MLI Exclusive: Is the California Association of Mortgage Brokers insolvent?

enuffs.enuff at 11:59 2008-09-24 said:

Maybe the days of the mortgage broker have come to an end. No more lenders offering rebates tied to margins or credit scores... no more equity to be sucked out of properties for cash out refi's... no more self employed gardeners making $10k per month stated... Stands to reason that CAMB finds itself on the brink of extinction, too. Permalink

gpasquini at 06:16 2008-09-26 said:

CAMB has worked diligently during the past 12 months to reduce our expenses by 60% in order to compensate for loss of revenue. It is no surprise that we have also experienced a drop in membership by 50% due to fallout from the current mortgage crisis. In addition, for many years CAMB has experienced and benefited from solid relationships with our affiliate partners in the form of sponsorships, advertising, and exhibits. There is no added surprise that these partners have been hit by a significant reduction in revenue sources or business closure. This dramatic drop in revenue has adversely effected our bottom line the same as most mortgage companies and banks throughout the United States. This should not come as a big surprise to anyone at this point in this cycle. Moving forward CAMB continues to provide input with key State and Federal legislators in order to protect our industry. In fact, to a large degree it has been the cost of protecting our members from badly written legislation that has caused CAMB to experience a loss of reserves. There have been approximately 75 different pieces of legislation during the past year effecting the mortgage industry in California, many of which were targeted at the mortgage broker. So far CAMB has experienced great success in protecting the livelihood of mortgage brokers in California and across the country. CAMB also continues to provide other member benefits such as medical insurance, discounted business insurance, business building benefits and webinars, DRE-approved educational courses, local chapter educational events such as FHA, Cal HFA, Cal PERS and Cal Vet loan programs and industry networking opportunities. CAMB is currently working diligently to recapitalize our association, and we look to our members and industry partners to work together to bring about continued positive growth within our association. Together, we will get through these challenging times and help shape the way home financing is done throughout the next decade! Most Sincerely, Fred Arnold, President California Association of Mortgage Brokers Permalink

Broke-R at 08:35 2008-09-28 said:

Someone took the money! It was foolishly spent and the board is now covering for the old boy network on the board.

Who will be the first board member or management team with the courage to step up and say what happened. This is a slap in the face to hard working brokers to see their own leaders abuse the trust.

The presidents message never addressed the missing money. What is being hidden, who is being protected. Open the books. Permalink