DFI Monthly Bulletin – April 2008

Apr 1, 2008

Volume 11, Number 10

Foreclosure Roundtable with FDIC Chairman Sheila Bair


The Department of Financial Institutions (DFI) participated in a foreclosure roundtable meeting with
FDIC Chairman Sheila C. Bair on April 26, 2008 at the California Science Center in Los Angeles.
Commissioner William S. Haraf attended the roundtable discussion along with other industry leaders.
The roundtable meeting was followed by a HUForeclosure Prevention WorkshopUH, hosted by Governor
Arnold Schwarzenegger’s Task Force on Non-Traditional Mortgages. Foreclosure prevention
workshops continue to be conducted around the state. Credit counselors, loan servicers and lenders offer
on-site assistance and information on options available to help homeowners experiencing difficulties to
keep their homes. Additional information is available at HUwww.yourhome.ca.govUH HUwww.sucasa.ca.govUH.
California Financial Literacy Month Roundup
Governor Arnold Schwarzenegger proclaimed April 2008 as HUCalifornia Financial Literacy MonthUH on
April 9, 2008.
During the month, the Department of Financial Institutions (DFI) partnered with educational and
governmental entities, private sector financial institutions, community groups and non-profits and others
to support this year’s theme to “Start learning today for a strong financial tomorrow – Financial literacy:
it pays.”
The events and functions that DFI and its stakeholders participated in helped further the goal of
empowering Californians to make wise financial decisions and become responsible workers, heads of
households, investors, entrepreneurs and business leaders. They highlighted the fact that a strong
education in finance is the first line of defense against consumer fraud, abuse and mismanagement of
funds. They underscored the need for us to increase our knowledge in financial services, budgeting,
saving and investing, credit cards, and loans including mortgages to help prepare us for the future to
give us the tools to build wealth, pay for college, start a business or purchase a home.
2 Monthly Bulletin April 2008
Perhaps the signal event during Financial Literacy Month was the HUFinancial Literacy SummitUH held on
April 23, 2008 at the Sacramento Convention Center. The goals and objectives for the Summit were:

• Making communities more powerful, effective and efficient
• Promote model programs and partnerships
• Connect people, organizations and communities to further personal finance education through
sharing of resources
DFI thanks and acknowledges its licensees, other government agencies, non-profits and other
stakeholders that took part in California Financial Literacy Month activities, and who spread the
message of financial literacy throughout the year.
Golden 1 Credit Union Creates Second Chance
Mortgage Program

California’s financial institutions are developing “second chance” homeownership and credit repair
programs for consumers that previously had subprime mortgage loans and lost their home to foreclosure.
The Golden 1 Credit Union’s program was developed to help members who recently lost their homes
due to: 1) a negative amortization subprime mortgage loan, 2) interest rate reset, and 3) a high
prepayment penalty.

The program helps prevent members from finding themselves in a similar situation. Unlike subprime
mortgage loans, the mortgage repair loan does not include negative amortizations, interest rate resets, or
high prepayment penalties. Borrowers must have stable employment, a fully amortizing fixed-rate
mortgage loan with escrows, a minimum of 2 months of reserves, an 80% maximum loan-to-value, a 30
year maximum loan term, a conforming loan amount, a strong ability to afford the mortgage loan and
debt service his and/or her other obligations, debt counseling, full documentation to include verification
of income, assets, employment and debt; property appraisal and title report, auto payment with direct
deposit and checking at Golden 1, and a minimum FICO score of 600.

Mortgage repair loan programs can provide the ability for borrowers to reestablish home ownership. The
Golden 1 Credit Union is an example of how financially strong and sound financial institutions can
make a positive difference in the communities they serve.
3 Monthly Bulletin April 2008
Commercial Bank Activity
UNew Bank
Gateway Pacific Bank
801 National City Boulevard, National City, San Diego County
Correspondent: Russell W. Bushore
Carpenter & Company
Five Park Plaza, Suite 950
Irvine, CA 92614
(949) 261-8888
Approved: 4/3/08
UChange of Name
Golden State Business Bank, Upland, to change its name to Golden State Bank
Effected: 4/15/08
The Mechanics Bank, Richmond, to change its name to Mechanics Bank
Notified: 4/29/08
Industrial Bank Activity
UAcquisition of Control
Markel Corporation, to acquire control of Centennial Bank and LandAmerica Financial Group, Inc.
Approved: 4/17/08
Premium Finance Company Activity
UNew Premium Finance Company
Charleston Premium Finance of California, Inc.
540 N. Golden Circle Drive, Santa Ana, Orange County
Opened: 4/9/08
UAcquisition of Control
Premium Financing Specialists, Inc. to acquire control of AMGRO, Inc.
Approved: 4/28/08
4 Monthly Bulletin April 2008
Foreign (Other Nation) Bank Activity
UNew Office
eBANK Corporation
50 California Street, City and County of San Francisco (Representative Office)
Opened: 4/14/08
Foreign (Other State) Bank Activity
UNew Facility
Irwin Union Bank and Trust Company (Facility – Insured Bank)
12677 Alcosta Boulevard, San Ramon, Contra Costa County
Opened: 4/16/08
Credit Union Activity
UField of Membership
Four credit unions received approval to add nine new fields of membership during March 2008.
UBylaw Amendment
Two credit unions received approval for four bylaw amendments during March 2008.
Cannon Financial Federal Credit Union, Santa Ana, to merge with and into Financial Partners Credit
Union, Downey
Filed: 04/10/08
Church/Co-op Credit Union, Sacramento, to merge with and into The Golden 1 Credit Union,
Filed: 4/15/08
Trust Company Activity
UVoluntary Surrender of License
Wachovia Trust Company of California
Effected: 12/31/07
5 Monthly Bulletin April 2008
Transmitter of Money Abroad Activity
UVoluntary Surrender of License
Motran Services, Inc.
Effected: 3/31/08
Payment Instrument Activity
UNew Payment Instrument
Fidelity Express
Approved: 4/22/08
Commissioner of Financial Institutions
Bulletin for Month ended
April 2008, issued pursuant
to Financial Code section 258
The Monthly Bulletin is available without charge via e-mail. To subscribe, go to HUhttp://www.dfi.ca.gov/bulletin/subscription/public.aspUH. To
unsubscribe, send a blank e-mail to HUleave-dfi_public@blizzard.sparklist.comUH. Contact the list administration team at HUbulletin@dfi.ca.govUH