Tuesday, October 2, 2012
Open Board of Directors Meeting
San Bernardino Community College District
114 S. Del Rosa Drive
San Bernardino, CA 92408
Present: Pete Aguilar, Don Averill, Deborah Barmack, Peter Barmack, Tom Brickley, Erin Brinker, Ann Bryan, Rachelle Bussell, Bill Easley, Mark Kaenel, Al Karnig, Lowell King, John Mirau, Lou Monville, Tomas Morales, Charlie Ng, Tom Nightingale, Steve PonTell, John Prentice, Larry Sharp, Carlos Valdez, Steve von Rajcs, Phil Waller, Stan Weisser, AJ Wilson and Phil Waller.
Guests: Robbie Broedow, Tad Friend, Mayor Pat Morris, Jim Morris, Vicky Ostermann.
Announcements: 1) The San Bernardino City Council met last night and voted 4-1 for the final City pendency plan with a compromise set of cuts to the Fire Department. 2) Opportunities for underwriting the reception to celebrate Inland Action’s 50th Anniversary are still available. The event will be on Thursday, October 18, 2012 from 5:30-7:30p.m. at the San Bernardino International Airport in Hanger 763. 3) A congressional hearing in Ontario was held on September 27th. The focus of the hearing was to examine the future of Ontario Airport, ongoing efforts to turn over management of the Inland Empire airport to a Joint Powers Authority composed of local officials, as well as discuss its economic importance to the region. The San Bernardino County Board of Supervisors approved a joint-powers agreement (JPA) with Ontario last month to operate the airport, guide marketing and development of the distressed Ontario International Airport should the airport be acquired from Los Angeles. The JPA is ready for negotiations.
Ann Bryan introduced Steven Gluckstern, Chairman, Mortgage Resolution Partners, LLC.
Steven Gluckstern stated that the mortgage crisis and its fall out are far from over. Although over 4 million homes have completed the foreclosure process and have been lost, there are another 3.5 million homes well into the path for foreclosure and another 8 million have just begun the process.
Over 20% of the homes in San Bernardino County are owned by absentee owners (1 of 3 homes). Newly foreclosed homes will be purchased by investors (they currently purchase 40% of all foreclosures) and will likely increase the absentee ownership that already prevails. An increase in rental properties is not good for our area. The San Bernardino community has been the hardest hit (2nd only to Las Vegas) by the housing crisis and help is needed to keep people in their homes whenever possible.
There are programs available for those with federally backed mortgages but there are no avenues for those with Private Label Securitization (PLS) loans. The PLS loans are securitized mortgages that do not conform to the criteria set by the Government Sponsored Enterprises Freddie Mac, Fannie Mae and Ginnie Mae. Two thirds of all the PLS loans are underwater-2 out of 3 in San Bernardino County. In order to keep these loans viable the principal must somehow be reduced.
Mortgage Resolution Partners suggests local governments identify those loans and then acquire the PLS loans by using Eminent Domain. Mortgage Resolution Partners would front the funds (current fair market value) to purchase the mortgage loan. The local government would then sell the loan in order to repay Mortgage Resolution Partners. The affected homeowners could then refinance at the lower value and potentially save thousands of dollars that can be infused back into the economy. Mortgage Resolution Partners will charge a flat fee of $4, 500 for each acquired loan.
Currently 25 cities hardest hit by the subprime mortgage crisis are in discussion with Mortgage Resolution Partners.
A Q & A period followed.
Meeting adjourned 8:38 a.m.