b'Strickland continued from page 28 President continued from page 2 Capitol continued from page 5cations, should reflect the samewriting your loans in this type of market. SB 449: Financial Institutions professionalism and attention toBe careful of the roller coaster rush of beingClimate Riskdetail that would be afforded otherable to write a loan today because of theThis bill would require institutional forms of written communication.lower LTV that you wouldnt have writtenlenders and certain California Finance Obviously, if you wouldnt put it onsix months ago. Lenders to submit an annual report to letterhead, it doesnt belong in anthe Department of Financial Protection e-mail (or conversation log)!Really get a feel of the values in your area,and Innovation about climate-related where they were and where they are goingfinancial risks in their portfolios.The 2. Label legitimateand how quickly.Perhaps you always werebill is not specific about which types communications aswriting at 70% LTV.Today, you may wantof climate risk are to be evaluated, nor Privileged & Confidentialto be more conservative.Although thewhat authority the DFPI would haveAttorney Clientmarket seems like it wont be adjustingonce the information is provided.Communication.anytime soon since the rates are staying Attorney Setliff writes that alllow for at least a year or more, so say the SB 531: Debt Collectioncommunications to your lawyerfeds, and the building of homes hasntSB 531 would extend to debt collectors, are privileged, but such a label oncaught up with demand, the buildingbroadly defined in the bill to include potentially privileged documentswill catch up and unless you are writingservicers of first-party debt, many of may help highlight your intentionvery short term loans, your loan couldthe requirements presently applicable and draw the attention of theget caught up in that.In some areas, tensin present law only to debt buyers.The reviewing attorney.of thousands of new homes are beingbill would apply to efforts to collect built for the current demand.Many ofdelinquent debt, prior to charge-off. 3. Avoid exaggeration andyou remember how many developmentsThe new provisions would be inserted inflammatory rhetoric.were only partially complete when the lastin the Rosenthal Fair Debt Collection Superlatives and dramatic languagedownturns occurred. Practices Act.may be useful in getting your point across, but may also take on a life ofAlso, remember that foreclosures haveStay tuned for updates on these and many their own in litigation. been held in abeyance by the GSEs andother bills, and thank you for your support government loans since March 2020.Theyof CMA-it matters!4. Watch forwards andwill continue to hold off until March 31 and attachments.June 30 respectively, perhaps longer.But These are discoverable too.they cannot hold off forever.The market will eventually need to march forward.5. Consider public perception. And, lastly, those of you who haveThis message is not here to flatten your heard me speak on this subject knowroller coaster ride but written simply to that I always say (as does Mr. Setliff):caution the young and the very ambitious Dont write anything you wouldntto review the increase of value in your want shown to the judge and juryparticular area that you are lending.When on an eight-foot screen projectedyou get your current appraisal, think about on the wall in the courtroom! what that home was probably worth a scant six months ago and what you would Pam Strickland is the owner of Californiahave loaned then.I urge you to talk to Compliance Consulting in Santa Barbarathe members who have been in business and assists brokers with DRE licensing andsince before 2005 and see what they would compliance.She can be reached via e-mailhave done differently from 2005 to 2007, at pam@pamstrickland.com. if anything.What saved them and their business.No one has a crystal ball and this writer is not here to discourage the writing of loans but just to remind the members to be cautious.This is a livelihood that you plan on being in for many years to come. Riding up the roller coaster is so exciting; it is the little dips that give us a reminder of what could be and what to be ready for.Spring 2021 Page 29'