Winter 2007 Real Estate Bulletin

Arnold Schwarzenegger, Governor

Dale Bonner, Secretary, Business, Transportation, & Housing Agency

Jeff Davi, Real Estate Commissioner

http://www.dre.ca.gov Department of Real Estate Winter 2007

Re a l es t a t e Bu l l e t i n

Continued on page 8

Serving Californians Since 1917

Continued on page 10

Loan fraud – it’s

a crime

t’s been in the news. Very few topics

have been covered as extensively as

loan fraud. The Department of Real

Estate (DRE) is aggressively pursuing

and investigating more and more cases

involving licensees arranging question-

able or fraudulent loan transactions, and

these licensees are paying the price.

A recent enforcement case involved

a pattern of conduct that is far too com-

mon in today’s market. These respon-

dents engaged in a scheme to defraud

federally insured nancial institutions

and other lenders by recruiting individu-

als to purchase homes, and then falsely

lead the purchasers to believe they were

purchasing homes as investments in a

lease to own business venture.

The straw purchasers were recruited

with the proposal to purchase a single

family home on behalf of others with

bad credit who wished to buy the homes

and had been “pre-qualied.” The re-

spondents promised the straw buyers a

percentage of the prots for participat-

ing in the scheme when the homes were

transferred to the eventual buyers. The

straw buyer’s only qualication was to

hold a good credit rating.

When the respondents found in-

dividuals willing to participate, they

arranged a purchase transaction and

submitted false loan applications on

behalf of the straw purchasers by rep-

resenting to the lenders the following

untruths: 1) the straw buyers were going

to occupy the homes as their primary

residence and, 2) falsied nancial

information regarding the straw buyers’

employment and income.

In one case, the respondents sold

two homes to a retired nanny claiming

Review of 2007 regulatory changes

for continuing education

here have been noteworthy changes made to the requirements for the

continuing education of licensees. Effective July 1, 2007, real estate

licensees are required to complete a three-hour course in Risk Management

prior to renewing their license. This change was implemented to increase a

licensee’s level of knowledge. In that same vein, changes will be made to the

way continuing education courses will be presented.

New requirement changes to Regulations of the Real Estate Commissioner

that will become operative February 29, 2008 will affect a sponsor’s

administration requirements for offering either a correspondence or a live

presentation course. The following summarizes the changes that will impact

a licensee seeking credit for a continuing education course:

 All correspondence and live presentation courses will require a nal

examination. For successful completion of a course, the participant must

achieve a passing score of 70% or higher on the nal examination.

 To successfully complete a correspondence course, a participant will be

limited to completion of nal examinations for a maximum of fteen credit

hours during any one 24-hour period.

Message from Commissioner Davi

he new millennium rang in with

a 5 year span of unparalleled

growth in the real estate market.

However, as in most business cycles,

years of growth are followed by periods

of correction. It is now clear the market

is transitioning, and with it, California

is experiencing a heightened level of

defaults and foreclosures. Financially

distressed borrowers are likely to turn

to you as real estate professionals for

guidance. In this regard, when nan-

cially stressed borrowers contact you,

I want to encourage you to assist those

individuals to the extent it is appropriate.

I believe the prudent initial step should

be assisting a borrower in making con-

tact with their lenders so that they may

obtain, through their lender, a workout

arrangement that provides, as necessary

and appropriate, modied loan terms

or converted products

with predictable and

manageable payments.

Many lenders are poised

to help, however I have

been told that half the

borrowers who are fore-

closed, never called their lender.

In addition, in response to demands

for information from consumers, the

State created a Web site that is a portal

to a wealth of consumer mortgage

information, ranging from tips on how

to avoid foreclosure and what to do if

you cannot make your payments, to

where to nd HUD approved home loan

counseling agencies and information

on home loan programs. The Web site

can be found at www.yourhome.ca.gov

or in Spanish at www.sucasa.ca.gov. I

Page 2 — Real Estate Bulletin Winter 2007

Re a l es t a t e Bu l l e t i n

Ofcial Publication of the

California Department of Real Estate

Vol. 67, No. 4 Winter 2007

STATE OF CALIFORNIA

Arnold Schwarzenegger, Governor

Bu s i n e s s , Tr a n s p o r T a T i o n a n d Ho u s i n g ag e n c y

Dale Bonner, Secretary

de p a r T m e n T o f re a l es T a T e

Jeff Davi, Commissioner

PRINCIPAL OFFICE

We’re located at: 2201 Broadway, Sacramento, 95818-2500

Mailing Address: P.O. Box 187000, Sacramento, 95818-7000

Administration

John R. Liberator, Chief Deputy Commissioner

Thomas L. Pool, Asst. Comm., Legislation & Public Information Services

Chris Neri, Assistant Commissioner, Subdivisions

Fa-Chi Lin, Chief Auditor

William E. Moran, Assistant Commissioner, Enforcement

Barbara Bigby, Asst. Commissioner, Administrative Services

Wayne Bell, Chief Counsel

Thomas R. Hensley, Managing DC IV, Licensing & Exams

Janice Waddell, Managing DC III, Education

Gary Sibner, Managing DC III, Mortgage Lending

Real Estate Bulletin

Thomas L. Pool,

Editor

Rosa Arellano, Publications Deputy

Margaret Lahey, Production Editor

Primary Telephone Numbers

Consumer Information

................................................ (916) 227-0864

Mortgage Loan Activities

............................................ (916) 227-0770

General Licensing Information

................................... (916) 227-0931

Broker Examinations

................................................... (916) 227-0899

Salesperson Examinations

........................................... (916) 227-0900

Original Licensing (sales/brokers)

.............................. (916) 227-0904

NORTHERN ENFORCEMENT AREA — DISTRICT OFFICES

Steve Ellis, Managing Deputy Commissioner IV

• 2550 Mariposa Mall, Suite 3070, Fresno, 93721-2273

John Sweeney, Managing Deputy Commissioner III

Consumer Information

......................................... (559) 445-5009

• 1515 Clay Street, Suite 702, Oakland, 94612-1462

Ed Haberer, Managing Deputy Commissioner III

Consumer Information

......................................... (510) 622-2552

• 2201 Broadway, Sacramento

Mailing Address: P.O. Box 187000, Sacramento, 95818-7000

Charles W. Koenig, Managing Deputy Commissioner III

Consumer Information ......................................... (916) 227-0864

SOUTHERN ENFORCEMENT AREA — DISTRICT OFFICES

Dolores Weeks, Managing Deputy Commissioner IV

Phillip Ihde, Managing Deputy Commissioner IV

• 320 W. 4th Street, Suite 350, Los Angeles, 90013-1105

Maria Suarez, Managing Deputy Commissioner III

Robin Trujillo, Managing Deputy Commissioner III

Consumer Information

......................................... (213) 620-2072

• 1350 Front Street, Suite 3064, San Diego, 92101-3687

Joseph Aiu, Managing Deputy Commissioner III

Consumer Information

......................................... (619) 525-4192

SUBDIVISIONS

Chris Neri, Assistant Commissioner, Subdivisions

• 2201 Broadway, Sacramento

Mailing Address: P.O. Box 187005, Sacramento, 95818-7005

David Warner, Managing Deputy Commissioner III

Consumer Information

......................................... (916) 227-0813

• 320 W. 4th Street, Suite 350, Los Angeles, 90013-1105

Robert D. Gilmore, Managing Deputy Commissioner IV

Consumer Information

......................................... (213) 576-6983

CALIFORNIA RELAY TELEPHONE SERVICE

(For the deaf and hearing impaired)

From TDD phone

........................................................ 1-800-735-2929

From voice phone

........................................................ 1-800-735-2922

The REAL ESTATE BULLETIN (ISSN 07347839) is published quarterly by the State of California, Department of Real Estate, 2201 Broadway, Sacramento, CA

95818, as an educational service to all real estate licensees in the state under the provisions of Section 10083 of the Business and Professions Code.

DRE employees are not

permitted to act as “expert

witnesses” for private parties

he Department of Real Estate (“DRE” or “the department”) has some

very experienced attorneys, auditors, investigators and subdivision

specialists on its staff. Some DRE employees have spent many years

in their respective areas and have become recognized specialists or experts

in their elds. On occasion, DRE employees are asked to appear as expert

witnesses on behalf of a party other than a governmental entity in civil,

criminal or administrative proceedings. However, in spite of their subject

matter expertise, department employees are not permitted to act as “expert

witnesses” in those matters.

Section 19990 of the California Government Code (Section 19990)

lists a number of activities that are considered to be “incompatible”, con-

icting and/or inconsistent with employment as a State employee. Included

in the list of proscribed acts are (i) using State time, facilities, equipment

or supplies for private gain, and (ii) using the prestige or inuence of

the State or the appointing authority for the employee’s private gain or

advantage, or the private gain of another. Section 19990 also requires all

State departments to determine which specic activities are incompatible

for its employees.

DRE has adopted an Incompatible Activities Statement for its em-

ployees. The Statement prevents employees from performing a number

of acts, including (i) conducting any activity for which a real estate

license is required or (ii) claiming, charging, receiving and/or accepting

any consideration, other than from the department, for

performing ofcial acts or duties. The Statement

also specically prohibits “Voluntarily agreeing to

act or accepting employment as an expert witness

on behalf of someone other than the Department

or other state or local public agency to testify on

matters or issues related to the employee’s duties with

the Department, including testifying at a deposition or any action (i.e., civil,

criminal, administrative, etc.) to determine whether a real estate licensee

has fullled the obligations and duties associated with activities requiring

a real estate license”. An employee who violates this prohibition could be

subject to disciplinary action.

Thus, private litigants should not plan on calling DRE employees as

expert witnesses in any proceedings. The department recognizes that the

Incompatible Activities Statement precludes private litigants of the ability

to use the expertise and specialized knowledge of department employees

in litigating and/or resolving disputes. Yet DRE believes that the goal of

fair and impartial enforcement of the Real Estate and Subdivided Lands

Law is best served by ensuring that its employees remain neutral.

Section 19990 and the Incompatible Activities Statement both apply

only to current employees. Therefore, persons interested in an “expert” with

DRE experience are free to contact former DRE employees regarding their

availability and possible participation as witnesses. It should be noted that

such former employees might still not be able to act as an “expert witness”

because of legal restrictions or prohibitions pertaining to ethics, the use and/

or disclosure of condential information, and/or post-employment activities.

[Edited, Modied and Re-written in part by Wayne Bell, Chief Legal Counsel, on 12/4/07]

Winter 2007 Real Estate Bulletin — Page 3

Continued on page 9

Summary of 2007 legislation

ctober 14, 2007 marked the end

of year one of the current two-

year legislative session. A total

of 964 bills wound their way through the

process and landed on the Governor’s

desk. Of these bills, 750 were signed

into law and 214 were vetoed. The fol-

lowing brief legislative summaries are

of legislation from the 2007 session that

affect real estate licensees and subdivid-

ers. These summaries are intended to

alert you to pertinent changes to the law.

We encourage you to consult the statutes

for complete information. Copies of the

bills can be obtained on-line at www.

leginfo.ca.gov. Please note that “SB”

refers to a Senate bill and “AB” to an

Assembly bill and the Chapter number

refers to the sequence that the bill was

led with the Secretary of State. The

name appearing after the bill number

is the name of the author. All statutes

are effective January 1, 2008 unless

otherwise noted.

AB 432 (Garcia) Time-share

Public Reports (Chapter 53)

The Vacation Ownership and Time-

Share Act of 2004 (VOTA), which

became effective 7-1-05, effectively

changed how time-share offerings are

regulated in California. The act requires

a timeshare plan developer, prior to

selling timeshare interests, to obtain a

public report from the DRE. The public

report application requires the devel-

oper to fully and accurately disclose

certain facts concerning the time-share

developer and time-share plan.

AB 432 will allow a developer to

submit a public report application that

combines, in a manner prescribed by

the Commissioner, the information re-

quired to be disclosed by the California

law and the information required to

be disclosed in a public report issued

by a regulatory agency in one or more

states. This will allow a developer to

create a single disclosure document that

is potentially valid in the states where

the time-shares are marketed.

The Department of Real Estate

sponsored AB 840.

AB 980 (Calderon) Real estate

transfer fees: residential

property. (Chapter 689)

Some home builders have insti-

tuted the use of private transfer fees

to fund the maintenance of amenities,

improvements or open space. The

funds generated by the transfer fee are

typically paid to a third party entity,

not associated with the developer or

homeowner association. These fees are

generally imposed upon initial sale of

a newly constructed home and upon

the 'transfer' or subsequent sales of the

home. Existing law does not impose any

limits on the amount, duration or use of

the transfer fees.

AB 980 requires the disclosure

Page 4 — Real Estate Bulletin Winter 2007

Disciplinary Action: June 07 - Aug 07

 A list of actions is not published in this Bulletin until the 30-day

period allowed for court appeal has expired, or if an appeal

is led and the disciplinary action is stayed, until the stay is

dissolved. Names of persons to whom licenses are denied on

application are not published.

 Licensees are listed alphabetically by the District Ofce region

of responsibility.

 The license type is listed in parentheses after the licensee’s

name. [REB – Real estate broker; RREB – Restricted real es-

tate broker; RES – Real estate salesperson; RRES – Restricted

real estate salesperson; PRLS – Prepaid rental listing service;

RPRLS – Restricted prepaid rental listing ser-

vice; REO – Real estate ofcer; REC – Real

estate corporation]

 Below are brief summaries of various regula-

tions and code sections. The full text of the

sections is available on the DRE Web site

www.dre.ca.gov under Real Estate Law and/

or Regulations.

 Disciplinary actions that are “stayed” means there is “a delay

in carrying out” all or part of the recommended discipline.

Commissioner’s Regulations

2715 Licensee's failure to maintain current business or mailing address

with DRE

2725 Failure of broker to exercise reasonable supervision over the

activities of his or her salespersons

2726 Failure to have broker-salesperson agreements

2731 Unauthorized use of ctitious business name

2752 Broker’s failure to notify DRE of salesperson employmen

2753 Broker’s failure to retain salesperson’s license at main ofce or

return the license at termination of employment

2831 Failure to keep proper trust fund records

2831.1 Inadequate separate trust fund beneciary records

2831.2 Failure to reconcile trust account

2832 Failure to comply with trust fund handling provisions

2832(a) Failure of broker to place trust funds into hands of owner, into a

neutral escrow depository or trust fund account within three busi-

ness days of receipt

2832(d) Failure of broker holding trust funds contingent on offer of accep-

tance to properly place funds within 3 business days of acceptance

2832.1 Failure to obtain permission to reduce trust fund balance in a

multiple beneciary account

2834 Trust account withdrawals by unauthorized or unbonded person

2835(b) Retention of broker funds in trust account

2840 Failure to give approved borrower disclosure

2950(d) Failure of broker handling escrows to maintain records and ac-

counts

2950(e) Failure by broker to make escrow records available for inspec-

tion

2950(g) Broker-handled escrow disbursement without written instructions

2950(h) Failure to disclose interest in the agency holding the escrow

2950(i) Failure to render written statement upon closing broker-handled

escrow

2951 Improper record keeping for broker handled escrows

2970 Failure to submit advance fee material for review

2972 Advance fee accounting

Business and Professions Code

490 Substantially related criminal conviction

498 License obtained by fraud or misrepresentation

10085 Failure to submit advance fee materials

10130 Acting without license

10137 Unlawful employment or payment of compensation

10145 Trust fund handling

10145(a) Trust fund handling

10145(c) Failure by salesperson to deliver trust funds to broker

10146 Advance fee handling

10148 Failure to retain records and make available for inspection

10159.2 Failure by designated ofcer to supervise licensed acts of

corporation

10159.2(a) Failure by designated ofcer to supervise licensed acts of

corporation

10159.5 Failure to obtain license with ctitious business name

10160 Failure to maintain salesperson licenses in possession of broker

10161.8 Failure of broker to notify Commissioner of salesperson employ-

ment

10163 Failure to obtain a branch ofce license

10176(a) Making any substantial misrepresentation

10176(i) Fraud or dishonest dealing in licensed capacity

10177(a) Procuring a real estate license by misrepresentation or material

false statement

10177(b) Conviction of crime

10177(d) Violation of real estate law or regulations

10177(f) Conduct that would have warranted denial of a license

10177(g) Negligence or incompetence in performing licensed acts

10177(h) Failure to supervise salespersons or licensed acts of corporation

10177(j) Fraud or dishonest dealing as principal

10177(k) Violation of restricted license condition

10177(n) Violation of real estate syndicate provisions of corporate securi-

ties law

10178 Failure of broker to notify Commissioner of salesperson termina-

tion

10231 Accepting loan funds for other than a specic loan

10231.1 Retaining lender’s funds for more than 25 days without a written

agreement with the lender

10232 Failure to notify DRE of threshold status

10232.2 Failure to le or maintain trust fund status

10238(a) Failure of broker to notify Commissioner within 30 days of rst

mortgage transaction or of any material change in required notice

10238(f) Violation of restriction to sell notes in excess of 10 qualied

persons

10238(j) Violation of trust fund handling and records maintenance

10238(k)(3) Failure to submit independent certied public accountant report

10240 Failure to provide mortgage loan disclosure statement

10241 Improper mortgage loan disclosure statement

Financial Code

4975 et seq. Violation of covered loan requirements

REVOKED LICENSES

FRESNO REGION

Gonzalez-Castro, Erika (RES)

2300 Oak Crest Dr., Turlock

Effective: 8/27/07

Violation: 490, 10177(b)

Koehler, Ryan B. (RES)

7960 B Soquel Dr. #143, Aptos

Effective: 8/6/07

Violation: 490, 10177(b)

Pearlberg, Neil C. (RES)

404 Ewell Ct., Aptos

Effective: 7/19/07

Violation: 10176(i)

Wessel, June Lorraine (RRES)

6824 Mollison Ct., California City

Effective: 7/9/07

Violation: 490, 10177(b)

LOS ANGELES REGION

Aguilar, Oscar (RES)

2172 Avalon Ave., Pomona

Effective: 6/18/07

Violation: 490, 10177(b)

Alonzo, Olivia D. (RES)

16377 Main St., Ste. C, Hesperia

Effective: 6/18/07

Violation: 490, 10177(b)

Anderson, David Leonard (RES)

5186 Kaiser Ave., Santa Barbara

Effective: 8/2/07

Violation: 490, 10177(b)

Winter 2007 Real Estate Bulletin — Page 5

Brennan, Lawrence Michael

(RREB, RREO)

24 Fremont St., Newport Beach

Effective: 6/21/07

Violation: 10148, 10159.2,

10177(d)(g)(h),

10232.2, 10238(k)(3)

Chang, Jobe Yeuhwa (REB)

2633 S Baldwin Ave., Arcadia

Effective: 7/17/07

Violation: 490, 10177(b)

Chatman, Fearl Sharayne (RES)

4517 Pickford St., #5,

Los Angeles

Effective: 7/10/07

Violation: 490, 10177(b)

Chung, Min Young (REB, REO)

4130 W. Commonwealth Ave.,

Fullerton

Effective: 6/12/07

Violation: 490, 10177(b)

County Realty & Finance, Inc.

(REC)

205 West 1

St., Ste. 202, Tustin

Effective: 8/6/07

Violation: 2731, 2831, 2831.1,

2831.2, 2832, 2834,

2840, 2950(d)(e)(h),

2951, 10145, 10148,

10159.5, 10176(a),

10177(d)(g)(h),

10240, 10241

Elterman, Richard Harold (RES)

512 W. Struck, Orange

Effective: 6/18/07

Violation: 490, 10177(b)

Emami, Dianoush (REB)

17772 Irvine Blvd., Ste. 102,

Tustin

Effective: 6/28/07

Violation: 490, 10177(b)

Franco, Alfredo (REB)

4122 Philadelphia St., Ste. B,

Chino

Effective: 8/8/07

Violation: 490, 498, 10177(a)(b)

Gonzalez, Frank J. (RES)

10026 Mattock St., Downey

Effective: 6/18/07

Violation: 490, 10177(b)

Gonzalez, Oscar Fabien (REB)

9515 Orizaba St., Downey

Effective: 8/20/07

Violation: 490, 10177(b)

Gonzalez, Rogelio Jr. (RES)

1039 Grossmont Dr., Whittier

Effective: 6/18/07

Violation: 490, 10177(b)

Gran, Ronna Lynn (RES)

317 Culper Ct., Hermosa Beach

Effective: 6/18/07

Violation: 490, 10177(b)

Hadizadeh, Nasrin (RES)

4610 Densmore Ave. #101,

Encino

Effective: 8/28/07

Violation: 490, 10177(b)

Harris, Artesia Jamar (RES)

19671 Beach Blvd., #101,

Huntington Beach

Effective: 6/12/07

Violation: 490, 10177(b)

Harris, Furman Lloyd (RES)

2560 Northshore Ln.,

Westlake Village

Effective: 8/7/07

Violation: 490, 10177(b)

Herrel, Lynette L. (RES)

2226 Malcolm Ave., Los Angeles

Effective: 7/17/07

Violation: 490, 10177(b)

Johnson, Paul Allen (RES)

31 Skyline Ln., Pomona

Effective: 6/7/07

Violation: 490, 10177(b)

Lemire, Kimberly Katherine (RES)

550 Rye Ave., La Habra

Effective: 6/7/07

Violation: 490, 10177(b)

Levey, David Mark (REB)

24411 Biltmore Lane,

Laguna Niguel

Effective: 7/30/07

Violation: 490, 10177(b)

Lo, Hankok Hon (RES)

16221 Castana Ave., Bellower

Effective: 6/18/07

Violation: 490, 10177(b)

Marin, Miguel (RES)

8645 San Carlos Ave., South Gate

Effective: 6/20/07

Violation:

10145(c), 10176(i),

10177(d)

Mehlinger, Richard H. (REB)

9454 Wilshire Blvd., #830,

Beverly Hills

Effective: 7/5/07

Violation: 490, 10177(b)

Muschetto, Matt Anthony (RES)

2320 Villareal Dr., Orange

Effective: 6/18/07

Violation: 490, 10177(b)

Myers, Kevin Grant (RES)

9421 Tanager Ave.,

Fountain Valley

Effective: 6/18/07

Violation: 490, 10177(b)

Nava, Tony M. Jr. (RES)

3501 Hart Ave., Rosemead

Effective: 7/23/07

Violation: 10177(n)

Nix, Richard Allen (RES)

20718 Christine Ave., Torrance

Effective: 7/16/07

Violation: 490, 10177(b)

Olbrich, Douglas Brian (RES)

1037 S. Dancove Dr.,

West Covina

Effective: 7/2/07

Violation: 498, 10177(a)

Perez, Alberto (RES)

19538 Four Oaks,

Canyon Country

Effective: 8/7/07

Violation: 490, 10177(b)

Peterson, Jeff Scott (RES)

5680 Crestline Place,

Rancho Cucamonga

Effective: 7/16/07

Violation: 490, 10177(b)

Pierrottet, Jon C. (RES)

1074 Parkview Dr., Ste. 205,

Covina

Effective: 6/18/07

Violation: 10177(b)

Pitchford, Mary Ann (RES)

1313 W. Park Western Dr., #15,

San Pedro

Effective: 6/14/07

Violation: 490, 10177(b)

Potter, D. Sidney (RES)

P.O. Box 287, Pasadena

Effective: 6/22/07

Violation: 498, 10177(b)

Prosser, Diana Darlene (REB)

180 Newport Center Dr., Ste. 180,

Newport Beach

Effective: 6/7/07

Violation: 490, 10177(b)

Quinteros, Tatihana (REB, REO)

1224 E. Katella Ave., Ste. 207,

Orange

Effective: 8/6/07

Ofcer of:

County Realty &

Finance, Inc.

Violation: 2731, 2831, 2831.1,

2831.2, 2832, 2834,

2840, 2950(d)(e)(h),

2951, 10145, 10148,

10159.5, 10176(a),

10177(d)(g)(h),

10240, 10241

Rowell, Deborah Sue (RES)

28 Optima, San Clemente

Effective: 6/18/07

Violation: 490, 10177(b)

Sandoval, Maria Lourdes (RES)

1210 W. Cornell St., Rialto

Effective: 7/2/07

Violation: 490, 10177(b)

Secured Equities Corporation

(RREC)

25401 Cabot Rd., #117,

Laguna Hills

Effective: 6/21/07

Violation: 10148, 10177(d)(g),

10232.2, 10238(k)(3)

Shaffron, Dayna (RES)

12414 Deerbrook Ln.,

Los Angeles

Effective: 6/18/07

Violation: 490, 10177(b)

Vachhani, Pat Deepa (REB)

3901 Park View Ln., Apt. C-7,

Irvine

Effective: 8/16/07

Violation: 490, 10177(b)

Valladares, Louis (RES)

1133 Gatlin Ave.,

Hacienda Heights

Effective: 7/31/07

Violation: 490, 10177(b)

Vertrees, William Thomas Jr. (RES)

2439 Orange Ave., #D,

Costa Mesa

Effective: 7/3/07

Violation: 490, 10177(b)

Welch, Larry Joe (RES)

838 S. Manseld Ave.,

Los Angeles

Effective: 07/30/07

Violation: 498, 10177(a)

OAKLAND REGION

Aldea, Jesus Luis Tan (RES)

5771 Havencrest Cir., Stockton

Effective: 8/7/07

Violation: 490, 10177(b)

Augustine, Demeka T. (RES)

65 Rio Robles East #2309,

San Jose

Effective: 8/9/07

Violation: 490(a), 10177(b)

Brill, Eric (RES)

181 Laidley St., San Francisco

Effective: 7/10/07

Violation: 490, 10177(b)

Calnet Finance & Investment San

Francisco, Inc. (REC)

1786 36

Ave., San Francisco

Effective: 6/4/07

Violation: 2752, 2831, 2831.1,

2831.2, 2832.1, 2834,

10137, 10145,

10161.8, 10177(d),

10240, 10241

Hall, Leif Vladimir (RES)

27 Trident Dr., Pittsburgh

Effective: 7/10/07

Violation: 490, 10177(b)

Hampton, Loran Stephan (RES)

2532 Santa Clara Ave. #250,

Alameda

Effective: 8/7/07

Violation: 490, 10177(b)

Kwock, Darin C. (RES)

P.O. Box 27586, San Francisco

Effective: 8/9/07

Violation: 10177(b)(f)

Vo, Timmy Trung (RES)

1075 E. Brokaw Rd., San Jose

Effective: 7/10/07

Violation: 490, 10177(b)

SACRAMENTO REGION

Option Mortgage, Inc. (REC)

950 Reserve Dr. #160, Roseville

Effective: 8/10/07

Violation: 10137, 10176(a),

10177(d)(g)(h)(j)

Crooks, Patricia Sue (RES)

2782 21

St., Sacramento

Effective: 7/9/07

Violation: 490, 10177(b)

Faust, John Edward (RES)

1638 Glenmore Dr., Faireld

Effective: 8/7/07

Violation: 490, 10177(b)

Gallo, Joseph Salvatore (REB)

4740 Northgate Blvd. #135,

Sacramento

Effective: 8/23/07

Violation: 490, 10177(b)

Hernandez, Ralph Darrell (RES)

2530 Vandiver Ln., Redding

Effective: 6/14/07

Violation: 10177(a)

McAninch, Michael Scott (RES)

9272 Madison Ave., Carmichael

Effective: 7/12/07

Violation: 490, 10176(a)

McHone, Brandon J. (RES)

943 Appleridge Pl., Suisun City

Effective: 8/7/07

Violation: 490, 10177(b)

Rosetti, Dino Robert (REB)

950 Reserve Dr. #160, Roseville

Effective: 8/10/07

Violation: 10137, 10148,

10159.2,10176(a),

10177(d)(g)(h)(j)

Page 6 — Real Estate Bulletin Winter 2007

Salas, Martin A. (RES)

4550 N. Pershing, Stockton

Effective: 7/23/07

Violation: 10176(i), 10177(j)

Swan, Timothy Roger (RES)

4110 Greenview Dr.,

El Dorado HIlls

Effective: 8/7/07

Violation: 490, 10177(b)

Thomas, Tim E. (RES)

1110 Shasta St., Redding

Effective: 8/6/07

Violation: 490, 10177(b)

SAN DIEGO REGION

Abrams, Charleen T. (RES)

143 Sage Dr., Palm Springs

Effective: 6/14/07

Violation: 490, 10177(b)

Conaway, Steven L. (RES)

17752 Robusta Dr., Riverside

Effective: 7/16/07

Violation: 490, 10177(b)

Gavilanes, Humberto (RES)

39835 Tanager Trail, Murrieta

Effective: 6/11/07

Violation: 490, 10177(b)

Majano, Walter (REB)

732 Lions Lair Rd., Beaumont

Effective: 8/22/07

Violation: 490, 10177(b)

Montecastro, Hendrix Moreno

(REB, REO)

32573 Angelo Dr., Temecula

Effective: 7/9/07

Ofcer of: Stonewood

Consulting, Inc.

Violation: 10159.2,

10177(d)(g)(h)

Scott, Jeffrey Lloyd (REB)

5739 Central Ave, Riverside

Effective: 7/12/07

Violation: 490, 10177(b)

Stonewood Consulting, Inc. (REC)

26273 Horsetail St., Murrieta

Effective: 7/9/07

Violation: 2831, 2831.1, 2831.2,

2832, 2832.1, 2834,

10145, 10177(d)(g),

10241

Telenzak, Stephen Michael (RES)

2368 Palo Danzante, Alpine

Effective: 7/9/07

Violation: 490, 10177(b)

Ulmos, Luis A. (RES)

6814 Magnolia Ave., Riverside

Effective: 8/8/07

Violation: 490, 10177(b)

REVOKED WITH A RIGHT

TO A

RESTRICTED LICENSE

FRESNO REGION

Gonzalez, Rosario (RES)

5105 Eastridge Ct., Bakerseld

Effective: 7/17/07

Violation: 10145(c), 10176(a),

10177(g)

Right to RRES license on terms

and conditions

Paladino, Renee Kay (REB)

821 Lewis Rd., Royal Oaks

Effective: 7/23/07

Violation: 490, 10177(b)

Right to RREB license on terms

and conditions

LOS ANGELES REGION

Ayala, Martha (REB, REO)

13940 Pioneer Blvd., Norwalk

Effective: 7/5/07

Ofcer of: Southland Home

Realty, Inc.

Violation: 10159.2,

10177(d)(g)(h)

Right to RREB license on terms

and conditions

Bowers, Brian (RES)

49 Edgar Ct., Newbury Park

Effective: 6/19/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Cathchings, Marvin Earl Sr. (REB)

4011 Elizabeth St., Compton

Effective: 7/18/07

Violation: 10137, 10177(d)

Right to RREB license on terms

and conditions

Delamora, Martin (REB, REO)

2551 E. Gage Ave.,

Huntington Park

Effective: 8/7/07

Ofcer of: Teamwork Realty,

Inc.

Violation: 2831, 2831.1, 2831.2,

2832(d), 2832.1,

2950(d)(g)(i), 2951,

10145, 10159.5,

10176(a),

10177(d)(g)(h)(k)

Right to RREB license on terms

and conditions

Dillard, Derrick Lamont (RES)

949 S. Stanley Ave., Los Angeles

Effective: 8/28/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Fernandez, Lucero M. (RES)

13821 Philadelphia St., Whittier

Effective: 7/16/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Fishman, Avidan I. (RES)

5139 White Oak Ave. #12, Encino

Effective: 8/7/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Flockhart, Debra Mayes (RES)

2336 Cartlen Dr., Placentia

Effective: 7/30/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Guzman, Carlos Frederico (REB)

40922 Maple Dr., Forest Falls

Effective: 8/27/07

Violation: 2715, 2725, 2726,

2731, 2832, 10137,

10145, 10160, 10163,

10176(a), 10177(d)(g),

10240

Right to RRES license on terms

and conditions

Mollaie, Joseph (RES)

9500 Monte Mar Dr., Los Angeles

Effective: 6/11/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Moya, Phala J. (REB, REO)

10226 Lakewood Blvd., Ste. 101,

Downey

Effective: 7/5/07

Ofcer of:

Southland Home

Realty, Inc.

Violation: 10137

Right to RREB license on terms

and conditions

Pavelic, Ante Kreshimir (RES)

156 S. Oak Knoll #308, Pasadena

Effective: 8/8/07

Violation: 10130, 10137,

10177(d)(g)

Right to RRES license on terms

and conditions

Romero, Alisandro (REB)

10552 Geraldine Rd.,

Garden Grove

Effective: 6/7/07

Violation: 490, 10177(b)

Right to RREB license on terms

and conditions

Southland Home Realty, Inc. (REC)

10226 Lakewood Blvd., Downey

Effective: 7/5/07

Violation: 10137

Right to RREC license on terms

and conditions

Sudman Enterprises, Inc. (REC)

620 Newport Center Dr.,

Floor, Newport Beach

Effective: 6/11/07

Violation: 2831.2, 2835(b),

10145, 10177(d)(g)

Right to RREC license on terms

and conditions

Sudman, Ronnie Wayne (REB)

620 Newport Center Dr.,

Floor, Newport Beach

Effective: 6/11/07

Violation: 10159.2,

10177(d)(g)(h)

Right to RREB license on terms

and conditions

Tabatabai, Alaedin (REB)

1990 E Grand Ave., Ste. 250,

El Segundo

Effective: 7/16/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Teamwork Realty, Inc. (REC)

2551 E. Gage Ave.,

Huntington Park

Effective: 8/7/07

Violation: 2831, 2831.1, 2831.2,

2832(d), 2832.1,

2950(d)(g)(i), 2951,

10145, 10176(a),

10177(d)(g)(k)

Right to RREC license on terms

and conditions

Turner, Donna Maria (RES)

15735 S. Visalia Ave.,

Rancho Dominguez

Effective: 6/18/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Wade, James Lawrence (REB)

125 Columbia, Ste. C, Aliso Viejo

Effective: 7/12/07

Violation: 490, 10177(b)

Right to RREB license on terms

and conditions

OAKLAND REGION

Ballesteros, Michael Nagal (RES)

1071 Esparanza Way, San Jose

Effective: 6/15/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Berkeley, Charles Ryan (REB)

2991 Shattuck Ave., Ste. 301,

Berkeley

Effective: 7/9/07

Violation: 490, 10177(b)

Right to RREB license on terms

and conditions

Brady, Joseph John (RRES)

14287 Chester Ave., Saratoga

Effective: 6/28/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Bueno, Rafael Hernando (RES)

1789 4

St., Livermore

Effective: 7/9/07

Violation: 10145, 10177(d)

Right to RRES license on terms

and conditions

Calnet Finance & Investment, Inc.

(REC)

1006 Webster St., Oakland

Effective: 6/4/07

Violation: 2752, 2753, 2831.1,

2831.2, 2834, 10137,

10160, 10161.8,

10177(d), 10240,

10241

Right to RREC license on terms

and conditions

Caveney, Daniel William (RES)

187 Molino Ave., Mill Valley

Effective: 8/20/07

Violation: 490(a), 10177(b)

Right to RRES license on terms

and conditions

Daoang, James (RES)

3237 Brownhill Ct., San Jose

Effective: 7/25/07

Violation: 490, 10177(b)

Domadia, Ashok C. (RES)

183 Leal Way, Fremont

Effective: 7/13/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Gonzalez, Raul (REB)

20955 Foothill Blvd., Hayward

Effective: 7/2/07

Violation: 10176(a)(i), 10177(g)

Right to RREB license on terms

and conditions

Kumar, Jasmine (RES)

517 Bryce Ct., Milpitas

Effective: 6/27/07

Violation: 10177(b)

Right to RRES license on terms

and conditions

Winter 2007 Real Estate Bulletin — Page 7

Lam, Marks Hung Sing (REB,

REO)

1786 35

Ave., San Francisco

Effective: 6/4/07

Ofcer of: Calnet Finance &

Investment San

Francisco, Inc.

Calnet Finance &

Investment, Inc.

Violation: 10159.2(a),

10177(d)(h)

Right to RREB license on terms

and conditions

Mineo, G. I. (RES)

P.O. Box 2641, San Ramon

Effective: 7/30/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Reyes, Melody B. (RES)

233 Hazelwood Dr.,

South San Francisco

Effective: 6/20/07

Violation: 10177(b)(f)

Right to RRES license on terms

and conditions

Smith, Michael Curtis (RES)

1320 Gordon Ln., Santa Rosa

Effective: 6/14/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Stewart, Kasey David (REB)

1865 Winchester Blvd. #200,

Campbell

Effective: 8/21/07

Violation: 490(a), 10177(b)

Right to RREB license on terms

and conditions

Tulcanaza, Edgar Antonio (RES)

190 West 41

Ave., San Mateo

Effective: 8/21/07

Violation: 490(a), 10177(b)

Right to RRES license on terms

and conditions

Wang, Jason Ming Yu (RES)

10181 Western Dr., Cupertino

Effective: 7/5/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

SACRAMENTO REGION

Conte, Alicia Marie (RES)

2510 Longvalley Dr., Newcastle

Effective: 8/10/07

Violation: 10130, 10177(d)

Right to RRES license on terms

and conditions

Duffy, George (REB, REO)

1143 Junction Dr., Manteca

Effective: 6/18/07

Violation: 2831, 2831.1,

2831.2, 2832(a),

10130, 10137,

10145, 10177(d),

10240

Right to RREB license on terms

and conditions

Ford, Anthony K. (RES)

3170 Van Housen Dr., Ukiah

Effective: 8/6/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Herbert, John Howell (RES)

1489 Ridge Dr., Redding

Effective: 7/13/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Naidoo, Ofelia Olivia (RES)

10223 Canadeo Way, Elk Grove

Effective: 6/26/07

Violation:

10176(a)(i),

10177(g)

Right to RRES license on terms

and conditions

Tyler, Robert Thomas (REB)

365 Duncan Hill Rd., Auburn

Effective: 6/5/07

Violation: 490, 10177(b)

Right to RREB license on terms

and conditions

Walker, Thana Marie (RES)

P.O. Box 5772, Corning

Effective: 6/5/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

SAN DIEGO REGION

Estrada, Jose (RES)

1231 Tori Dr., Hemet

Effective: 8/7/07

Violation: 10177(b)

Right to RRES license on terms

and conditions

Jennings-Sapp, Nancy (RES)

3031 Golf Crest Ridge Rd.,

El Cajon

Effective: 6/5/07

Violation: 10130, 10145(c),

10177(d)(g)

Right to RRES license on terms

and conditions

McManus, Robert A. (RES)

P.O. Box 891423, Temecula

Effective: 7/5/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

O’Brian, Bonita Jacquelyn (RES)

26038 Madison Ave., Murrieta

Effective: 8/9/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

Rigsby, Russell Lee (RES)

1294 Edgar Ave., Beaumont

Effective: 8/16/07

Violation: 490, 10177(b)

Right to RRES license on terms

and conditions

SUSPENDED WITH STAY

FRESNO REGION

Century Financial Resources,

Inc. (REC)

1305 Vine St., Paso Robles

Effective: 8/2/07

Violation: 2831, 2831.1,

2832.1, 10145,

10177(d)

Suspended for 30 days—stayed

for 2 years on terms and condi-

tions

Hayes, Kevin L. (REB, REO)

1423 K St., Modesto

Effective: 7/5/07

Ofcer of: Red Oak Realty and

Lending

Violation: 2831.1, 2831.2, 2832,

2832.1, 10145, 10159.2,

10177(d)(h)

Suspended for 60 days—30 days

stayed for 2 years on terms and

conditions

LOS ANGELES REGION

Ahmed, Nasim (REB, REO)

3595-1 Inland Empire Blvd.,

Ontario

Effective: 6/20/07

Ofcer of: N A D Realty, Inc.

Violation: 2831.2, 2832.1, 10145,

10159.2, 10177(d)(h)

Suspended for 90 days—stayed for

2 years on terms and conditions

Balyan, Jacqueline Beoglyan (REB,

REO)

2727 W. Alameda Ave., Burbank

Effective: 8/13/07

Ofcer of: First Capital Financial

Resources, Inc.

Violation: 10159.2, 10177(h)

Suspended for 90 days—stayed for

2 years on terms and conditions

First Capital Financial Resources,

Inc. (REC)

2727 W. Alameda Ave., Burbank

Effective: 8/13/07

Violation: 10137, 10145, 10177(d),

10236.4

Suspended for 90 days—stayed for

2 years on terms and conditions

N A D Realty, Inc. (REC)

3595-1 Inland Empire Blvd. Ontario

Effective: 6/20/07

Violation: 2831.2, 2832.1, 10145,

10177(d)

Suspended for 90 days—stayed for

2 years on terms and conditions

Shepherd, Markus Steven (REB,

REO)

19028 Ventura Blvd., Ste. 232,

Tarzana

Effective: 6/4/07

Ofcer of: Emerald Mortgage

Corp.

Violation: 10137, 10177(d)

Suspended for 60 days—30 days

stayed for 2 years on terms and

conditions

Thacher, Robert Morton (REB)

7144 Airway Way, Yucca Valley

Effective: 6/8/07

Violation: 2731, 2831.2, 2840,

2950(h), 2951,

10145, 10177(d),

10231, 10232.2

Suspended for 60 days—stayed for

2 years on terms and conditions

OAKLAND REGION

Gross Mortgage Corporation (REC)

1999 Harrison St., Ste. 1650,

Oakland

Effective: 7/5/07

Violation: 2831, 2831.1,

2832, 10145, 10148,

10177(d), 10238(j)(1)

Suspended for 60 days—stayed for

2 years on terms and conditions

Gross, Leonard Aburn (REB,

REO)

1999 Harrison St., Ste. 1650,

Oakland

Effective: 7/5/07

Violation: 2831, 2831.1,

2832, 10145,

10148, 10159.2,

10177(d)(h),

10238(j)(1)

Suspended for 60 days—stayed

for 2 years on terms and condi-

tions

Heyden, Randall Gilbert (REB)

88 Rowland Way, Ste. 200, No-

vato

Effective: 7/26/07

Violation: 10159.2, 10177(d)(h)

Suspended for 30 days—stayed

for 2 years on terms and condi-

tions

Kay-Co Investments, Inc. (REC)

88 Rowland Way, Ste. 200,

Novato

Effective: 7/26/07

Violation: 2831, 2831.2, 2832,

2832.1, 2834, 10145,

10177(d)(f), 10240,

10241

Suspended for 30 days—stayed

for 2 years on terms and condi-

tions

Lewis, Andrew A. (REB)

475 S. San Antonio Rd.,

Los Altos

Effective: 8/23/07

Violation: 4975(a)(1), (a)2),

(c), 10176(i),

10177(g)(j)

Suspended for 60 days—stayed

for 2 years on terms and condi-

tions

Mowat, Lois Camille (REB)

19 Bates Blvd., Orinda

Effective: 8/31/07

Violation: 2726, 2831, 2831.1,

2831.2, 10145,

10177(d), 10231.1,

10238(f)(k), 10240,

10241

Suspended for 120 days—stayed

for 2 years on terms and condi-

tions

Vanderpool, Mark Steven (REB)

2333 San Ramon Vly Blvd., #295,

San Ramon

Effective: 8/23/07

Violation: 2752, 2831, 2832,

10145, 10161.8,

10177(d), 10178

Suspended for 60 days—stayed

for 2 years on terms and condi-

tions

SACRAMENTO REGION

Acadian Properties, Inc. (REC)

140 B St., Ste. 3, Davis

Effective: 7/2/07

Violation: 2832.1, 2834, 10145,

10177(d)

Page 8 — Real Estate Bulletin Winter 2007

Suspended for 60 days-stayed for

2 years on terms and conditions

Montijo, Trinie Ann (REB, REO)

408 G St., Davis

Effective: 7/2/07

Ofcer of: Acadian Properties,

Inc.

Violation: 2832.1, 2834,

10145, 10159.2,

10177(d)(h)

Suspended for 60 days—stayed

for 2 years on terms and condi-

tions

Red Oak Realty and Lending

(REC)

100 Gold Dredger Dr., Oroville

Effective: 7/5/07

Violation: 2831.1, 2831.2, 2832,

2832.1, 10145,

10159.2, 10177(d)(h)

Suspended for 60 days—30 days

stayed for 2 years on terms and

conditions

SAN DIEGO REGION

Dickey, William Glenn (REB)

5920 Friars Rd., Ste. 206,

San Diego

Effective: 7/31/07

Violation: 2831, 2831.1, 2831.2,

10159.2, 10177(d)(h),

10232, 10238(a)

Suspended for 30 days—stayed

for 2 years on terms and condi-

tions

Lingo, Kristopher Lee (REB)

5920 Friars Rd. S 206, San Diego

Effective: 8/30/07

Violation: 10159.2, 10177(h)

Suspended for 45 days—stayed

for 2 years on terms and condi-

tions

Peninsula Equity Funding, Inc.

(REC)

5920 Friars Rd. S-206,

San Diego

Effective: 8/30/07

Violation: 2831, 2831.1, 2831.2,

2832.1, 10145,

10177(d), 10232,

10233(b), 10238(a)(f)

Suspended for 45 days—stayed

for 2 years on terms and condi-

tions

Rehmann, David George (REB)

1911 Hidden Crest Way,

El Cajon

Effective: 7/16/07

Violation: 2731, 2834, 10161.8,

10177(d)

Suspended for 45 days—stayed

for 2 years on terms and condi-

tions

Vanderhorst, Fred John (REB,

REO)

1240 Lancer Glen, Escondido

Effective: 7/11/07

Ofcer of: Mortgage Marketing,

Inc.

Violation: 2831.2, 2832.1,

10145(a), 10177(d),

10240

Suspended for 30 days—stayed for

30 days on terms and conditions

W G D Real Estate Services, Inc.

(REC)

5920 Friars Rd., Ste. 206,

San Diego

Effective: 7/31/07

Violation: 2831, 2831.1, 2831.2,

10177(d), 10232,

10238(a)

Suspended for 30 days—stayed

for 2 years on terms and condi-

tions

LICENSE SURRENDERED

(Licenses voluntarily surrendered

per B&P Code §10100.2 during an

administrative action/investigation)

FRESNO REGION

Burton, Robert Vaughn (REB)

1305 Vine St., Paso Robles

Effective: 8/2/07

Sanderson, Diane Rochelle (RES)

P.O. Box 504, Riverbank

Effective: 7/30/07

LOS ANGELES REGION

Barnes, Bradley Edward (RES)

P.O. Box 50025, Pasadena

Effective: 6/18/07

Dorn Platz & Company (REC)

210 S. Orange Grove Blvd.,

Pasadena

Effective: 6/18/07

Edgeeld Real Estate, Inc. (REC)

1500 Adams Ave., Ste. 201,

Costa Mesa

Effective: 8/7/07

Ellington Ct. Realty, Inc. (REC)

435 N. Oakhurst Dr. #904,

Beverly Hills

Effective: 7/18/07

Emerald Mortgage Corp. (REC)

18425 Burbank Blvd., #615,

Tarzana

Effective: 6/4/07

Jangozian, Ara (RES)

343 W. Vine St., Glendale

Effective: 7/3/07

Kesler, Frances (REB)

8950 W. Olympic Blvd., #397,

Beverly Hills

Effective: 6/28/07

Mason, Timothy Paul (REB)

2097 E. Washington St., 1E 324,

Colton

Effective: 6/7/07

National Homebuyers Alliance

(REC)

3734 W. Slauson Ave.,

Los Angeles

Effective: 7/23/07

Peterson, Kelli Anne (RES)

4 St. Paul Ln., Laguna Niguel

Effective: 7/3/07

Platz, Donald Louis (REB)

210 S. Orange Grove Blvd.,

Pasadena

Effective: 6/18/07

SACRAMENTO REGION

Fellini, Mario III (REB)

655 University Ave., 230,

Sacramento

Effective: 7/23/07

McKenny, Robin Lynn (REB)

3963 Glenwood St., Eureka

Effective: 8/30/07

Murphy, Deborah Jean (RES)

551 N. Loma Dr., Lodi

Effective: 7/2/07

Parry, Michele A. (RES)

1602 Bunk House Way, Roseville

Effective: 8/28/07

Piazza, Tina Marie (RES)

715 Mokelumne St., Woodbridge

Effective: 7/3/07

SAN DIEGO

Allcare Nursing, Inc. (REC)

26273 Horsetail St., Murrieta

Effective: 7/30/07

Arbor Terrace Real Estate, Inc.

(REC)

41120 Elm St., Ste. H218,

Murrieta

Effective: 7/30/07

Montecastro, Bayani Delos (RES)

26273 Horsetail St., Murrieta

Effective: 7/30/07

Mortgage Marketing, Inc. (REC)

285 S. Palm Canyon Dr.,

Palm Springs

Effective: 7/11/07

PUBLIC REPROVAL

SACRAMENTO REGION

Wolf, Ernest Spencer (REB)

76101 Covelo Rd., Covelo

Effective: 6/21/07

Violation: 2726, 2731, 2832,

2970, 2972, 10085,

10145, 10146,

10159.5, 10177(d)

INDEFINITE SUSPENSIONS

(under Recovery Acct. provisions)

FRESNO REGION

Stanton, Ellen E. (REB)

145 Heinlen, Lemoore

Effective: 6/21/07

Commissioner's Message

Continued from page 1

www.yourhome.ca.gov

www.sucasa.ca.gov

would encourage you or any distressed borrower to visit

these sites to learn about available resources.

Finally, I want to remind you that we need to rid our

industry of individuals who violate the law. Time and

time again, in legislative hearings, and meetings with

consumer groups I am told unscrupulous licensees are

often at the root of a consumer’s problem. If you become

aware of an incident of mortgage related fraud or miscon-

duct by a licensee,

please re- port it to

the DRE. I intend to

continue to pursue

disciplin- ary action

a g a i n s t those real

estate licensees who take advantage of consumers

and fail to comply with regulatory requirements. It

is worth noting that the DRE is uncovering more and

more fraudulent transactions with criminal complaints

or federal indictments coming on the heels of a DRE

disciplinary action.

And, I have personally witnessed many agents self-

lessly assist clients in addressing loan related situations.

It is my hope that when I meet with various legislators

and consumer advocates in the future, that I am told a

real estate licensee helped rectify a problem situation

rather than create it. And from what I have seen and

heard, I expect this will happen.

Winter 2007 Real Estate Bulletin — Page 9

Legislation Update

Continued from page 3

of the existence of a transfer fee for

properties that are subject to such a

fee. Disclosure will generally be in the

form of a recorded notice and a require-

ment that a seller provide a buyer with

a statement indicating, among other

things, the amount of the transfer fee

based on the asking price and how the

fee is calculated.

The California Association of

Realtors® sponsored AB 980.

SB 223 (Machado) Real estate

appraisals (Chapter 291)

Existing law precludes a licensed

appraiser from doing an appraisal if the

appraiser’s compensation is affected

by the sales commission generated by

the transaction for which the appraisal

was made.

SB 223 prohibits a person with

an interest in a real estate transaction

involving an appraisal to improperly

inuence or attempt to improperly

inuence, through coercion, extortion,

or bribery, the development, report-

ing, result, or review of a real estate

appraisal sought in connection with a

mortgage loan. A person, who violates

the provision of this bill and is licensed

under any state licensing law, will be

in violation of the licensing law under

which the person is licensed.

SB 223 was an urgency bill and

was effective the day it was chaptered

on October 5, 2007.

SB 385 (Machado) State

agencies: accounts: reports.

(Chapter 301)

Existing law allows a real estate

broker to, among other things, arrange

loans secured by real property, includ-

ing nontraditional mortgage products,

as dened.

Recently, federal financial

institution regulatory agencies

and the Conference of State Bank

Supervisors (CSBS), together

with the American Association of

Residential Mortgage Regulators

(AARMR), published guidance on

nontraditional mortgage product risks

and a statement on subprime mortgage

lending. The guidance and statement

set forth suggested best practices

for underwriting and marketing

nontraditional and subprime loans.

SB 385 requires the Departments

of Real Estate, Financial Institutions

(DFI) and Corporations (DOC) to

apply the guidance on nontraditional

mortgage products and the state-

ment on subprime mortgage lending

published by CSBS and AARMR to

their respective licensees. This bill

also allows the departments to adopt

clarifying emergency and nal regula-

tions with respect to the guidance and

subprime statement. In this regard,

the Department of Real Estate (DRE)

has issued regulations providing for

added disclosures for nontraditional

loans. Licensees should familiarize

themselves with these as well as future

regulation proposals, as they become

available on the DRE Web site at www.

dre.ca.gov.

As to the Guidance and Statement

published by CSBS and AARMR,

they can be found at the following

Web sites:

 http://www.aarmr.org/pdf/CSBS-

AARMR%20FINAL%20GUIDANCE.

pdf

 http://www.csbs.org/

Content/NavigationMenu/

RegulatoryAffairs/MortgagePolicy/

Final_CSBS-AARMR-NACCA_

StatementonSubprimeLending.pdf

SB 385 also extends the authority

of the DRE to the principal lending

activities of real estate brokers who

make more than eight loans a year.

SB 528 (Aanestad) Common

Interest Developments: open

meetings (Chapter 250)

Existing law does not require HOA

boards to solely adhere to the mat-

ters set-forth on the agenda. SB 528

requires all issues to be discussed at a

board meeting to be on the agenda so

that homeowners have advance notice

of what issues the HOA board will be

acting on. This bill also requires that

meeting notices include the agenda

for the meeting.

VETOED BILL OF INTEREST

SB 226 (Negrete McLeod)

Real estate broker license:

qualications VETOED

Existing law requires a real estate

broker license applicant to complete

specied course work and have two

years experience as a real estate

salesperson licensee, as specified,

before the DRE can issue a real estate

broker license to the applicant. The two

years of experience as a salesperson can

be waived if the broker license applicant

can demonstrate the equivalent of two

years general real estate experience or

has graduated and obtained a degree

from a four-year college or university,

“which course included specialization

in real estate”.

SB 226 would have required

the Real Estate Commissioner to

adopt regulations to establish the

educational criteria that constitutes a

“specialization in real estate”.

Existing law requires real estate

brokers who arrange loans secured

by real property to disclose, among

other things, their license identication

number in all mortgage lending

advertising and on specied mortgage

loan disclosures.

This bill would have required real

estate licensees to disclose their license

identication number on rst point of

contact marketing materials.

The Governor’s veto message

stated, in part:

“This bill is substantially similar

to a bill that I vetoed last year. Instead

of directly repealing one method in

which a person can become a real

estate broker as last year’s bill did,

this bill attempts to revise the method

via a regulatory route. There is no

more evidence this year than last that

this licensing method has harmed

consumers in the over thirty years it

has been in statute.

While I cannot sign the bill, I do

support one aspect of the bill. I urge the

Legislature to consider legislation next

year that authorizes the Department of

Real Estate Commissioner to require

real estate brokers and salespersons to

display his or her license number on

consumer rst contact materials.”

The California Association of

Realtors® sponsored SB 226.

Page 10 — Real Estate Bulletin Winter 2007

she was a nancial executive earning

$9,000 per month from a shell company

which they had established, for seem-

ingly no other purpose than to create

ctitious employment information for

borrowers. In a separate series of trans-

actions, the respondents sold 8 proper-

ties to a landscape contractor earning

about $40,000 per year by claiming the

contractor was an investment analyst

with their company earning $14,000

per month. This pattern continued with

multiple borrowers. The defrauded

lenders required no verication of the

supplied information since these were

“stated income” loans.

As is the case when dealing with

someone who is willing to defraud a

lender, other parties involved in the

transaction had “better take cover” as

the chances for their being defrauded by

the participants are high as well. In this

particular case, in addition to supplying

fraudulent information to the lenders,

the respondents also made a series of

false statements to the straw buyers to

induce them into participating in the

scheme. The straw buyers were told they

were in the business of helping people

with bad credit acquire homes through

the use of the purchaser’s good credit. It

was just a way of helping people obtain

the “American Dream” of home owner-

ship. The respondents also represented

that they had pre-qualied people who

were waiting to take over the homes and

the loan payments from the purchasers

and that these individuals would pay a

deposit, make all mortgage payments,

property taxes, the related insurance

and the maintenance. It was further

represented that the pre-qualied indi-

viduals would then purchase the homes

after two years at a price adjusted for

appreciation of about 7 to 10 percent

per year. In actuality, no pre-qualied

purchasers existed and the respondents

simply let the homes go into default

which created substantial losses for the

lenders and ruined credit ratings for the

straw buyers.

Over 19 homes were sold by the re-

spondents in this manner, accounting for

over 8 million dollars in loans and over

$277,000 in loan broker commissions.

That is not much when you consider the

consequences of their actions. Needless

to say, the Department led accusations

and revoked the licenses of the individu-

als involved. In addition, the individuals

responsible were indicted by the United

States Attorney’s Ofce on 14 counts

of bank fraud, 14 counts of making

false statements in loan applications, 7

counts of mail fraud and conspiracy to

launder funds. It is doubtful that they

think their scheme was such a good

idea at this point.

Unfortunately, this case is not an

isolated incident. DRE has Accusations

against a large number of licensees who

have been involved in similar schemes

and criminal investigations are pending

with respect to several of them. From

the standpoint of the Department’s

Enforcement Program, we continue to

investigate complaints regarding trans-

actions that have occurred with damage

already done, and we will continue to

remove unscrupulous licensees from the

business and prevent possible fraudu-

lent acts from occurring. Furthermore,

the federal and local levels of govern-

ment will continue to investigate and

prosecute as appropriate.

Real estate licensees are in a more

unique position of being able to prevent

the problems from occurring in the rst

place, by recognizing red ags, asking

appropriate questions, and giving the

principals in your transactions the full

picture of what is involved in terms of

making a purchase and carrying the

payments once the purchase is made.

Remember the old adage “AN

OUNCE OF PREVENTION IS

WORTH A POUND OF CURE”. While

a lot of damage has been done in the

real estate market, we can prevent

more of the same from occurring in the

future. Please take the time to ensure

that the principals in your transactions

understand all terms and report abuses

in the marketplace to the Department

of Real Estate and to federal and local

prosecutors where appropriate.

Loan Fraud

Continued from page 1

Real estate licensees are

in a more unique position

of being able to prevent the

problems from occuring in

the rst place by recognizing

red ags

Continuing Education

Continued from page 1

 A participant will be required to present one of the following forms of

identication either immediately prior to admittance to a live presentation

or immediately before the administration of the nal examination for a

correspondence course:

 A current California driver’s license

 A current identication card issued by DMV

 Any identication issued by a governmental agency or recognized

real estate trade organization within the immediately preceding ve

years that bears a photo, signature and identication number of the

participant

The addition of the examination requirement for all continuing education

courses will also have an impact on a licensee’s ability to petition for equiva-

lency credit for attendance at any unapproved course. Before a petition will

be granted, one of the items the applicant must submit is a nal grade report

for the nal examination.

If you have any questions or comments concerning the continuing educa-

tion program, please contact the Education Section staff at (916) 227-0894.

For more detail on the specic regulations, you may visit http://www.dre.

ca.gov/pdf_docs/ce_regs_sec3005.pdf.

Winter 2007 Real Estate Bulletin — Page 11

DRE RE# Title of Publication Cost Quantity Your Cost

1 Reference Book — A Real Estate Guide (Rev. 2000) $20

2 2008 Real Estate Law Book & CD set $25

6 Disclosures in Real Property Transactions $10

8 Operating Cost Manual for Homeowner Associations $10

25 Reserve Study Guidelines for Homeowner Association Budgets $10

4 Instructions to License Applicants free

13 Trust Funds free

34 A Guide for Residents Purchasing Their Mobile Home Park free

35 Trust Deed Investments — What You Should Know!! free

35A Using the Services of a Mortgage Broker fr

39 Living in a California Common Interest Development free

51 A Consumer Guide to Filing Real Estate Complaints free

52 Reverse Mortgages — Is One Right for You? free

PART C CREDIT CARD PURCHASE

SHIPPING NAME LICENSE OR EXAM ID#

SHIPPING ADDRESS

CITY STATE ZIP CODE

PART B SHIPPING INFORMATION

METHOD OF PAYMENT ACCOUNT NUMBER EXPIRATION DATE OF CARD

VISA MASTERCARD AMERICAN EXPRESS

AMOUNT AUTHORIZED SIGNATURE OF CARDHOLDER DATE



PRINTED NAME OF CARDHOLDER TELEPHONE NUMBER

su B T o T a l $ ________

ca sa l e s Ta x * $ ________

(Tax rate used* ______ %)

to t a l en c l o s e d $ ________

To purchase publication by credit card, complete the following:

PART A PUBLICATIONS

Real estate publications

* See tax information above.

Alameda (8.25%), Fresno (7.875%),

Los Angeles (8.25%), Marin (7.75%),

Sacramento (7.75%), and San Diego

(7.75%). Requests and fees will be returned

if the appropriate sales tax is not included.

Miscellaneous information

 Publications noted as free are limited

to one copy; DRE grants requestor per-

mission to reproduce these publications

for complimentary distribution only.

 Prices are subject to change.

 Orders received with incorrect pay-

ments will be returned.

 All sales are nal — no refunds.

 Allow 4–6 weeks for delivery.

 Volume discounts are available.

Contact DRE at (916) 227-0852

prior to ordering.

Ordering information

DRE publications are available:

On the Internet — All DRE publica-

tions are available free of charge on the

DRE Web site at www.dre.ca.gov.

In person from District Ofces —

Complete Parts A, B, and C (if appropri-

ate). Ofces are located in Sacramento,

Los Angeles, Oakland, Fresno, and

San Diego.

By mail — Photocopy or remove this

page from your Bulletin. Complete

Parts A, B, and C (if appropriate). Mail

it with the proper fee to:

Department of Real Estate

Book Orders

P.O. Box 187006

Sacramento, CA 95818-7006

By fax — Complete Parts A, B, and C.

Fax form to (916) 227-0361.

By phone — Have credit card informa-

tion ready, then call Book Order desk

at (916) 227-0852.

Acceptable payment methods

 Personal check, cashier’s check or

money order should be made payable

to: Department of Real Estate.

 VISA, MasterCard, and American

Express credit cards may be used

to purchase DRE publications.

 Cash is acceptable only if purchas-

ing in person and only if it’s the

exact amount of purchase.

California sales tax

Use 7.25% tax rate, unless purchase location

or delivery address is in the following counties:

Page 12 — Real Estate Bulletin Winter 2007

Ofcial Publication

CALIFORNIA DEPARTMENT OF REAL ESTATE

P.O. Box 187000

Sacramento, California 95818-7000

Real Estate Bulletin — Winter 2007

Moved or moving? New address?

Use the eLicensing online system at

www.dre.ca.gov to make the change or

submit the appropriate “change” form:

RE 214 for salespersons; RE 204 for

brokers; RE 204A for corporations.

2008 Real Estate Law Book

and CD

ach year, the Real Estate

Law Book and CD is up-

dated to reect changes

in laws and regulations.

The 2008 Real Estate Law

Book and CD will be available

for purchase in January 2008.

This important reference for

licensees contains:

• The Real Estate Law

(from the Business and

Professions Code);

• The Real Estate Commissioner’s Regulations (from

the California Code of Regulations);

• Portions of the Administrative Procedure Act (from

the Government Code); and

• Pertinent excerpts from various California Codes.

The cost will be $25, plus tax. Orders will be accepted

after January 1, 2008. Use the order form on page 11 or submit

a Publications Request (RE 350). (The RE 350 is available

on the DRE Web site or from any District Ofce.)

The 2008 Real Estate Law will also be available on the

DRE Web site at www.dre.ca.gov.

Brokers:

Add/change main ofce address

Certify salesperson employment

Discontinue salesperson employment

Renew license

Request duplicate license

Change mailing address

Salespersons:

Add/change employing broker

Change mailing address

Renew license

PLEASE NOTE: Unless you are a rst-time salesperson examination ap-

plicant, you must have an existing examination record or license on le

with the DRE to use eLicensing.

Manage your real estate license on-line!