DFI Monthly Bulletin – July 2008
Volume 12, Number 1
Directors Institute – The Role of the Modern Bank Director
Commissioner William S. Haraf will be making a presentation on the challenges facing the industry and
California banking at the Western Independent Bankers Directors Institute workshop, The Role of the
Modern Bank Director, which is co-sponsored by the California Independent Bankers. The one-day
program will be held on August 15 at the Manchester Grand Hyatt in San Diego.
The workshop, led by John Oliver, Laurel Management Systems, focuses on the 10 Essentials of Great
Governance. Rapid change, intense competition, and a challenging regulatory, economic and credit
environment require bank board members to be even more diligent in their fiduciary responsibilities.
This workshop is appropriate for both new and seasoned bank directors.
For more information on the workshop, please contact WIB at 415-352-2323 or visit
Commission Haraf will also be speaking at the American Association of Bank Directors/Western
Independent Bankers Annual Directors Conference on Nov. 6, in San Francisco. He will be part of
a panel entitled “A Dialogue with the Regulators on Asset Quality” also featuring representatives of the
FDIC and OCC. More information on this Annual Conference can be found at
DFI Attends FRB Foreclosure Symposium
The Department of Financial Institutions attended the Federal Reserve sponsored symposium,
Stabilizing Communities: Addressing the Negative Impacts of Foreclosure held on July 15 and 16 in
The goal of the FRB Symposium was to discuss models and strategies for partnerships between
governments, community-based organizations, servicers, and lenders to help one another turn real estate
owned (REO) properties into homeownership opportunities.
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According to the Federal Reserve Bank of San Francisco (FRBSF), foreclosures have dramatically
increased in specific areas of California between September 2007 and April 2008. The high
concentrations of foreclosures and REO properties that currently exist threaten families, neighborhoods,
labor markets, and municipal budgets.
Janet L. Yellen, the President and CEO of the FRBSF, stated in her keynote speech:
Our goal should be to keep existing owners in their homes wherever possible as a way of
avoiding the significant costs of foreclosure. The scale of the loan modifications and repayment
plans to date are small compared to the volume of loans that are 60 or more days delinquent—an
estimated 186,000 loans in California alone. It is critical that we continue to explore a broader
range of interventions that would help keep families in their homes, including efforts to give
servicers more flexibility in the loan modification process.
Additionally, FRBSF President Yellen encouraged attendees to share their ideas, successes, and failures
across sectors to find solutions for redeveloping foreclosed properties and affordable homeownership.
DFI applauds Yellen’s cooperative approach. Recently the Department has used email broadcasts to
provide information and opportunities to licensees. In July, DFI posted information on its Web site on
the new Community Stabilization Home Loan Program, a special program available from the California
Housing Finance Agency (CalHFA) designed to help first-time homebuyers purchase homes in
communities hardest hit by the foreclosure crisis. Under the program, first-time homebuyers will be
eligible for below-market interest rate loans to purchase foreclosed homes in ZIP codes with some of the
state’s highest foreclosure rates. On August 4, DFI emailed licensees information on how to participate
in the CalHFA program by providing qualifying properties they hold in their portfolios in order to utilize
foreclosed homes as affordable housing opportunities.
Numerous models and strategies proposed during panel discussions for renovation financing and
partnerships were shared at the Symposium. Each model and strategy was designed with a specific
geographic area in mind, as it is understood that the approach to a solution depends on the geographical
The DFI encourages licensees to investigate some of these ideas. You may find Symposium content,
including the Keynote Speech and PowerPoint presentations on the FRB St. Louis Web site,
The FRB stated they will continue the discussions on improving communication and creating responses
to the volume and concentrations of foreclosures through sponsorship of a series of forums entitled
Recovery, Renewal, Rebuilding.
To learn more about these forums please contact the FRB or visit the RRR Web site,
3 Monthly Bulletin July 2008
Deposit Insurance and DFI Licensees
The Department of Financial Institutions (DFI) would like to remind concerned financial institution
customers that their deposits and shares in state-chartered banks and credit unions are insured.
Commercial and Industrial Banks
Deposits in all commercial and industrial banks are insured up to $100,000 by the Federal Deposit
Insurance Corporation (FDIC), an agency of the federal government. If you or your family has more
than $100,000 at one insured institution, you can still be fully insured if your accounts meet certain
Federal law provides up to $250,000 in insurance coverage for deposits held in Individual Retirement
To check your deposit insurance coverage, visit the FDIC’s Electronic Deposit Insurance Estimator
(EDIE) at HUhttp://www.fdic.gov/edie/UH. And to learn more about your insured deposit, go to
Shares (deposits) in approximately 91% of state-chartered credit unions are insured by the National
Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration
(NCUA), which is an agency of the federal government. The other nine percent are insured by
American Share Insurance (ASI), a private insurer.
UNational Credit Union Share Insurance Fund (NCUSIF)
NCUSIF insured deposits are insured to the same extent that bank deposits are insured by the FDIC. To
check your share insurance coverage, visit the NCUA’s Share Insurance Estimator at
HUhttp://webapps.ncua.gov/ins/UH. And to learn more about your insured shares, go to
UAmerican Share Insurance (ASI)
ASI insures each account of a credit union member to $250,000, without limit to the number of accounts
a member may have. ASI is licensed by the Ohio Department of Insurance and dual regulated by the
Ohio Departments of Insurance and Commerce. ASI is not an agency of the federal government. For
more information about ASI, visit their web site at HUhttp://www.americanshare.com/Public/Home.aspxUH.
Personnel Change in the Credit Union Program
Don Proctor Promoted to Financial Institutions Manager
Don Proctor was promoted to Financial Institutions Manager effective July 21, 2008. Mr. Proctor
received his Bachelor of Science degree in Accounting from California State University, Fullerton, in
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1979. He has over 28 years in examining financial institutions. His background includes examining
credit unions for the past two decades and examining industrial loan companies back in the 1980s with
the Department of Corporations (DOC). In 1984, Mr. Proctor passed all four parts of the Certified
Public Accountant examination. In 2002, he received his Certified Examiner status from the National
Association of State Credit Union Supervisors (NASCUS). In 2003, he passed the Certified Fiduciary
and Investment Risk Specialist examination. Mr. Proctor transferred from the DOC as a Range C
Examiner, until April 2002 when he was promoted to the Senior Financial Institutions Examiner
position. He was promoted as a Financial Institutions Supervisor in June 2008, followed by his
promotion as a Financial Institutions Manager in July 2008.
Mr. Proctor is headquartered in the Los Angeles office.
NCUA Liquidates Cal State 9 Credit Union
The National Credit Union Administration (NCUA) liquidated Cal State 9 Credit Union of Concord.
The Cal State 9 Credit Union liquidation and purchase and assumption by Patelco Credit Union had
been announced May 22, and was completed on July 1, 2008.
Commercial Bank Activity
Global Trust Bank
700 E. El Camino Real, Mountain View, Santa Clara County
Correspondent: Russell W. Bushore
Carpenter & Company
Five Park Plaza, Suite 950
Irvine, CA 92614
Pacific Commonwealth Bank (Name changed from Pacific Commercial Bank)
1731 Technology Drive, San Jose, Santa Clara County
Correspondent: James H. Avery
The Avery Company LLC
P.O. Box 3009
San Luis Obispo, CA 93403
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New Bank (Continued)
530 Broadway, Chula Vista, San Diego County
Officers: Scott Parker, President and Chief Executive Officer
Gary Housman, Executive Vice President, Chief Credit Administration
M. Catherine Wright, Chief Financial Officer
Service 1st Bank, Stockton, to merge with and into Central Valley Community Bank
Spectrum Bank, Montebello, to merge with and into Professional Business Bank, Pasadena
Industrial Bank Activity
New Industrial Bank
300 North Lake Avenue, Pasadena, Los Angeles County
(714) 961-2254 (fax)
Officers: D. Tad Lowrey, President and Chief Executive Officer
John Bogler, Executive Vice President and Chief Financial Officer
Chris Scardelletti, Executive Vice President and Chief Credit Officer
Purchase of Partial Business Unit
CapitalSource Bank, Pasadena, to acquire 22 branch offices of Fremont Investment & Loan, Brea
Sale of Business Unit
Fremont Investment & Loan, Brea, to sell whole business unit to CapitalSource Bank, Pasadena
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Premium Finance Company Activity
New Premium Finance Company
Red Rock Premium Finance Co., Inc.
8530 La Mesa Boulevard, La Mesa, San Diego County
Tepco Premium Finance of California Inc.
500 South Kraemer Avenue, Brea, Orange County
Tristan Capital Group, Inc.
2029 Century Park East, City and County of Los Angeles
Change of Name
DG Holdings, to change its name to DG Holdings, Inc. DBA LG Premium Finance
Trust Company Activity
Mellon Trust of California, Los Angeles, to merge with and into BNY Mellon, National Association,
Foreign (Other Nation) Bank Activity
515 South Flower Street, City and County of Los Angeles
(Wholesale Branch Office)
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Credit Union Activity
Two credits union received approval for three bylaw amendments during June 2008.
Field of Membership
Two credit unions received approval to add four new fields of membership during June 2008.
California Preferred Credit Union, San Francisco, to merge with and into Redwood Credit Union, Santa
Transmitter of Money Abroad Activity
Acquisition of Control
Luis Escheverria, to acquire control of JOM Corp.
Voluntary Surrender of License
American Express Travel Related Services Company, Inc.
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Payment Instrument Activity
Voluntary Surrender of License
American Express Travel Related Services Company, Inc.
WILLIAM S. HARAF
Commissioner of Financial Institutions
Bulletin for Month ended
July 2008, issued pursuant
to Financial Code section 258
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