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Transcription

financing real estate.
investing in relationships.
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In This Issue…
SPRING 2016
CHAIRMAN’S CORNER………………………………………… 6
EXECUTIVE DIRECTOR’S LETTER………………………… 7
LEGISLATIVE REPORT………………………………………… 8
MEDIA & MARKETING………………………………………… 11
COVER STORY……………………………………………………… 12
ROUNDTABLE……………………………………………………… 14
WHO’S WHO………………………………………………………… 16
FEATURED RESIDENTIAL……………………………………… 18
FEATURED COMMERCIAL…………………………………… 19
LATEST COMMERCIAL DEALS……………………………… 20
RESIDENTIAL……………………………………………………… 24
California Mortgage Finance News is
published by the California MBA four
COMMERCIAL……………………………………………………… 28
times each year: Spring, Summer, Fall,
and Winter.
2016 CONFERENCES & EVENTS…………………………… 31
EDITOR:
Dustin Hobbs
NEW MEMBERS…………………………………………………… 32
PUBLISHER/LAYOUT:
Wolfe Design Marketing
PHOTO GALLERIES……………………………………………… 49
California MBA
ROAD TRIP………………………………………………………… 54
555 Capitol Mall, Suite 440
Sacramento, CA 95814
PHONE:
FAX:
(916) 446-7100
(916) 446-7105
EMAIL:
info@cmba.com
CALIFORNIA MORTGAGE FINANCE NEWS
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CHAIRMAN’S CORNER
Advocacy: It’s Why We’re Different
ADVOCACY—IT’S WHY WE ARE DIFFERENT
by
KEVIN RANDLES,
Mortgage banking is a wide, complex
put those approaches in question.
In 2008, Alameda Unified School District
CBRE Capital Markets,
industry, and many of us belong to a variety
required many owners of commercial
California MBA
of business and industry groups such as
properties to pay a different and higher parcel
Chairman
BOMA, NAIOP, LAMA/BAMA. I hold several
tax than homeowners and small businesses
membership cards myself because they
had to pay. Four years later, a three-judge
deliver quality networking and education
panel of the First Circuit of the Court of
opportunities. But when it comes to advocacy,
Appeals invalidated this new tax. SB 1021
the California Mortgage Bankers Association is
aimed to overturn that decision by allowing
my voice—and yours—in Sacramento.
school districts to create a special tax targeting
Our legislators toss around plenty of
regulation ideas on nearly every aspect of
commercial properties.
The ins and outs needed a bottle of aspirin
banking annually, so it takes a full-time,
to navigate: The new tax could be imposed
dedicated insider to protect your daily
on a per parcel basis, according to the square
interests. You can be assured that California
footage of a parcel or the square footage of
MBA is on the floor, in the chambers, the
improvements and according to the parcel’s
offices, the hallways, even the mailroom when
use. Multiple parcels of real property could
that’s what it takes to represent our mortgage,
also be treated as one parcel for purposes
finance and banking industries.
of the special tax, where the parcels are
But words aren’t proof. So here are two
major wins California MBA has accomplished
contiguous, under common ownership, and
constitute one economic unit.
in recent years to promote a free flow
In English: bad news.
of affordable capital to the housing and
School districts currently can create
commercial real estate markets:
special taxes, but they must be uniform, so
this bill would have changed that definition—a
SB1021—LOCAL PARCEL TAXES IMPACTING
nightmare of unfair playing levels for
COMMERCIAL PROPERTIES
commercial properties, and an incentive to
State law mandates that parcel taxes
drive business enterprise from the state.
be levied equally on all property owners in
The California MBA opposed SB 1021
a school district, regardless of parcel size or
and led efforts to educate why SB 1021 is bad
number of living units. Some school districts
policy. It died in the Assembly Revenue and
have sought creative approaches to raise
Taxation Committee.
additional revenue from larger commercial
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parcels, but a recent Court of Appeals ruling
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…Chairman’s Corner continued on page 30
EXECUTIVE DIRECTOR’S LETTER
New Year, New Goals
SUSAN MILAZZO,
California MBA
Executive Director
L
ast year at this time I shared some
These, in addition to our monthly compliance
exciting plans for 2015 and I’m
webinars, are offered complimentary to
pleased to say we achieved huge
anyone in the mortgage industry. Participants
accomplishments in the last twelve months!
We added two new educational
have an opportunity to ask questions and
engage in dialogue with speakers during the
opportunities to our annual webinar series.
webinars. Also, starting in 2016, we will be
Our Legal Services quarterly webinars focus on
providing recordings of the webinars to our
a wide range of litigation trends that are facing
members through the “members only” section
our industry. The most recent presentation
of our website.
covered California’s Tender Rule, Single Point
In 2015 we also enjoyed the launch of
of Contact, Restrictions and Limitations on
our Residential Executive Forum as well as
Demurrers and Amended Pleadings and the
a significant expansion of our Commercial
Telephone Consumer Protection Act. While
Executive Forum. These events are both
a major focus for the residential lending
aimed to provide dialogue with the owners,
industry continues to lie with federal and
managers of mortgage companies with their
state regulators, it is vital that you stay abreast
peers as they hear from experts on a wide
of litigation trends that affect the mortgage
variety of industry topics. The Commercial
industry. The second webinar series we added
Executive Forum also provides a property tour
has been the Mortgage Technology and
of unique commercial spaces in the great state
Marketing Committee or MTAM. The focus
of California!
of these sessions is geared toward supporting
We continue to hone and enhance each
the development and dissemination of new
of these programs for 2016 so please make a
technologies, marketing strategies, and other
resolution to join us in the New Year.
related industry improvements. Presentations
In order to get a deeper understanding
have addressed Driving Your Business to the
of how our current membership benefits
Next Level with “Big Data” and also how to
are being utilized and determine what new
capture that $1 trillion market of Millennials!
programs we can develop to maximize the
The California MBA is extremely fortunate
value for membership in the California MBA,
to have nationally recognized speakers within
we will be conducting a membership survey
our membership that are willing to share
in 2016. Please be on the lookout for this
their expertise to educate the industry. We
information and take a few minutes to respond
are constantly targeting ways to provide the
so that your feedback can be considered as we
mortgage industry with top-notch information
develop new plans for the future.
and analysis in an ever-changing market.
…Executive Director Letter continued on page 32
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by
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LEGISLATIVE REPORT
Slow Start to 2016,
But Ballot Measures Loom
California MBA
C
Legislative Counsel
year, a $1 billion hole in funding for the state’s
November ballot that is expected to be full
health care program for the poor and finding
of initiatives, many of which will mirror bills
funding for billions of dollars of needed road
introduced in the Legislature. Those ballot
repairs. The Legislature adjourned last year
measures may make it harder to win approval
without reaching agreements on those issues
by the Legislature of similar bills because
even though the Governor called for special
lawmakers may defer to the electorate to
legislative sessions to focus on them. Reaching
avoid making the more difficult policy choices.
a resolution has been difficult because any
Voters could face a host of ballot initiatives
agreement would likely entail higher taxes or
including; increasing the minimum wage,
fees, which Republicans and some Democrats
legalizing marijuana, amending Proposition
have been reluctant to enact, especially when
13 by increasing taxes on properties valued
state revenues continue to surge.
at $3 million or more to fund poverty
by
PAT ZENZOLA,
KP Public Affairs,
alifornia lawmakers reconvened the
30 years with funds provided by Proposition
second half of the Legislature’s two-
63, the “millionaires’ tax” for mental health
year session on January 4th. They
services approved by voters in 2004.
face two major unresolved issues from last
In addition to transportation and health
Adding to the political mix this year is a
programs, a continuation of the Proposition
care funding, Democrats are expect to push
30 taxes of 2012 on upper income earners
for several other major policy proposals,
that was supposed to be temporary, banning
including legislation to reduce gun violence
the one-time use of plastic bags, new gun
and to tackle homelessness. Senate leadership
control measures and state bonds for school
has already announced there will be a package
construction.
of gun control bills covering issues such as
As of the writing of this article in January,
new screening requirements for buyers of
very few new bills for 2016 have been
ammunition to determine whether they are
introduced, but 1500 or more new bills will
qualified to possess guns. They have also
likely be introduced by the February 19th
proposed spending $2 billion to rebuild
deadline for this year. Listed below are updates
or rehabilitate permanent housing for the
on several measures that would directly impact
mentally ill living in the streets and for those
the membership of the Californian Mortgage
who otherwise find themselves homeless. The
Bankers Association.
proposal calls for the state to issue $2 billion
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in bonds, which would be repaid over 20 to
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…Legislative Report continued on page 33
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MEDIA & MARKETING
Make Your Social Media Voice
Authentically Yours
by
DUSTIN HOBBS,
Communications
W
ith the advent and mass adoption of
•
You’re playing with fire! Be careful with
social media networks, businesses
trends.
have gained the ability to do
•
If you miss the trend, don’t try and play
Director,
something they never could before. In addition
catch-up—look forward and be ready to
California MBA
to the personal connection and face-to-face
catch the next wave instead. Nobody
communication that is a necessity for any
wants to show up to the party wearing
successful organization, businesses can now
last year’s fashions, and your company
interact directly and continuously with massive
cannot afford to be slow or sloppy with
numbers of customers (and potential customers)
trends. For example, 2015 seems to be
located anywhere in the world. Even better,
the year that the “emoji” jumped the
businesses can use social networking to break
shark. While having a unique icon for
down the walls that separate business from
your company that was used in social
personal, and begin to build connections that
marketing was hip and fresh in 2014, the
don’t depend on coupons or gimmicks. They
bandwagon got a little full last year.
can build a solid brand that delivers value to
•
Make sure that the trend or fad will
consumers before they even ready to become
provide value to you and your customer.
customers. However, social media is truly the
Again, many companies seemed to
marketer’s double-edged sword. While it has
create their emoji without any thought
the power to cut through barriers, it also has the
to its usage. A notable exception is
power to instantly destroy what has been built.
Domino’s emoji, which customers can
If used improperly, savvy Millennials and other
use to order a pizza. If you can’t explain
social media users will tune out and miss your
in a sentence or two why you are
message entirely. One element that is perhaps
employing a new trend, then you might
more critical than anything else to social media
want to reconsider.
usage is the ability to discover and maintain
•
Ask yourself if being “cool” and
an authentic voice throughout all platforms.
“trendy” is really part of your brand in
Social media users are much more likely to
the first place? If your brand’s voice is
look favorably upon a company that’s honest,
speaking to “stability” or “confidence”
straightforward, and seems comfortable in its
or “integrity,” then be careful with the
own skin. Here are a few tips to make sure you
latest fad on Facebook or Twitter. Make
can have a conversation with your audience and
sure it’s still authentic to your brand.
not be seen as a crass marketer no better than a
…Media & Marketing continued on page 35
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cheap pop-up ad:
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COVER STORY
Is BRANCH ACQUISITION the
RIGHT STRATEGY for Your Firm?
by SANDEE MCCREADY, Director of Marketing, Alight Mortgage Lending
W
hat an interesting time
to be in the mortgage
lending business. 2015
was a banner year for the mortgage industry with
stories of lenders beating their own projections rampant
industry-wide. And given today’s global economic pressure, volatile financial
markets and the current low inflation rate, even as the Fed contemplates further
rate hikes it’s likely interest rates will stay comfortably low for a while.
But rising compliance costs and increased competition coupled with
concerns of regulatory scrutiny (and potential cash-depleting fines) has the
industry in a state of flux. Some independent mortgage bankers are considering
monetizing and selling their companies while others plan to capitalize on this
volatility by expanding their businesses.
If growing your firm is your plan, it’s likely you are considering purchasing
new branches as a way of quickly expanding your business.
But growing a mortgage lending business through branch acquisition is
not for every firm and certainly not for the faint of heart—the right acquisition
can bring more loan originations and increased profitability, the wrong one can
quickly and irreparably drain cash reserves.
If your firm is like most, chances are that evaluating new branches is a timeconsuming, laborious and cumbersome process done by key members of the
management team via Excel templates. Typically, the pro forma is high level
and—since you’re relying on past performance indicators or estimates provided by
current staff (most times with little detail or background)—numbers often don’t line
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…Cover Story continued on page 13
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Cover Story continued from page 12…
up with metrics and targets for your
own operating assumptions to
facilitate comprehensive evaluation
existing branches, making the metrics
form best and worst cases. Worst
and timely decision-making:
difficult, if not impossible, to overlay
case, is this something you would
• Pre-acquisition multi-scenario
with your own operating metrics.
regret doing? Best case, is this of
planning and forecasting, with
Furthermore, once the pro
marginal value or a home run?
and without incorporation of the
forma is in place you’re evaluating
2. Evaluate the corporate enterprise
the new branch in isolation. There
with and without the branch.
is no easy way to take that branch
Does the branch meet acquisition
with your own margin and
information, roll it into the enterprise
targets (payback period and ROI,
operating expense metrics to
and measure the ripple effect across
for instance) and performance
assess whether corporate branch
your organization to assess whether
targets (net value add) set for
targets and goals will be met
the acquisition will benefit (or drain)
corporate branches? Does the
• Side by side comparisons of with
financial and human resources. And,
acquisition benefit the company
and without scenarios, and the
more often than not, you’re evaluating
as a whole or will it provide only
ability to tweak assumptions and
only one scenario—no best or worst
incremental improvement?
see updates flow through the
case, no what ifs, and no ability to
compare with and without scenarios.
Post-acquisition analysis can be
target branch
• Target branch projections run
3. Review and evaluate corporate
organization
results with and without the
• Best and worst case scenarios run
branch…after acquisition. As soon
from multiple perspectives
problematic as well. It’s often difficult to
as a branch becomes part of the
compare actuals against the projections
company, actuals are likely being
expectations saved for quick and
made during the initial evaluation,
recorded to the general ledger,
easy post-acquisition comparison
resulting in little or no insight into
but given the constraints of the
to actuals
ROI or whether the branch is meeting
Excel template methodology,
payback targets 60, 90 or 120 days
the process of taking those
actuals vs. projections, with and
after acquisition. With no visibility into
actuals, extracting them, and
without the recently-acquired
branch performance, you risk losing
converting them back into the pro
branch
branch managers and staff you paid
forma format is extremely time-
dearly to recruit, or may continue to
consuming, and many firms simply
fund branches that aren’t performing.
don’t do it.
to grow their business, costs—and
capital outlay—can add up very quickly,
pressuring liquidity requirements and
threatening profitability.
But in order to know whether
acquiring a branch is the best use of
your cash, management must have the
ability to:
1. Look at and run multiple scenarios
based on information provided
by branch staff, and evaluate
those scenarios from multiple
perspectives, overlaying your
• Post-acquisition evaluation of
• Evaluation of actual numbers in
real time
• The ability to easily and quickly
To effectively evaluate the impact
of a new branch on the corporate
enterprise, mortgage banking firms
evaluate branch manager
performance vs. projections
Branch acquisition is a smart
need to be able to identify the
growth strategy for many firms,
financial ripple effects across the entire
especially in today’s marketplace of
enterprise, measure the cash impact
continued low interest rates. With
and consider whether a commitment
the right tools, branch evaluation,
to the capital outlay is warranted…
acquisition, onboarding and assessment
both before and after acquisition.
can be accomplished smoothly and
If your firm is contemplating
with full visibility, allowing you to act
expansion, it’s critical that your
on changing market dynamics quickly,
methodologies and applications
both before acquisition and after.
incorporate these key capabilities to
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For firms adding multiple branches
• Pro forma evaluation data and
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ROUNDTABLE
Appraisal Challenges
EDITOR’S NOTE—This is the latest in a series dealing with the issues facing the real estate finance
industry. Each issue we touch on a different topic, asking CMBA’s experts for their thoughts on the
issue at hand. In this issue of CMFN, we ask three industry players about some of the challenges
in today’s appraisal market. Dave Statham is Chief Appraiser/Executive Vice President with Got
Appraisals in San Ramon; Jon Tallinger, Vice President, Sales & Marketing at Class Appraisals,
headquartered in Birmingham, MI; and Scott Pickell is Chief Appraiser at LRES, an appraisal and REO
management firm located in Orange, CA.
The views and opinions expressed are solely those of the authors.
Q: HOW WILL THE APPRAISAL
more of the appraisal fee. This is akin to
MANAGEMENT COMPANIES, AND
the trainee appraiser making minimum
ULTIMATELY THE ENTIRE MORTGAGE
wage or less.
BANKING INDUSTRY, DEAL WITH THE
ATTRITION OF APPRAISERS?
Statham: According to a June 30, 2015
• A bachelor’s degree. At last check, the
average public college tuition is over
62% of appraisers are over the age of 50, while
$9,000 annually or $36,000 for 4 years.
only 13% of appraisers are under the age of
This doesn’t include housing, meals, books
36. A miniscule 1% of appraisers are under the
or school supplies.
Many lenders require that appraisals be
completed by a “certified appraiser”. In order
to become a certified residential appraiser in
California, the following is required:
• 200 hours of appraisal education at a cost
of about $2,000.
• 2,500 hours of appraisal experience.
At least 2,000 of these hours require
a certified appraiser to supervise your
work. It can be very challenging to find
a supervisory appraiser willing to train
an appraiser. For those lucky enough to
find a supervisor, most will find that the
supervisor will take upwards of 70% or
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above comments on minimum wage.
study by the Appraisal Institute, a whopping
age of 26.
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• 2.5 years of appraisal experience. See
A helpful benchmark to show how many
new appraisers are entering the industry is the
number of current trainee appraisers. When a
new residential appraiser enters the profession,
they will usually begin by getting their appraisal
trainee license. In California alone, the number
of trainee appraisers has dropped by over 80%
over the past seven years.
This drop is not surprising given the
time and expense that is required in order to
become a self-sufficient certified appraiser.
At last check there were only 586 trainee
appraisers out of a total of 11,091 active
…Roundtable Article continued on page 37
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1901 Camino Vida Roble, Suite 115, Carlsbad, CA 92008 ● (877) 654-6824
www.thecompliancegroup.net
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WHO’S WHO
AMERICAN PACIFIC MORTGAGE EVENTS TEAM
MICHELLE DOYLE
The Compliance
Group, Inc., (TCG),
a mortgage
compliance and
quality control
services provider, has
announced the hiring of Michelle Doyle
as its new Director of Quality Control.
Based in Carlsbad, California, TCG
American Pacific Mortgage (APM)
various Business Planning sessions
would like to recognize their newly
that help guide APM’s originators
focuses on the compliance success
created Events Team whose main
to establish financial, production
of its clients, assisting financial
focus is to create, plan and execute
and personal goals. The Team has
institutions in mitigating risk and
on all aspects of APM’s production
the ability to make sound decisions
losses with its proprietary, patent-
events. The team consists of Denise
fast and work in a high paced,
pending technology, and its core
Derner, Director of Integration, Teri
high pressure environment. Their
business solutions of compliance,
Bergthold, Marketing and Events
contributions are an important key to
quality control, and licensing.
Manager, and Samantha Gallagher,
the success of the entire company.
As Director of Quality Control,
Events Coordinator. They have been
Doyle will be responsible for
an integral part in building brand
overseeing TCG’s quality control
recognition and creating recruiting
reviews on behalf of clients and
and retention opportunities for
directing the firm’s QC service efforts.
APM. The Team’s ability to ensure
She brings more than two decades of
each production event is executed
experience in mortgage underwriting,
as creatively as possible while
quality control, risk mitigation and
maintaining a scrappy mindset for
compliance to her new role at TCG.
fiscal prudence is unprecedented!
Having an Events Team has been a
differentiator in the business as APM
is 100% focused on making their
Branch Managers and Originators
look good!
The Events Team was involved in
over 50 events throughout this past
year with many of them involving over
250+ attendees. Events include biannual Sales Summits held throughout
the Western United States along with
If you would like to submit an employee to be recognized in an upcoming issue, email
SP
dustin@cmba.com for more information.
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…continued on page 17
WHO’S WHO
CARL FORMATO II
Carl Formato II joins
National General
KIMBALL, TIREY & ST. JOHN LLP—
CALVIN CLEMENTS &
CYNTHIA STELZER
practice groups within the firm,
including Fair Housing, the Business
Real Estate Group and Collections.
Lender Services
Prior to joining the firm, Mr.
as Senior Vice
Clements worked as a Deputy Legal
President, Client
Affairs Secretary in the Office of
Development, with
Governor Gray Davis where he
18 years of sales and management
primarily worked on criminal justice
experience. Prior to joining the
The law firm of Kimball, Tirey & St.
matters within the State. He also
organization, Carl was Vice President,
John LLP is pleased to announce its
worked as a sole practitioner assisting
Mortgage Business Development at
newest partners—Cynthia Stelzer and
clients in criminal, family and personal
CoreLogic. His previous experience
Calvin Clements.
injury matters. Before entering law,
also includes sales, business
Ms. Stelzer has been a practicing
he worked as a commercial property
development and management roles
attorney since 2003. She joined the
manager in Southern California and
at Washington Mutual.
firm’s Business Real Estate Group in
draws upon that experience to better
2006 and brought with her extensive
assist clients.
“Carl’s experience in the mortgage
servicing space, combined with his
litigation knowledge. As the Business
proven track record of relationship
Real Estate Group’s newest partner,
building, high energy level and track
she represents commercial landlords,
record of sales growth, makes him a
property managers, business owners
strong asset for our organization and
and real estate investors in business
for our marketplace,” said Thomas
and complex real estate issues. Since
McCarthy, Senior Vice President and
joining the Business Real Estate
has been hired
Sales Executive Officer, National
Group, Ms. Stelzer has handled
as Director of
General Lender Services.
thousands of matters involving
Marketing for Alight
SANDEE MCCREADY
Sandee McCready
commercial disputes. Her clientele
Mortgage Lending.
consists of the top commercial
She has extensive
brokerage and management
experience as a writer, researcher, and
companies nationwide. Ms. Stelzer
analyst spanning multiple industries,
regularly attends networking events in
including financial services, retail,
order to attract new clients. In addition
and more. Sandee is a licensed real
to being an attorney, Ms. Stelzer is a
estate agent and is a graduate of the
licensed broker and realtor and uses
University of California Davis.
this expertise to grow her practice.
Calvin Clements joined the firm
in 2005 as the Managing Attorney of
the Sacramento office. Since that time,
he has been involved in approximately
2,500 hearings and trials for the firm. In
addition to working as a trial attorney,
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FEATURED RESIDENTIAL
How Well Do the New Rules Protect
Lenders, Consumers, and Appraisers?
by
MARLENE
MINITE CHAKER,
President, AAA-AMC
T
he role of the Appraisal Management
borrower and the interests of lenders and their
Company (AMC) was originally created
partner AMCs. Within the purchase transaction
to stand as a protective firewall
process, there is a potential disconnect
between lenders and appraisers. It was
between lenders and AMCs that the Uniform
instituted to prevent any type of influence
Standards of Professional Appraisal Practice
on appraisers when completing their market
(USPAP) and the new Appraiser Independence
evaluation on a property. AMC’s have existed
Rules (AIR) under the Home Valuation Code of
since the 1960’s but not in the numbers they
Conduce (HVCC). On one hand, regulators have
do today; of course, business volumes have
created more distance between lender and
grown over that time period. In the depth
appraiser to ensure an unbiased and accurate
of the recent housing market crash, new
report. However, because the purchase price
guidelines were put in place in order to further
of the home is included in the appraisal report,
separate any parties with financial interest in
this means the appraiser will be aware of that
a mortgage loan from the appraisal process.
price. Despite their independence, I’ve found
Today, AMC’s are legally required to work
that when appraisal reports on purchase
relentlessly with lenders and appraisers to
transactions are completed, the appraiser will
maintain compliance on appraisal orders, and
often appraise the home in the exact amount
lenders have new responsibilities for third-
as stated on the purchase price. Since it is
party vendors. This means appraisers have to
truly the free market that “sets” the price
stay on top of the report and ensure quality
for a home, it makes sense for the home to
control is maintained in order to deliver an
appraise at or near that price as well. However,
accurate and bias-free report. The housing
when that appraisal does not equal the sale
market has improved significantly for a variety
price, I fear many borrowers are in for a rude
of reasons since these new rules and guidelines
awakening at closing. For example, let’s say the
have been put into effect, and now the lenders,
purchase price is stated to be at $242K but the
brokers, loan officers or anyone involved from
appraised value of the home is, in fact, $2–5K
profiting from a loan, have had their influence
above or below that price. That really isn’t a
reduced in the appraisal process.
dramatic difference; however, it concerns me
Despite all of the safeguards that have
been put in place, I think there is more we can
that for many appraisers who do not list the
property exactly as the listing price, lenders or
do, both to protect the expectations of the
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…Featured Residential continued on page 41
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FEATURED COMMERCIAL
Rental Apartments in Demand
Multifamily Solutions
S
few years. This has occurred in most metro
in the Consumer Price Index, rent was up 3
FRANK E.
areas around the country and can be seen in
percent during 2015, compared with virtually no
NOTHAFT,
nationwide data. The National Multifamily
inflation in the rest of the index. And the Census
Senior Vice President
Housing Council conducts a quarterly survey
Bureau has reported that rental vacancy rates are
and Chief Economist,
of apartment building managers and owners
at their lowest levels since the 1980s.
CoreLogic
and asks them whether the rental apartment
JAY HARRIS,
Senior Director-
trong household demand for rental
rents have risen and vacancy rates have come
homes has led to apartment rents rising
down. These survey results are consistent with
and vacancy rates falling during the last
broad market data too. For example, as measured
Developers have responded to these
market has ‘tightened’ or not in metros they
economic forces by increasing construction
follow. As depicted in Exhibit 1, for nearly every
of new rental apartments (see Exhibit 2).
quarter over the last five years, rental apartment
New building has ramped up after the Great
conditions have gotten ‘tighter’, meaning that
…Featured Commercial continued on page 42
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by
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Latest Commercial Deals
Newmark Arranging $65M for CHP Headquarters in Sacramento
Newmark Realty Capital, Inc. has
The recently renovated property
arranged $65,000,000 in permanent
is leased to the State of California and
financing for a 284,000 square
serves as the headquarters for the
foot, single tenant office complex
California Highway Patrol. “Newmark
located in Sacramento, CA. George
has closed approximately $2.0 billion
Mitsanas, Fritz Grim, and Armen
of Federal and State leased buildings.
Hadjimanoukian, arranged the non-
We were able to create a unique
recourse, fixed-rate, term loan with
and secure loan structure which met
one of Newmark’s correspondent life
both borrower and lender’s financing
insurance company lenders.
requirements”, said Grim.
Redwood Mortgage Closes $14M Loan on Concord Retail
Repositioning and CMBS Maturity
funding en route to an expected $100
traditional sources,” said CEO Michael
million capital deployment in the
Burwell. “We specialize in opportunity-
next 12 months. The transaction was
capital in real estate lending, where
arranged by Lori Randich, VP-Loan
borrowers have a particular need or
Origination for the firm.
challenge that typical lenders often
The funding will facilitate an
can’t accommodate.”
improvement program for the property
including new facades and other
Redwood Mortgage, a family-
upgrades. The transaction also helped
owned private lender founded in
meet a timeline commitment of a
1978, recently announced the closing
maturing CMBS loan on the property.
“Active local real estate
of $14 million refinance of a fully-
SP
leased multi-tenant retail property in
owners and investors are capturing
a Concord, CA high-traffic shopping
opportunities throughout California,
center, part of an increasing number
and Redwood Mortgage provides
of loans Redwood Mortgage is
more flexible and nimble capital versus
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HFF Closes Sale of 5-Property West Los Angeles Office Portfolio
in Culver City. All of the properties
have easy access to the I-10 (Santa
Monica Freeway) and the I-405
(San Diego Freeway) and are about
15 minutes from the Los Angeles
Holliday Fenoglio Fowler, L.P. (HFF)
undisclosed amount free and clear
International Airport and the Santa
of debt.
Monica Airport.
The 91-percent-leased, recently-
The HFF investment sales team
announced today that it has closed the
renovated portfolio consists of
representing the seller was led by
sale of a five-property, approximately
Beverly Atrium at 350 South Beverly
senior managing directors Ryan
350,000-square-foot office portfolio in
Drive in Beverly Hills; 2730 Wilshire
Gallagher and Todd Tydlaska and
West Los Angeles, California.
Boulevard in Santa Monica; 1950
director Andrew Harper.
HFF represented the seller in
Sawtelle Boulevard and 11075 Santa
the transaction. Jade Enterprises
Monica Boulevard in Los Angeles; and
purchased the portfolio for an
Bristol Plaza at 6167 Bristol Parkway
CBRE Capital Markets Secures $47 Million in Financing for The New
Californian in Berkeley, CA
panoramic views of San Francisco
atop it’s resort-style roof deck. The
property performs extremely well
financing on behalf of local developer
and investor, Hudson McDonald,
transportation (BART, bus lines, and
2010. Metropolitan Life Insurance
$47 million in non-recourse financing
for The New Californian, a mixed-use
development with 148 apartment
units and 15,700 square feet of retail
space in Berkeley, California.
John Nelson, Michael Walker and
Erik Franksof CBRE’s San Francisco,
California, office arranged the
Company provided the 10-year, nonrecourse, fixed-rate loan with very
approximately three blocks from The
“The New Californian is one
University of California, Berkeley. In
of the most attractive multifamily
addition to UC Berkeley, the property
properties in the city of Berkeley,”
said Mr. Walker. “The property offers
convenient access to shopping via the
amenities including bike storage and
private parking, and one of the best
Located at 1988 Martin Luther
King Jr. Way, The New Californian is
favorable terms.
ground floor Trader Joe’s, numerous
I-80/I-580).”
is walking distance to the downtown
area, which offers residents easy
access to restaurants, shops and the
Downtown Berkeley BART station.
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Structured Finance team has secured
along with its proximity to UC
Berkeley and various methods of
who originally built the project in
CBRE Capital Markets’ Debt &
given the quality of construction,
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NorthMarq Capital’s Los Angeles office arranges $4.2 million refinance
of Laguna Palms in Elk Grove, CA
Blake Melstrom, vice president of
NorthMarq Capital’s Los Angeles office
arranged the $4.2 million refinance of
Laguna Palms, a 23,869 sq. ft. retail
property located at 9105 Bruceville
Road in Elk Grove, California. The
located at the subject consisted of
transaction was structured with a 15-
local “mom and pop” businesses,”
year term and 25-year amortization
said Melstrom. “Although there was a
schedule. NorthMarq arranged
potential for significant tenant rollover
financing for the borrower through its
during the first two years of the loan
correspondent relationship with a life
term, the lender offered a 15-year
insurance company. The property’s
fixed rate, nonrecourse loan.”
major tenants include US Post Office
and Goodwill.
“The subject is shadow-anchored
by Target, but most of the tenants
Special Thanks to our 2016
President’s Council Sponsors
www.CMGFI.com
Affinity Program
www.bankersInsuranceService.com
Your Continued Support for California’s Real
Estate Finance Industry is Greatly Appreciated!
SP
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Download the California MBA
Mobile Events App and Maximize
Your Conference Experience!
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Use the QR code above or search “CMBA
Events” in the Apple or Google App Store
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RESIDENTIAL
New Statute Provides Mandatory
Requirements For Demurrers and
Amendments Following Sustained
Demurrers1
by
CHRISTINE E.
HOWSON,
W
ith the virtual tidal wave of
when a pleading (most often a Complaint) is
lawsuits since 2008 seeking
successfully challenged by a Demurrer.
to challenge foreclosure
The new requirements and limitations set
Senior Litigation
proceedings, it cannot reasonably be denied
forth in Section 430.41 apply in connection
Attorney, The Wolf Firm,
that the Courts have been on the receiving
with all Demurrers filed in civil actions in
A Law Corporation
end of vastly larger numbers of Demurrers.
California state courts except: (1) in proceedings
2
The filing of Demurrers by lenders, servicers
for unlawful detainer, forcible entry or forcible
and foreclosure trustees to borrowers’
detainer, or (2) actions in which a party not
Complaints seeking to stop, stall or challenge
represented by counsel is incarcerated.
foreclosure proceedings or alleging defects in
the origination of their loans, is oftentimes the
MANDATORY MEET AND CONFER
first line of defense in such cases. Unlike other
REQUIREMENT, AND DECLARATION TO
types of cases where Demurrers frequently
ACCOMPANY DEMURRER
have little impact on the ultimate outcome of
the case, in mortgage lending cases Demurrers
statute concern the requirement that the
often result the dismissal of the case, or at
demurring party and the party that filed the
least severely limit the number of issues and
objectionable pleading must meet and confer
causes of action to be litigated.
in person or by telephone at least five (5)
In an effort to calm the waters and reduce
purpose of the meet and confer requirement
added to the California Code of Civil Procedure
is to determine whether an agreement can
and became effective January 1, 2016. Section
be reached that would resolve the objections
430.41 imposes a number of new mandatory
(challenges) to the pleading that would be
requirements in connection with the filing
raised in the Demurrer.
lesser impact, Section 430.41 also limits
the number of post-Demurrer amendments
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days before filing a demurrer. The statutory
the number of Demurrers, Section 430.41 was
of Demurrers. Furthermore, although with
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The most notable provisions in the new
Section 403.41(a)(1) specifies the meet
and confer obligations of the demurring
…Demurrers continued on page 43
RESIDENTIAL
No rest for the Weary
(for Mortgage Lenders, that is…)
JOSEPH LYNYAK, III,
Partner, Dorsey &
Whitney, LLP
challenges presented by TRID, CMBA
A
leveled against the CFPB when it has provided
members cannot take their foot off
interpretative assistance. First, the CFPB will
the compliance gas pedal. This is because our
typically respond to inquiries by telephone,
“friends” at the CFPB have announced their
but has taken the position that no advice can
examination priorities for 2016—which will
be relied upon by the inquiring party. This
continue to focus on significant compliance
reluctance to provide any degree of advice that
obligations for regulations the CFPB has
can be relied upon places lenders in a constant
adopted in the past two years.
cycle of jeopardy.
fter struggling for the last year with the
Several valid complaints have been
Unfortunately, many of the announced
Second, despite having taken literally years
compliance concerns implicate very difficult
of discussions, the CFPB has refused to adopt a
corporate decisions made by mortgage lenders
temporary safe harbor for TRID violations that are
that have attempted in good faith to achieve a
identified. While Director Cordray has graciously
reasonable degree of compliance—but absent
agreed initially to “go easy” on compliance
useful guidance from the CFPB—which has
examinations for TRID compliance, the refusal
almost uniformly refused to provide clear bright-
of the CFGPB to address the industry’s very real
line advice to the mortgage industry.
implementation concerns leave open the door
Besides the risk that the CFPB might
directly examine you, a practical result of the
CFPB’s examination agenda is the “trickle-
to future lawsuits and has exacerbated buyback
liability by secondary market purchasers.
The reality of the current state of the KBYO
down” regulatory effect—meaning that
scheme is that significant emphasis currently
California regulators may also focus on the same
must be placed on post-closing quality control
compliance obligations identified by the CFPB.
to identify errors and to consider remedial
Here is a short list of issues to review:
alternatives, including consideration of borrower
adjustments and secondary market repurchase
TRID Implementation and Know Before You Owe
demands. Moreover, because TRID is extremely
(“KBYO”) Disclosures.
transaction specific, it has increased the
There continues to be numerous
sensitivity of the KBYO disclosures to even
unanswered questions regarding TRID
minor changes in the terms of a loan program,
implementation, ranging from permissible
which means that proper management of
error correction notices, redisclosure to
programmatic changes to ensure the inclusion
computational issues and LOS vendor concerns.
…Weary continued on page 45
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Your Trusted Advocate
“Highest Possible Peer Review Rating
In Legal Ability and Ethical Standards”
---- Martindale-Hubbell Legal Directory
All Aspects of Mortgage Banking and Servicing Representation
n
n
n
n
n
n
n
n
Real Estate and Consumer Financial Services Litigation
Defense of Lenders and Servicers Against Claims of Wrongful
Foreclosure, Predatory Lending, and Unfair Competition
Financial Fraud Recovery and Repurchase Disputes
Title and Title Insurance Coverage Claims and Litigation
Officers’ and Directors’ Liability and Professional Errors and
Omissions Claims and Litigation
Business and Commercial Lending Transactions and Lawsuits
Creditor Representation in Bankruptcy
Consumer Credit, Licensing, and State and Federal Regulatory
Compliance Advice and Litigation
Michael R. Pfeifer, Esq.
Managing Partner
(714) 703-9300
mpfeifer@pfeiferlaw.com
www.Pfeiferlaw.com
Pfeifer & de la Mora, LLP n 765 The City Drive South n Suite 380 n Orange, CA. 92868
RESIDENTIAL
FFIEC Issues Updated IT
Management Examination
Handbook
With Cybersecurity Risk Assessment Tools
by
MELISSA
RICHARDS,
A
s the CFPB issues deep and highly
technical rules for how residential
mortgages are to be disclosed,
Esq., CMB, Chief
originated, serviced and reported on to
Legal & Risk Officer
regulatory agencies, the mortgage industry has
HOLLIE LYSENG,
invested a substantial amount of its capital in
JD/MBA Candidate,
IT Management Systems comprising advances
laws and regulations so deep and technical that
CMG Financial
in technology, automation systems and data
compliance cannot be assured without reliance
security in order to operate in this Dodd-Frank
on technology and data analytics; data integrity
Act environment.
and security; financial privacy; consumer-facing
In November, 2015, the FFIEC joined the
CFPB in highlighting the central importance
of IT Management Systems for all sizes and
transactional transparency; and UDAAP risk
brought about by human discretion.
The FFIEC’s Handbook comes in two parts.
types of financial institutions by publishing
The first part addresses IT Governance and
its updated Information Technology
“Enterprise Architecture.” Enterprise architecture
Examination Handbook (Handbook), followed
is the process that begins with the business need
by its introduction of a new Cybersecurity
and ends with an IT solution, creating closer
Risk Assessment Tool with Guides for both
partnership (integration) between business
management and users (Assessment Tool). Last
channels and IT management. Within that
updated in June 2004, the Handbook provides
framework, the Handbook calls for IT support
much needed features reflecting the elevated
and oversight to come from the institution’s
role of IT Management in today’s challenging
governing Board or Executive Management
post-Dodd-Frank Act regulatory environment,
team. It also calls for elevation of one or two
as well as the increasing threat of cyber attacks
executive management officials from IT–Chief
on financial services industries.
Information/Technology Officer and a new rank,
Together, these FFIEC guides reflect the
the Chief Information Security Officer (CISO).
changing focal points for regulatory examiners
…FFIEC continued on page 46
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for the foreseeable future—consumer protection
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COMMERCIAL
Market Value in Adaptive Re-use
Projects
MAI, FRICS, President
I
into creative office. “So please appraise the
for the proposed use? Has a market
& CEO, Curtis-
property…and we need it in two weeks.”
study been performed to measure
by
DAVID
ROSENTHAL,
Rosenthal, Inc.
t seems like a simple request. The
allowing greater density and lower parking
borrower is purchasing an industrial
requirements than new construction.
building and they plan to renovate it
A simple request, but not always such a
2. Market Study—Is there market demand
market demand and analyze current and
simple execution. The ease of completing this
projected market supply? What level of
appraisal assignment depends on whether
market pricing is supported based on
the borrower and the lender have done their
an analysis of demand and supply in the
homework. Here is a primer on the questions
current market? How long will it take
to ask and the due diligence that should be
to absorb the re-configured space? If
completed before an appraiser is engaged.
no market study has been done, is the
1. Entitlements—Is the proposed use of
appraiser expected to do that as part of
the property allowable under the current
their appraisal in order to support the
zoning? If so, is it allowed by-right, or
economics of the proposed use? This can
does it need discretionary approval such
result in a significantly more expensive and
as a Conditional Use Permit? If it is not
time consuming appraisal if the appraiser
currently allowed, then what steps must
needs to include a market study in the
be taken in order to achieve entitlements
Scope of Work for their appraisal.
to build the proposed use? Does the
3. Development Cost Pro Forma—Has
City support this type of re-use of the
the developer prepared their own
property? How long will it take to get
construction cost pro forma? If so, is
entitlements? What will it cost? Are
it based on their own expertise or on
there neighborhood groups that might
third-party contractor estimates? Does
oppose the proposed use? If so, what is
the cost pro forma provide for all hard
the likelihood of getting them to approve
and soft costs, including all carrying costs
the use? How long will that take? In
throughout the project? Do the cost
some jurisdictions, adaptive re-use is
estimates appear reasonable? Do they
encouraged. For example, the City of Los
consider current trends in material costs?
Angeles has an adaptive re-use ordinance
Have they secured a guaranteed maximum
that provides incentives for property
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owners in adaptive re-use projects by
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…Re-use Projects continued on page 47
COMMERCIAL
California Public Policy Concerns
In Drafting Contracts
Peeler & Garrett, LLP
T
by sophisticated parties, may not be enforceable
obligated to pay rent for the full ten-year
BRIAN L. HOLMAN,
if a court determines that such provisions violate
term of the Lease because the co-tenancy
Partner, Musick,
California public policy. In Grand Prospect Partners,
provisions authorizing rent abatement
Peeler & Garrett, LLP
L.P. vs. Ross Dress for Less Inc., 232 Cal. App. 4th
and termination were unconscionable or
1332 (2015), the Court determined that certain
alternately constituted an unreasonable
co-tenancy provisions in a Commercial Retail
penalty. The trial court had agreed with
Shopping Center Lease were unconscionable,
both contentions, finding Ross liable for
constituted an unreasonable penalty, and thus
$672,100.00 in unpaid rent and $3,100,000.00
were not binding on the landlord. Similarly, in
in other damages caused by the termination.
California Bank and Trust vs. DelPonti, 232 Cal.
The Court of Appeal upheld the trial court’s
App. 4th 162 (2014), the Court determined
finding as to Ross’s liability for unpaid rent,
that a guarantor’s waiver of certain defenses
finding that the rent abatement constituted an
in a commercial guaranty of a commercial loan
unreasonable penalty, but determined that the
violated public policy and was unenforceable.
lease termination provisions were enforceable.
ROBERT M. ZELLER,
Partner, Musick,
wo recent cases underscore the
terminated the lease after the twelve-month
proposition that certain California
cure period expired.
contract provisions, even if negotiated
In Grand Prospect, Ross Dress for Less
The landlord claimed that Ross was
The Court of Appeal modified the judgment
Inc. had negotiated a co-tenancy provision
to delete the $3,100,000.00 award for other
that provided that Ross’s obligation to open a
damages. In analyzing the lease, the Court
store and pay rent in the shopping center was
noted that the parties were “sophisticated
conditioned on Mervyn’s operating a store in
and experienced” and that “Grand Prospect’s
the shopping center on the commencement
decision to approach Ross first, about renting
date of the Lease; further, the Lease granted
the space, was a free and unpressured choice.”
Ross the option to terminate if Mervyn’s
Grand Prospect, 232 Cal. App. 4th at 1337.
ceased operations and was not replaced by an
The Court noted that as a general rule, “a
acceptable retailer within twelve months. The
contractual provision is an unenforceable
opening co-tenancy provision was not satisfied
penalty under California law if the value of
because Mervyn’s filed for bankruptcy and
the property forfeited under the provision
closed its doors in 2008. As authorized by the
bears no reasonable relationship to the range
lease, Ross took possession of the space but
never opened for business, never paid rent and
…Drafting Contracts continued on page 48
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Chairman’s Corner continued from page 6…
AB 244—DECEASED BORROWER &
SUCCESSOR IN INTEREST—HBOR
That’s a big change for such a
small insertion.
AB 244 would introduce a
By definition, HBOR’s “foreclosure
rules to successors in interest once
prevention alternative” for distressed
a servicer confirms the successor
California Homeowner Bill of Rights
borrowers, a fundamental principle of
in interest’s identity and ownership
(HBOR). In a nutshell, it would have
its existence, means a first lien loan
interest in the property, 2) adopt rules
extended the rights and benefits
modification or another available loss
for how a mortgage servicer confirms
of the HBOR to successors in
mitigation option. So that makes a
a successor in interest’s status, and
interest, including consideration for
loan modification an amendment to
3) ensure that to the extent the
a foreclosure prevention alternative,
the original mortgage. Successors in
mortgage servicing rules apply to
providing a single point of contact
interest who were not a party to the
successors in interest that the rules
and access to a private right of
original mortgage contract but wished
apply with respect to all successors
action, with draconian penalties.
to become the borrower would be
in interest who acquire an ownership
The bill applied to any successor
granted an opportunity under AB 244
interest in a transfer protected from
in interest who was a personal
to seek a modification of the mortgage
acceleration and foreclosure.
representative, a spouse, a joint
they weren’t a part of. In reality, if a
tenant, a trustee or beneficiary.
successor in interest is defined as the
244. The bill was set for a hearing in
borrower, as AB 244 did, and wants a
the Assembly Committee on Banking
foreclosure prevention alternative, it
and Finance, but facing strong
becomes a new loan to a new person
opposition, which included efforts
rather than a modification of the
from the California MBA and its
original mortgage contract for the
members, the author requested it be
original borrower.
pulled from the hearing agenda.
JOIN
And California lawmakers aren’t
mba.org/maa
pulse, tinkering with this topic, looking
means we are part of a fast-moving
for improvements.
discussion that you’ll either be a part
of or a victim of. Those are the stakes.
The staff and the board of
extensively on this issue at the
directors of the California Mortgage
federal level. In July 2014, it issued
Bankers Association take pride in
a clarifying rule saying, essentially,
representing its member partners.
that a successor can be added to
We’re there to provide legislators
a mortgage without triggering the
with a deep understanding of
ability-to-pay rule if the successor
the finance industry and ensure
satisfies a two-part test: 1) previously
regulation proposed at the state
acquired property (i.e. trust or divorce)
capitol does not interfere with the
and 2) agrees to take on the debt
efficient flow of capital to consumers.
obligation. The CFPB’s next step
Thank you for your continued support
was to release pending regulations
through membership!
for public comment that would
amend the national mortgage serving
standards found in the RESPA and
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As you can see, representing
the industry before the Legislature
Protection Bureau (CFPB) has acted
The LARGER the group.
The LOUDER the voice.℠
The California MBA opposed AB
the only ones with their finger on this
The Consumer Financial
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1) apply all of the mortgage servicing
“successor in interest” clause in the
MAKE A
DIFFERENCE!
SP
TILA. These amendments propose to
Mark your calendars now!
Save the Date for our
2016 Conference and Events!
HOSTED BY
MARCH 10, 2016
San Diego After Hours
Offices of TCV, San Diego, CA
44th Annual Western
Secondary Market Conference
(continued)
GOLD
SILVER
MARCH 16, 2016
Compliance Workshop
Marriott Orange County, Irvine, CA
California MBA Legislative Day
Citizen Hotel, Sacramento, CA
Register now at www.CMBA.com!
For a full list of all of our sponsors, go to www.CMBA.com!
SPONSORED BY
BuckleySandler, LLP
National Mortgage Insurance
Corp. (National MI)
DropIn, Inc.
Newmark Realty Capital, Inc.
Got Appraisals
Property Sciences
Guild Mortgage Company
Quicken Loans
Incal Associates
Severson & Werson
JULY 25–27, 2016
44th Annual Western
Westin St. Francis Hotel, San Francisco, CA
PLATINUM
BRONZE
Citadel Servicing Corp., Comerica Bank, The StoneHill Group,
Inc.
APRIL 4, 2016
Alight, Inc.
AUGUST 14–16, 2016
21st Annual Western States
Loan Servicing Conference
Westin San Diego Gaslamp Quarter, San Diego, CA
PLATINUM
TITANIUM
GOLD
SILVER
Asset Valuation & Marketing, Inc., NCP Solutions, SWBC
(Southwest Business Corporation), TCV (Transcontinental
Valuations)
SEPTEMBER 7-9, 2016
19th Annual Western States
CREF Conference
Wynn Las Vegas, Las Vegas, NV
PLATINUM
GOLD
TITANIUM
SP R
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Welcome to the California MBA family!
NEW MEMBERS
BANC HOME LOANS
FREEDOM MORTGAGE
MORRISON & FOERSTER, LLP
Residential Mortgage Banker
Industry Professional Advisor
Irvine, CA
Mount Laurel, NJ
San Francisco, CA
BB&T CORRESPONDENT LENDING
GLOBAL LENDERS, INC.
SCHEER LAW GROUP, LLP
Commercial/Multi-family Mortgage
Norcross, GA
Banker
San Rafael, CA
San Diego, CA
BOHM WILDISH, LLP
STERLING CLAIMS MANAGEMENT,
HUNT MORTGAGE GROUP
INC.
Costa Mesa, CA
Commercial/Multi-family Mortgage
Banker
San Diego, CA
DUANE MORRIS, LLC
Irvine, CA
San Francisco, CA
Chairman’s Corner continued from page 7…
Well it is an election year and
the respective Chairs for each of
the industry’s most valuable regional
there is no escape from politics! In
our major conferences. The Western
conferences and certainly hope that
2016 we are also offering you more
you join us in 2016.
opportunities to be involved with
(July 25–27) will be Chaired by Bill
our political action committee as
Lowman, President, American Pacific
we’ll start off the year with a big
we prepare for the 2016 election
Mortgage. Our Western States
thank you to Chris George for CMG
cycle. The funds raised for our PAC
Loan Servicing Conference (August
Financial’s continued support through
are used to support candidates who
14–16) will be co-chaired once
the President’s Council; thank you for
understand the value that a healthy
again by Don Curtis, Senior Vice
rejoining in 2016!
real estate finance market brings to
President, Business Solutions, OSC/
the state’s overall economy. If you
Breckenridge Insurance Group and
are interested in joining the efforts to
Wes Iseley, Senior Managing Director
strengthen our political involvement
at Carrington Mortgage Services. And
by helping organize PAC fundraising
our signature commercial mortgage
events and appeals, please contact me
event, the Western States Commercial
(susan@cmba.com) and I’ll share with
Real Estate Finance Conference
you what we are planning for this year.
(September 7–9) will be chaired
All of the planning committees
SP
by Ryan Chapman, Vice President
for our annual conferences are kicking
Capital Markets at Walker & Dunlop.
into gear and I’d like to announce
We are pleased to present some of
RI
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MEMBERSHIP
CONFERENCE INFO
RESOURCES
And Much More!
Visit us on the web @
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Finally and with sincere gratitude
www.cmba.com
Legislative Report continued from page 8…
SB 602—CALIFORNIA
opposition in the Assembly, SB 602
seek a modification of the mortgage
EARTHQUAKE AUTHORITY
did not pass prior to the Legislature
they weren’t a part of. Ultimately, if
SEISMIC SAFETY RETROFIT
adjourning in 2015, but it is eligible to
a successor in interest is defined as
FINANCING SUPER LIENS
be voted on in 2016.
the borrower, as is done in AB 244,
SB 602 would allow the
and desires a foreclosure prevention
California Earthquake Authority
AB 244—DECEASED BORROWER &
alternative, it’s really a new loan to a
(CEA) to offer seismic strengthening
SUCCESSOR IN INTEREST—HBOR
new person rather than a modification
retrofits and the financing for those
AB 244 would have included
of the original mortgage contract for
retrofits. Under the proposal, the
a “Successor in Interest” under
CEA would be given super-priority
the definition of borrower for
lien status and repayment of the
the purposes of the California
Protection Bureau (CFPB) has acted
loan is accomplished through a tax
Homeowner Bill of Rights (HBOR).
extensively on this issue at the
assessment itemized within the
The bill extended the rights and
Federal level. It issued implementation
borrower’s local property tax billing.
benefits of the HBOR to successors
guidance in October of 2013
Because repayment is treated as a
in interest, including consideration for
for lenders to maintain policies
tax assessment, the lien associated
a foreclosure prevention alternative,
and procedures to identify and
with the improvement is granted
providing a single point of contact
communicate with the successor
super-priority status. These methods
and access to a private right of action
in interest of a deceased borrower.
of finance, sometimes referred
with draconian penalties. The bill
The CFPB issued a clarifying rule in
to as Property Assessed Clean
applies to any successor in interest
July 2014 saying, essentially, that a
Energy (PACE) loans, have received
natural person who is a personal
successor can be added to a mortgage
considerable attention by the Federal
representative, a spouse, a joint
without triggering Ability-to-Pay Rule
Housing Finance Agency (FHFA),
tenant, or a trustee or beneficiary.
if successor satisfies a two-part test: 1)
the regulator for the government
The California MBA opposes AB 244.
previously acquired property (i.e., trust
sponsored entities (GSEs). While SB
The bill was set for a January hearing
or divorce); and 2) agrees to take on
602 relates to seismic strengthening
in the Assembly Committee on
the debt obligation. Further, the CFPB
improvements and not clean energy,
Banking and Finance but facing strong
has released pending regulations for
the methodology for funding the
opposition, the author requested it be
public comment that would amend the
seismic strengthening improvement
pulled from the hearing agenda.
national mortgage serving standards
is identical. A letter from the FHFA
A fundamental principle of
the original borrower.
The Consumer Financial
found in the RESPA and TILA. These
expressed concerns with the bill
the HBOR is the consideration of
amendments propose to: 1) apply all
and compared the products that
foreclosure prevention alternatives for
of the mortgage servicing rules to
would result to the PACE program.
distressed borrowers. By definition,
successors in interest once a servicer
The California MBA has an oppose
“foreclosure prevention alternative”
confirms the successor in interest’s
unless amended position on SB 602
means a first lien loan modification
identity and ownership interest
and is working with other housing
or another available loss mitigation
in the property; 2) adopt rules for
related industry groups in an effort to
option. As such, a loan modification
how a mortgage servicer confirms
remove the super lien priority status
is an amendment to the original
a successor in interest’s status; and
for the CEA seismic strengthening
mortgage. Successors in interest
3) ensure that to the extent the
improvement loans described in the
wishing to become the borrower,
mortgage servicing rules apply to
bill and instead allow for a lien that
who were not a party to the original
successors in interest that the rules
has the force, effect, and priority
mortgage contract, would be granted
of a judgment lien. Facing strong
an opportunity under AB 244 to
…Legislative Report continued on page 34
Legislative Report continued from page 33…
apply with respect to all successors
will include language similar to the
at re-writing or updating the entire
in interest who acquire an ownership
language in AB 99.
CFLL because it covers such a broad
interest in a transfer protected from
acceleration and foreclosure.
AB 99—FORGIVEN MORTGAGE
group of financial products and types
AB 268—CALIFORNIA FINANCE
of lenders. As an example, the bill was
LENDERS LAW—CONSUMER
amended early in 2016 to require a
LOANS
48 month examination schedule for
DEBT AND BORROWER STATE TAX
RELIEF
Under the California Finance
Lenders Law (CFLL) there are
that the Chair is reviewing is moving
restrictive interest rate and fee caps
real estate lending out of the CFLL so
AB 99 because it would have
for consumer loans of less than a bona
that only the Residential Mortgage
extended important state tax relief to
fide principal amount of $2,500. AB
Lending Act would cover real property
borrowers, in conformity with federal
268 originally would have repealed
secured loans/licensees. Other issues
law, who are not required to report
those consumer loan provisions and
of interest to mortgage lenders
the amount of debt forgiven by a
instead required the commissioner
include expanding size and types of
lender resulting from a negotiated
to establish an installment loan
loans covered by interest rate and fee
short sale or principal reduction. By
rate review process for licensees
caps and redefining the statutory term
extending the sunset date for this
that intend to offer unsecured full
“bona fide principal amount.”
tax relief to January 1, 2015, AB 99
amortizing installment loans of a
would have eliminated a significant
minimum principal amount upon
impediment for homeowners seeking
origination of at least $300 and a
viable alternatives to foreclosure
maximum principal amount of $2,500.
during these tough economic
The current statutory interest rate and
times. When debt is forgiven by
fee restrictions make it difficult for
a lender as part of an agreement
CFLL licensees to offer these types of
with a borrower using the short sale
small loans to consumers.
The California MBA supported
process or a principal reduction, the
SP
Save the Date for our
2016 Conference Season!
The author of AB 268, who is also
borrower should not be penalized
Chair of the Assembly Committee on
on their state income taxes. Many
Banking and Finance, made the bill a
borrowers, who faced foreclosure
two-year bill, which means it did not
last year and successfully negotiated
move in 2015 but can be brought
a loan modification, may well find
up again in 2016. The author has
themselves once again unable to
expressed a desire to update/revamp
make their mortgage payment if
the CFLL, with a focus on expanding
they are saddled with a tax burden
the ability of licensees to offer small
resulting from forgiven debt. AB 99
loans to consumers in need while
passed out of the Legislature but was
still providing consumer protections
vetoed by the Governor along with
for credit challenged borrowers. He
several other bills offering tax credits.
held a series of meetings on this topic
In vetoing these bills he referenced
that we attended and plans to have a
the prospect of over $1 billion in cuts
legislative proposal on the topic that
for next year’s state budget. It is likely
will be amended into AB 268. Even
that a new bill on forgiven mortgage
though the effort is focused on small
debt will be introduced in 2016 that
loans, it is also clear that he is looking
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CFLL licensees. One of the concepts
Annual Legislative Day
April 4, 2016 | Sheraton Grand | Sacramento
44th Annual Western
July 25-27, 2016 | Westin St. Francis
San Francisco
21st Annual Western
States Loan Servicing Conf.
August 14-16, 2016 | Westin Gaslamp
San Diego
19th Annual Western
States CREF Conference
September 7-9, 2016 | Wynn Las Vegas
Annual Legal Issues Conference
December TBA | Costa Mesa
www.CMBA.com/Events
Media & Marketing continued from page 11…
Connection is a two-way street—be
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Speaking about employees—
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a social media platform more
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that more than 70% of Twitter
looks like it was drafted by
users expect a response from
an outside PR firm, picked
a brand they interact with. Of
apart by a dozen executives,
those, 65% expect a response
approved by attorneys, and
within 2 hours; 86% expect a
posted with no context. Utilize
same-day response. Don’t miss
your employees to speak
the opportunity to provide
your brand’s message in their
your future customer helpful
own voice. Find those who
(remember that content is
understand your company and
king in social media—you must
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provide value!) information
brand ambassador within their
that earns their trust and builds
own social networks.
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•
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Pull back the curtain—nothing
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Roundtable continued from page 14…
appraisers in California. As the older
Valuation Advocacy Association
building stronger partnerships
segment of appraisers retire there is
(REVAA) who lobby for positive
with the appraisers that they work
not enough new blood to replenish
change for the industry. REVAA
with. Inevitably, appraisers will find
the system.
monitors public policy and serves as
themselves in a “buyer’s market”
an important resource to federal and
for their services, and the clients
relationships with appraisers in the
state regulators and policymakers,
that treat them well and pay them
industry will be a core competency
and issues such as creating solutions
fairly will be rewarded with strong
that AMC’s must develop and
regarding the attrition of appraisers
partnerships that allow to offer
enhance. Those relationships are
are top agenda items.
excellent service levels regardless of
Pickell: Developing strong
strengthened by showing respect
Tallinger: There is no doubt
the shrinking appraiser population.
to the appraiser for their expertise,
that the shrinking population of
by paying the appraisers quickly for
appraisers will have an impact on the
Q: HOW HAS THE
completed files, by involving them
mortgage banking industry. It’s very
IMPLEMENTATION OF TRID
in forums or seminars at appraiser
surprising that there has not been
EFFECTED THE “REASONABLE
related events. These types of actions
more discussion industry wide about
AND CUSTOMARY” FEES PAID
will ensure that those appraisers who
the lack of new blood coming into the
TO APPRAISERS ON A NATIONAL
continue in the business want to work
appraisal field. If the situation remains
LEVEL?
with the respective AMC. Until there
status quo for the next couple of years
Tallinger: TRID has been a
is an influx of new appraisers in the
there will be a steady trickle down that
polarizing topic throughout the
industry however, the lending industry
will begin to affect lenders, originators,
mortgage industry because it has
will potentially be impacted on the
AMC’s, and inevitably borrowers.
affected different types of service
delivery of appraisals once a critical
Just based on the principles
providers in different ways. Many
mass is met of appraisers leaving
of supply and demand, the cost of
lenders and originators have seen
the industry. Being a company that
appraisals will begin to increase and
their loan pipeline slow down
develops these strong relationships
the turnaround time for appraisals
significantly because TRID has
and attracts those remaining
will be extended. Logically, appraisers
affected so many different aspects
appraisers will be a competitive
will choose to work with the lenders
of their operations. TRID packaged
advantage as well as being a lender
and AMCs that are paying the highest
in so many changes that had to be
who utilizes this type of an AMC.
wages and are the easiest to work with.
implemented at the same time that
AMCs offer newer appraisers the
The attrition of appraisers could
it’s been difficult for many lenders
opportunity to do assignments which
also lead to lenders to rely more
to proceed with “business as usual”
are not generally available to the typical
heavily on alternative valuation
because so many resources had to be
independent fee appraiser. These
products to help make their risk based
allocated to comply with TRID. There
assignments include… Quality Control
lending decisions. If an undersupply
are certainly some lenders who were
work, non-lending appraisal related
of quality appraisers results in
able to weather the storm of TRID
work (comparing appraisal reports
extended turn times, lenders could
with minimal effect on their day to
on the same property and identifying
seek out valuation tools that may not
day operations.
deficiencies or discrepancies between
be as comprehensive as traditional
the reports; assisting more experienced
appraisals, but offer what they
standpoint, the implementation of
appraisal staff with expert witness/
deem to be satisfactory valuation
TRID has actually simplified our
litigation work).
information in a timely manner.
operations and has been a welcome
trade associations like the Real Estate
Forward thinking AMCs and
lenders will likely try to focus on
SP R
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Also, AMCs can join non-profit
Speaking from an AMC
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change. TRID has in essence forced
AMC margins may be higher for some
type of knowledge, or knowing where
AMCs to get it right the first time.
appraisals, however, there are many
to get the answer, is invaluable.
We have encouraged our clients to
appraisals where the AMC loses money.
The independent appraisers look
adopt the new County-by-County
In the time before TRID, AMCs
for answers on how to deal with
pricing model that we have developed
could go back to the originator
problems from their AMC in those
to comply with TRID guidelines.
and ask for a higher fee if the local
instances where the appraiser may not
Under this model, not only are
appraisers deemed that the fee should
have dealt with this type of problem.
appraisers being paid fairly based on
be higher. Now in the TRID era AMCs
Mutual respect is gained when an
what is customary and reasonable
can only go back to the lender if there
AMC can offer sound advice based
for their market, but borrowers are
is a “change of circumstance”.
on similar situations from the past or,
also being charged fairly based on
We have found that TRID has
what appraisals cost in their specific
generally not impacted customary and
can get advice from other very
market. The borrower in a densely
reasonable fees paid to appraisers.
experienced appraisers.
populated suburban area is no longer
In fact most appraisers are unaware
being asked to pay a higher fee to
of TRID since it does not affect their
among peers is the best way to
help offset the cost for the high priced
fee or change how an appraisal is
learn and unfortunately with many
appraisal that is ordered in a difficult
to be completed. TRID has affected
large institutions dissolving their in
rural market in their same state. We
AMCs much more than appraisers. If
house appraisal departments, that
decided that it was important that
appraisers in a particular geographic
knowledge is not disseminated as
our borrowers were being charged
area command a higher fee, they will
easily as it once was, then shared
fairly based on what it costs to get an
be paid accordingly regardless of the
over and over. Social media does help
appraisal completed in their market.
appraisal fee paid by the borrower.
with sharing information, but the
Not based on an inflated statewide
The reason for the higher fee may be
appraisers must go to those sites and
fee that penalizes the average
due to the assignment being complex
take the time to participate in Q&A
borrower to compensate for higher
or it could simply be a supply and
forums. Most don’t have that luxury
priced appraisals in more difficult/
demand issue that exists because the
of time. One on one training and
complex markets.
subject property is located in an area
discussions are truly the best form of
where there is a lack of appraisers and
training that can be offered.
Statham: We have listened to
many folks on the origination side
a great deal of real estate activity.
that are less than thrilled about the
Also, what about a scholarship
challenges that TRID has brought
Q: HOW CAN APPRAISAL FIRMS
Or a social media campaign?
about. While many agree that TRID
ENCOURAGE MILLENNIALS
Appraisal Firms have a challenge
generally benefits the borrower from
TO CONSIDER JOINING THE
in the industry in that many lenders
a transparency standpoint, it has also
INDUSTRY?”
will not accept appraisals completed
Pickell: AMCs should have
by trainee appraisers, even if a
appraisal fees which partially offsets
appraisers on staff to offer peer
certified appraiser, as supervisory
the benefit.
assistance to those appraisers which
appraiser, signs the report and
may have questions on how to deal
inspected both the subject property
of TRID, many AMCs raised fees to
with a challenging situation. AMC’s
and the comparables. Currently, a
compensate for the inability to go back
absolutely need to have experienced
trainee must complete at minimum
to the originator with a higher fee once
appraisers on staff to offer assistance
2500 hours of mentorship before
the appraisal fee has been disclosed
on challenging issues that come up
to the borrower. This means that
daily. Having individuals with that
With the October 2015 onset
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Knowledge being shared
program?
led to somewhat higher standard
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through relationships in the industry,
being allowed to become fully
licensed or certified and that person
but within the next 5–10 years it will.
Statham: This is a question that
it is today and continue to watch
the number of appraisers decline,
must hold a college degree. The
we have asked ourselves over and
appraisal fees increase, and the time
regulatory environment needs to
over again. We have spoken with
it takes to close loans extended due
analyze some of these requirements
many of our peers in the industry, and
to the additional workload of the
to make the industry more attractive.
this really comes down to recruiting,
remaining appraisers.
In addition, the lending industry
Tallinger: This is a difficult
training and acceptance. As an
and regulatory environment will need
appraisal management company, Got
question to answer. The barrier to
to come together to accept appraisals
Appraisals has been taking a proactive
entry into the appraisal industry
completed by newer individuals to
approach. We have been working to
right now is very high. To become a
the industry (trainees) with proper
develop a training program to bring
Certified Appraiser in the State of
supervision. As more and more
new appraisers into the industry.
Michigan right now the requirements
individuals leave the industry due to
The next step is working with our
include: completion of 200 hours
retirement, health, or other reasons,
lender clients to get them to accept
of appraisal classes, obtaining
the principle of supply and demand
appraisals that are completed by
2,500 hours of supervised appraisal
will eventually kick in and appraisal
these appraisers with the oversight of
experience with a Certified Appraiser
fees will rise across the industry.
certified appraisers.
(must be completed over a course
This will more than likely prompt
This process will add new
of at least 24 months,) having an
the younger generations to view the
appraisers to the industry and give
Associate degree or higher, and
appraisal industry as attractive and
the proper motivation by allowing
passing a state appraisal exam.
begin to infiltrate it. Right now, the
them to make a living as their
challenge for an individual entering
experience grows. In addition, the
stringent than what is required to
the industry is finding an appraiser
formal training program will ensure
become a licensed loan originator,
willing to train and mentor and to pay
the new appraisers are receiving
an account executive for a wholesale
that trainee appraiser money during
the proper guidance, training and
lender, or a licensed real estate
that mentorship period. AMC’s could
experience. Due to the numerous
agent. All of which can offer a higher
be a solution to this if they have
layers of quality control from the
income opportunity/ceiling than that
clients willing to accept appraisal
supervisory appraiser, AMC and the
of a Certified Appraiser with far less
reports completed by trainees. The
lender’s underwriting process, there
training and experience.
large institutions which in the past
is no elevated risk by accepting these
had excellent appraisal departments
appraisals. If anything there will be
may be far easier for most people
with appraiser training are gone. Many
an even more stringent review at the
to obtain an Associate’s degree or a
of the appraisers working today were
appraisal firm’s level.
Bachelor’s degree in a field that offers
products of those programs and there
These requirements are far more
We also want to go back
Logic would also dictate that it
good pay and stability, without having
has been a vacuum in this area for the
to the response on the first
to spend an additional two years
past 20+ years. Appraisal firms are
question. Removing the college
apprenticing to become an appraiser.
typically smaller organizations without
degree component from the list of
the financial resources to develop a
requirements to become an appraiser
appraisal licensing laws have created
full training program, but they may
would help entice those who are
a stacked deck those who hope to
train an individual occasionally. The
interested in a solid career, without
attract fresh blood into the industry.
lack of attraction to the younger
the time and expense associated with
That being said, there are very good
generation in the industry will soon be
a 4-year degree. Or as an industry,
felt. It has not hit critical mass just yet
we can keep everything the way that
It is clear that the current
SP R
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opportunities now and in the near
future for appraisers to build a solid,
sustainable business that lets them
work for themselves and earn a nice
Focus.
Foresight.
Follow Through.
living financially. Appraisal firms
and AMCs would be wise to use
the recent attrition of appraisers
as a selling point to help attract
millennials to consider joining the
appraisal industry. Because there is a
high demand for appraisers it is likely
that new appraisers coming into the
industry will face less competition for
USFN and its member firms have been committed
to elevating the industry standard for education
and have been driving advocacy, collaboration and
advancement within the default servicing industry for
more than 25 years. With USFN as a constant guide
and trusted partner, representing you in all
50 states, member firms are committed to
delivering meaningful and measurable results for
their clients every step of the way.
.
assignments and will have solid job
security because they will constantly
be in demand.
Expect more. Demand the Best. Choose USFN.
Subscribe to
CALIFORNIA MBA’S
official
YOUTUBE CHANNEL
(800) 635-6128
Loan Management
& Servicing
Seminar
March 16-17
The Westin Galleria
Dallas
Dallas, TX
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20603 USFN Ad CMBA Jan 2016 r1.indd 1
www.usfn.org
Loan Management
& Servicing
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2/4/16 1:56 PM
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Featured Residential continued from page 18…
brokers will return the report to the
appraisers and still serve both lender
appraiser to look it over again and
and borrower? While I don’t have a
complete rebuttals, and make revisions
specific solution, I think our industry
on reported adjustments.
is going to need to readdress the
If the appraised value is indeed
Market Shifts into High Gear as
Independent Mortgage Bankers Rev Up Volume
MORTGAGE
FINANCE
Summer 2015
Commercial Deals Make for Busy 2015
WHICH MARKETS
WILL SOAR?
appraisal relationship in the coming
IN THIS ISSUE
years to make sure that a) lenders
more than just a wrench in the process.
get an accurate and unbiased report
In most cases, a typical mortgage firm
on the property they are lending on,
will lend based on the appraised (lower)
and b) AMC’s and their appraiser
value. Therefore, the difference in sales
partners need the independence to
price and appraised value will now
provide quality service. I’m hoping this
mean that the borrower will need to
can serve as a starting point for our
come in with the extra funds to close
industry to begin discussing a problem
the loan. For example, let’s say that the
that needs to be addressed.
Networking. Education. Connection.
From the Beginning
FROM THE
EXECUTIVE
DIRECTOR
Top Trends to Look for in
Commercial Lending in 2015
Vi
sit
THIS ISSSUE COMMERCIAL NEWS
of the main reasons I’m a member
in low. Since the loan has already been
of the California MBA, and why I
approved at 85%, and assuming the
encourage folks in our industry to
seller refuses to negotiate and sell
join and be active in their mortgage
for lower, the borrower now needs
banking trade associations. It does us
to pay the extra difference in value
no good to grumble in private; only by
and sales price. In this way the system
constructively working together and
can punish the borrower needlessly
advocating for our companies through
and puts the appraiser in an awkward
partner groups like the California MBA
position. As one of the many AMCs
can we move forward and serve the
that takes pride in following all the
next generation of homeowners.
the target value on purchase contracts
and are asked to revisit the report
and make changes, many will feel
second-guessed and sense some level
of pressure to hit that price. On the
other hand, in such situations, I’m sure
Have you updated your
Membership Directory
listing?
lenders feel pressure to elevate the
One of the benefits of your
LTV to meet the updated valuation.
California MBA membership
While the new rules and guidelines are
is inclusion in our online
a major improvement, I believe change
Membership Directory!
is necessary. Like you, I’m sure that you
Make sure your company’s
agree that the system, as is, needs to
be reformed.
So what can be done? How can
Have a new
employee or have
a star you’d like to
highlight?
www.CMBA.com
price but the appraisal report comes
know that when appraisers are given
rniamba.com
alifo
w.c
ww
at
A publication of
us
Coming May 2015! Contact Dustin@cmba.com for
editorial and advertising opportunities!
Having this conversation is one
rules of compliance and guidelines, I
SEE PAGE 10
NEWS
lower than the sale price, this can be
loan was approved at 85% of the sales
Great Opportunities
Available in CMFN!
Commercial
members!
Submit your latest
deal for publication
(FREE exposure!)
Make yourself a
subject matter
expert by authoring
an article!
Contact
Dustin Hobbs at
dustin@cmba.com
for more details!
info is up to date! Email
dustin@cmba.com for
more information!
SP R
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we protect the independence of
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Host a networking
event at your office
in 2016!
Featured Commercial continued from page 19…
Recession trough, and rental apartment
California rental properties are less
starts in 2015 were at the highest
likely to default on their lease terms
level since 1986. And while some
and have a growing ability to pay rent.
new buildings come with additional
Both measures steadily improved over
amenities, the typical apartment under
the past three years.
construction today is about 1,100
Get in front of
potential customers
and business
partners!
We take care of the
marketing for you!
Contact
Carol Danaher at
carol@cmba.com
for more details!
Lease risk model data from
square feet per unit—about the same
CoreLogic shows that California
size as in 1999 when measurement
applicant lease scores have rapidly
data were first compiled.
improved: from an average applicant
Even though vacancy rates are
score of 329 in 2013 to 425 in 2015.
the lowest in a generation, it’s natural
A growing lease score suggests a
to wonder whether there are enough
greater likelihood to meet lease terms
tenants to rent the increased supply
without default. Combining bureau and
of new apartments. Absorption data,
lease-predictive non-bureau consumer
which measure the occupancy rate of
data, the company’s proprietary,
newly completed apartments, indicate
statistically validated lease risk score
that demand has been sufficient to
represents a substantial improvement
lease the new units relatively quickly
over scorecard models and “rules
(see Exhibit 3). Three- and 6-month
of thumb”—“old-school” screening
absorption rates are at their highest
methods that used to be rental
levels in a decade. In fact, for rental
housing providers’ primary methods of
apartments completed during the
measuring applicant lease default risk.
second quarter of 2015, nearly two-
Income per lease, as stated by
thirds were rented within three months.
the applicant, grew similarly over the
The high level of new starts last
same period among California rental
year means that 2016 will have an
applicants—from $6,307 per month
even larger number of new apartment
in 2013 to $8,307 per month income
completions. In some local markets,
in 2015. This growth reflects multiple
the new supply has already alleviated
factors, including more applicants
tight conditions, leading to slower
taking a roommate or applying with
rent growth and greater availability
a co-signor, as well as higher stated
of apartments. More metros will
income per person.
experience rent moderation and vacancy
California rental traffic
rise in 2016, and competition for quality
demonstrates an uncommon
tenants among building managers will
seasonality. In most markets around the
intensify. While national data will likely
country, the best-qualified applicants
show relatively low vacancy rates and
tend to apply in the busiest rental
rent growth that’s faster than inflation,
season—between April and September.
some metro markets will begin to see
In contrast, the end of the year marks
‘looser’ conditions.
the time when the best-qualified rental
applicants apply in California. For
APPLICANT TRAFFIC IMPROVES
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Increasingly, applicants to
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…Featured Commercial continued on
page 43
Featured Commercial continued from
page 42…
Demurrers continued from page 24…
three straight years, the fourth quarter
is being challenged. The demurring
of the new statute pertaining the meet
party is required to: (1) “identify
and confer process in connection with
all causes of action it believes are
Demurrers, Section 430.41 lacks any
subject to demurrer” and (2) “identify
mechanism to hold the parties or their
with legal support the basis of the
attorneys accountable for failing to
deficiencies.” The party whose
comply in good faith with the meet
pleading is challenged must “provide
and confer process. In fact, subdivision
legal support for its position that
(a)(4) of Section 430.41 states that
the pleading is legally sufficient”
“[a]ny determination that the meet and
or identify how the pleading can
confer process was insufficient shall
be amended to cure the legal
not be grounds to overrule or sustain
insufficiency. Then, after the parties
a demurrer.” Nonetheless, failing to file
meet and confer, if an amended
any Declaration regarding the outcome
pleading is filed, the responding
of the meet and confer process will
party is required to meet and confer
likely now result in Demurrers being
again before filing a Demurrer to the
overruled or taken off-calendar and
amended pleading.
not considered or, at the very least,
average incomes and applicant scores
among California rental applicants.
MULTIFAMILY ORIGINATIONS
The improving rental market
conditions and low mortgage
rate environment since the Great
Recession has aided a rebound in
lending on multifamily properties to
record volumes. The resurgence in
lending has been driven by property
sales, refinance and new mezzanine
debt placed on existing properties,
and by permanent financing secured
by newly completed structures. As
an example of this increase, the
company’s CommercialTrends data
show that multifamily originations in
California reached a new peak during
2015, with more dollars lent than in
any preceding year.
According to CommercialTrends
data from CoreLogic, roughly 90 percent
of the lending on multifamily properties
occurs in the eight largest metropolitan
areas in California, and just over one-half
in the combined Los Angeles-AnaheimRiverside metropolitan areas (see Exhibit
4). Loan sizes vary substantially within
and across areas, with many well below
$1 million in size and some above $10
million. While it varies by metro area,
approximately one-half of the dollar
volume of loans originated during 2015
were $5 million or more in amount.
With new completions coming on the
market in 2016 and low mortgage rates
supporting refinance, lending volumes
may remain at similar levels in the
coming year.
Despite the mandatory language
Alternatively, if as a result of
continued until the demurring party
the meet and confer process no
complies with the statute.
agreement is reached as to all of
the objections to the pleading, a
AUTOMATIC 30-DAY EXTENSION
declaration by the demurring party
OF TIME TO RESPOND IF, IN
regarding the outcome of the meet
GOOD FAITH, DEMURRING PARTY
and confer process is required to
UNABLE TO TIMELY MEET AND
be filed at the time of the filing of
CONFER
the Demurrer. Section 430.41(a)
If in good faith the parties are
(3) specifies that the declaration is
not able to meet and confer at least
required to state either:
five (5) days prior to the date the
1. The means by which the
responsive pleading is due, Section
demurring party met and
430.41 allows for the filing an initial
conferred with the party who filed
declaration by the demurring party
the pleading subject to demurrer,
prior to the date the responsive
and that the parties did not
pleading is due. The timely filing of
reach an agreement resolving the
that declaration invokes an automatic
objections raised in the demurrer;
30-day extension of time for the
or
demurring party to respond. Section
2. That the party who filed the
430.41(a)(2) requires that this
pleading subject to demurrer
declaration state under penalty of
failed to respond to the meet and
perjury that: (1) a good faith attempt
confer request of the demurring
to meet and confer was made; and (2)
party or otherwise failed to meet
and confer in good faith.
…Demurrers continued on page 44
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marked the period with the highest
party, and the party who’s pleading
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Demurrers continued from page 43…
explain the reasons why the parties
challenged pleading can be amended
the courts. As a result, the drive
could not meet and confer. The
after a Demurrer is sustained.
behind the new statute is to reduce
statute also specifies that the 30-day
Pursuant to Section 430.41(e),
the number of Demurrers, and
extension of time begins to run from
the challenged pleading cannot be
at the same time limit (albeit less
the date the responsive pleading was
amended more than three (3) times
restrictively) the number of times
previously due, and no default of the
after the sustaining of a Demurrer;
a pleading can be amended after a
demurring party may not be taken
however, the statute also provides a
Demurrer is sustained. However,
during the period of the automatic
number of exceptions to this Three
whether the positive results the
30-day extension. Lastly, the statute
Amendment Rule. Those exceptions
statute is intended to create will
provides that “[a]ny further extensions
are: (1) where the amendment is made
ultimately outweigh its negatives
shall be obtained by court order upon
without leave of court pursuant to
(i.e., more upfront costs and delays in
a showing of good cause.”
C.C.P 472 “provided the amendment
bringing Demurrers, disputes as to the
is made before a demurrer to the
statute’s meaning and requirements,
THE STATUTE’S “USE IT OR LOSE
original complaint or cross-complaint
and inconsistent interpretations and
IT” PROVISION
is made”; (2) where an offer is made to
applications of it, etc.) will remain to
the trial court of additional facts that
be seen.
If a Demurrer is sustained to a
prior version of a pleading, the same
can be pleaded which show “there
demurring party may not assert as
is a reasonable possibility the defect
a few exceptions, Section 430.41
a ground for a Demurrer to a later
can be cured to state a cause of
will affect anyone filing Demurrers.
version, any ground that could have
action”; and (3) Section 430.41 does
For the most part gone are the days
been raised in that party’s earlier
not pertain to amended pleadings or
of simply planning the grounds for
Demurrer. Since the standard set forth
Demurrers after the case is at issue.
a Demurrer less than five (5) days
in Section 403.41(b) is whether the
before it is due, and is also not hard
grounds for the subsequent Demurrer
COURT MAY ORDER A
to imagine that a sharp rise in the
could have been raised by demurrer
“CONFERENCE OF THE PARTIES”
filing of Motions For Judgment on the
to the earlier version of the pleading
WHEN DEMURRER SUSTAINED
Pleadings will be seen.
after that party’s earlier Demurrer was
The new statute also allows the
sustained, any portions of the prior
Court to order a conference of the
pleadings which are re-plead should
parties after the Court sustains a
be closely examined to determine if
Demurrer. If such a conference is
a Demurrer can be asserted as to any
ordered by the Court, no amended
later versions of the pleading. This
Complaint or Cross-Complaint, or
substantial limitation on the grounds
Demurrer to an Amended Complaint
for subsequent Demurrers was a
or Cross-Complaint, may be filed until
significant concern of opponents to
after the conference. Furthermore,
this new law.
when such a conference is ordered,
the time for the filing of a Demurrer to
LIMITATIONS ON THE NUMBER
the amended pleading does not begin
OF AMENDMENTS TO THE
until the conference is concluded.
CHALLENGED PLEADING AFTER A
DEMURRER IS SUSTAINED
FINAL THOUGHTS
The new statute provides a
SP
limit on the number of times the
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that Demurrers were clogging
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What is known is that, with only
1
2
This article is expanded from one that was
published in the USFN e-Update (Nov./
Dec. 2015 Ed.).
Similar in many respects to Motions to
Dismiss challenging a pleading filed in
federal court, Demurrers filed in California
state court cases challenge the pleading
of the Complaint (or Cross-Complaint or
Answer).
Weary continued from page 25…
of any such changes in the KBYO
disclosures is a requisite.
Ability to Repay.
Marketing Services Agreements.
It does appear to be somewhat
Candidly, this is a disaster. The CFPB
surprising that the ability to repay or
has telegraphed to the industry: (a)
“ATR” rule is a continuing source of
marketing service agreements (“MSAs)
concern to the CFPB—due in no small
are per se illegal (cutting through the
which business decisions have created
measure to the easy by which mortgage
PC language the CFPB has been using);
difficulties than when determining
lenders can comply with their ATR
(b) mortgage lenders need to review
and negotiating loan originator (LO)
obligations, such as by running a loan
and likely undo MSAs; and (c) there
compensation. Traditional paradigms
applicant through the Fannie Mae or
theoretically may be a way to structure
for both in-house and third party
Freddie Mac underwriting engines, etc.
an acceptable MSA, but the CFPB has
LO Compensation.
There is probably no other area in
compensation have had to be revised,
From a compliance perspective, a
categorically refused to tell us how.
including compensation for producing
lender may want to confirm that a loan
managers and wholesale (i.e., loan
file contains support that an originated
to MSAs is contrary to the specific
broker) LO compensation schemes.
loan meets one of the several alternative
authorization in Section 8 of RESPA,
ways of complying with the ATR
as well as decades of guidance issued
that compensation agreements for all
rule. While slightly more complicated
by HUD addressing how a lender could
personnel that directly “face” a loan
procedures are necessary for loan
properly construct an MSA.
applicant will be closely reviewed and
that does not qualify as being eligible
compared to computations include on
for purchase by the GSEs, supportive
TRID disclosures.
procedures would appear to address this
in a clearly demonstrable manner.
Until this issue is resolved (there
is litigation challenging the CFPB’s
…Weary continued on page 46
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Mortgage lenders should assume
The CFPB’s legal position in regard
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Weary continued from page 45…
FFIEC continued from page 27…
legal interpretation on this issue,
The CISO is an Enterprise Risk Manager
comprehensive, providing institution
extreme caution in regard to MSAs is
who is independent from IT operations
management with a “repeatable and
called for, including consulting with
management, responsible for overseeing
measurable process to inform of
counsel to address existing MSAs and
and reporting directly to the institution’s
[cybersecurity preparedness and risks].
MSAs being negotiated.
governing Board or Executive
“ Once explained, that process is
Management team information
condensed into a useable rubric form
Son of TRID.
In addition to all of the foregoing,
concerning security risks across the
institution. With this collaboration of
Assessment Tool also comes in two
you should also be aware that at the end
business and IT, the Handbook aims
parts. The first part is “Inherent
of last year the CFPB adopted wholesale
to promote technology advances in
Risk Profile”—a measurement of
amendments to Regulation C, most of
the delivery of financial products and
institutional risk in the following
which will become effective in January
services with greater security and
areas: technology and connection
of 2018. While the start date for the
transparency to the consumer.
types, delivery channels, online/
The FFIEC Handbook then
new reporting requirements appears to
transitions to the subject of building
services, organizational
compliance priority, anecdotal evidence
and administering an effective IT Risk
characteristics, and external threats.
indicates that modifying a lender’s LOS
Management (ITRM) structure that
may approach the complexity needed to
effectively evolves with advances
Maturity,” is designed to assist
implement TRID.
in technology and analytics, along
management in the measurement of
with effective means of defending
risk levels and corresponding controls.
changes necessary for TRID and
against cyber attacks. The Handbook
The risk levels range from Baseline
Regulation C at the same time, the
identifies each component of an
(lowest) to Innovative (highest). With
CFPB has imposed enormous (and
effective ITRM structure and is
risk levels come five (5) Domains
unnecessary) additional compliance
prescriptive in how to build and
to aid institutions in determining
costs on an already over-burdened
implement one. To be effective,
whether behaviors, practices and
mortgage industry.
the ITRM structure must include
processes can support Cybersecurity
a comprehensive Information
Preparedness. They are: cyber risk
Security program, a formal Project
management and oversight, threat
Management process, an enterprise-
intelligence and collaboration,
leveled against the CFPB, staff has
wide Business Continuity Planning
cybersecurity controls, external
indicated an expanded willingness
function, and an effective Internal
dependency management, and cyber
to have substantive discussions with
Audit program and process for timely
incident management and resilience.
a view towards addressing industry
reporting of risk assessment and
concerns regarding practical, operational
system weaknesses.
An Optimistic Final Note.
Despite many of the complaints
To address the growing threat
compliance concerns. What is emerging
The second part, “Cybersecurity
Together, these new FFIEC
publications aim to support
technology innovation in our industry,
is a process whereby the CFPB will meet
of cybersecurity attacks against
protect our customer’s nonpublic
to explore defects in its regulations, and
financial institutions, the FFIEC
financial and loan transaction data
consider issuing guidance to mortgage
supplemented its updated Handbook
from unauthorized access, and provide
lenders that will be useful.
with the release of its Cybersecurity
additional needed resources for
Assessment Tool with Management
industry to function in full compliance
meantime, compliance folks—you have
and Users Guides [www.ffiec.gov/
with the ever technical CFPB rules
long-term job security…
cyberassessmenttool.htm]. The
and reporting requirements.
We can only hope. In the
Guides are highly prescriptive and
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mobile products and technology
be far enough off not to consider it a
Sadly, by not announcing the
SP
Like the Handbook, the Cyber-
Re-use Projects continued from page 28…
cost (G-Max) contract from
property? Does it meet all four
consideration of future
their chosen contractor? How
tests of Highest and Best Us: Is
trending.
do the projected costs compare
it Physically Possible? Is it Legally
with national cost estimating
Permissible? Is it Financially
current value of the property
services like Marshall & Swift?
Feasible? Is it the Maximally
in its current physical and
If there is a discrepancy, which
Productive Use, and thus the
economic condition. In
is more accurate? Why? Does
Highest and Best Use of the
adaptive re-use projects,
the developer have sufficient
property? Typically, Market Value
this valuation will require a
experience with building projects
appraisals consider the property
thorough Highest and Best
like the one proposed, to allow
at its Highest and Best Use. If
Use analysis that compares
them to have a real understanding
that is not to be the case, then it
the valuation of the property
of the costs involved?
should be clearly spelled out in
based on its current use
the Scope of Work.
and occupancy prior to the
4. Development Timeline—Has the
developer provided a credible
6. Market Value Estimates—Since
a. Market Value As Is. This is the
proposed change of use,
timeline for all phases of the
adaptive re-use projects involve
with the residual value of
development of the project?
entitlement, construction and
the property subject to the
Is the projection for finalizing
absorption, banking underwriting
proposed adaptive re-use.
entitlements realistic? Does the
standards and regulatory
projected construction timeline
guidelines typically require the
include provisions for unexpected
following estimates of Market
conditions such as bad weather,
Value in an appraisal:
projects requires thorough due
labor shortages, or delays in
a. Prospective Market Value
diligence on the part of the developer,
CONCLUSION
Valuation of adaptive re-use
delivery of materials? Are there
upon Stabilization. This is
the lender and the appraiser. A
provisions for contractor penalties
a future value estimate, as
well-conceived project will be
if the contracted timeframe is
of the projected date of
supported by professional third party
exceeded? Does the developer
completion of construction
reports that address key issues such
have a well supported projection
and achievement of stabilized
as: entitlements, market demand
for absorption of the project after
occupancy. Depending
and supply, development costs,
completion of construction? What
on the length of time
development timeline and highest
market-based support is provided
between the current date
and best use. These factors must be
for the projection of absorption?
and the prospective date,
considered and analyzed in order
Hopefully this is addressed in a
this valuation may require
to develop credible estimates of
professionally prepared market
considering the applicability
Market Value as of the required points
study that was provided to the
of future trending of income,
in time for prudent underwriting.
lender. If not, then the appraiser
expenses and cap rates.
Cooperation and good communication
will have to do their own market
a. Prospective Market Value
between lenders, developers and
study in order to support their
upon Completion. This is
appraisers can make this an efficient
absorption projection and as
also a future value estimate,
and productive process resulting in a
noted above, this can be time-
as of the projected date of
well-supported appraisal.
consuming and costly.
completion of construction,
but prior to achievement
proposed development represent
of stabilized occupancy.
the Highest and Best Use of the
This may also require
SP R
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5. Highest & Best Use—Does the
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Drafting Contracts continued from page 29…
of harm anticipated to be caused if
Mervyn’s not being opened on the
a deficiency following foreclosure,
the provision is not satisfied.” Id. at
Lease commencement date, such that
while Advent, the contractor, sued the
1338. The trial court had found, and
there was no reasonable relationship
developer and the Bank for restitution
the court of appeal agreed, that the
between zero dollars of anticipated
for the amounts it paid out of pocket.
rent abatement provision constituted
harm and the forfeiture of $39,500.00
The Court awarded judgment in favor
an unreasonable penalty by findings
in rent per month.” Id. As to the lease
of Advent on its causes of action. The
of fact that “Ross did not anticipate
termination provision, the Court of
Court further found the Bank had
it would suffer any damages for
Appeal noted that California courts
breached the loan contract, which
have adopted a specific rule that
resulted in exonerating the guarantors,
when a commercial lease contains a
and awarded attorneys’ fees to
clause allowing termination upon the
Advent and the guarantors. The Bank
occurrence of contingencies that are
appealed the judgments based on
agreed upon by sophisticated parties
provisions in the Loan Agreement that
and have no relation to any act or
provided that the guarantors waived
default of the parties, no forfeiture
“all their defenses under the guaranty
results from the exercise of the
agreements.” California Bank & Trust,
determination provision. Id. at 1367.
232 Cal. App. 4th at 218–19. The
In the California Bank & Trust
Court noted that, under Civil Code
The California MBA is
coming to
YOU
in 2016!
Just a few of the companies we
visited (and highlighted in the
magazine) last year:
Dykema Gossett
Total Lender Solutions
TCV (Transcontinental Valuations)
Property Sciences
The Compliance Group
Comergence
Flagstar Bank
AAA-AMC
Vitek Mortgage Group
LendingQB
Citadel Servicing Corp.
Black Knight Financial Services
Green & Hall
Impac Mortgage Holdings, Inc.
Ellie Mae
Peak Corporate Network
Geraci Law Firm
Essent Guaranty, Inc.
Bay Equity Home Loans
OrangeGrid
Boston National Title (BNT) Company of California
Texas Capital Bank
MCT
Western Alliance Bank
DataVerify
Michigan Mutual
EdgeMac
CleanFund
Sindeo
Alight
And more!
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Get on our 2016 calendar!
Email Carol Danaher at
carol@cmba.com for more info!
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case, the borrower had obtained
§2856, the guarantor could waive
a construction loan from Vineyard
rights of subrogation, reimbursement,
Bank to develop a 70-unit town
indemnification and contribution, and
home project, with guarantees from
any rights and defenses by reason
Thomas DelPonti and David Wood,
of an election of remedies by the
principals of the borrower. However,
creditor, or any rights the guarantor
when Phase I of the development was
might have because the principal’s
nearly complete, the Bank stopped
obligation is secured by real estate.
funding payment draws, thereby
The Court determined that a blanket
preventing completion and sale of the
waiver of “all” defenses would not
Phase I units, which in turn caused
include equitable defenses, such as
the borrower to default on the loan.
unclean hands, which would allow the
The Bank reached an agreement with
lender to profit by its own fraudulent
the borrower requiring the contractor,
conduct. The Court also noted that the
Advent, Inc., to finish Phase I so that
waiver did not include waiver of the
the units could be sold at auction and
lender’s duty of continuous good faith
promising to pay the subcontractors if
and fair dealing.
they discounted their bills and released
their liens. The contractor paid the
artful drafting of a contract, even
subcontractors from its own pocket to
between sophisticated parties,
keep the project lien-free so that the
contractual provisions may not be
auction could proceed. However, the
enforced if the court determines
Bank foreclosed against the borrower
that such contract provisions violate
and then sued both the borrower and
California public policy.
guarantors under various theories for
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In summary, notwithstanding
California MBA After Hours
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December 3, 2015, Offices of California MBA
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In what has become an annual tradition, the California MBA
hosted our year-end networking event at the Sacramento
offices, bringing in folks from the area and throughout the state.
Keys to a successful networking event: a relaxed environment,
The California MBA provided refreshments to industry pros
delicious refreshments, and friends old and new!
looking to relax after a busy day.
Meet the staff! From left: Devon Keefe, Conference
Manager; Carol Danaher, Membership
Development Director; Inez Lane, Office
Manager; Susan Milazzo, Executive Director;
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Dustin Hobbs, Communications Director.
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Y
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California MBA Legal
Issues Conference
December 7, 2015, Costa Mesa, CA
Our all-star legislative/regulatory panel consisted of (from left):
Jon Jaffe, K&L Gates, LLP; Ken Markison, Mortgage Bankers
Association; Jobe Danganan, Sindeo; Michael Pfeifer, Pfeifer
& DeLaMora, LLP; Pat Zenzola, KP Public Affairs; Melissa
Special thanks to our conference chairman, Michael Pfeifer,
Richards, CMG Financial; and Don Lampe, Morrison & Forester.
California MBA General Counsel, Pfeifer & DeLaMora, LLP
After lunch the focus shifted to quality assurance strategies.
Thanks to the conference’s sponsors and exhibitors, including
Leading the discussion were some of the top minds in the industry.
Smarsh!
From left: David Green, The StoneHill Group, Inc.; Annemaria Allen,
The Compliance Group, Inc.; Janet Crawford, U.S. Department of
HUD; Julie Manson, Plaza Home Mortgage; Catherine Zimmerman,
Fannie Mae; and Cynthia Hamilton, New American Funding.
One of the highlights of the conference was hearing directly from
state and national regulators, including Calvin Hagins,
Deputy Assistant Director for Originations, Consumer Financial
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Protection Bureau (CFPB).
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San Francisco After Hours
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January 21, 2016, Offices of Alight, Inc.
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Our first networking event of the new year was held at the
Thanks to Jared Huff, Managing Director, for hosting the event
offices of Alight, Inc. in San Francisco. Thanks so much to our
and for his support!
In addition to our hosts at Alight, the event was sponsored by
The event gave California MBA Executive Director an
CMG Financial and Bankers Insurance Service.
opportunity to speak at length with local industry pros.
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fabulous hosts!
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Rancho Santa Fe After Hours
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February 3, 2016, Rancho Santa Fe Golf Club
(hosted by Residential Wholesale Mortgage, Inc.)
In the first of back-to-back networking events in Southern
The evening was perfect for relaxing conversation, catching up
California, Residential Wholesale Mortgage, Inc. hosted the
with old friends, and enjoying the scenery in Rancho Santa Fe.
California MBA at the beautiful Rancho Santa Fe Golf Club.
The San Diego-area event was a huge success, with over 60
Bringing together industry professionals from throughout
people joining the group!
Southern California, including 2 participants in the California
MBA Future Leaders Program (Class of ‘15): Marlene Chaker
Minite and Andrew Boylan!
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North LA After Hours
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February 4, 2016, Offices of First Rate Financial Group
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Our next event was held in North Los Angeles at the Westlake
Warm smiles and laughter as local industry pros gather to catch
Village offices of First Rate Financial Group. Thanks to our
up with old friends and stir up new business opportunities.
sponsors for a great event!
California MBA Executive Director Susan Milazzo with 2008-
Would your California MBA-member company like to host or
2009 Chairman Robert Satnick, Golden Empire Mortgage.
sponsor our next event? Contact Carol Danaher, Membership
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Development Director, at carol@cmba.com for more information.
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Building
Stronger Relationships
Next, Susan stopped off at the offices of Newbridge Capital
& Trust, and met with Adam Silverman, President, Residential
Mortgage. NewBridge Capital & Trust and its subsidiaries provides
mortgage, trust, and specialty lending opportunities to their clients.
For more, call (213) 688-3406, or go to www.nbcaptrust.com.
In Costa Mesa, Susan met with reps with Dart Appraisal, a
nationwide independent Appraisal Management Company (AMC)
established in 1993. Thanks to Suzanne Guille for her time and
support! To find out more, go to www.DartAppraisal.com or call
(888) 327-8123.
“We can’t do our job serving
our members, unless we get
to know them in their own
environment first.”
— SUSAN MILAZZO,
California MBA Executive Director
In San Francisco, Susan met with the team at Allen Matkins, a
California-based law firm specializing in real estate, litigation, labor,
tax, and business law, with more than 200 attorneys in four major
metropolitan areas of California: Los Angeles, Orange County, San
Francisco and San Diego. Thanks to Steve Lieske and the firm for
their support! For more information, contact the San Francisco
offices at (415) 837-1515 or go to www.AllenMatkins.com.
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Building
Stronger Relationships
In early 2016, Susan traveled to Orange County to visit with the
In Westlake Village, Susan met with Glenda Klein, CFO at First
team at First American Mortgage Solutions, which provides a host
Rate Financial Group, a residential mortgage banker. The group
of products and services: real estate data and analytics, mortgage
recently hosted one of our always-popular regional networking
fraud and verification, regulatory compliance, property valuation
events. For more, call (818) 707-4131 or go to www.frfgp.com.
and collateral risk, quality control, lender fulfillment services,
title and settlement, default services. From left: Jeff Moyer, Chief
Product and Strategy Officer, Susan Milazzo, Paul Harris, SVP and
Jeff Flory, SVP, Risk and Compliance Solutions. For more info, go
to www.firstam.com/mortgagesolutions or call (800) 525-3633.
Finally, Susan and California MBA Board Member Bill Lowman
(President, American Pacific Mortgage) met with execs at
Sterling Claims Management. The company provides a fulltime board member and industry veteran. Scott currently
operates Incal Assocates, an industry advisory firm. To find out
more, call (310) 470-0770 or email scott@incalassociates.com.
service, customizable hazard claims management solution to
servicers, lenders and GSE’s solely. Thanks to Principals Jami
Sherr and Jonny Borok for their time and support! To find out
more, go to www.SterlingClaimsManagement.com or call their
San Diego offices at (619) 363-9001.
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In Los Angeles, Susan stopped by to see Scott Whittle, long-
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Here - California Mortgage Bankers Association

Transcription

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