the severed his third district is responsible for a business loan portfolio of 12,000 loans worth $4.2 billion. in 2009, the sba approved $500 million in lending. next, we have the executive director of the san francisco small business office. she was in san francisco in 1986 to open the buffalo exchange limited store, and in the 13 years she worked for buffalo exchange, tennis district manager, she held her open the company from four to 11 stores. in 2009, the mayor appointed her as executive director to the office of small businesses. next, we have the ceo of opportunity funds. he has combined his background as a community organizer with an education from stanford to develop an innovative, not-for- profit financial incision that uses market principles to affect systemic change. it operates one of the nation's largest individual development, programs, a leading provider of micro loans in california, and has a robust community real estate finance unit. next, we have the ceo of ne community federal credit union. since 1988, she has been the ceo of northwest community federal credit unio

loans, whether they are subsequently sold in the secondary market or held in portfolio. customers do care about who services their loan, they value and even seek out local servicing. much of our recent business has come from refinancing mortgages away from large lenders whose borrowers are frustrated with remote servicing. even though at its best it's a break-even business for us and loan for loan it's more profitable to release servicing, we choose to service inhouse because it is central to our bank model. the success of community bank servicing is based on close ties to customers and communities. because cortrust bank's servicing team consists of only four people, customers always know who is on the other end of the telephone or across the desk. a customer who dials our 1-800 number will generally get one of two people on the line. a customer can walk into one of our 24 locations and deal with the staff person face to face. smaller servicing portfolios and better control of mortgage documents also provide an advantage over the large servicers. for these reasons, community banks have generally been able to identify retainment problems. our staff will contact a late customer on the 16th day

because servicing is a very low margin business we felt it was important to have a good quality portfolio. so we were always conscious about underwriting our loans very strict up front. i think it starts right with the underwriting. we keep our loans in house, therefore we're concerned about what we put in our portfolio. >> mr. hopkins, like mortgage original nation, there has been a significant consolidation -- or -- original nation, there has been a consolidation in the industry and large banks now service the majority of the loans in the country. have borrowers and communities benefited from this consolidation? >> absolutely not. i think that is part of the problem that professor swire was dealing with a little earlier. an article i saw in 2010 showed the four largester isers control 70% of the market. so they don't have the customer contact that we do. i think that if it was a more diverse market on the servicing side that the customers would have a better experience. >> professor swire, in your testimony you recommend a fair credit reporting act equivalent for mortgage servicers. can you expand on what should include -- what that should inc

portfolio. customers to care about who services the loans. they've all of you and even seek out local servicing. much of our recent business has come from refinancing mortgages away from the large lenders whose borders are frustrated with servicing. even though at its best it's a break-even business for us and loan for loan it would be more profitable to service, we choose to service in the house because it is essential to the community and business model. the success of community bank servicing is based on the close ties to customers and communities because the cortrust servicing team consists of life for people come customers always know who was on the other end of the telephone or across the desk. a customer dials our 1-800-number will generally be of one of two people on the line, a customer can walk into one of the 24 locations and deal with a staff person face-to-face. smaller servicing portfolios and credit controls mortgage documents also provide an advantage over the large servicers. for these reasons, community banks have generally been able to identify the repayment problems the first signs of distress. our staf

loans for the total bank. since the global financial crisis struck, they have increased their business portfolio to its effortsto leverage its considerable financial resources to secure energy and minerals. this brings me to the second question i would like to answer which is our the loans structured and implemented? the loans are secured by revenues earned by the delivery of oil at market prices to chinese national companies with the exception of the loans to turkistan which are secured with revenue earned from deliveries of natural gas and undisclosed prices. i will illustrate how this works. in 2009, they agreed to lend the brazilian national oil company $10 billion. the loan is being secured with what they earn from chinese oil companies and when they take delivery of the oil, the money is deposited into an account they hold and every month, they withhold deep principles from their accounts. in addition, other energy-backed loans to borrowers include two loans totaling $2 billion to the government of ecuador and loans totaling $32.6 billion to venezuela. what do these deals tell us about how the chinese go

because servicing is a low- margin business, we thought it was important to have a good quality portfolio. we were conscious about underwriting our loansstrict up front. i think it starts with the underwriting. we keep our homes, therefore we are concerned about what we put in a portfolio. >> mr. hopkins, there has been a significant consolidation in the mortgage services industry. the largest banks now service the majority of the loans in the country. have more workers and communities benefited from this consolidation? >> absolutely not. i think is part of the problem. an article i saw in 2010 showed the four largest servicers controls 70% of the market. they do not have the customer contact we do. if there was a more diverse market on the servicing side, the customer would have a better experience. >> professor, i in your testimony you recommend a fair credit reporting act equivalent for mortgage services. what should that includes and cal would it prevent -- and how would it prevent some of the problems we are currently seeing? >> there are many people working on the details. yet there is a mistake being made about the customer, we