From the President By David Herzer • 2018-2019 CMA President Page 2 Summer 2019 Points of Interest T he first quarter of 2019 has been a whirlwind of activity. CMA elected two new members to the Board of Directors, the DRE has gone crazy (again), we enacted term limits and the Education Committeeputonanothergreatseminarin San Francisco. State and National politics have gone off the rails to the left and right. I’m not sure 2019 is my favorite year so far. I would like to welcome Shafiq Taymuree and Sandy MacDougall to CMA’s Board of Directors! TheytakeUncleChuckHershson andDickSelzer’sseatswhodeserveahuge debtofgratitudefortheirservice. Dickhas beenCMA’sTreasurerforthelasttwoyears and has done a fantastic job overseeing some difficult budget negotiations. Our beloved Uncle Chuck has decided to retire fromtheBoardbutpromisestocontinueto serveCMAinhisusualoutsizedway. Many many thanks to Chuck and Dick for their yearsofserviceontheBoard. Ilookforward to exciting new ideas and contributions from Shafiq and Sandy. The Board enacted a change in the Bylaws at our last meeting in San Francisco implementing term limits. There are several who would like to see some amendmentstothetermlimitsweenacted, but for now, Directors will be able to run for a maximum of three terms. Those Directors holding an Officer’s position at theendoftheirthirdtermareexemptfrom being termed-out. Also, no more than two Directors can “term-out” in any one election. These changes were made with the goal of including more new faces on the Board, a worthy goal indeed. So get involved, show your face and you too can serve on CMA’s Board of Directors! The DRE has cited a licensee for not complying with Financial Code 4970 (the high-cost loan rule) even though the loan was made for BUSINESS PURPOSES! We have always understood 4970 to only apply to CONSUMER LOANS because that is what is written in the law. Unfortunately, an Administrative Law Judge agreed with the DRE so for now, that is how this law will be interpreted and enforced. CMA is vigorouslyopposingthisdeterminationon several fronts. First, we are assisting the LicenseebyfundingalawsuitseekingaWrit of Mandate in Los Angeles Superior Court. Second, CMA General Counsel Robert Finlay is writing an amicus brief in support of said lawsuit. Third, our Legislative Advocate Mike Belote, Robert Finlay and I are meeting with DRE Commissioner Daniel Sandri to see if we can show him the light. Finally, we may need to propose legislation to clarify what “consumer purpose” means in 4970. CMA recently sent the Membership updates on this matter,andafundraisingplea. Pleasegive generously; your business depends on it. OurseminarinSanFranciscoreceivedhigh marks from attendees. From a review of agency, to starting a mortgage fund, to combattingloanfraud,tobuildingincome streams, there was a lot to learn and incorporate into our businesses. Hats off to the Education Committee for another informative and practical seminar. You should see what we have in store for you in San Diego this summer! We will look at servicing fee structures, human resources and avoiding “unconscionable loans.” Of course, there will be the ever-popular speed networking and legal roundtables- can you say “free legal advice”? So who can say CMA never did anything for you? See you in San Diego for smores on the beach Wednesday night! "We Live In Interesting Times...."