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California Department of Real Estate Recovery Account

From time to time, I like to refresh my memory of various topics or try to get answers to questions that I may have at the California Department of Real Estate website. While browsing through the website, I came across the Recovery Account, which is a "victim's fund." The account has been around since July 1st of 1964. Since it's inception, nearly $33,000,000 has been paid to members of the public to compensate people that were defrauded by an individual that is licensed be the California DRE. From it's inception till June of 2002, there have been 3,850 applications filed and over half of the claims filed have been paid! You ask, where does the money come from? A portion of the fees paid by licensees.

I'm wondering if we are going to see an increase and/or depletion of this fund in the near future in California. Maybe our fees will increase to take care of the fraudulent claims that are about to arise from "Stated Income loans", neglegent California Real Estate professionals and easy to qualify for loans that are putting people into homes that they can't truely afford...

Just a thought for the day...

Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.CALoan.com

Blog: http://activerain.com/blogs/lendingmagician

"You find the perfect home, we'll find the perfect loan!"

Posted by Scott Gormley on 10/14/2006 12:18 PM

Comments (2)

california, real, estate, recovery, account, realtor, lender, mortgage, broker, chico, home, buyer

2 Comments on California Department of Real Estate Recovery Account

These are some pretty huge numbers but I guess they're relevant to the size of the State.

Thanks for sharing the info Scott!

-James

GA-agent.com

10/14/2006 12:22 PM

by GA-agent.com-- Georgia Real Estate Directory (GA-agent.com)

Hey Scott, I went looking for something similar for Washington State and couldn't find that but I did find the following from the Washington State Department of Licensing:

Disiplinary Actions: Real Estate

Revocations

Aberdeen—Larry A. Zimbelman

Profession: Real estate salesperson
Case number: 2005-12-0016-00 REA
Order effective: Default order mailed June 23, 2006, effective upon service.
Action: Revocation for 10 years.
Summary: The Respondent was convicted of the crime of Voyeurism in Grays Harbor Superior Court. He failed to notify the Department of the conviction and failed to demand a hearing in a timely manner.

Seattle—George V. Reyes

Profession: Real estate salesperson
Case number: 2005-11-0073-00 REA
Order effective: Agreed order mailed August 18,2006, effective upon service.
Action: Revocation for 10 years.
Summary: The Respondent was convicted of two counts of the crime of Child Molestation in the Second Degree-Domestic Violence; two counts of Possessing Depictions of Minors Engaged in Sexually Explicit Conduct. He failed to notify the Department of his convictions.

10/14/2006 01:39 PM

by Leslie Bloss, Seattle Real Estate Professional (REALTY EXECUTIVES/BRIO )

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