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local edition SERVICING CALIFORNIA // TriMavin and Risk Management Vet Joins CrossCheck Compliance Loretta Kirkwood's expertise also includes regulatory compliance. ILLINOIS // Loretta Kirkwood, an executive with experience in regulatory compliance and risk management, has taken a managing director role at CrossCheck Compliance, LLC, the Chicagobased company announced. In her position, Kirkwood— an expert on bank regulation, operations, and technology—will expand CrossCheck's regulatory consulting practice in fair and responsible lending. She will also consult with clients on Consumer Financial Protection Bureau (CFPB) readiness, the Home Mortgage Disclosure Act (HMDA), and the Community Reinvestment Act (CRA). "We are very pleased to have Loretta join our management team," said CrossCheck president and CEO James Jorgensen. "With more than 30 years of experience parent corporation Stearns are facing a lawsuit from a former chief appraiser who says the companies violated federal regulations and terminated her employment in response to her complaints. In her complaint against the two companies, Katherine Scheri—chief appraiser at TriMavin from October 2011 to January 2013—alleges that Stearns developed a program to recruit mortgage brokers and loan officers by telling prospective recruits they could provide their own personal list of appraisers to be included on the approved The M Report | 49 se c on da r y m a r k e t has worked for several consulting and software firms in the past. In addition, she works directly with regulators and other enforcement agencies to develop corrective action plans for better risk management practices at banks and mortgage companies. "I work with banks and mortgage companies every day, and we help them understand and navigate the increasingly complex world of regulatory compliance," Kirkwood said. "I am delighted to become part of this well-respected and collaborative team of compliance specialists." A former chief appraiser alleges the company went against appraisal independence laws. panel for the appraisal process at TriMavin, an appraisal management company (AMC). Regulations under the Truth in Lending Act (TILA) require that employees, officers, and directors in the loan process not be directly involved in selecting, retaining, recommending, or otherwise influencing the choice of who will perform a valuation or who may be included from a panel of approved appraisers. The complaint goes on to say that when she brought up her concerns to TriMavin president Eric Dellorusso, he responded that the accepted names were blended into the list of approved appraisers and that those names would be used on a rotating basis. Scheri alleges that Stearns' appraisers were ranked in such a way that they were guaranteed to be used over other appraisers. Scheri also says that, in a meeting with Dellorusso, she observed a stack of papers that Dellorusso admitted was a list of appraisers provided by incoming Stearns CEO Brian Hale to be used at TriMavin. Immediately thereafter, "Dellorusso told [Scheri] he should not have told her where this list of appraisers came from and directed her not to disclose to anyone that she had seen the list or where it came from, as it could cost him his job," the complaint says. Scheri additionally alleges that, when she refused to budge on the issue of Stearns' production personnel manipulating appraisals, Dellorusso "told [Scheri] he had decided a man would be better equipped to handle [her] job, as a man could deal with [Stearns'] production personnel better than a woman." Eventually, her disagreements with upper management over the alleged violations finally culminated in her firing, she says. Based on her experience and TriMavin's alleged unlawful retaliation, Scheri has brought suit against the company, along with Stearns and 30 as yet unnamed defendants. Representatives for Stearns did not immediately respond to a request for comment. a na ly t ic s Former Employee Accuses Stearns of Appraisal Violations s e r v ic i ng in the financial services industry and a formidable background in fair and responsible lending policies and procedures, Loretta is the perfect fit for CrossCheck, which serves as a trust advisor to our clients in this practice area." Kirkwood joins CrossCheck from BancSolutions, LLC, and Or ig i nat ion The specific metrics used to examine performance and foreclosure prevention results were ability to assist 90-plus delinquent borrowers; efficiency when helping borrowers retain their homes; and liquidation efficiency when handling short sales and deeds-in-lieu. Among those three metrics, Fannie recognized servicers that showed leading performance when compared to their peer groups. Three servicers were recognized for their ability to handle 90-plus delinquent accounts: Seterus, Regions Bank, and Branch Banking & Trust Company. Seterus also stood out for retention efficiency, along with OneWest Bank and Colonial Savings. The servicers that were acknowledged for liquidation efficiency were GreenTree Servicing, Fifth Third Bank, and Navy Federal Credit Union.