July 16, 2012
Governor Signs Conference Committee Mortgage Measure
Last Wednesday, Governor Brown signed two identical measures, Assembly Bill 278 (Eng et al.), and SB 900 (Leno et al.), enacting portions of the California Attorney General’s “Homeowner Bill of Rights.” The two measures represent the work product of a conference committee convened to specifically focus on prohibiting dual-tracking, requiring single points of contact as a means to improve borrower communication, increasing standards on loan documentation and imposing legal liability through private rights of action. While opposed by CBA, the newly enacted measures represent improvements beneficial to the financial services industry when compared to the introduced version of the legislation that led to the creation of the conference committee. Despite CBA’s interest in continuing good-faith negotiations through the balance of the legislative session, our requests were declined, thereby prematurely suspending discussions. On behalf of CBA, Neil Rubenstein, a shareholder with the law firm of BuchalterNemer APC, has prepared a Regulatory Compliance Bulletin on these new laws for your consideration. Please also find an analysis of the legislation provided by Morrison & Foerster LLP. CBA wishes to thank BuchalterNemer and Morrison & Foerster for their involvement and guidance on these matters. Both measures will become effective January 1, 2013. If you have any questions, please do not hesitate to contact CBA’s senior vice president and director of state government relations at email@example.com or 916-438-4410.
CBA Meets with Administration Regarding Governor’s Reorganization Plan
Last week, CBA president and CEO, Rod Brown, and several CBA members met with Brian Kelly, Acting Secretary of the Business, Transportation and Housing Agency, Anna Caballero, Secretary of the State and Consumer Services Agency, Teveia Barnes, Commissioner of the Department of Financial Institutions and Jan Owen, Commissioner of the Department of Corporations, to discuss the Governor’s Reorganization Plan. Representatives at the meeting included Rick Sanborn, Seacoast Community Bank, Jeff Ball, Friendly Hills Bank, Dan Doyle, Central Valley Community Bank, Robert Flautt, Folsom Lake Bank, David Taber, American River Bank, Bill Martin, Bank of Sacramento and Kathie Sowa, Bank of America. The meeting centered around the implementation phase of the creation of the Department of Business Oversight, which will house the Division of Financial Institutions and Division of Corporations. Topics that were discussed included the importance of maintaining the safety and soundness of the state banking system, ensuring that the deputy commissioner for the Division of Financial Institutions maintains the same stature and independence that the commissioner of the Department of Financial Institutions currently maintains, that the Financial Institutions Funds remains focused on funding bank examinations and that state bank examiners maintain their current qualification requirements. CBA stands committed to remain actively involved during the implementation phase of the creation of the Department of Business Oversight to ensure our industry’s concerns are adequately addressed. For further information, please do not hesitate to contact Alex Alanis at (916) 438-4411 or firstname.lastname@example.org.
CBA Opposes San Bernardino Eminent Domain Plan
CBA organized a contingent of bankers last week to meet with Greg Devereaux, the chairman of the Joint Powers Authority established by the County of San Bernardino and the cities of Fontana and Ontario, to express concerns about the JPA’s possible use of eminent domain to acquire mortgages. At the JPA’s initial public meeting, CBA provided public testimony. The idea was developed by the San Francisco based investment group Mortgage Resolution Partners or MRP. The central tenet of the proposal is for government entities like the JPA to use their eminent domain authority to acquire performing but underwater residential mortgages (the properties would not be acquired) at a discount, modify the loans, package them into new securities and sell them to investors. MRP would provide the funding and defray the costs of the condemnation law suits. According to MRP’s own marketing materials, the proposal relies on the just compensation valuations to be as low as 20 percent less than the market value of the underlying property, something that investors would surely oppose. The proposal raises serious legal issues, among them whether acquiring performing, non-defaulted mortgages for the purpose of transferring ownership from one private party to another constitutes a legitimate “public purpose.”
CBA Internal Audit School
CBA’ second annual school for bank internal auditors starts next week. For 2012, we have added more exercises and a case study “class project.” The demands placed on your institution’s internal auditor increases each year due to new technical requirements and evolving risk management theory. Whether you’re a new internal auditor looking for a cost effective update on current internal auditing trends, or want to incorporate the latest in regulatory developments into your internal audit scope, this four-day training course is the perfect venue.
The program will be led by a team of professionals from Moss Adams LLP, the largest accounting and consulting firm headquartered in the western United States. And it has been certified for 27.0 CPE credits by the National Association of State Boards of Accountancy (NASBA).
The school will run from Tuesday, July 24, 2012 through Friday, July 27, 2012. It will be held at the Hyatt Regency Newport Beach, where CBA has arranged special rates for participants.
Click here for more information or to register for this program. For questions on this or any other CBA program, please contact John Lingvall at 916/438-4428 or email@example.com.
2012 Directors Certification Update
Passive internal oversight by the boards of directors across the financial sector has been called one of the chief factors in the current financial crisis. Boards of directors are given the responsibility for overseeing management decisions and protecting the value of the firm for shareholders. And coming to grips with the “Dodd-Frank Act” is a tall order, no matter how you cut it.
Now in its tenth year, the Directors Certification Update is your opportunity to keep your Directors Certification Program certificate current. While this full-day update is designed for directors that hold their certification, all directors will benefit from the critical information offered in this program. This year’s session will spend a good deal of time on the new regulatory reform legislation and what it means for directors. The program will be lead by Mark Aldrich, principal of Aldrich, Bonnefin & Moore, P.L.C. assisted by experienced bank directors.
New directors, including directors new to banking, and experienced directors looking for a refresher should attend. The Directors Certification Update will be offered at two locations:
• Hyatt Regency Century Plaza – Tuesday, October 9, 2012
• Westin St. Francis – Thursday, October 11, 2012
For more information/registration please visit the CBA website or contact John Lingvall at 916/438-4428, firstname.lastname@example.org.