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Transcript of Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy...
![Page 1: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/1.jpg)
BUREAU OF REAL ESTATE
FORUMSacramento Convention
CenterSacramento, CA
April 24, 2015
![Page 2: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/2.jpg)
TODAY’S AGENDAOpening Remarks – Commissioner Wayne Bell
Operations Report – Jeff Mason, Chief Deputy Commissioner
Enforcement Update- Rick Fong, Assistant Commissioner, Enforcement Audit Report and Update – Dan Sandri, Assistant Commissioner, Audits Consumer Recovery Account– Tad Egawa, Assistant Commissioner, Legal Affairs Licensing Resources- Tom Pool, Assistant Commissioner Licensing & Administration Q & A- Wayne Bell and Panel
![Page 3: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/3.jpg)
BUREAU OF REAL ESTATE
OPERATIONS REPORT
Jeffrey MasonChief Deputy Commissioner
![Page 4: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/4.jpg)
FINANCIAL STATISTICSFY 2014-2015
FIVE OFFICES/EXAM CENTERS
SACRAMENTO OAKLAND FRESNOLOS
ANGELESSAN
DIEGO
$49.2 MILLION BUDGET
7/1/2013 – 3/31/2014 7/1/2014 – 3/31/2015
Revenues $36,302,000 $37,813,000
Expenditures $30,803,000 $34,165,000
![Page 5: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/5.jpg)
0
200,000
400,000
600,000
FY04/05
FY05/06
FY06/07
FY07/08
FY08/09
FY09/10
FY10/11
FY11/12
FY12/13
FY13/14
449,107
504,144537,038 542,267519,941483,250
447,642423,080 410,701
402,937
LICENSE POPULATION
License Population Peak 11/2007: 549, 250
License Population as of 4/23/2015: 401,509
![Page 6: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/6.jpg)
LICENSING WORKLOAD7/1/13 – 3/31/14
7/1/14 – 3/31/15 % Change
Exams Scheduled
RES 29,675 32,246 9%
REB 5,943 5,312 -11%
New Licenses
RES 11,956 15,317 28%
REB 3,954 3,463 -12%
Renewals
RES 39,759 37,524 -6%
REB 22,466 21,605 -4%
Renewal Rate
RES 74% 75% 1%
REB 85% 86% 1%
Total Licensees 403,842 401,845 -.49%
![Page 7: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/7.jpg)
MORTGAGE LENDING ACTIVITY
Need MLO Endorsement to Originate Residential Loans
MLO Stats
Jan. 2014 Jan. 2015
Approved Individuals 15,743 15,668
Approved Companies 4,179 4,595Approved Branches 794 854Total MLOs 20,716 21,11
7
![Page 8: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/8.jpg)
SUBDIVISIONS WORKLOAD
Applications for Public Report
7/1/13 - 3/31/14 7/1/14 - 3/31/15
Final 2,020 1,801
Renewal 309 279
Amendment 126 179
Total Applications Received
2,455 2,259
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ENFORCEMENT WORKLOAD
7/1/13 -3/31/14
7/1/14 – 3/31/15
% Change
License Denials 116 220 89%
Disciplinary Actions(Revocations, Surrenders, Suspensions, Public Reprovals)
603 751 25%
Desist & Refrain Orders
77 85 10%
Citations 159
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Consumer Recovery Account
FY 11/12 FY 12/13 FY 13/14 FY 14/15 YTD
(10 Months)
Claims Filed 243 180 152 140
Claims Paid 94 77 104 102
Amount Paid $3,165,6
69$2,625,6
15$4,286,5
36$4,106,0
02
Total Active Claims
391
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ENFORCEMENTUPDATE
Rick Fong
Assistant CommissionerEnforcement
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BUREAU OF REAL ESTATE AUDITS
Dan SandriChief Auditor
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Types of Audits Closed Statewide 7/1/14 - 3/31/15
Investigative54%
Routine46%
432 Audits Com-pleted FYTD
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Audits Closed by Activities Statewide – 7/1/14 - 3/31/15
Property Management
72%
Mortgage Loans11%
Broker Escrow6%
Other11%
432 Audits Com-pleted FYTD
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Findings of Audits Closed, 7/1/14 – 3/31/15
Major Violations
31%
Corrective Action Letter16%
Minor Violations
22%
No Violations
19%
Cite & Fine13%
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Trust Fund Shortages 7/1/14 - 3/31/15
$4,933,780.15 in total trust fund shortages Breakdown by real estate activity:
$3,153,424.23 – Property Management
$144,146.00 – Mortgage Loans $1,653,418.81 – Broker Escrow $791.11 – Sales
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PAYMENT HANDLING, ACCOUNTING: THE WAY IT
WAS
• Payments by check or cash, usually received in person or by mail
• Very few wire transfers• Accounting entries
recorded by hand• Two entries required to
record a transaction in control record and ledger cards
![Page 18: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/18.jpg)
Payment Handling, Accounting: The Way It Often Is Now
• Payments often received via ACH or credit card, through a payment processor
• Wire transfers are common• Accounting records are almost
always on computer• One entry covers journal and ledger
recording of transaction.
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Broker Escrow Reporting - §10141.6
• Reporting required if broker engaged in 5 or more broker escrow transactions per the exemption or if activities total $1 million or more in calendar year.
• Report due from broker within 60 days of calendar year end.
• For 2013, 205 brokers reported total activities of $8.66 billion.
• Broker escrow operations facing increased audit focus.
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Bureau of Real EstateAudit Section
Contact:Dan Sandri – Assistant Commissioner,
[email protected] 263-8704
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CONSUMER RECOVERY ACCOUNT
Tad EgawaAssistant Commissioner
Legal Affairs
![Page 22: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/22.jpg)
CALIFORNIA BUREAU OF REAL ESTATE’S
CONSUMER RECOVERY ACCOUNT
CALIFORNIA BUREAU OF REAL ESTATE’S
CONSUMER RECOVERY ACCOUNT
![Page 23: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/23.jpg)
PURPOSE
Last resort victim’s fund to compensate innocent members of the public who are victimized by dishonest real estate licensees
![Page 24: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/24.jpg)
HISTORICAL BACKGROUND
•Operative on January 1, 1964
•12% of License Fees(B&P Code §10450.6)
•$3,500,000/year
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CONSUMER RECOVERY ACCOUNT
Claims History
Since 1964, BRE has paid approximately $51 million to victims
Approximately 54% of all applications paid
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CLAIMREQUIREMENTS
CLAIMREQUIREMENTS
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WHO MAY FILE
“Aggrieved Person”
CONSUMER
INNOCENT MEMBER OF THE PUBLIC
WHO MAY FILE
“Aggrieved Person”
CONSUMER
INNOCENT MEMBER OF THE PUBLIC
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BASIS FOR APPLICATIONBASIS FOR APPLICATION
1) Final Judgment
2) Licensed Activity
3) Actual and Direct Loss
1) Final Judgment
2) Licensed Activity
3) Actual and Direct Loss
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COVERAGE LIMITS(B&P Code § 10474.5)
as of 2008
•$50,000/per transaction
•$250,000/per licensee
COVERAGE LIMITS(B&P Code § 10474.5)
as of 2008
•$50,000/per transaction
•$250,000/per licensee
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CASE STUDY
EMERALD BAY FINANCIAL INC. AND THREE INDIVIDUAL REAL ESTATE LICENSEES
30 VICTIMS TRUST DEED INVESTMENTS CalBRE AWARDED $1,000,000 TO
VICTIMS
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CONSUMER RECOVERY ACCOUNT
QUESTIONS
(916) 263-8925
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BUREAU OF REAL ESTATE
Tom PoolAssistant Commissioner
Licensing & Administration
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What are the main Complaints?
Processing Times
Phone Wait Times
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By the Numbers
Average Number of Calls per Month21,1308 Staff Dedicated to PhonesMany Calls Involve Status of Applications
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What Can Be Done?
Help MeHelp You
- Jerry Maguire
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eLicensing is the Answer
Salesperson terminations Update contact information (email and
phone numbers) Salesperson changes of employing
broker Broker main office address changes Mailing address changes Print license certificate Broker renewals Salesperson renewals
![Page 37: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/37.jpg)
License Renewals 54, 537 Sales Renewals in FY 13/14
7,504 Sales Renewals by Mail 86% of renewals on-line
30,539 Broker Renewals in FY 13/149,722 Broker Renewals by Mail
68% of renewals on-line
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Snail Mail DelaysAre Costly
17,226 Renewals by MailCurrently 4 Week Backlog eLicensing instantaneous
25,839 Actual Hours to ProcesseLicensing Saves 13 Yrs./13 PYs
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Other Timesaving Licensing Resources
Combo Applications 38,781 REB Exam Applications
5,297 Did Not Use Combo Application 91,596 RES Exam Applications
26,764 Did Not Use Combo Application
Website Resources New Videos on RES/REB exam/app
process Posting of Current Processing Times Posting of FAQs
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Website Resources
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Website Resources
![Page 42: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/42.jpg)
eLicensingWinWin
Spread the eWord!
![Page 43: Opening Remarks – Commissioner Wayne Bell Operations Report – Jeff Mason, Chief Deputy Commissioner Enforcement Update- Rick Fong, Assistant Commissioner,](https://reader035.fdocuments.in/reader035/viewer/2022062320/56649d705503460f94a53324/html5/thumbnails/43.jpg)
Q&ATHANK YOU
This power point presentation will be made available in its entirety on the
CalBRE website.
www.bre.ca.govSan Jose, CA – October 2015