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SmartChoiceRealtyCorp.com HomesInGainesvilleFL.com Smart Choice. Smart Move. UNFAILING DEDICATION. » Members of four different multiple listing services for a broader marketing area for listings and an expanded look at comps for REOs and BPOs. « » Dedicated buyers agents « » On-staff property preservation manager « » On-staff marketing director « » On-staff data input manager. « » RES.NET Certified, Five Star Certified, and proficient in Fannie Mae Multi-forms. « Covering: Alachua, Columbia, Dixie, Gilchrist, Levy, and Marion counties LORI CAMFFERMAN 3801 N.W. 40th Terrace, Suite B Gainesville, Florida 32606 Office: 352.376.2779 Mobile: 352.215.0437 Lori@SCGainesville.com over $60 million in reo sales annually residential & commercial Marketing, Sales & Management Cash For Keys Utility Set-Up BPO's Evictions Same Day Occupancy Confirmation Experts In HOA Communications Loss Mitigation Property Preservations & More 407. 876. 3615 Mary Cubelo-Hinton / Broker mcubelo-hinton@suncrestfl.com www.SunCrestFL.com 92 business records hearsay exception would be applicable. Pursuant to Section 90.803(6)(a), Florida Statutes, documentary evidence may be admitted into evidence as a business record if the proponent of the evidence demonstrates the following through a records custodian or other qualified person: (1) the record was made at or near the time of the event; (2) the record was made by or from information transmitted by a person with knowledge; (3) the record was kept in the ordinary course of a regularly conducted business activity; and (4) it was a regular practice of that business to make such a record. As was his legal right, counsel for the homeowner took the deposition of the loan servicer's employee. The witness explained that he derived the $340,000 figure from his company's computer system. However, he did not know who entered the data into the computer and could not verify that the entries were correct at the time they were made. In addition, to calculate the homeowner's payment history, the witness relied in part on data retrieved by a prior servicer of the subject loan. The appellate court applied the business records hearsay exception to the employee's testimony and ruled that the affidavit could not be admitted into evidence under Section 90.803(6)(a) and, as such, was inadmissible hearsay. The court found that the witness did not know who, how, or when the data entries were made into the servicer's computer system, neither could he state if the records were made in the regular course of business. As the witness had no knowledge of how his own company's data was produced, he was not competent to authenticate the data. The court thus reversed the lower court's entry of summary judgment in favor of LaSalle and sent the case back to the trial court. While the Glarum case is very specific in its holding, lenders and servicers can learn some broad lessons. First, don't assume that a homeowner won't obtain counsel, and competent counsel at that. Second, don't assume the counsel will not take the deposition of any individual swearing to an affidavit—or affiant—that supports a motion for summary judgment. The law does not require an affiant who relies on computerized bank records to be the records custodian who entered or created the data, nor must the affiant identify who entered the data into the computer. Likewise, there is no rule which precludes the admission of computerized business records acquired from a prior loan servicer. What is required is that the affiant knows the basics as set forth in Section 90.803(6)(a). Finally, if it is suspected that an affiant does not have the ability to testify in compliance with the law, a court may permit affidavits to be supplemented by further affidavits. It is highly recommended that lenders and servicers work closely with their counsel to avoid this costly and embarrassing situation. This From the Bench article is pro ided v by Michael J. Barker and Keith M. Hoffman. Barker is a partner in the Jacksonville, Florida, office of Quintairos, Prieto, Wood & Boyer, P.A., and heads up the firm's financial services practice group. Hoffman is a partner in the firm's Tampa office and a member of the Financial Services Practice Group. Both represent clients in the default servicng, banking, mortgage lending, i mortgage servicing, and title insurance industries. IN THE NEWS Florida Seeing Rapid Revivals but Still Haunted by Shadow Inventory As one of the hardest hit states during the real estate downturn, Florida often pops up in market reports as having noticeably higher foreclosure rates and a greater number of underwater homes. Even so, the state is also becoming recognized for the amount of investor interest it is drawing and how quickly some of its markets are climbing out of the housing slump. For example, the National Association of Realtors recently cited data from Move, Inc., identifying the top 10 turnaround markets. Miami was listed as number two and Orlando was number three. In addition, five more Florida markets made the top-10 list due to their increased home sale activity, with Naples listed at number five and the last four on the list based in Florida. Yet a recent report from the Florida Realtors association stated that, while Florida is in a revival period, distressed properties will remain a big part of the real estate market for the state in the next 10 years. In fact, Florida holds nearly a third of the total shadow inventory nationwide. Shadow inventory in the report represents

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