The Value of Volunteering

By Stacey Harding, CML
Chairman of the Board

Sir Winston Churchill once said “We make a living by what we get, we make a life by what we give.”
I find that statement inspiring, especially as it applies to volunteerism and the value that giving has in our personal and professional lives. I am honored each day to work with the CMLA Board of Directors, our member companies, and staff to give back to an industry that has so generously given to us.  I’d like to take you on a historical tour of the CMLA and the impact the volunteers of our association have made on the citizens of Colorado, and our nation.

The CMLA has existed for 52 years because people have volunteered their time and talents to ensure that CMLA remains the reputable reliable voice of mortgage lending here in Colorado. And above that, CMLA also carries a rich national leadership tradition that includes four national MBA Presidents, including Aksel Nielsen (1949), C.A. “Bus” Bacon (1968), Everett Spelman, Sr. (1971), and Robert G. Boucher (1980). Association awards bearing the name of each of these men are presented each year at our annual Convention to an individual or individuals who have demonstrated outstanding industry and association leadership. Here’s a bit of interesting information on the volunteer efforts of a few of these men and the impact on our state and our country:

• Aksel Nielsen founded MBA’s School of Mortgage Banking. He was a devoted philanthropist, as he was a Trustee of the University of Denver, a Director for United Airlines, First National Bank of Denver, Empire Savings, and Presbyterian Hospital. Mr. Nielsen was perhaps the most prominent MBA President because of his close association with President Eisenhower. In fact, he was present at a dinner at the Boettcher Mansion when Eisenhower announced his candidacy for President of the United States!
  
  
  
  The next time you visit the Denver Zoo, take a stroll by the otter tank. You’ll notice a plaque near that tank bearing the name of Aksel Nielsen as the Nielsen family were generous donors to the Denver Zoo Foundation!
  
  
• Everett Spelman, Sr. was one of the members of what is fondly referred to by many who have been in the mortgage lending business in Denver as the ‘Liars Club.’ Mr. Everett Spelman was an insurance-trained mortgage banker at a time when local insurance companies had direct mortgage lending companies in Denver. He was a “mortgage bankers’ mortgage banker” and a consummate professional who operated on the premise that it was a mortgage banker’s duty and obligation to have a relationship with the investor and operate on the highest level of personal integrity.
  
• Bob Boucher was Aksel Neilsen’s protégé. He also was a Director of Presbyterian Hospital and on the Board of Colorado Trust. He was one of the founders of the Colorado Housing & Finance Authority and had an important role in ensuring that mortgage bankers were involved with that entity. Mr. Boucher was on the Board of the Colorado Council for Economic Education and was a strong proponent of the free market system. He was an expert on FHA multi-family lending and financed many projects in Denver, including the Volunteers of America apartments.
  
  Although not an MBA president, the late M.C. “Mick” Iverson was a mortgage industry icon in that he was instrumental in obtaining construction financing for builders in many of the inner suburbs of Denver, from Aurora to Jefferson county. Bear Valley was one of the main developments Mick's company was involved with. Prior to the formation of the Denver Mortgage Bankers Association in 1956, Mick was part of a small group of individuals who got together to discuss mortgage business in Denver. At that point in time, only a handful of mortgage companies existed in Denver; the majority of mortgage business was conducted through banks and savings and loans. Eventually the group formalized and became the Denver Mortgage Bankers Association. Mick was one of the founding members of the Denver Mortgage Bankers Association, which is now CMLA. He was Chairman of the CMLA 1982-83 and his son Kevin Iverson served as Chairman 1991-92.
  
  

These individuals- and many others - gave selflessly to the cause of the CMLA and to the cause of homeownership in America. Each of them had the required passion, drive and energy it takes to go the extra mile and devote time beyond their professional careers to give back to our industry.

Today we continue the proud tradition of those who laid the foundation through their volunteer efforts. The people who lead our association today, our Board of Directors, are volunteers devoted to our mission – a world of homeownership achieved through integrity based lending. I am proud of the work and contributions of each of our Directors who help facilitate one of our three value delivery channels: Education, Representation, and Networking.

Patricia Norton, second vice chairman, is leading CMLA’s education domain, which continues to provide high quality education programs throughout the state.  Including programs such as the Certified Mortgage Lender Program at the Community College of Aurora, access to 74 online courses offered through our partnership with CampusMBA, and The RESPA Review. When it comes to volunteering, our CML program at the CCA wouldn’t be possible without volunteer instructors from our Board and from our member companies. These individuals donate countless hours to this program, from providing input to update the teaching manuals to instructing courses. Many individuals also donate time to teach our statewide educational seminars each month and member companies donate space for these events. Visit http://www.cmla.com/education/ for more information about CMLA educational offerings.

Jay Garten, secretary/treasurer, has organized five committees to cover the work of representing CMLA to the legislature and to our members and friends. Shannon VanSickler is heading up our Federal Legislative committee; Steve VanSickler is heading up the State legislative committee; Tom Kimball is leading the Legislative Outreach committee, and Jay is working leading the PAC committee and the Economic Outreach Committee. I encourage you to read about the mission and particular work of each of the committees within the Representation domain in the “Legislative Update” section of this issue of Interest Notes.

Julie Piepho, vice chairman, is bringing FUN and new inspiration to the networking domain. The new format for our Denver luncheons, with FastFive domain news updates, luncheon prize drawings, and Sponsor Spotlights, is a big hit! And, Julie has introduced a special "Question of the Day" that luncheon attendees fill out and share. Click here for the answers to the October luncheon's question: "What is the #1 business development discipline that a mortgage professional should be focused on in today’s market?"
We have a holiday treat for you just around the corner: our Annual Holiday Gathering & Gift Auction. This event will be held at the Inverness Hotel on December 6 from 6-9 p.m. Then, close on the heels of the Holiday Gathering is our 17th Annual Mortgage Lending Fair Friday January 4, 2008 at the Hyatt DTC Hotel in Englewood. This event is the most effective Mortgage Industry Trade Show in the nation! THIS IS THE BIG ONE – DON’T MISS IT! Visit the CMLA web site at http://www.cmla.com/WLF_2008.html to view and download the Exhibitor Registration package TODAY!

As you can see, CMLA has a rich heritage – because of volunteers who have selflessly given of their time and talents to creating and sustaining our association and fighting for the worthwhile ideals that will have an impact on future generations. If you are a previous or current volunteer of the CMLA, I offer you my deepest gratitude.  There is nothing better than the heart of a volunteer.  If you’ve thought about volunteering at CMLA but just haven’t taken that step yet, I invite you to do so today.  Please contact me personally at chairman@cmla.com and I’ll make sure we create an opportunity for you to personally gain the fulfillment and growth that comes with volunteering your time and talents at the CMLA.   Have a wonderful and successful month everyone!

Promote the CML designation through your company!

This month we turn our attention to member companies who encourage their employees to pursue the Certified Mortgage Lender (CML) designation. Roy Alexander, Colorado Housing & Finance Authority, and Jay Garten, Peoples Mortgage Corporation, share their views on the CML designation and the importance of their employees obtaining the designation.



According to Roy Alexander, Executive Director, CHFA, the Certified Mortgage Lender designation is a top priority for CHFA’s Home Finance Division. “CHFA has always viewed education and community involvement as vital elements of our effectiveness. Each staff member within Home Finance is encouraged and expected to receive this designation for promotional and/or developmental opportunities,” shares Mr. Alexander. “This investment in their development is a key initiative as it solidifies their knowledge, demonstrates their mortgage expertise and encourages participation in industry events. CHFA believes employees are essential to our success and this is one way we demonstrate our commitment to provide adequate, professional and ethical service to our customers and business partners.”

Roy Alexander is Executive Director, Colorado Housing and Finance Authority (CHFA). He joined the CHFA staff in October 1988. Prior to assuming the responsibilities of executive director on January 1, 2001, Mr. Alexander served as the authority’s director of finance. He was previously a financial manager with a major Colorado manufacturer and a senior manager with Touche Ross.



Jay Garten is a believer in the CML designation. Earlier this year, Jay lead a CMLA committee that wrote and produced a tri-fold brochure for use by members who have obtained the CML designation. The brochure explains what having the CML designation means and the peace of mind it brings to builders, Realtors, and their customers. Jay notes, “I am a strong promoter of the Certified Mortgage Lender designation as it sets my employees apart from everyone else in the industry. I strongly encourage my employees to obtain the CML designation – to promote it on their business cards and use it as a tool from which to construct positive and informative conversations when they are talking to others in the industry and to their borrowers. It’s important that people know they are doing business with reliable and reputable businesspeople who have the professional aptitude and “borrower’s best interest at heart” attitude to get the job done.”
Jay Garten has been in the mortgage lending industry for 27 years and is currently the President of Peoples Mortgage Corporation in Colorado Springs. He is currently chairman of CMLA’s Political Action Committee. Jay served two years as Officer of the CMLA Southern Chapter and has held CMLA’s Certified Mortgage Lender designation since 2004.

CMLA member companies who have five or more people who hold CMLA’s Certified Mortgage Lender (CML) designation:

Air Academy Federal Credit Union
CB&T Mortgage
Cherry Creek Mortgage Company, Inc.
Colorado Housing & Finance Authority
Clarion Mortgage Capital, Inc.
CTX Mortgage Company
Ent Federal Credit Union
Liberty Home Loans, Inc.
Mountain Pacific Mortgage
Peoples Mortgage Corporation
The Group Guaranteed Mortgage-Powered by Countrywide
Universal Lending Corporation

Don’t know about the CML designation? Visit the CMLA web site at www.cmla.com/education/ and click on “CML Designation.”

Current CMLs: if you would like copies of the CML brochure for 50 cents each, please email Charlotte O’Donnell at help@cmla.com or contact the CMLA office at (303) 773-9565 x4.

A special section brought to you by CMLA’s Education Domain



Huge Changes in Revised Sales Contract
By Bruce M. Jordan, CML
Director, CMLA
Vice President, Aspen Funding

A number of changes in the 2007 Commission Approved Real Estate Contract ushered in a good deal of headaches for Mortgage Originators, Realtors, Buyers and Sellers. Apparently the Forms Committee for the Colorado Real Estate Commission listened to complaints in the professional community, because they revised the Standard Contract, once again. Those revisions include, among many others, two provisions that were particularly troublesome for Lenders: those dealing with Seller Concessions and those dealing with Loan Conditions. While the new contract is available for optional use as of October 30, 2007, it is not mandatory to use it until January 1, 2008.

The “Seller Concessions” paragraph underwent a wholesale revision with the intent of setting forth one specified amount the Seller would contribute for any and all concessions. You might recall that the prior edition had a “split” or “allocated” amount for down payment assistance and closing costs. A reading of this new language indicates that there is no longer any specific reference to “down payment assistance”. Realtors and Lenders should be cautious to ensure that the language selected for a particular contract actually covers the loan program sought by the Buyer.

The “Loan Conditions” paragraph now provides that the contract is contingent upon the Buyer’s subjective discretion as to whether any proposed financing is satisfactory to the Buyer. Gone are any references to notions of approvals, deviations from specific loan programs and such. In a Memorandum to the Real Estate Commission, the Forms Committee Chairman, Kent Levine, Esq., suggested “…perhaps we will see earlier dates in the Contract for the Loan Conditions Deadline, similar to that of the Inspections Objection Deadline...” Clearly, the normal and customary expectation of Buyers and Lenders is not a shortening of the loan approval time line. It appears that this is destined to become a challenging situation for all parties when Buyers and Sellers are negotiating their contracts.

In order to fully appreciate the nature and extent of the upcoming changes in the 2008 CREC Contract, it is worth a look at a red lined copy of that document. Kent Levine, Esq. has graciously made that form available on his website at: http://www.kjlpc.com Click on 123K Red-Lined_Contract_CBS (2007-8). Loan Originators would do well to review and become familiar with the significant changes in language that will impact the success of their transactions.

Mortgage Insurance Agency (Advertisement)

The CMLA Representation Domain is actively advocating on your part to help ensure that the members of the Colorado General Assembly know and understand our business and that they are armed with accurate and timely information as they consider and write legislation that will affect YOU. To the end of keeping you informed, each month in Interest Notes we'll have a brief report from the subcommittee chairpersons on the work of the Legislative Committee.

The 2008 Legislative Session is only a few months away. NOW is the time to get involved with the CMLA and to communicate with your State Representatives!  

Legislative Outreach Committee - Tom Kimball, CML

Right now bills are being written which will set the rules for how we conduct our business.  As professionals involved in the business of mortgage lending, we need to make sure our voice is heard with our legislators and that they understand the implications to our industry and to homeowners in Colorado of proposed legislation.  CMLA’s Legislator Outreach Program is just being launched and will empower members of our organization to meet with their local state Senators and Representatives to help craft future legislation.  Members of the Colorado legislature need to get to know the CMLA members who live in their respective district. Help us spread the word that the mortgage lending industry is still the greatest system of community investment ever to exist. Contact Chris Holbert at pres@cmla.com to learn more about how you can have a direct impact on the future of our great industry.

Political Action Committee (PAC) - Jay Garten, CML

The CMLA PAC Committee is alive and well. Requests for donations to our two PACs, Citizens for Homeownership and CMLPAC, are receiving a very warm reception by the mortgage lending community. Current commitments are over $15,000 and growing. The primary reason for the increased donations seems to be concern for next year’s elections and about what the start of the 2008 Colorado legislative session in January will bring. We need your help to get enough PAC donations to help us be heard on both fronts. If you haven’t been contacted about donating to our PACs yet, contact me (Jay Garten) at jgarten@epeoples.com

I’d love answer any questions you might have and to help you decide how best to contribute.

Federal Legislative Committee - Shannon VanSickler, CML

CMLA’s Federal Legislative Committee has already been busy monitoring the myriad of legislative issues coming out of Washington DC as well as across the nation.  The committee was asked to review HR-1852 (FHA Modernization Bill) as well as the working draft of the Senate version of the bill andto identify key differences between the two versions.  Key items the committee is focusing on is RESPA reform, HR-3648 The Mortgage Forgiveness Debt Relief Act, and HR-3081 The Truth In Lending Bill.

State Legislative Committee - Steve VanSickler, CML

The CMLA State Legislative committee has held one meeting to date and has been keeping abreast of the implementation of HB 07-1322 (Mortgage Broker Licensing) in anticipation of potential new legislation to be offered as the Colorado General Assembly returns to work. The committee has also been reviewing the Foreclosure Reporting process, also in anticipation of any new legislation regarding this subject, as well as other mortgage lending laws from the other 49 states.