Coulter, the conservative firebrand and author of such books as “How to Talk to a Liberal (If You Must): The World According to Ann Coulter” and “Slander: Liberal Lives About the American Right;” and Brazile, a Democratic National Committee operative and author of “Cooking With Grease: Stirring the Pots in American Politics,” engaged in a vigorous and often funny debate during the Policy Conference's Tuesday luncheon.

Coulter and Brazile—about as far apart philosophically on the political meter as any two people—nonetheless clearly like each other. Disagreeing on issues is part of the fun of politics, Brazile said.

“I don’t have a problem with the slugfest nature of partisan politics,” Brazile said. “I like it—it’s my sport. Politics is the real deal.”

MBA Vice Chairman-Elect Regina Lowrie, who moderated the session, asked if Americans were “tired” of partisan politics. Coulter replied that in today’s political environment, partisan politics brings clarity to major issues.

“These are serious issues, and doing the Rodney King ‘can’t we all just get along’ routine is not going to work,” Coulter said. Polarization, she said, is something that only Democrats talk about, “and only when they’ve lost an election.”

Lowrie turned to another political issue. “How does the phrase 'President Hillary Clinton' sound to you?"

Coulter replied, "Like it always sounds to me--an excellent Republican fundraising tool!" to much laughter.

Brazile, however, noted "It's music to my ears. Why not a woman? Why not Hillary Clinton? Why not [Secretary of State] Condoleezza Rice? People like Hillary; they hate Hillary; but hating her is not such a bad thing. Look at all the people who hated George W. Bush and look at where he is now."

Coulter and Brazile agreed on one point—both believe that the Republican Party could suffer a “backslide” in the 2006 mid-term elections, if for the only reason that historical trends have shown such tendencies. "Usually, the party in the White House loses seats in the mid-term," Coulter said. "It didn't happen during George W. Bush's first term, but history would suggest that it will happen in 2006."

Brazile observed that with some notable retirements in 2006, including Rep. Henry Hyde, R-Ill., and Sen. Jim Jeffords, I-Vt., that more congressional seats could come into play in 2006. "If the Democrats can pick up 15 seats in the House, we can make [Rep.] Nancy Pelosi [D-Calif.] the next Speaker," she said. 

Political scandals occupied much of the question/answer period. In response to a question about ethical issues facing House Majority Leader Tom DeLay, R-Texas, Brazile said "There is a cloud hanging over the capital. I would hope that the Republican moderates would restore the ethics committee. DeLay should be held accountable."

But Coulter suggested—well, no, she emphatically stated—that it was “obvious that the Democrats and Republicans are held to different standards. A 14-year-old could tell you what Bill Clinton did with Monica Lewinsky, but I defy any of you to come up with a one-sentence explanation of what Tom DeLay has allegedly done."

Brazile countered that "DeLay has to answer about his [lobbyist-sponsored] trips. He can't gloss over it by calling it a 'Democratic conspiracy.'"

To which Coulter replied, "Only Democrats could distract people from one scandal by creating another scandal."
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Atlanta-based Equifax Inc. launched "Take Control of Your Credit ," an online resource featuring information to help consumers protect themselves against identity theft and to help consumers better understand and manage the role that credit plays. Available in English and Spanish, "Take Control of Your Credit" is available to all consumers at MyCreditEducation.com or at Equifax.com.

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AmeriDream Inc., Gaithersburg, Md., and The First American Corp., Santa Ana, Calif., formed a partnership extending AmeriDream's homebuyer education programs.

AmeriDream and a title insurance/settlement services provider will facilitate the development of a comprehensive homebuyer education guide and a series of homebuyer workshops nationwide. Workshop participants will receive verbal instruction, worksheets and a bound homebuyer education manual while attending the course.
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“Today we take an important action to strengthen—to continue strengthening our nation's economy,” Bush said in a Rose Garden ceremony. “The bipartisan bill…makes common-sense reforms to our bankruptcy laws. By restoring integrity to the bankruptcy process, this law will make our financial system stronger and better. By making the system fairer for creditors and debtors, we will ensure that more Americans can get access to affordable credit.”

The law, sponsored by Sen. Charles Grassley, R-Iowa, passed the House last week by a 302-126 vote. It cleared the Senate in March by a 74-25 vote. Unlike in past years, in which similar bills passed Congress but failed to reach the President’s desk because of proposed amendments that crippled the legislation, a clear majority of Senate Republicans succeeded in limiting the number of amendments to the bill, which enabled its passage.

The Mortgage Bankers Association and the Coalition for Responsible Bankruptcy Laws, of which MBA is a member, supported the bill. The bill includes a provision that removes the $4 million cap on single asset real estate (SARE) bankruptcies, of which commercial/multifamily lenders under previous law were vulnerable to abuses.

"This legislation will prevent commercial/multifamily lenders from becoming victims of a loophole that has allowed borrowers with assets valued over $4 million to side-step required repayments,” said Kurt Pfotenhauer, MBA’s senior vice president of government affairs.

Under the new law, a borrower whose property is in foreclosure can file a Chapter 11 bankruptcy and freeze the foreclosure process without being required to create a repayment plan or make post-petition payments on the property. This action could potentially expose mortgage lenders to damages and expenses associated with foreclosure delays, thus limiting their ability to make new loans for an indefinite period of time.

The bill also establishes a “means test” for measuring a debtor's ability to repay. People with insufficient assets or income could still file under Chapter 7 bankruptcy. But those whose income is above the state's median income who can, by court determination, pay at least $6,000 over five years, would be moved into Chapter 13 and ordered into a repayment plan. The bill would also require persons filing for bankruptcy to pay for credit counseling and allows for special accommodations for active-duty service members, low-income veterans and those with serious medical conditions.

Consumer groups argued against the bill, calling it “punitive” and asserting that it will harm families hit by genuine financial misfortune.

“The American tradition of bankruptcy has always allowed families confronted with crushing debts to get back on their feet again and become productive members of society,” said Travis Plunkett, legislative director with the Consumer Federation of America. “The new bankruptcy law will likely keep many Americans who need a fresh financial start in bankruptcy from receiving it.  They will be stuck in a debtor’s prison without walls.”

But Bush said that while bankruptcy laws are an “important part of the safety net of America,” bankruptcy should always be a “last resort” in the nation’s legal system.

“If someone does not pay his or her debts, the rest of society ends up paying them,” Bush said. “In recent years, too many people have abused the bankruptcy laws. They've walked away from debts even when they had the ability to repay them. This has made credit less affordable and less accessible, especially for low-income workers who already face financial obstacles.

“The bill I sign today helps address this problem. Under the new law, Americans who have the ability to pay will be required to pay back at least a portion of their debts. Those who fall behind their state's median income will not be required to pay back their debts. This practical reform will help ensure that debtors make a good-faith effort to repay as much as they can afford. This new law will help make credit more affordable, because when bankruptcy is less common, credit can be extended to more people at better rates.”
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CMF NewsLink's Weekly Spotlight focuses on testimony before the Senate Banking Committee last week from industry experts on TRIA’s importance to the marketplace.

Strong yields could bring more capital to Russia. Read International News to get an update on the signing of a Memorandum of Cooperation (MOC) agreement between MBA and the National Mortgage Association.

Web-based technology sends property tax information to commercial mortgage servicers faster, at lower costs and with more efficiency. Find out more in CMF NewsLink's Trends section.

In Conference Spotlight, read how the May 5 Technology Track at MBA’s Asset Administration Conference and Technology Expo, delivers analysis and discussion on XML, MISMO standards, security issues and a commercial technology survey.

All this and more, including People in the News and Industry Briefs in MBA Commercial/Multifamily NewsLink for the week of Thursday, April 21. It's free for MBA members; for more information, go to www.mortgagebankers.org/cmnewslink.
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Timothy Storey of Newmark Realty Capital arranged the financing on the 98 percent leased property called Plaza Escondida, adjacent to the upscale Catalina Foothills neighborhood in northern Tucson. “The Catalina Foothills is known for luxurious homes, premier golf courses, high end commercial developments and spectacular views of the city,” Storey said.

The center, anchored by Trader Joe’s and Marshall’s, includes a mix of local and national tenants with the 10,000 square foot Trader Joe’s as “consistently one of the best performing stores in the country,” Storey said.

Terri Slocombe of Newmark Realty Capital arranged financing of nearly $3.5 million for the University Terrace Apartments in Palo Alto, Calif. The financing was arranged with Washington Mutual Bank, F.A., on behalf of the Dale L. Petterson Trust.

The University Terrace Apartments is a 24-unit garden style apartment complex located on University Street, the main street through downtown Palo Alto. University Terrace is located within walking distance of Palo Alto’s downtown area with its shops, cafés and restaurants. University Terrace, built in the late 1950’s, is “beautifully landscaped,” Slocombe said. “Each unit has parking and has been renovated within the past five to ten years,” she added. “The property is currently 100 percent occupied.”
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Through this distinctive program, MBA addresses the future of the industry and offers sophisticated advice on leadership skills. Thought-provoking conference sessions provide critical information, as well as significant value, to take back with you for your business.

This year’s conference features the following keynote addresses:

• Barry Nalebuff, professor of Economics and Management at the  Yale School of Management, presents "Why Not? How to Use Everyday Ingenuity to Solve Problems Big and Small." He is an acclaimed educator and author on teaching people how to solve problems, think strategically and ask questions. Nalebuff is a Forbes columnist and Marketplace commentator, as well as the co-founder and chairman of Honest Tea, one of Inc. Magazine's fastest growing companies in America. He has been a consultant to a host of successful companies, including: American Express, BP, Bell Atlantic, Citibank, Corning, GE, McKinsey and Warner-Lambert.

• Baseball legend Jim Bouton believes that to achieve goals, you need to think like an athlete and focus on the process. This means getting into the fun of the enterprise, the challenge of long odds, the satisfaction in details, the thrill of extraordinary effort and the joy of work. Bouton shares his experiences as a winning New York Yankee and all-star in the 1960s, a comeback kid in the major leagues after an eight-year retirement, best-selling author and sportscaster.

• Gary Orren, professor of Public Policy and Management at the John F. Kennedy School of Government at Harvard University, presents the “Principles of Persuasion for Executives.” He believes that the ability to communicate persuasively lies at the heart of management and the core of leadership, whether the goal is to convince one person face-to-face, or to sway the public at large. This interactive session highlights proven principles of effective persuasion drawn from social psychology and other behavioral sciences. As a leading public opinion and political analyst, Orren has served as an advisor in local, state and federal national election campaigns and has taught at Harvard for 34 years.

• Doug Duncan provides his always perceptive and entertaining insight into the economy, the mortgage market and lender performance. As MBA's senior vice president of research and business development, and chief economist, he oversees the Research, Education, Industry Technology and Business Development departments.

Complementing the educational focus of the meeting are networking opportunities and a spouse/guest program. This year's conference is incorporating a two-day golf tournament that will include handicaps and flight winners. The first Presidents Conference Cups will be presented. Award-winning comedian Eddie Brill (Comedy Central and David Letterman) performs on June 7.

This event is exclusively for Chairmen, Presidents, Owners, Principals, CEOs and COOs of regular MBA member firms, members of MBA's Board of Directors and Board of Governors and Premier Associate members.

Program registrants are responsible for making their own hotel reservations. Listed on the National Register of Historic Places, The Breakers has received the AAA Five Diamond Award. Amenities include two 18-hole championship golf courses, a spa, tennis center and more. Contact The Breakers by phone or fax and state that you will be attending MBA's Presidents Conference. Be sure to make your reservations before May 13. The cut-off date does not ensure availability of rooms. If rooms are available until May 13, you will receive the discounted hotel rate provided below. After May 13, reservations will be made on a space-availability basis only, and you will be charged the regular hotel rate.

For more information, go to the Conference Web site, http://events.mortgagebankers.org/presidents2005/default.html
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MBA is working closely with Association for Cooperative Operations Research and Development (ACORD) and has also included educational sessions focused on insurance at MBA's 11th Annual CREF/Multifamily Asset Administration and Technology Conference, which will take place in Chicago May 4-6.

The first initiative, ACORD Form 28, Evidence of Commercial Property Insurance (ACORD 28), co-developed by MBA and ACORD, serves as the first form available exclusively for the commercial real estate industry to document evidence of commercial insurance. MBA and ACORD also continue to facilitate focus group conference calls on a quarterly basis. The goal is to bring the real estate lenders/servicers and the insurance agents/brokers together for in-person discussions to develop suggestions for changes to increase the business efficiencies and information transparency for both industries.

At the conference, two panels are scheduled with a focus on insurance. The first, Insurance from the Insurance Experts, consists of industry experts who will answer questions on such issues as terrorism, mold and hurricane and flood protection.

The second session, Real Estate Finance and Insurance Communication, focuses on the servicers struggle to get insurance agents and brokers to send them insurance coverage forms (ACORD 28) or insurance policies. A panel of servicing experts and Beth Grossman from ACORD discuss the realities of communication between the insurance and real estate insurance industries.

MBA hopes to build a more efficient working relationship through our education and communication programs amongst the insurance and commercial real estate finance industries. If you have any questions about our efforts, contact Katie Schwarting at (202) 557-2742 or kschwarting@mortgagebankers.org. The conference Web site is http://events.mortgagebankers.org/crefassetadmin2005/default.html.
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Participants included:

· Laurence Bonifant, founder, and Dave Williamson, senior vice president with The Performance Group, Dallas;
· Keven Smith, president of Mortgage Builder Software Inc., Phoenix;
· Terry King, group president with MRG Document Technologies, Dallas;
· Mike Detwiler, president of 3t Systems, Denver; and
· John Walsh, president of Del Mar Database, San Diego, which was recently acquired by Fiserv Inc., Brookfield, Wis.

JOHN WALSH: "In the mortgage banking business a few years ago 50 percent of mortgage bankers couldn't have told you how profitable they are. Clearly, the business has matured in that aspect and technology has played a big part of that."

MIKE DETWILER: "In the mid-tier, it's what product can make them the most money, and being able to deliver that technology to them. That's what Del Mar and Mortgage Cadence have to be able to do. When there are fewer loans, it's all about maximizing the profitability of those loans."

TERRY KING: "That's one of the reason that the niche market is so strong. The margin rate on 30-year-fixed is stretched so thin. Because so many of these small-to-medium sized lenders are able to identify what their profit margin is that if a lender can look at their books and say, I can increase the margin by another quarter-point if we switch products, they go for it."

DAVE WILLIAMSON: "Customers are more sophisticated-but unfortunately, the mortgage banker isn't."

LAURENCE BONIFANT: "There is still a level of sophistication lacking. But we're definitely seeing a wiser buyer-'proof of concept'-prove to me that you can do this."

DETWILER: "I've seen people willing to pay more for quality. If you can deliver on time, and on budget, then we'll give you a $500,000 bonus. And the flip side of that is, if you don't, you pay a penalty. The wisdom that people have gained from failed implementation or failed technology initiatives is that they want the alignment of the success to be vendor-focused with them so that vendor doesn't get the windfall up front with the attitude that we hope that it works out for the buyer down the road. Our success financially has to be tied to their success in implementing the technology and executing.

It's great, because in that paradigm, you can get some real return on investment. You can say, 'fine, I'll step up to the table on that, but when we can prove that we drop $12 million annually out of your back-office costs, we want 10 percent of that."

KING: "There's another wave of players that have entered the market that are a lot less sophisticated. There are huge broker-to banker concepts out there. Brokers are stepping into the lending process, with warehouse loans, for example, and so many of them have no concept about the process or the product. You have lenders and brokers jumping into new lines of business and not knowing anything about the product."

WALSH: "The first level of sophistication is the ability to manage your business. Part of that is that the LOS providers, where you get this from, have not made it easy as they could to achieve this. A number of us are starting to make this much easier. To the extent that we make it easier to do their processes, they're going to start to drive in the other direction.

The second level is in their sophistication in buying technology has gotten much better. There are far too many LOS providers in the system. The amount of people who are out there buying technology will not support it. We've seen a few of them go away, to the detriment of their clients. And what we see is that as people buy, one of the things they take a look at is financial stability. In our end of the market, there are people out here who are not selling technology. And when they do, they are putting their clients at risk."

DETWILER: "In the mid-tier, you're seeing more sophistication. None of us want a bad experience with technology, because all of us suffer in the eyes of the broker or banker. It's just another view in the mind of the banker that it's a failed technology and we have to be more wary of that. We encourage scrutiny and accountability in technology for people who are investing in technology. It's taken a bad rap, but we can bring a lot of value to the marketplace if investors take the time to understand their business process and apply technology to solve real problems instead of simply investing in technology like everyone else is doing."

KEVEN SMITH: "A lot of our prospects are looking at Return On Investment, whereas they weren't before. In the early days, they really didn't care. They were: 'okay, let's see the product-great.' Now they're interested in ROI and they're interested in our financials as well."

KING: "They [customers] want to know if we're going to be here. In our business we've sent out more financial statements to prospective clients in the past 12 months than we had in the previous five years. They want to know 'are we going to be here tomorrow?' I think there are some genuine concerns. They want to know: What's your track record? Are you financially solvent? Are you passing regulatory requirements now and in the future? [The] Sarbanes-Oxley [Act] is driving that. A lot of people are looking over their shoulder."

DETWILER: "We have a top 5 customer who told us that they are pouring millions of dollars in technology for the purpose of crushing those lower- and mid-tier players who are not investing in the technology. They are competing on service, and a product that is unmatched. The top-end knows this, and they are investing in the technology and tools that give them an edge. If you're in the mid-tier and not investing in technology, you're going to have a real hard time."

WALSH: "If you don't invest now, it's over. In 2003, when there were more originations than there were originators, there wasn't that worry. Now, the refi boom is over; the market is moving. Some of them are getting scared about technology investments, worried about taking losses." 

DETWILER: "The bottom-up trend is there. You'd be surprised by the technical sophistication of the owners of these small shops in how they are creating a niche to create these loans, in offering products, in incentivizing their staff."

WILLIAMSON: "If the larger lenders are truly slowed down, then they can't be as fast to integrate than the smaller or medium size. It used to be a trend for the mid-sized lenders to move into servicing, and as soon as they started servicing, they became an acquisition target by the big guys. So they might out-innovate them, but then they'd get bought. That's not happening now. I'm not seeing our client base move into servicing, so that from an acquisition standpoint, I'm not sure how attractive of targets they are."

WALSH: "Our core business is not in messing with legacy systems. We're seeing substantial business from companies that have legacy systems and are starting to take a closer look. That has not been our market or a market that we go after."

DETWILER: "One of the main drivers behind that is that companies are realizing the impact of disparate data-where they have data sitting in different depositories and can't get a clear picture of what's happening. So with legacy systems and core systems that they've had to duct-tape, it's very difficult to get consolidates systems, and that is forcing a lot of companies to re-evaluate their technology. One move is to create data warehouses, to get to that data because it's easier to do that than rework six to eight systems."

SMITH: "During the refi boom, it wasn't the time to change; [lenders] were too busy. Now that the refi boom is over, they can switch those systems. Hopefully they saved their money for a rainy day."

WALSH: "Lenders have to automate. They have to take full advantage of the technology that's available. Lenders are going to continue to provide better solutions. Most importantly, lenders have to make sure they are buying technology that is in their purview to use and meets their needs. It shouldn't take 100 IT staff to use. And they have to buy their technology from a vendor who is going to be there tomorrow.

I love selling software; I hate hearing that someone spent $100,000 or $200,000 or more on software that failed them. That's the biggest risk as people look for any or all opportunities."

SMITH: "Due diligence. Lenders need to do more, and I think they're heading in that direction with an eye on return on investment. They have to ensure that software is not vaporware and that the software does what it is supposed to do. I think Linux is something that lenders should look at for at, and if it fits for them, it can bring a lot of advantages."

DETWILER: "Lenders have to need to continue to do ample due diligence on their vendors and not be afraid to insist on proof of concept, and if they can't you need to ask why. They also have to invest in technology because they need to know that the 800 pound gorillas are."

KING: "The Wall Street traders will basically dictate what direction that business will do on a particular day. The customers will continue to be driven into a niche market. They're under tremendous pressure from investors. You're going to see like all of us here scramble to move forward from a technology arena to improve not only what we do as individuals but what we do as an industry to support that changing environment. The pressure is going to be on us to perform."
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