any other city in the country.  So we are seeing strong appreciation in some markets.  Others—such as Atlanta and Detroit—continue to improve but still lag in the market.  And yes, Las Vegas is coming back as well with a 12-month appreciation rate of 15.3%.    All 20 cities on the Case-Shiller report showed year-over-year gains—the first time this has happened in several years.

What does all this mean relative to employee mobility?
According the Worldwide ERC®’s 2012 U.S. Transfer Volume and Cost Survey, 91% of corporate respondents cited real estate issues as predominant reasons for resistance to transfer.  But this may change in the next survey.  As home values begin to return to more normal levels, equity positions will increase, and people can sell their homes more rapidly.  This means they will be more likely to relocate since they will be in a financial position to purchase a new home in the new location. It also means that some of the issues of the past may begin to wane—such as large loss on sale payments; longer duplicate housing payments;  less need for longer term temporary housing stays, etc.

But it also means there may be at time in the near future where it is back to the fundamentals of relocation policy.  The inability to move due to negative equity positions may be replaced with the more commonly known issues such as family resistance to moving; moving to higher cost locations; and spouse/partner reluctance to leave a job.  Addressing these important issues will be critical to solving near and longer term relocation challenges.

As can be seen, many macroeconomic factors in the U.S. economy are improving, which has led to an improvement in the U.S. real estate market.  Demand is strong for housing in many markets, and in some markets we are seeing multiple bid situations.  This means that real estate and housing in general will become less of an issue for transferees than over the past three or four years.  In times of change, it is advisable to update mobility polices to ensure contemporary issues are properly addressed—and corporations mitigate the reluctance to transfer.

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What are America’s fastest growing job markets in the United States? This is has been a frequent topic of discussion within the Global Mobility industry as well as on this blog in recent weeks in such posts as, America’s Fastest Growing Cities and Jobs follow Innovation and the College Educated. Now NewGeography.com lists its Best Cities for Job Growth 2012 which ranks different cities of all sizes according to their weighted formula.



Here’s how they derived this list:

The index is calculated from a normalized, weighted summary of: 1) recent growth trend: the current and prior year’s employment growth rates, with the current year emphasized (two points); 2) mid-term growth: the average annual 2006-2011 growth rate (two points); 3) long-term trend and momentum: the sum of the 2006-2011 and 2000-2005 employment growth rates multiplied by the ratio of the 2000-2005 growth rate over the 2006-2011 growth rate (two points); and 4) current year growth (one point).

Although the list is different from previous lists we’ve posted on the fastest growing cities in America it has a lot of similar results such as continued growth in innovation centers such as Silicon Valley (San Jose-Sunnyvale-Santa Clara) and additional growth in locations which have more business friendly tax policy (such as cities in Texas).

What are the top 10 cities for job growth in the United States?

See the full list of the best cities for job growth in America.

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By Amanda Ward, Paragon’s Director of Global Consulting Services based in London, UK

As we move into summer and begin planning those wonderful vacations, we examine a common ailment and some cures to combat the symptoms that can range from simply unpleasant to almost debilitating.  Most people who have traveled by airplane have experienced jet lag but few people understand why it occurs.

What is jet lag?

Jet lag is a medical condition known as desynchronosis; a physiological condition which results from alterations to the body’s circadian rhythms resulting from rapid long-distance travel on a jet airplane. Jet lag occurs when a body clock falls out of synchronization with the destination time. The body experiences daylight and darkness contrary to the rhythms to which it has grown accustomed; therefore, the body’s natural patterns are upset. Rhythms that dictate times for eating, sleeping, hormone regulation and body temperature variations no longer correspond to the new environment. While the body realigns the rhythms and the new daily routine, it is “jet lagged.” NASA estimates that the body requires approximately one day per time zone to adjust its circadian rhythm.

Who suffers from jet lag?

Anyone can suffer from jet lag, regardless of how often they travel by plane or their age. However, it is more common in people over the age of 60 and thought to be less common in babies and children. The speed at which the body adjusts to the new schedule depends on the individual; some people may require several days to adjust to a new time zone, while others experience little disruption.

What are jet lag symptoms?

The symptoms of jet lag are different for everyone, and also depend on how many time zones you have crossed and in which direction you have traveled. Usually it makes you feel tired and low in energy during the day. It disturbs your sleep, so you may have trouble getting off to sleep, or wake up often at night or early in the morning. You might have difficulty concentrating, and be a bit clumsy or irritable because you are so tired. You may also have other symptoms, such as indigestion, altered bowel habits and low appetite, and feel generally unwell.

Natural ways to combat jet lag

Since the experience of jet lag varies among individuals, it is difficult to recommend one specific remedy. Gradual adjustment over the course of several days, while maintaining a regular sleep length of seven to eight hours should reduce fatigue. To avoid jet lag think ahead and synchronize your body clock before you travel. If you’re traveling east, try going to bed earlier for a couple of nights. If you’re traveling west, go to bed later.

The following suggestions can also help to reduce the effects of jet lag:

• Drink plenty of water before, during and after the flight to avoid dehydration.
• Don’t drink lots of alcohol. The pressurized air in the airplane increases body dehydration substantially, and alcohol affects the body clock by not giving you a full and refreshing sleep.
• A short episode of moderately intense exercise may help reset your body clock after arrival.
• Try to fit in with the daily routine and activities of the new time zone as soon as possible – eat when they eat and sleep (or at least rest) when they sleep.
• When the goal is to catch-up with local time (vs. fall-back to), avoid afternoon naps and eat an early and carbohydrates-rich, low-protein dinner.
• As soon as you board your flight, adjust your watch to the destination time.
• If you arrive in the evening, try not to sleep too much on the plane so that you can go to bed when you arrive. And sleep as much as you can if your flight arrives in the morning, so you can stay awake through the day.
• Natural light can help your body clock adjust. If you traveled west, try to get more morning light after you arrive and avoid it in the afternoon. If you went east, seek afternoon light and avoid morning light.

Lastly, know yourself and plan your travel accordingly. Can you sleep on planes or not? If you can sleep soundly whilst you travel through the air, then schedule your flight to include an “overnight” trip which means one that arrives at your destination in the morning. If you can only snooze for a few moments, you should schedule a “daytime” flight that lands in the late afternoon or evening, at which time you’ll be so exhausted from a prolonged lack of sleep that you’ll be able to fall asleep at the right time.

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Paragon recently announced the 2011 award winners. Employees were recognized for their outstanding customer service, cost savings initiatives, leadership and community involvement.

2011 President’s Award Winner – Marie Scott

The President’s Award is the highest honor an employee can receive at Paragon. To be eligible for this award, the employee must demonstrate a commitment to excellence by moving Paragon closer to our mission and our culture of success.

Marie Scott, Corporate Controller, was nominated for her outstanding work and leadership in the area of advancing our global billing capabilities. Scott led Paragon’s effort to respond to a client’s need for billing in 22 different currencies and to 89 billing points across the globe. The project was challenging to say the least as Scott had internal staffing challenges to overcome and her regular, full-time duties as comptroller to maintain. In the end, Marie accomplished the stated goals of the project and the client was delighted with the outcome. Through her diligent work, Marie underscored her commitment to advancing Paragon and the global reach of the organization while at the same time emphasizing her dedication and incredible work ethic. For these reasons, Marie Scott has been recognized as the 2011 President’s Award winner. In addition to a monetary bonus, Scott will receive an extra week of much earned vacation.

Congratulations to Marie and to the other deserving nominees including:

• Kevin Sheehan
• Stacey Bass
• Andre Rekers

2011 Paragon Community Service Award Winner – Ryan Hopkins

The Paragon Community Service Award was developed to recognize one employee who is dedicated to the last tenet in Paragon’s Core Values, which is:

Community Involvement – We demonstrate a caring attitude for our employees and the people we serve. We recognize that we are what we give back to our community. We feel a genuine need to help others is important to our success.

Ryan Hopkins, Underwriter for GenEquity Mortgage, was nominated for his tireless work with the victims of last year’s devastating tornado in Joplin, MS. Hopkins traveled to the storm ravaged area to distribute supplies and assist in the clean-up efforts. In addition, he led a Vacation Bible School in Honduras for three schools and an orphanage, while helping with the construction of another orphanage. Hopkins also serves meals at Solomon’s Porch, a ministry that helps feed and clothe the poor in inner city Dallas. For his outstanding dedication to helping those in need, Ryan Hopkins has been recognized as the 2011 Community Service award winner.

Congratulations to Ryan and the other deserving nominees including:

• Teresa Mahlberg
• Rick Calanni

2011 Paragon Service Award Winners

Many congratulations and thanks go to all our Consultants who earned the 2011 Service Award for having a 95% Satisfied average on all their surveys:

• Steve Ford (at 100%)
• Barbara Moskal
• Jessica Stroede
• Otis Lau
• Bonnie Chung
• Lisa Schmitt
• Leann Tantillo

Moving forward, Paragon has decided to award our Consultants twice a year for their service ratings to offer even more incentive to provide an extraordinary customer experience, one family at a time.

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Message from Paragon founder and CEO, Joseph Morabito
Recently, Paragon’s Management Team, gathered from all over the world, revisited our mission statement to provide refinement. We together determined that Paragon is in business to provide an extraordinary customer experience, one family at a time. The key word in this statement is “extraordinary.” What does it really mean? To better define the word “extraordinary,” I have asked all Managers at Paragon with direct reports in every department, division or subsidiary of our company to meet with our staff members to heighten awareness of our mission statement and to define the word “extraordinary” related to their particular company function. Once done, I have asked that all definitions be submitted to me. We are doing this to make our mission statement not just something we say in proposals to new prospects, or to our existing clients, but to have all employees at Paragon internalize our reason for being. Words in a service company matter, particularly when they turn into actions and deeds. The fact that one word can make such a huge difference in our mission statement is in and of itself pretty “extraordinary.”

In keeping with this thinking, we have added additional talent and resources at Paragon in Operations, Client Accounting, Corporate Accounting, Information Technology Applications and Network Solutions to allow us to provide extraordinary services. We have refocused our efforts on training for our Relocation and International Assignment Consultants to make sure they are well prepared to do their jobs. PRISM 2.0, our new automated operating system, is now fully in place for all existing and new clients, allowing for more functionality related to client and customer access to our system and reporting capabilities. We are in the process of completing a major upgrade of our computers at Paragon in preparation for more video connectivity. We continue to add Paragon boots on the ground as we will shortly add additional service capabilities in Germany, Switzerland, Singapore and China.

We are also developing relocation services for smaller, mid-tier companies – those clients with revenues of $/€10 million to $/€1 billion. These particular clients are more likely to implement more of a flexible benefits approach, rather than fixed plans requiring a different service mindset. Shortly, GenEquity, our national mortgage company will receive FHA approval, which will allow us to provide retail, in addition to the corporate mortgages we already provide. We will be providing retail mortgages this year in Dallas, Texas with a full expectation of growing into other markets in the U.S. Finally, we will begin offering PGR Home Caregiver services to senior citizens in the Dallas metroplex market in recognition of the 75 million Baby Boomers that began turning 65 years old at a rate of 10,000 a day beginning in January 2012. These services are designed to allow senior citizens to remain in their homes, living independently, as long as possible. Once this service is perfected in the Dallas market, we will go national.

The only thing I can say for certain is that change at Paragon is inevitable as we respond to our clients and customers around the world. However, when all is said and done, our mission to provide an extraordinary customer experience, one family at a time, remains constant for all our businesses. We know what we have to do to be successful. Our mission statement is very clear.

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How do you create a perfect work-life balance in your life? Do you think that relocating to another country might help you achieve that goal? Some of us are so buried in our work, doing the work of several people at once. Maybe a change of scenery is all that is needed to help balance work and life.

In the past we have written about online tools to compare different countries, about the happiest places to relocate, about how to have a good work-life balance while on international assignment, about how to have a good life while on assignment and even a two-part series on why you need to accept that international assignment (part 1 and part 2.) So I guess you could say we’re passionate about the relocation of people overseas. We want people to have the best possible experience while there – we want the experience to be good for them, their family and their corporation.

Recently OCED published their work-life balance index of countries around the world based on a number of factors including housing, income, jobs, community, education, environment, governance, health, life satisfaction, safety and work-life balance. This last criteria work-life balance is determined by “the number of employees working long hours; the percentage of working mothers; and the time people devote to leisure and personal activities” in each country. Overall Australia was ranked with the best work-life balance according to the criteria above. Below you will find how each member country ranked according to their different factors. To read more about the report please click here.

What countries have the best work-life balance?

1. Australia
2. Canada
3. Sweden
4. New Zealand
5. Norway
6. Denmark
7. United States
8. Switzerland
9. Finland
10. Netherlands
11. Luxembourg
12. Iceland
13. United Kingdom
14. Austria
15. Ireland
16. Germany
17. Belgium
18. France
19. Japan
20. Israel
21. Slovenia
22. Spain
23. Czech Republic
24. Italy
25. Poland
26. Korea
27. Greece
28. Slovak Republic
29. Hungary
30. Portugal
31. Estonia
32. Chile
33. Mexico
34. Turkey

The truth is that no matter what country you live in you can have a good or bad work-life balance. Therefore it is up to you to develop good patterns from the start. For some it might mean turning the email off between certain hours or scheduling down time. For others it might mean finding a hobby which allows you to get some mental distance away from the issues at work. While for others signing up for an international assignment will provide the perfect opportunity to hit the “refresh” button on their own work-life balance. Do you think that a relocation might be your next step to finding a good work-life balance? Finding a way to balance your life is in your hands. Choosing a work-life pattern that works for you will yield results in both your professional and personal life.

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In the past we have listed a number of web-based tools related to helping employees on International Assignment find information about their destination before they move there. For example we covered the best social media tools for corporate relocation, tools to avoid missing home while on international assignment, information about the happiest countries on earth to relocate to, and even tips about drinking etiquette around the world.

A few weeks ago HSBC launched their Interactive Expat Explorer tool which compares many aspects of expat life in various countries in the world from differences in taxes to quality of life, it covers a broad range of topics in a colorful interactive format.

This tool will help you understand the details of where your relocation is taking you and how that new destination compares to your current location. You can look at how countries around the world compare on a range of topics such as economics, quality life, the safety of children and you can even compare two countries on a more granular level side-by-side.

In addition to the HSBC tool, Lloyds TSB International also has an Expat Tool as well which specifically focuses on comparing International Schools, Property and Cost of Living around the world.

Using these tools before your relocation can will make the experience much smoother because you can plan for your destination before you get there.

Use these Expat Interactive Tools:

HSBC Expat Explorer Interactive
Lloyds TSB International Expat Tool

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One of the advantages of living in a different country is the opportunity to observe different festivals and to share the celebrations with the locals. Conversely one of the disadvantages of an international assignment is that assignees are sometimes away from home when festivals they traditionally celebrate in their home country, take place. One of my colleagues, Amanda Ward reminisced about her assignment to Moscow in the early 90’s. She returned to Moscow in early January after a traditional Christmas home leave in England and celebrated Christmas again in Russia on January 7th.

The Russian Orthodox church uses the old Julian calendar for religious celebration days, hence why Christmas is celebrated by Russians in January. Traditionally Russians do not eat anything on Christmas Eve until the first star has appeared in the sky. They then eat Sochivo or Kutia a porridge made from wheat or rice served with honey, poppy seeds, berried fruit and nuts. In the early 90’s food was scarce in Russia and the local employees were unable to share their family festivities. The assignees decided therefore to bring their traditional Christmas to their host location and each assignee brought an item they associated with the festival i.e Christmas pudding, Christmas cake, crackers when the returned from home leave.

What stories can you share about celebrating festivals whilst on assignments? Should assignees use home leave to return home for tradition celebrations or should they embrace local traditions?

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A financial problem that started in Greece has now spread to several other nations such as Italy, Ireland and Spain. The problem is like a virus moving throughout Europe. Even the giant European countries such as France and Germany are not unscathed. The problems have been created by debt. When Greece’s debt was maturing, people realized that a large percentage of Greek debt was due. The debt was in the form of government bonds, which had been given mainly to key European banks, who had sold the bonds to investors. Suddenly, the investors did not feel confident that Greece would pay back their debt. The lack of confidence triggered a debt crisis, which is in reality a confidence crisis. As people talked, the lack of confidence gained momentum. More and more investors chose to get rid of their bonds. The banks that bought the bonds had to pay back the investors who had purchased the bonds from them, with virtually no guarantee that Greece will reimburse. If Greece failed to pay, the banks would collapse.

President of France Nicolas Sarkozy (L), German Chancellor Angela Merkel (C) and European Commission President Jose Manuel Barroso (R) chat during the EU summit in Brussels, Belgium, 09 December 2011.    EPA/BGNES

Several big European banks were in danger of collapsing. The European Union decided to take action, not only to stop the demise of the banks but to help retain the image of the Euro zone. As there are many countries in the European Union, each with their own priorities, political power and ideas, it took a long time for them to agree on a strategy. Eventually on 9 May 2010, Europe’s Finance Ministers approved a rescue package worth €750 billion aimed at ensuring financial stability across Europe. In October 2011, they agreed to additional measures which they hoped would prevent the collapse of member economies. This included an agreement with banks to accept a 50% write-off of the Greek debt.

The EU leaders continue to meet, to develop treaties which they hope will increase confidence and stabilise the Union. David Cameron, the British Prime Minister, refused to sign the latest EU treaty, which has isolated Britain from the other European countries. But that, as they say, is another story.

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Paragon Relocation’s president, Craig Selders, was quoted in the November edition of a HRO Today magazine article on making mobility work in today’s economy.

The article talks about how companies are adjusting their relocation programs to meet the challenges of the current economy. Craig references Paragon’s leading relocation services technology platform, PRISM 2.0, and the availability of 24/7 helpdesk support for issue management.

To read the full article please click here: All Abroad.

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How much money are you leaving on the table by not refinancing now while interest rates are low? Recently we wrote about how mortgage rates are at nearly all time lows. Now Credit Sesame, a credit rating site, has published an interactive infographic (with help from content creation company ColumnFive Media) on how much money on average could be saved for a homeowner refinancing in each state. See below to see how much people are saving in your state.

How Much are People Saving from Refinancing?

Click the image below to see how much could be saved on refinancing your mortgage in your state.

For more information about Paragon’s mortgage company, GenEquity Mortgage, and to use their refinancing calculator to see how much you can save please visit GenEquity.com.

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The decision to take an International Assignment is a difficult one. The excitement of international travel and a new challenge in a different country definitely have their appeal. However, the obstacles associated with an International Assignment can certainly be high as well. You have to move away from a familiar life at home and at work, change is never easy, and the fear of the unknown always looms large. In light of this, should you take an International Assignment? In most cases the answer should still be Yes and we are going to tell you why.

First you may want to consider if you are an ideal candidate for an International Assignment by visiting our recent post on the topic, but like with most major decisions in life you won’t know if it was the right decision until you decide to make it. In addition, there are certainly some risks to taking an International Assignment but the risk of missing a once-in-a-lifetime opportunity may be much greater. You can live the rest of your life in your home country but you may never be offered the opportunity to take an International Assignment ever again. That is why if you are fortunate enough to given the opportunity you should take it. If it turns out that you don’t enjoy your assignment, you can simply return to your home country after it is done but if you don’t take the opportunity you will never know what you would have missed.

We are breaking this post up into two parts to focus on two different sets of reasons why you should take an International Assignment. In today’s post we will talk about why you need to accept that International Assignment for your career, and then in Part Two we will talk about why you need to accept an International Assignment from a life experience/family perspective.

Why should I take an International Assignment?

Builds the Resume. When you are invited to take an International Relocation you should take it because there may be no other experience that adds to your resume more. Inherent in the opportunity is most likely a promotion which instantly builds the resume but more than that a recent study has shown that 7 of 10 Fortune 100 C-Level Executives have had International Assignment experience in their past. Taking an International Relocation can only help you rise up the corporate ladder.

Become a Multi-Cultural Pro. When you take an International Assignment it gives you an opportunity to add to your multi-cultural tool belt. Everyday you will be challenged by cultures different from your own in the workplace. Learning to manage people of different cultures than your own is an increasingly valuable asset today. In addition to this there is no better way to learn a foreign language than immersion, you can use the opportunity of your international relocation to pick up a foreign language in a relatively short amount of time.

Work with Clear Objectives. An International Assignment in the strictest terms is a temporary relocation with the assumption that you would either relocate back to your departure country or take a rotational international assignment to your next location once the goal of your project is done. As a result of the assignment being a big investment by your company and because of how assignments are project oriented the goals of your International Assignment should be very clear. In a well-managed Relocation Program you should know what you are sent to do and how much time you have to carry out your tasks.

International Relocation Opportunities are Rare. The opportunity to have to secure a stable job overseas is very rare because of the costs to the corporation involved with relocating an individual (and their families) overseas. Often times the cost of the International Relocation costs three times as much (or more) as employee’s annual salary over the course of the assignment. If you were trying to take an International Relocation without the help of your company (and their Relocation Management Company) it might be prohibitively expensive to do on your own so take the opportunity to relocate when the option is available.

Expands Your Network. As we said above, taking an International Assignment builds your resume and puts you on the fast track to executive leadership but it is also an opportunity to significantly expand your network to people from all over the world. This will broaden your perspective and give you access to more job opportunities and career resources that you wouldn’t have had if you didn’t take the assignment in the first place.



When the opportunity presents itself to take an International Assignment take some time to think about all the benefits to your career before you close the door. Even some things that seem like impossible barriers to taking the International Assignment can be overcome with the help of your HR department and your Relocation Company. Before saying No, look for ways to say Yes to the great opportunity of an International Assignment.

What are some other reasons someone should take an International Assignment? Let us know in the comments below, or on LinkedIn, Facebook or Twitter!

Update: To read the second part of our two-part series on Why You Need to Accept that International Assignment, please click here: Why You Need to Accept that International Assignment (Part 2).

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In the current real estate market selling your home for a relocation is certainly a challenge. Follow the steps below and you will definitely position your home to sell for the best possible price.

The difficulty lies in the fact that there is a large number of homes for sale in many markets today and yet the number of qualified buyers is small because of stricter mortgage approval requirements (even though mortgage rates are at an all time low). In addition, many companies are taking a “wait and see” approach to hiring new employees which would lead to more available buyers in the market.

The goal when trying to achieve the highest price for your home is to honestly acknowledge these realities and then develop a game plan for success.

What will it take to get my home sold for a good price?

1. Get Real: The quote “Home is where the heart is” resonates with a lot of us because in the home we create a lot of happy memories – truly priceless experiences. The problem is that these events (though important) don’t add value to the home for buyers. To be successful when selling your home, you need to think of it objectively as a house for sale. Ask yourself the question, “What can I do to make my home stand out above 90% of other homes on the market?”
2. Know Your Neighborhood: Discover what is working to get homes sold in your neighborhood. Make a list of the major highlights of the location of your home. Are you near a high quality middle school? Take note of that. Does your home have easy access to a local park? Note that as well. Small benefits that the location of your home has might be the difference between your home and another similar home being sold. You need to use everything to your advantage that could give your home the best chance of finding a buyer out there. If you need some help discovering what the key selling points of your neighborhood are, use some of these Neighborhood Research tools in this post to help you.
3. Stage for Success: A little bit of paint and decluttering of your home can go a long way towards getting your home sold quickly and at a higher price. Part of this includes making sure that there is a good amount of quality photos of your property up on the web for buyers to be intrigued enough to come visit. Check out how staging your home can have as much as a 586% Return-on-Investment (ROI)!
4. An Estimate is an Estimate: At our finger tips we have the ability to get access to unlimited amounts of information on the internet when researching a neighborhood for a relocation. However, the other side of the coin of having access to unlimited information is that we are often led down the path towards inaccurate information. For example popular real estate sites such as Zillow.com have the ability to show lots and lots of useful information about a home in almost any given neighborhood. As part of the information sites like this offer they give an estimation of a home’s worth, while this is helpful for users looking to buy or sell a home these estimates have been shown to be wildly off at times which can create unrealistic expectations that inevitably lead to disappointment. The solution? Use a qualified Realtor who is a local expert to partner with you to price your home according to the local inventory of homes on the market and according to your goals.
5. Plan Your Price: This is a difficult topic to discuss. For many people the home is not only where memories are made it is also a family’s biggest investment. However, with a firm grip on reality and a good pricing strategy you can sell your home for the best possible price but you need to start with a solid plan from the beginning. Evi Coghlan a Realtor with a bi-weekly column called “The Real Deal” writes “The longer your house is on the market, the less it will sell for…Price your properly correctly from the start, and you’ll net the highest sale price. Although “testing a higher price” and “leaving room for negotiation” may sound like common-sense strategies, they are unwise in the current market. Usually they just result in extended market time, whereas “pricing to sell” gets the job done quickly and profitably…A really well-priced property will generate multiple offers and sell at or above list price. Yes, even in this market.”
6. Pick a Pro: When trying to sell your home the most important aspect is picking the right Realtor for you and your goals. The right Realtor should be a local expert who has a long track record for success yet is available enough to make selling your home a priority. In addition, they are people who will be honest with you which sometimes includes telling you things you may not always want to hear. Getting referred to a Realtor is often the best way to find someone who is qualified. For employees relocated by Paragon they are invited to use Paragon Relocation’s Realtor Broker Network, which pairs relocating employees with proven local area experts who understand how to successfully get a home sold while a family is in the midst of a corporate relocation. (In addition, these Realtor’s are hand chosen based on input from our customers. Unlike our competitors, Paragon is not contractually tied to bad real estate agents which allows us to recommend the best possible local Realtor to each customer who is selling their home for a relocation.)

To get your home sold quickly timing is everything, follow the steps above from the beginning of the process and you will be set up for success. By getting your home sold quickly at a good price you can smoothly move on to your next dream home and start focusing your new life in your new location.

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Though the global economy is weak and unpredictable, Paragon is still working diligently to extend our reach around the world. Based on client request, we have put the mechanics in place to bill in multiple currencies. While we have the ability to support moves to more than 150 countries with various destination services, we are currently working with expatriates in 70 of those countries. To do so, we are expanding our boots on the ground operations in strategic countries where we have major volume like France, Spain, the Benelux Countries, Britain, Switzerland, the Americas, China and other countries in Asia Pacific. While our U.S. domestic volume is constant, and no doubt we will continue to add new clients requiring services in the U.S., future growth in years to come is likely be in international relocation.

As a result, to best support a 24/7 operation in multiple time zones, we have put our Client Accounting Help Desk and our Information Technology Help Desk in place, both of which are available to our employees, clients and customers. In addition, we have provided cell phones to all of our Relocation Consultants, International Assignment Consultants and International Relocation Coordinators to allow for emergency, after-hours customer calls. We recognize that as a service company our business does not always occur within the normal confines of the typical business day.

Paragon Relocation has added Gold Service for “when great service is just not good enough” as an optional service enhancement for our clients that want to provide their employees a higher level of service than normal. Paragon Relocation also just completed a major migration to PRISM 2.0, our upgraded and enhanced information technology platform, to allow our clients and customers even more information at their fingertips. Paragon GeoImmigration (PGI), our newest subsidiary, is active throughout the world assisting clients and customers with visa and immigration services. PGI’s state of the art technology allows for tracking all aspects of the visa and immigration process. GenEquity Mortgage, our national mortgage company, continues to successfully fund mortgages at very competitive interest rates, among the lowest in American history, in a very difficult business environment. Paragon Decision Resources, our consulting business unit, continues to add clients for Pre-Decision Consulting services which assists clients and customers with individual, customized policy implementation, cost analysis and budgeting for each move.

In the remaining quarter of 2011 and beyond, we will place a new emphasis on training as the key to our success. Though our employees often come to us with relocation experience, we want to teach the Paragon way of providing services, which includes a higher touch capability. By making sure that administrative tasks are delegated down, we allow our Consultants and Coordinators to spend more time counseling our customers. Though we face a difficult economy and declining real estate markets in the United States, Paragon is still very focused on our growth and development. We are still doing what is necessary to continue moving our company forward to best support our clients and customers around the world.

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