About Rich Rydstrom - Select Bio
Rich Rydstrom: My father was a Norwegian carpenter. I was taught that money was a biproduct of helping people and that you could do anything you wanted, just do it. Yes, like the Nike slogan, only long before Nike. But alone, this was an impossible hurdle. But I pushed forward, and I became a NYC accountant, and a California attorney. Still after years of self-help, and failure to reach my goals, I discovered that impactful change required a big team. It’s true, together everyone accomplishes more.
CMIS & HAMP: Out to help people, in 2006, I wrote an article about how the economy was about to crash. Members of Congress read it and invited me to deliver a neutral analysis and statement to the 110th Congress. In January 2007 I did just that, and immediately found myself in the middle of the left and right political and economic (world) powers. I became the Chairman of the D.C. Coalition for Mortgage Industry Solutions (“CMIS”). In mid-2007 the mortgage and credit crisis were in full bloom in its genesis of wiping out millions. The Great Recession arrived, it was real, and it ran through-out the world.
It appeared no one was taking decisive action to stop the snow-balling asset (mortgage) write-offs (per the Reps and Warranties in our banking and credit swap contracts), leading to greater devaluations, credit freezes, and escalating foreclosures. I had already created financial solutions for Wall Street (finance) to lessen the severity and frequency of write-off (losses) and foreclosures in my predictive Congressional speech, but no one was implementing them. Nor was anyone else injecting solutions to the run-a-way crisis. Day after day, more and more people were thrown in the streets. It became clear the industry wasn't in the solutions business, they appeared to be managing the sinking of the Titanic.
I needed to lead, influence the influencers, and start at the top. In 2008, with the help of my CMIS team, I fashioned a DC Summit for the captains of industry, and influencers in the financing, mortgage, and congressional spaces. It was done, I had created the event promising solutions to the crisis, but it needed more. While traveling, I stopped at my parents’ home on Long Island. I was looking through my original brainstorming notes to make sure I did all I could to make the Summit a success. When I woke up the next day, I said to my parents, I need to call billionaire Wilbur Ross, the largest private owner of mortgages in the United States. My Mom said, Oh, Richard. My Dad said, so, do It. I dialed 411 and asked for Wilbur Ross. In minutes I heard, hold for Wilbur. When Wilbur Ross said hello, what can I do for you: I was ready with my short and to the point request asking Wilbur to help me debate and create, at the CMIS live-broadcast Summit, the needed solutions to the crisis.
After a short discussion of my QbieSam™ solution (Quarantined Build in Equity Shared Appreciation Mortgage), and my ‘‘Safe Harbor Intelligent Loan Options’’ (‘‘SHILO’’), Wilbur said we would need to claw back components which create liquidity events (in the secondary market/shadow banking system) by selling reduction pieces at Xbps over the 10-year treasury. I said oh, wow. Yes, I see that. I reminded Wilbur that consumer spending comprises over 70% of GDP. If the people are wiped out, so is industry. The borrower is in dire trouble and has a lack of exit options available. This is causing ‘‘liquidation type forced sales’’ at an alarming rate and with increasing severity, causing a feeding frenzy in the foreclosure, credit, and capital markets. We must stop or slow-step the bleeding now or we may fall too far to get back up.
Excerpts of CMIS Solutions Discussion by Billionaire Wilbur Ross and CMIS Chairman Rich Rydstrom:
“AHM has proven that its leader, Wilbur Ross, expressed viable principal reduction modification remedies in his keynote discussion with Chairman Richard Rydstrom at the CMIS Executive Summit in DC (2008). The next step would be to activate the “liquidity creating” portion of the remedy by selling insured pieces, and/or add a reduction or quarantined device that does not result in capital ratio impairment write-offs (www.qbiesam.com).
“Back in June 2008, at the DC Leadership Summit, Richard Rydstrom and Wilbur Ross discussed modification solutions with principal reduction and SAM claw back components which also spark the secondary and securitization market (by selling reduction pieces at Xbps over the 10-year treasury (www.CMISfocus.com; AFN Video). One such solution is as follows: Public – Private Guarantee Solution: (Wilbur Ross and Richard Rydstrom June 2008) • Set up an insurance guarantee program. • The government would guarantee 50% of the mortgage that had been reduced to true net value after selling commissions, etc. • The guaranteed amount (50% government amount) could be separately sold by holder/lender at a much lower yield than the mortgage itself. • Enable the holder/lender to pay a 2 ½% per year Insurance Fee to the government. • At first sale, share proceeds of appreciation as follows: 1/3rd to Government 1/3rd to Lender/Holder 1/3rd to Borrower (Homeowner) • Making it transferrable/assumable will lessen the need for new replacement mortgage. • The 50% can come over to the next owner from the government guarantee at low rates and supply liquidity to the original lender. • It can be backed by reinsurance.”
More information re HAMP, CMIS, Great Recession: CMIS focus ezine https://cmisfocus.com; Mortgage Coalition historic site: https://www.mortgagecoalition.org
More Info on Creation of HAMP Click
Short Bio Chairman, Rich Rydstrom, Esq.:
Mr. Rydstrom has been quoted or published or interviewed by: United States Congress, The Los Angeles Times, iHeart Radio, USA Today Magazine, MortgageOrb, Mortgage Daily News, Orange County Register, Tax.org, National Business Institute, CMISfocus eMagazine, Pepperdine University (Law, Business Journal), AIR Commercial Real Estate Association, Constructor Magazine for the AGC Association, Society of California Accountants, various Landlords and Real Estate Owners associations and others. Richard is a frequent keynote speaker, moderator, panelist, and CLE instructor for National Business Institute for lawyers, judges, banks, and servicers.
Richard Rydstrom, Esq. was Chairman of CMIS Mortgage Coalition reconciling diverse and disparate interests of the banks and the consumer borrowers in developing neutral solutions to the Great Recession of 2007, including the HAMP mortgage modification program with the U.S. Treasury and the official foreclosure and consumer groups. When the 110th Congress wanted a neutral analysis and congressional statement regarding the problems and solutions of the pre–Great Recession, they chose Mr. Rydstrom. When the banks and consumer groups wanted a formal explanation and speech regarding the first HAMP Mortgage Modification Program outline for President Obama and the U.S. Treasury, they chose Mr. Rydstrom.
Some significant distinctions include:
* Published in a Statement to the 110th Congress, House Ways & Means Committee, Chairman Charles Rangel
* Considered a national expert in real estate, litigation, contracts, mortgage banking and related foreclosures
* Honorary member of the American Legal and Financial Network (AFN)
* Chairman of CMIS (Coalition for Mortgage Industry Solutions)
* Member of the HAMP Policy Working Groups (AFN, United States Treasury, etc.)
* CLE speaker and educator for attorneys, judges, banks, servicers, accountants and financial advisors for the National Business Institute (NBI)
* Frequent keynote speaker, panelists, and moderator at national conferences and live broadcast webinars including the AFN, NBI, CMIS, CMBA
* Voluntary Settlement Officer (VSO) for all Los Angeles courts
Superb Attorney Rating by AVVO: With more than 31 years of legal experience, Richard Rydstrom is rated Superb, 10 out of 10 by Avvo – the world’s largest rating directory of lawyers.
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