|| Print ||
|Articles - April 2013|
|Monday, April 01, 2013|
BY MARK STEVENSON
Over the years since the mortgage bubble burst, the term “bank” has been a four-letter word and an easy target for the media, the legislature and the general public. In fact, my own peers at community banks and credit unions have been known to jump on the bandwagon through the sound bite of “Main Street vs. Wall Street.”
There is no doubt that risky mortgage lending contributed to the bubble that precipitated the financial crisis. Congress, investment banks, large banks, mortgage banks and brokers, and others up and down the chain encouraged and profited from this activity. Many community banks overconcentrated in construction and development loans, putting themselves and their shareholders in peril. Not to mention that many consumers applied for mortgages they couldn’t afford.
With an improving economy, I hear less vitriol directed at banks, but lately there’s a resurgence when it comes to discussing Oregon’s new foreclosure mediation law requiring mandatory mediation in nonjudicial foreclosures.
“The banks just don’t want to play,” reads one quote in a recent newspaper article. Legislators complain that banks have “dodged” the law at the expense of distressed homeowners; that they have no interest in bona fide mediation. Yes, it’s true that most Oregon lenders have avoided the non-judicial foreclosure route and opted instead for lengthier, more costly judicial foreclosures. But it’s not because banks have an inherent distaste for mediation.
To the contrary, any knowledgeable banker knows that the most successful and least costly resolution of problem loans depends on negotiating restructured loans with borrowers. Collateral liquidations (e.g., foreclosure) will almost always result in a greater loss to banks than a properly restructured loan based on a credible plan from a willing borrower.
Lenders have avoided nonjudicial foreclosures in Oregon because of various technical problems with the new mediation law, as well as a decision pending in the Oregon Supreme Court on the use of the national Mortgage Electronic Registration Service (MERS) to record assignments of notes and deeds of trust. The lending industry has suggested various legislative fixes that we hope will enable banks to utilize mediation. Several legislators on both sides of the aisle have said they find these fixes sensible and are considering them during the current legislative session. Across the country, more than 20 mediation programs are in place and being used by the same banks that have been compelled to avoid nonjudicial foreclosure in Oregon.
I understand the source of public frustration. Haven’t we all suffered the exasperation that comes with dialing 1-800, waiting on interminable hold, only to be disconnected or transferred to an unhelpful clerk in the wrong department who promises to get back to you but never does?
That seems to happen too often under a complex system in which many mortgages are sold by the original lender, resold again, securitized to anonymous groups of investors all over the world, and serviced by third parties who don’t even own the loans and are contractually limited to what they can and cannot do. These are bona fide challenges in need of improvements. And in fact, the new federal Consumer Financial Protection Bureau just released more than 2,900 pages of new rules related to mortgage lending and servicing.
Whether Oregon’s foreclosure-mediation program has been a step in the right direction remains to be seen, but meanwhile, let’s focus on the facts and leave hyperbole at the door.
|Friday, February 07, 2014|
BY TOM COX | OB BLOGGER
President Obama's State of the Union address held lessons for all leaders.
|Friday, February 14, 2014|
BY MIKE GREEN | OB BLOGGER
Oregon Business speaks with Patrick Quinton, executive director of the Portland Development Commission, about tech startups, equity and community impact.
|Tuesday, January 21, 2014|
BY PETER BARNES
The defense market can be easy to overlook in Oregon, a place with a bigger reputation for its antiwar movements than for its military history. Yet when it comes to the U.S. defense budget, the Department of Defense did roughly $1 billion in business in Oregon that year.
|Thursday, February 13, 2014|
BY JASON NORRIS | GUEST CONTRIBUTOR
Investor returns in January usually predict what the returns will be for the entire year. The Seahawks win may offset this calendar trend.
|Thursday, January 23, 2014|
BY BRANDON SAWYER
In this age of jobless recovery, workers have increasingly turned to part-time work in lieu of a full-time job, often cobbling together two or more jobs in order to make ends meet.
|Tuesday, January 07, 2014|
BY MICHAEL BECK | OB BLOGGER
Many organizations recognize the importance of improved engagement, but the result of their efforts to improve engagement are generally poor because they are misguided.
|Thursday, February 20, 2014|
BY VIVIAN MCINERNY | OB BLOGGER
As retailers consolidate and newspapers fold, the business of modeling shifts to ad agencies, apparel companies and new media.
|The more they change, the more they stay the same|
|The 2014 List: The Top 33 Large Companies to Work, For in Oregon|
|The 2014 List: The Top 34 Medium Companies to Work, For in Oregon|
|The 2014 List: The Top 33 Small Companies to Work, For in Oregon|
|The future of money|
|Rival banana firms to merge|
|Blood test predicts Alzheimer's disease|
|Cerberus Capital to buy Safeway|
|U.S. adds 175,000 jobs|
|Bitcoin creator revealed|
|Staples closing 225 stores|
|EU to offer aid package to Ukraine|
Living in the beautiful Pacific Northwest means enjoying our wonderful surroundings, while remaining aware of the multiple types of natural disaster threats that we face: winter storms, windstorms, floods, landslides, earthquakes, volcanoes and tsunamis.“
Oregon State University's hospitality degree program invests in next-generation leaders.
Allowing individuals to access their own healthcare options has created more difficulty instead of making things easier. There are so many examples that illustrate why agents are more important than ever in helping businesses and individuals determine the healthcare coverage that best fits their need.
Barran Liebman is pleased to welcome Tyler Volm and Damien Munsinger as Associate Attorneys. Both Tyler and Damien represent employers and management in employment law litigation, and provide advice on a full range of employment law matters.
The 2014 World Trademark Review 1000 (“WTR”) recently named Lane Powell as one of the top trademark law firms in Oregon and Washington, and Lane Powell attorneys Kenneth R. Davis II, Parna A. Mehrbani, Frances M. Jagla and Paul D. Swanson as top individuals in the practice.
Capital Pacific Bank, a Portland-based community bank serving businesses, professionals and nonprofit organizations, today announced that it has earned recognition as a Certified B Corporation by B Lab, a nonprofit organization dedicated to building a community of socially responsible businesses. The bank is one of six financial institutions across the country to achieve B Corp status.