If you don’t know Elizabeth Knight (Liz), chances are you probably haven’t been that active with CMA. She has done it all, from selling raffle tickets, bylaws committee, special executive Board Member, PAC Committee, to executive level positions (Secretary, Vice President), and now Director (these are merely a few of her titles). Liz was on the Board of Directors with one of the two previous organizations that merged into CMA. She was on that original merged board and has been a board member ever since.

Liz is that hand in the audience that a trusted Seminar panelist will interrupt a session to call upon for clarification on almost any issue of importance to CMA members. She is recognized for her deep expertise, experience, and practical guidance in an arena that is constantly evolving and challenging its participants to stay on top of the regulatory and economic curve.

I first met Liz Knight when I became involved with the industry in 2015. We spoke via phone and email prior to the San Francisco seminar and she was literally the only person I “knew” when I showed up to the conference. I found that everyone seemed to know each other so I was feeling a bit awkward when Liz invited me to a very nice dinner via the PLM party bus. At dinner, Liz introduced me to a variety of people and I suddenly found myself a part of the CMA community. The next day, I was able to actually say hello to some people and, voila! I was now a legitimate member with some new friends.

Liz has brought a lot of people into the organization through her business talents, connections, and just having a kind and open heart. The following is a brief Q&A I had with Liz over the course of several weeks to ask some questions about the industry, her work, and, importantly, her thoughts on seminar food.

JP: You’ve been deeply engaged with CMA for a long time, what keeps you motivated to continue to devote so
much time to the organization?

Liz: I have been involved with CMA since its inception. I was on the Board of Directors on one of the two merging organizations and they kept me on the Board during and after the merger. I have been part of private investor organizations since 1985. What keeps me motivated to continue to devote so much time to the organization is that I believe this type of financing is needed. In order to keep this type of lending alive, we need to stand together to fight for positive legislation and against debilitating legislation. We need to continue to be educated about the business and continue to network to understand what each of us do and how we can work together to create a more positive public image and continue to succeed in this business.

JP: Other private money organizations have been gaining ground through intense marketing and conferences, how is CMA addressing this trend?

Liz: CMA has increased its marketing by way of its website, on-going blasts about its upcoming seminars, continuing to offer the best educational programs, adding exciting videos to its marketing materials, adding webinars, promoting CMA to other organizations, and grassroots calls when needed.

JP: Is competition [i.e., too many lenders] driving rates down and do you see that as a positive trend?

Liz: It does look like prices are being driven down some. But, it is just a learning curve for the private lenders to understand that at this time, rates are going to be a bit lower, but still much better than a CD or bank rate
and perhaps more in their comfort level than stocks. As to it being a positive trend, only time will tell.

JP: What are the most challenging government regulations on the horizon?

Liz: I believer that keeping up with changing CFPB rules in October, the change in trustee rules in January, 2018, and the new HUMDA rules will keep everyone on their toes.

JP: What is the correlation between fed rates and private money rates?

Liz: When the fed rates increase, loans that were previously “covered” loans (loans under Section 32, Cal 32, Section 35 and Cal 35) are able to be written at higher rates without falling under the “covered” loan status. Additionally, when fed rates rise, it directs borrowers to private money brokers for more of their needs since
they typically may not need as much documentation with a private investor as a bank would require.

JP: If you look into your 10-year crystal ball, what are the major challenges our industry faces? Is there anything we can do now to mitigate any of the potentially negative prospects?

Liz: I think that the big players will continue to try to take loans from the private sector. They will, yet again, make mistakes which shake the market, they will then retract, then sit quietly and then reach out again, in a vicious cycle. The market will always be cyclical. The only way to mitigate any negative prospects is to continue
to monitor legislation, watch what the institutions are doing, and try to stay ahead of it. I also see technology stepping up and really assisting in loan production, even in the private sector.

JP: What are the top 3 things the organization could do that would make a real and substantial difference in furthering CMA’s long term objectives?

Liz: Continue to offer excellent education so that brokers and fund managers

  • continue to learn (and their staff members as well)
  • Continue to attract more members so that we have a stronger voice
  • Continue to ensure Sacramento hears our voice

JP: Let’s get to something important now. What is your opinion of the food at CMA conferences?

Liz: I think the food at CMA conferences is quite good. It is dependent upon where we are, of course, as some locations serve better food than others. Also, the sponsors are very generous as well assisting to feed good food to the masses and supplying snacks.

JP: Does most of your business come from NorCal? Despite technology, would you say geography still plays a major role in business development?

Liz: PLM gets its business from outside of California and all over the state. Different divisions get work from different areas. I do not believe geography plays a major role in PLM’s development due to the type of work which is performed.

JP: When you’re not working [wait is that even a possible state for you?], what are the top 3 things that occupy your time?

Liz: Three is just so limiting … when I am not at work, until I am fully engaged in something else, I am thinking about work or something to do with work, but I have worked on making myself “present” when I am elsewhere so, if I have to say three; doing outside activities (like golfing, hiking, watersports), hanging out with family (which includes going to the movies), and sitting quietly reading a book. Was that more than three?

JP: What is your absolute favorite global destination?

Liz: Lake Tahoe. It is home (and there is no place like home), but it is still like a vacation because there is so much to do.

JP: Tell us a little about PLM. What specific services does PLM offer?

Liz: PLM Lender Services, Inc. offers experienced, full service loan servicing in California. We service many types of loans for many types of entities. Our goal is to be sure lenders are happy and extremely satisfied with our service so that they keep using their chosen broker, who then choses PLM to do their servicing.

PLM Loan Processing Center, Inc. offers professional, complete documentation sets for many different type of California property secured loans. This includes consumer, business purpose, land, commercial property, cross collateral, multi-lender and settlement loans.

PLM Loan Management Services, Inc. offers superlative non-judicial foreclosure work in California, Nevada and, soon to come, Arizona.

JP: How would you describe your corporate culture?

Liz:Our corporate culture is that I believe you can only be respected if you respect others. I do not believe that employees are easily replaced. I do not believe that being rude, raising one’s voice or belittling staff is the way business should be run. It is expected that the staff get along and work hard. It is important to understand that everyone has strengths and weaknesses and leaders should build upon strengths and try to create strength where there is a weakness. When there is an issue, it is important to review the problem, solve it immediately, review the procedure, and make sure it doesn’t happen again. It does not help for one to get their panties in a bunch. Communication is key. Carelessness is inexcusable, but realizing that everyone is human and no one can be perfect is key. When it is time for someone to move on to another job at another company (or just take some time to refocus), it is important to know this and help them make the transition without crushing their spirit.

Still curious about Liz? She can be contacted at liz@plmweb.com. Josiah Puder can be contacted at josiah.p@sandstonecapital.net