Our New Year's Resolutions

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Our New Year’s                                                                             in this issue...
                                                                                           LEGISLATIVE UPDATE                    page 2

                                                                                           LEGAL UPDATE                          page 4

                                                                                           REMEMBRANCE, TRIBUTE
                                                                                           AND TRANSITION                        page 5
CALIFORNIA MORTGAGE BANKERS ASSOCIATION                                                    REGULATORY UPDATE                     page 6

                                                                                           CONTACTS                              page 7
      This is my first column to you as    involve-
the new chairman of the CMBA, and I        ment on the                                     CALENDAR                              page 8

want to thank the very able Tom            political                                       WELCOME NEW MEMBERS page 8
Hammond, who commendably led               front, on
our organization from 2000 to 2002.        regulatory                                      quote of the quarter...
Thanks to his terrific efforts, Tom left   issues, and                                       Never doubt that a small
a very healthy CMBA foundation             at confer-                                        group of thoughtful, commit-
upon which to build.                       ences,                                            ted citizens can change the
      While it is not quite 2003, it is    which                                             world. Indeed, it is the only
                                           provide not only educational sub-                 thing that ever has.
the season of giving, and as such we
                                           stance, but the opportunity to network.                           Margaret Mead
want to share with you some of the
resolutions that your executive council    In our business, we recognize network-          California Mortgage Finance News is pub-
                                           ing as an important component.                  lished four times per year: Spring, Summer,
and board have set forth for the
                                                                                           Fall and Winter. Deadlines for submission of
coming year.                                      3. We will keep the CMBA                 articles for 2003 are:
      1. The CMBA chairman will            politically active. Ongoing rapport with
                                                                                             SPRING 2003           FEBRUARY 1, 2003

be accessible to ideas and change.         our state and federal legislative represen-       SUMMER 2003           MAY 1, 2003

                                           tatives is vital to making sure that in         California Mortgage Finance News is published
We want the California Mortgage
                                           times of critical votes in Sacramento and       by the California Mortgage Bankers Association.
Bankers Association to remain just
                                           in Washington, D.C., California’s               EDITOR:   David Haithcock
that—an association. This is your                                                          PUBLISHER/LAYOUT:   Wolfe Design Marketing
                                           senators and representatives think about
group. We want to hear your ideas
                                           how their votes affect our industry. And
and thoughts on how we can make                                                          we addressed the need to have the
                                           in remaining politically vigilant, we will
many of our already successful                                                           board represent two different—but
                                           continue to urgeexpansion of the CMBA
programs even better.                                                                    critically important—divisions of the
                                           political action committee, which will
      2. We will work to expand                                                          mortgage lending business, residential
                                           ensure that our lawmakers will hear our
membership. Expanding our mem-                                                           and commercial. While presiding as
                                           point of view.
                                                                                         CMBA chairman, I will be overseeing
bership is critical to our survival.              Earlier this year, our organization
Membership is a function of your           underwent an important transition as                                 SEE JOHNSON ON PAGE 6

CALIFORNIA MORTGAGE FINANCE NEWS                                                                                                          1

CMBA Legislative Activities
Winter 2003

      The 2001-2002 legislative session     introducing new legislation to clarify          institutions to obtain explicit customer
concluded on Sept. 30, 2002, the            some of the changes made last year.             consent to share information with third
deadline for the Governor to act on bills   The coalition elected to wait a year to         parties (opt in) and to give customers
passed by the legislature this year. The    better gauge the impact of last year’s          the opportunity to stop information
session was a good one for CMBA –           bill. We will revisit this issue, if            sharing with affiliates (opt out). The bill
topped by CMBA’s success in overturn-       necessary, next session.                        also would have mandated a specific,
ing the Bartold decision in 2001. This                                                      California-only privacy notice.
                                            2. AB 489/AB 344 (Migden)—
year, CMBA worked with a broad                                                                    Mortgage bankers were uniquely
                                            Predatory Lending. This two-bill
coalition to stop onerous financial                                                         impacted by one provision of the bill.
                                            package, passed in 2001, established new
privacy legislation, resisted efforts to                                                    The law would have required financial
                                            requirements for high-cost, “abusive”
increase regulatory assessments on RML                                                      institutions to allow customers 45 days
                                            home loans. While not all good, the bills
licensees, and defeated legislation that                                                    to exercise their “opt-out” choice. In
                                            are far more acceptable than the onerous
would have restricted the use of credit                                                     practice, this would mean that a lender
                                            bills initially advanced by consumer
scores in mortgage transactions.                                                            could not offer settlement services
                                            activists and bills passed in other states.
Highlights follow below.                                                                    (escrow, title, etc.) provided by an
                                            CMBA worked with several large
                                                                                            affiliate, until the 45-day period expired.
1. AB 1090 (Hertzberg)—                     member companies and other allied
                                                                                            As a result in many cases, products
Reconveyance. This measure                  trade groups to moderate many onerous
                                                                                            necessary to close a loan could not be
abrogated the holding in the case of        provisions. Passage of this state legisla-
                                                                                            offered through an affiliate prior to
Bartold v. Glendale Federal Bank.           tion has assisted industry’s efforts to stall
                                                                                            closing. CMBA, together with Coun-
In Bartold, the court concluded that        several local predatory lending proposals.
                                                                                            trywide and First American Title,
lenders were required to process a                This year, CMBA worked with
                                                                                            obtained an amendment to the bill that
request for reconveyance the same           other lending trades in an effort to
                                                                                            would have authorized information
day that a loan was satisfied. This         obtain legislation that would preempt
                                                                                            sharing necessary to offer settlement
case created an immediate litigation        local predatory lending ordinances.
                                                                                            services prior to closing. With this
exposure for the mortgage industry in       This effort failed in the final hours of        amendment, CMBA removed its
excess of $5 billion. In 2001, together     the session. In the end, the legislative        opposition to the legislation. As noted
with MBA, CMBA organized a                  “cost” of obtaining a preemption bill –         earlier, the bill failed, because other
coalition of the nation’s largest loan      new prepayment rules and/or changes             fundamental problems with the bill
servicers to fund a legislative re-         to the definition of “covered loan”—            were not addressed.
sponse. The bill was carried by the         exceeded the near-term benefit of
Speaker of the Assembly. Not surpris-       stopping local ordinances.                      4. Regulatory Matters
ingly, it faced vigorous opposition                                                               (a) RML Task Force. CMBA
from the trial bar. The bill passed, in     3. SB 773 (Speier)—Financial                    had a series of informal meetings with
large part, because we accepted a few       Privacy. For the second year in a               Department of Corporations regula-
changes that gained the support of the      row, the financial services industry            tory staff, commencing in the fall of
Consumers Union.                            stopped financial privacy legislation in        2001, to address ongoing problems
      This year, the Bartold coalition      the final hours of the legislative session.     with the department’s enforcement
considered, but ultimately rejected,        SB 773 would have required financial            approach under the RML law. CMBA

2                                                                                                                           WINTER 2003
has expressed continuing concern that      than one day before recording. The         5. Miscellaneous Legislative
the department is establishing infor-      rule in question, however, was             Matters
mal, “underground” regulations in          intended to regulate interest charges            (a) Credit Scoring. The
violation of the California Administra-                                               legislature defeated a proposal to
                                           before funding – not to limit interest
tive Procedures Act. The informal
                                           charges after funding. CMBA devel-         prevent credit scoring companies from
meetings were intended to identify
                                           oped a legislative fix to this problem –   considering the number of credit
areas of dispute between the industry
                                           working with the California Land Title     inquiries made by a borrower in
and the department, and to provide a
                                           Association. The Department resisted       computing that borrower’s credit
forum for resolution of these matters,
                                           this effort, in part because it believed   score. CMBA opposed this measure
before enforcement and/or litigation.
      In August, at the behest of          the issue needed further review. The       as an unwarranted intrusion on
CMBA, the Corporations Commis-             Department has agreed to work with         lender’s discretion to underwrite loans.
sioner issued an order establishing a      CMBA to develop an administrative                (b) Pre-dispute Employment
permanent advisory board (similar to       solution, if possible, and to secure a     Arbitration. The Governor vetoed a
those operating under other licensing      legislative fix if we conclude a change    measure sponsored by Senate Presi-
laws) to make suggestions on necessary     in the law is necessary.                   dent John Burton that would have

This year, CMBA worked with a broad coalition to stop onerous financial privacy
legislation, resisted efforts to increase regulatory assessments on RML licensees,
and defeated legislation that would have restricted the use of credit scores in
mortgage transactions.

changes to the RML program. The                  (d) Yield Spread Premium. In         prohibited the use of binding arbitra-
department has solicited applications      response to a request from CMBA, the       tion to settle employment disputes
from companies and individuals             Business, Transportation and Housing       alleging a violation of state anti-
interested in serving on the committee.    Agency established an interagency task     discrimination laws.
The advisory committee is scheduled        force to resolve the question of                  (c) Housing Bond. The
to have its first meeting this fall.       whether a YSP must be counted as a         legislature placed a $2 billion housing
       (b) Budget. This year, the state    “point” for purposes of determining        bond on the November ballot. This
faced an unprecedented budget              whether a loan is a “covered loan”         measure (Prop 46) passed with 55
shortfall, placing enormous pressures      subject to the state predatory lending     percent of the popular vote. The
on all state departments to cut spend-     statute. We asked for this task force      bond will fund, and in many cases
ing and find new, creative ways to         when it became clear that the language     expand, existing state affordable
fund their programs. Nonetheless, we       of the statute was subject to differing    housing programs.
got through this budget cycle without
                                           interpretations, and that the regulators          (d) Paid Family Leave. The
an increase in licensee assessments –
                                           were sending mixed messages to             legislature passed a bill granting all
in large part because CMBA legislation
                                           industry concerning how to classify        employees up to six weeks of paid
passed in 2000 capped the maximum
                                           YSPs. BTH oversees the activities of       leave to care for a sick relative, or to
that the department could charge.
                                           the three departments charged with         care for a new child. The program will
       (c) Per Diem Interest. In June,
                                           enforcing the predatory lending law—       be funded by a new tax on employees.
CMBA became aware that the DOC
                                           DOC, the Department of Real Estate         Employers can require employees to
was seeking to prevent some lenders
from collecting interest after loan        and the Department of Financial            use up to two weeks of vacation before
funding, but before a deed of trust is     Institutions. The first task force         claiming paid leave. Employers with
recorded. While agreeing that such a       meeting was held Sept. 11. Prior to        50 or fewer employees are not required
rule is unfair, the department has         that meeting, the Senate Banking           to keep a job open for an employee
asserted that this result is required by   Committee Chairman sent a letter to        that elects to take paid leave.
provisions of the RML law that             BTH supporting the lending industry’s
prohibit charging interest for more        interpretation of the statute.

CALIFORNIA MORTGAGE FINANCE NEWS                                                                                             3

Predatory Lending Update

                                           issue in 2002 with secondary market         lending
                                           investors and their East Coast attor-       ordinance.
                                           neys directing lenders to count YSPs        AFSA has
                                           into the calculation as of July 1. The      appealed the trial court’s decision.
                                           result was a dramatic drop in the           The ordinance’s effective date
                                           availability of mortgage loans of           remains stayed.
                                           $250,000 or less as lenders found few               The San Francisco City
                                           investors to purchase their covered         Council took a different approach in
                                           loans. In September, the CMBA               passing its predatory lending ordi-
                                           organized a meeting with Business,          nance (Chapter 92, San Francisco
                                           Transportation and Housing Secretary        Administrative Code) earlier this
                                           Maria Contreras-Sweet, who oversees         year. That ordinance calls for a one-
                                           the lender agencies Department of           year pilot program program for
                                           Corporations, Department of Real            consumer education and outreach on
          Throughout 2002, predatory       Estate and Department of Financial          loan education and credit counseling,
lending remained a predominant issue       Institutions. The result: BTH will serve    while city council members remain
on both the state and local levels. On
the state level, California’s Predatory     The result was a dramatic drop in the
Lending Law (AB 489) enacted in
2001, took effect July 1 without a
                                            availability of mortgage loans of $250,000 or
statutorily assigned state agency to        less as lenders found few investors to purchase
regulate and interpret the law, and         their covered loans.
without preemption over local ordi-
nances. The California law adopts          as the designated agency overseeing         fully engaged on the issue within
lower benchmarks for the same              California’s Predatory Lending Law          their respective districts over a long
Federal (Section 32) tests for determin-   and its first action is establishing a      period of time. The Sacramento City
ing covered loans, namely the Annual       task force to analyze and render            Council subsequently passed a
Percentage Rate and “Points and Fees”      formal interpretations of the Law.          similar resolution.
tests, along with an expanded list of                CMBA will pursue legislative               Finally, the Los Angeles City
restrictions and prohibitions on           relief in the form of state preemption      Council is contemplating passing its
covered loan terms. The law applies        over local predatory lending ordi-          own predatory lending ordinance,
only to consumer purpose, residential      nances in 2003. What with 2002 being        one that is akin to Oakland, by
mortgage loans of $250,000 or less,        an election year, no legislator had the     year-end. The Mayor’s office and
made to natural persons.                   intestinal fortitude to take on preemp-     the City Attorney’s office are
          Uncertainty as to what fees      tion this year.                             involved in the deliberations. The
were to be counted into the “points                  Turning to the cities, the City   CMBA will keep you informed of
and fees” test, and particularly           of Oakland prevailed at the trial court     these and any future predatory
whether the yield spread premium           level against the American Financial        lending developments by way of
collected by mortgage brokers was to       Services Association’s challenge to         alerts and quarterly newsletters.
be counted, became a hotly contested       the legitimacy of its predatory

4                                                                                                                  WINTER 2003
   A Night Of Remembrance, Tribute and Transition
          Continuing with tradition, the start of every new fiscal year brings with it a new era of new officers and
    directors. During a recent installation dinner, CMBA also took the opportunity to thank those who have served as
    past presidents. With assistance from Jim Murphy, chairman of the Mortgage Bankers Association of America, who
    served as the installing officer and master of ceremony, CMBA successfully installed the 2003 officers and directors.
    In addition, Mr. Murphy presented awards of recognition to CMBA’s past presidents.

                                                                                       Clockwise beginning from top left:
                                                                                       Bruce Norman, CMBA past
                                                                                       president, reflects on the changes
                                                                                       the mortgage industry has
                                                                                       undergone over the last decade.

                                                                                       Top: Dan Phelan, left, receives
                                                                                       past president’s outstanding
                                                                                       service award from MBAA
                                                                                       Chairman Jim Murphy, right.

                                                                                       Bottom:CMBA Chairman Guy
                                                                                       Johnson, right, presents outgoing
                                                                                       Chairman Tom Hammond with
                                                                                       an inscribed portrait for his
                                                                                       dedicated work to the association.

                                                                                       Top row, left to right:
                                                                                       CMBA Executive Director David
                                                                                       Haithcock; CMBA past Chair-
                                                                                       man Tom Hammond; CMBA
                                                                                       past President Dan Phelan;
                                                                                       MBAA past Chairman Jim
                                                                                       Murphy; CMBA past President
                                                                                       Dan Mulvihill; CMBA past
                                                                                       President Barry Slatt; CMBA
                                                                                       Chairman Guy Johnson;
                                                                                       Bottom row, left to right:
                                                                                       CMBA General Counsel Bruce
                                                                                       Hyman; past President Jack
                                                                                       Opperman; past President
                                                                                       Carrie Hawkins; past President
                                                                                       Ray Crebs.

CALIFORNIA MORTGAGE FINANCE NEWS                                                                                            5

The Secret Way To Lose Weight
For The Holidays!

      Once each year, compliance                      • Compare investor guidelines                  Every piece of paper you elimi-
managers should take a look at the                       to desktop procedures.                nate from a disclosure or closing
shear number of documents that make                   • Observe the way front-line             package will save the lender at least
up standard disclosure and closing                       people are trained to prepare         five cents. That may not sound like
packages. The purpose of the review                      packages.                             much until you multiply the nickels
would be to eliminate forms; combine                  • Pay special attention to the           per package by the number of pack-
forms; add any that are required but                     number of copies per document.        ages generated each year.
somehow are missing; and look for
ways to make some mandatory forms                     This review may uncover                        And remember that your over-
more product-specific.                          situations where documents that are            night delivery charges are based on
                                                mandatory for one product, such as a           distance and weight. So if you can
      Here are five suggestions for             purchase money first mortgage, also            reduce the weight, you will save
conducting this simple annual process:          end up in refinance and equity loan            money both on the document produc-
                                                packages. Although such a practice             tion costs and the shipping.
      • Review the document                     may not be a compliance error, it may
          groups on your loan origina-          create unnecessary compliance risk.            Mike Ryan is the president of the Planning
                                                                                               Solutions Group, Inc. He can be reached at
          tion or document software.            And from an operational perspective,
                                                                                      or at (800) 769-6082.
      •   Look at the checklists the            it takes extra time and cost to generate
          processors and closers use.           the unnecessary forms.


expansion of the CMBA political action          ments very seriously. We hope to draw          held many positions, including past
committee, which will ensure that our           upon our professional experiences to help      president of Southern California and
lawmakers will hear our point of view.          assure CMBA’s continued path of success.       current national director) and Real Estate
      Earlier this year, our organization       Personally, I was requested to provide a bit   Investment Advisory Council. I have been
underwent an important transition as we         of my relevant background. I am CEO of         a member of several political action
addressed the need to have the board            Johnson Capital, a private national            committees. These experiences should
represent two different—but critically          commercial real estate mortgage and            benefit the CMBA; we have already
important—divisions of the mortgage             investment banking firm. I serve on several    begun to draw on our collective network
lending business, residential and commer-       advisory boards for major financial            of business colleagues to help us achieve
cial. While presiding as CMBA chairman, I       institutions and investment banks. I am        our mutual goals.
will be overseeing the overall affairs of the   also involved in many other organizations,           We look forward to working with all
association as well as the commercial           including the Mortgage Bankers Associa-        of our members. Please call me if you have
aspects of our business. I have full faith      tion of America, International Council of      thoughts or ideas on how we can better
and confidence in our new president of          Shopping Centers, Urban Land Institute,        serve all of our interests. Now is the time
residential, Matt Soto, who will be             National Multi Housing Council (as a           for us to remain focused and continue to
representing our residential division.          current director), National Association of     work together for the good of our industry.
      We are taking our various appoint-        Industrial and Office Properties (I have

6                                                                                                                                  WINTER 2003

   2002 Contacts
    Chairman                                        Treasurer                             Executive Director
    Mr. Guy K. Johnson                              Mr. Thomas T. Hammond                 Mr. David C. Haithcock
    Johnson Capital Group, Inc.                     Hammond Securities Co., LLC           California Mortgage Bankers Association
    18500 Von Karman Avenue, Suite 500              23807 Aliso Creek Road, Suite 200     980 9th Street, Suite 2120
    Irvine, CA 92612-0504                           Laguna Niguel, CA 92677               Sacramento, CA 95814
    (949) 660-1999                                  (949) 360-1005, ext. 106              (916) 446-7100
    Email:                Email:             Email:

    President, Residential                          Secretary
    Mr. Matthew M. Soto, Sr.                        Mr. Greg Grandchamp
    The De Oro Group                                Y2Marketing
    1757 South Euclid Ave.                          3115 Foothill Blvd., Ste. M208
    Ontario, CA 91762                               LaCrescenta, CA 91214
    (909) 933-3477, Fax (909) 933-3497              (818) 249-2948
    Email:                     Email:

    Mr. Adam Bass                                   Mr. Steven H. Hammer                  Ms. Laura A. Pephens
    Ameriquest Mortgage Co.                         L.J. Melody & Co.                     Pephens & Co.
                                                    1999 Avenue of the Stars, Ste. 3160   501 N. El Camino Real, Ste. 200
    1100 Town & Country Rd., Suite 1100
                                                    Los Angeles, CA 90067                 San Clemente, CA 92672
    Orange, CA 92868                                (310) 277-2100                        (949) 248-4596
    (714) 564-0600                                  Email:     Email:
                                                    Mr. Steven Hops                       Mr. Daniel J. Phelan, CMB
                                                    Guild Mortgage                        Pacific Southwest Realty Services
    Mr. Bradley W. Blackwell
                                                    1999 Avenue of the Stars, Ste. 3160   7071 Convoy Court, Ste. 300
    Wells Fargo Home Mortgage, Inc.                                                       San Diego, CA 92111
                                                    Rancho Cordova, CA 95742
    7901 Stoneridge Drive                           (916) 638-1620                        (858) 514-2100
    Pleasanton, CA 94588                            Email:            Email:
    (925) 416-5614
                                                    Mr. Damian A. Jones                   Ms. Melissa Richards
                                                    Fannie Mae                            Buchalter Nemer Fields & Younger
                                                    135 North Los Robles Avenue           895 Dove St., Ste. 400
    Mr. Robert Camerota, Sr., CMB                   Pasadena, CA 91101-1707               INewport Beach, CA 92660                                      (626) 396-5335                        (949) 224-6244
    3200 Park Center Drive, Suite 150               Email:   Email:
    Costa Mesa, CA 92626
                                                    Ms. Sharon L. Kline                   Mr. Robert Satnick
    (714) 800-6496                                                                        Home Savings Mortgage
                                                    L.J. Melody & Co.
    Email:                                                           500 E. Esplanade Drive, Ste. 102
                                                    3501 Jamboree Road, Ste. 500
                                                    Newport Beach, CA 92660               Oxnard, CA 93030
    Mr. William D. Dallas, CMB                      (949) 509-2115                        (805) 485-0441, ext. 1185
    First Franklin Financial Corp.                  Email:      Email:
    32123 West Lindero Canyon Rd., Ste. 204                                               Mr. Paul Schroeder
                                                    Ms. Shelley M. Magoffin
    Westlake Village, CA 91361                                                            Cohen Financial
                                                    Dwyer-Curlett, Inc.
    (818) 597-2505                                  1880 Century Park East, Ste. 400      1 Post Street, Ste. 400
    Email:                                                 San Francisco, CA 94104
                                                    Los Angeles, CA 90067
                                                                                          (415) 397-2200
                                                    (310) 226-2700
    Mr. Jon Ellis                                   Email:
    First Horizon                                                                         Mr. Eric Von Berg
                                                    Mr. Pete Mills
    30021 Tomas St., Ste 300                                                              Newmark Realty Capital, Inc.
                                                    Countrywide Home Loans                650 California Street, 4th Floor
    Rancho Santa Margarita, CA 92688
                                                    1717 Pennsylvania Ave. NW, Ste. 700   San Francisco, CA 94108
    (949) 489-2146                                  Washington, DC 20006-4614             (415) 956-9922
                                                    (202) 974-1088                        Email:
    Mr. Richard Gale                                Email: Pete_Mills@Countrywide.Com
    Provident Bank                                                                        Mr. Scott H. Whittle
                                                    Mr. John Mullins                      Incal Associates, Ltd.
    3756 Central Avenue
                                                    Master Financial                      10850 Wilshire Blvd., Ste. 300
    Riverside, CA 92506                             3230 Fallow Field Drive               Los Angeles, CA 90024
    (909) 782-6160                                  Diamond Bar, CA 91765                 (310) 470-0770
    Email:                    (909) 595-1996                        Email:

CALIFORNIA MORTGAGE FINANCE NEWS                                                                                                    7

    2003 Calendar
    February 2-5, 2003                                                 July 9-11, 2003
    MBA CREF/Multifamily Housing Convention                            Western States Secondary Market and
    and Expo                                                           Technology Conference
    San Diego Marriott Hotel and Marina, San Diego, CA                 Westin St. Francis Hotel, San Francisco, CA

    February 4, 2003
                                                                       August 10-12, 2003
    CMBA CREF “State of the State” Breakfast held
                                                                       Western States Loan Servicing Conference
    in conjunction with the MBA CREF/Multifamily
                                                                       Bellagio Hotel, Las Vegas, NV
    Housing Convention and Expo
    San Diego Marriott Hotel and Marina, San Diego, CA
                                                                       September 28-30, 2003
    March 10-12, 2003                                                  Western States Commercial Real Estate Finance
    Mortgage Bankers Association of America                            Conference (tentative)
    Washington Leadership Conference                                   Bellagio Hotel, Las Vegas, NV
    Washington Court Hotel, Washington, DC
                                                                       October 19-22, 2003
    May 28, 2003
                                                                       MBA’s 90th Annual Convention and Expo
    CMBA Board of Directors Meeting
                                                                       San Diego Convention Center, San Diego, CA
    Pacific Palms Resort, Industry Hills, CA
                                                                       October 27, 2003
    May 28-30, 2003
    Western States Loan Originators Conference and                     CMBA Legislative, Regulatory and Compliance
    Expo                                                               Conference
    Pacific Palms Resort, Industry Hills, CA                           Sutton Place Hotel, Newport Beach, CA

    Welcome New Members to the CMBA Family
    Mr. Dick Allen                             Mr. Abraham Kessel                           Mr. Joe Laderer
    COO                                        President                                    Nomura Credit & Capital, Inc.
    AES Due Diligence, Inc.                    Consolidated Mortgage
                                                                                            Mr. Dean Bonine
    Mr. Larry Rygalski                         Mr. Kristi Tobin                             Vice President of Mortgage
    National Sales Manager                     Director of Marketing                        Operations
    Mortgage Builder Software                  Imperial Capital Bank                        PrimeDirect Mortgage Co.

    Mr. Ronald Poelke                          Mr. Danny Bowz                               Ms. Julia Gorman
    President                                  General Counsel                              Principal
    Mylor Financial Group, Inc.                Pacific Coast Funding, Inc.                  American Mortgage Network, Inc.
    Mr. Jerome Smolar                          Mr. Ed Balazs                                Ms. Sam Benjamin
    Vice President, CFO                        Director                                     President
    United Title Co.                           Dresdner Bank AG                             Home Loan Funding, Inc.
    Mr. Michael Burwell                        Mr. Harold Hagen
    CEO                                        Attorney
    Redwood Mortgage                           Foley & Lardner

8                                                                                                                           WINTER 2003

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