NAR PRESIDENT CHARLES MCMILLAN

February 16, 2009 - On January 2, 2009, President Charles McMillan of the National Realtors Association (NAR) wrote a letter to James B. Lockhart III, the Director of the Federal Housing Finance Agency (FHFA). The correspondence expressed NAR concerns about why Lockhart had seemingly abandoned his obligation to promote affordable homeownership. McMillan was referring to Fannie Mae Announcement 08-38 “Updated Flow Business Pricing Requirements”, released on December 29, 2008, increasing fees for mortgages purchased or securitized on or after April 1, 2009. Director Lockhart is the federal conservator and regulator of Fannie Mae and Freddie Mac, two government sponsored enterprises (GSEs).

Rather than accusing the federal bureaucrat of abdicating his responsibility or undermining the Florida real estate market’s recently optimistic recovery indicators, he questioned the Agency’s inexplicable policy contradictions. He first reminded Lockhart about his stated policy, explaining “In your prepared statement on September 7, 2008, in connection with announcing the conservatorship, you expressed concern about the negative impact of higher fees being imposed by the government sponsored enterprises, Fannie Mae and Freddie Mac (the GSEs) to raise capital. At the same time, Secretary Paulson stated that the primary mission of the GSEs under the conservatorship would be to increase mortgage affordability.”

FHFA DIRECTOR JAMES B. LOCKHART III

McMillan then contrasted Lockhart’s statements with his actions, saying, “With that as background, we were completely surprised that Fannie Mae has decided to raise fees, especially so significantly. If we are interpreting the announcement correctly, a borrower with a credit score of 670 making a 20% down payment for a condominium would have the fee increased from 150 basis points to 350 basis points—more than double.”

Packing his objection into a query, McMillan asked, “What is the need for these fee increases? What alternatives were considered? Is the purpose of increasing fees to shift higher risk borrowers to the FHA mortgage insurance program? What will the impact of such a move be in terms of risk and cost to the government and the taxpayer? Why did Fannie Mae decide to raise fees on borrowers, reducing affordability and counter-acting the positive impact of recent reductions in mortgage interest rates, instead of relying on other sources of liquidity announced by the Treasury Department on September 7 and the Federal Reserve Board on November 25?” After framing his complaint as a plea for clarity, the NAR President requested justification for the Agency’s enigmatic decision, intimating a suspicious lack of transparency.

FANNIE MAE WASHINGTON HEADQUARTERS

Fannie Mae is the 600 pound gorilla of the mortgage business. Established by President Franklin Delano Roosevelt’s New Deal in 1938 to provide a secondary market for post-Depression Federal Housing Administration (FHA)-insured mortgages, the Federal National Mortgage Association (Fannie Mae) replenished the supply of lendable money. In 1968, Congress amended its Charter, recreating Fannie Mae as a stockholder-owned, privately managed corporation. To rectify its questionably legal status as a shareholder-owned monopoly, in 1970, Congress chartered another government sponsored enterprise (GSE), the Federal Home Loan Mortgage Corporation (Freddie Mac). Although they don’t directly loan money to homeowners, they ensure that mortgage lenders and brokers are adequately flush with cash to service the home buying public.

As GSEs, Fannie and Freddie received substantial benefits. They were endowed with access to an astronomical line of credit from the U.S. Treasury (currently $200 billion); exemption from state and Securities and Exchange Commission (SEC) registration requirements; exemption from all state and local taxes (except property taxes); and a “gold star” demand for their securities, since the Government gives those securities the same preferred investment status as Treasury debt.

More importantly, the GSEs benefitted from an illusion. Being perceived as having federal backing for their debt – although they do not – has allowed Fannie and Freddie to borrow at near-Treasury rates and sell their securities at better rates than those of purely commercial firms.

In return for the GSEs’ competitive advantages, Congress demanded that they undertake certain public purpose activities, notably promoting access to mortgages via HUD (Department of Housing and Urban Development) in underserved urban and rural communities, in minority communities, and to low- and moderate-income families. The GSEs were also expected to help end discrimination in the lending industry.

In 1992, Congress enacted the Federal Housing Enterprises Financial Safety and Soundness Act (FHEFSSA). This Act further separated HUD’s regulation of the GSEs’ public purposes activities from their safety and soundness components by revising the role of the Office of Federal Housing Enterprise Oversight, an independent financial regulator within HUD. It also established a set of interim regulations for the GSEs.

FHEFSSA, often referred to as the GSE Act, was motivated by concerns over safety and soundness of the GSEs’ financial underpinnings, rather than affordable housing. Nevertheless, due to pressure from housing advocates, the interim regulations did prescribe certain affordable housing standards for the GSEs. The Act requires the Secretary of HUD to assure that the GSEs meet their housing goals and fair lending obligations. It also expanded HUD’s authority to do so. The Secretary was directed to evaluate the interim regulations Congress had crafted and develop new regulations governing the GSEs.

On February 16, 1995, HUD released its proposed regulations for Fannie Mae and Freddie Mac. The regulations identified regulatory goals for low-and moderate income home purchases; altered the definition of underserved areas, focusing more on neighborhoods in need; and redefined special affordable housing goals. The Act directed HUD to annually examine these goals and the assumptions upon which they are based and thereafter develop new goals consonant with the current economic environment.

Saddled with two mandates that were empirically incompatible – practicing fiscal responsibility while underwriting high risk loans – the stage was now set for a decade of seemingly schizophrenic lending policies. Further inflamed by unrelenting pressure to generate shareholder profits, the GSEs’ loan portfolios became top-heavy with lucrative sub-prime or “toxic” loans. Free from SEC reporting requirements, Fannie and Freddie purchased ordinarily ineligible “nonconforming” high risk instruments bundled with traditional debt, thereby disguising the degree that toxicity burdened their portfolios. Since Fannie Mae-backed loans typically have the best rates and lowest down payments for borrowers, their policies exert a tremendous impact on the lending industry. Perceiving the GSEs’ liberalized portfolio complexion as an unofficial license to print money, commercial lenders further loosened lending requirements, dispensing with traditional and time-tested risk management formulas.

LONG-TERM CAPITAL MANAGEMENT

When the current real estate recession spread across the country, Federal banking authorities timidly admitted that negligible federal oversight was not the panacea they marketed to the borrowing public. Tripping over themselves to finance properties, mortgage bankers emulsified eligibility standards, requiring only that borrowers demonstrate proficiency in finding their advertised telephone number. Entrenched in a euphoric trance-like state, the industry felt justified in ignoring decades-old lessons learned when hedge funds like Long Term Capital Management decomposed – what goes up, must come down.

When tens of thousands of “no money down”, “deferred interest”, and “negative amortization” mortgages simultaneously imploded, Fannie Mae and Freddie Mac were diagnosed as terminal. Just as the government sponsored entities were going down for the third time, Congress threw them a life preserver, exclaiming the importance of reestablishing real estate stability. The Emergency Economic Stabilization Act of 2008 targeted lenders and investors at the top of the credit crunch meltdown, declaring that “the nation’s economic turnaround hinges on a healthy housing market and affordable home ownership.” $700 billion was pumped into the Troubled Assets Relief Program (TARP) to purchase distressed assets, especially mortgage-backed securities, and make capital injections into banks.

TREASURY SECRETARY HENRY PAULSON, FED CHAIRMAN BEN BERNANKE, SEC CHAIRMAN CHRISTOPHER COX, AND FHFA DIRECTOR JAMES LOCKHART TESTIFY IN CONGRESS

Despite September endorsements by Paulson, Fed Chairman Ben Bernanke, S.E.C. Chairman Christopher Cox, both presidential candidates and the lame duck Administration, Republicans called the Paulson Plan “Financial Socialism” and Democrats likened it to “buying smog on credit.” When asked how Paulson decided that the Treasury should buy $700 billion of bad debt, a treasury spokeswoman told Forbes.com “It’s not based on any particular data point. We just wanted to choose a really large number.”

Paulson’s impending return to the private sector spurred suspicions that he was fatally conflicted. While acknowledging that the crisis was ultimately driven by the falling housing market, instead of trying to modify mortgage debt and stabilize the housing market with loans to homeowners facing foreclosure, the former Goldman Sachs CEO provided bailouts for Goldman Sachs and Morgan Stanley, institutions that borrowed huge amounts to invest recklessly in the securities and derivatives based on those mortgages. By ignoring the cause (the failing housing market) in favor of the symptom (the crisis among investment banks), Paulson also insured the health of his blind trust – predominantly comprised of Goldman holdings (including his last $38 million compensation package). In addition to having hired Goldman executives as plan advisors, Paulson charged treasury staffer Neel Kashkari, a former vice-president at Goldman Sachs, with administering the bailout funds. By the time that Obama’s Treasury Secretary, Timothy F. Geithner, grabbed the reins, Paulson had already spent half the money.

TREASURY SECRETARY TIMOTHY F. GEITHNER

Instead of using the funds to facilitate lending as mandated, TARP recipients have treated the program as a no-strings-attached windfall that could be used to pay down debt, acquire other businesses or invest for the future. The Congressional Review Panel created to oversee the TARP concluded on January 9, 2009: “In particular, the Panel sees no evidence that the U.S. Treasury has used TARP funds to support the housing market by avoiding preventable foreclosures.” The panel also concluded that “Although half the money has not yet been received by the banks, hundreds of billions of dollars have been injected into the marketplace with no demonstrable effects on lending.” Not surprisingly, banks that received $295 billion in bailout money spent $114 million on lobbying and campaign contributions during 2008.

On July 30, 2008 – in preparation for the financial bailout – the Housing and Economic Recovery Act of 2008 created the Federal Housing Finance Agency (FHFA) by morphing the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB), and the GSE mission office at the Department of Housing and Urban Development (HUD). In addition to Fannie Mae and Freddie Mac, the 12 Federal Home Loan Banks fell under the regulatory and supervisory oversight of the new agency. As of June 2008, the combined debt and obligations of these GSEs totaled $6.6 trillion, exceeding the total publicly held debt of the USA by $1.3 trillion.

After seizing control of Fannie and Freddie last September, the Federal Housing Finance Agency enacted regulations enabling troubled homeowners to renegotiate hundreds of thousands of delinquent loans held by the two GSEs. In November, they offered a plan that emulated measures already instituted by commercial lending giants plagued with self-inflicted loan portfolio losses. Citigroup had already halted foreclosures for borrowers who live in their own homes, have decent incomes and stand a good chance of making lowered mortgage payments. JP Morgan Chase & Co. expanded its mortgage modification program to an estimated $70 billion in loans and Bank of America later loosened repayment terms for the 400,000 loans held by newly acquired Countrywide Financial Corporation.

Since Fannie Mae and Freddie Mac own or guarantee nearly 31 million U.S. mortgages, or nearly six of 10 loans, the scale of their relief program dwarfed those of their commercial counterparts. It was accessible to borrowers who were at least three months in arrears, owed 90% or more of their home’s current value, lived in the home and hadn’t filed for bankruptcy protection. Several options were made available for payment relief. For example, interest rates could be adjusted to insure that no more than 38 percent of a borrower’s income addressed mortgage expense. Another option extended loans from 30 years to 40 years with interest-free principal deferments.

FDIC CHAIR SHEILA BAIR

Since more than 4 million American homeowners, or 9 percent of mortgage borrowers, were either behind on their payments or in foreclosure, Agency Director Lockhart justified the program’s intent, exclaiming in November “Foreclosures hurt families, their neighbors, whole communities and the overall housing market. We need to stop this downward spiral.” Critics included Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair, who characterized the plan as “a step in the right direction but falls short of what is needed.” Financial analysts asserted that it could unintentionally aggravate the problem, postulating that mortgage owners may deliberately withhold payments for three months in order to qualify for relief.

Three weeks after Lockhart’s Federal Housing Finance Agency sent fees skyward, the other shoe dropped. In announcing an unprecedented set of tough new mortgage requirements, Fannie Mae stunned local Associations by limiting the stringent measures to condominium buyers in one state - Florida. South Florida real estate pundits characterized the policy as a highly prejudicial overreaction to decades of capricious mortgage bank practices across the country. Despite nationwide abuses spanning the full spectrum of property ownership, Fannie’s targeting of Florida condos spurred accusations that Lockhart was creating a sacrificial straw dog. The new requirements intentionally intensify sales pressure on Condo Associations already starved for residents and struggling financially.

These new rules fly in the face of the recently reconstituted Congressional mandate, despite a cursory statement by Fannie Mae officials rationalizing why they singled out Florida and, more specifically, condo borrowers. An Agency spokesperson declared that after reviewing their mortgage loans, they discovered record-high default and foreclosure rates among condo owners. They also cited the excessive number of condos listed for sale, which has driven down prices. Since this is also true for almost every other class of homeownership in dozens of areas around the country (especially in certain West Coast regional jurisdictions verging on bankruptcy), their explanation for exclusively targeting Florida condos strains credibility. The new conditions include:

These requirements are arguably oblivious to the difficulties already facing Florida condo mortgage applicants. Over the past two years, many banks have dramatically raised the bar for condo loans, requiring down payments of up to 40 percent in new buildings. Citing a high risk of price declines and defaults, some lenders have blacklisted certain condo buildings while others declared blanket moratoria on condo loans.

REAL ESTATE ANALYST JACK MCCABE

Much of the property glut left by overextended speculators was absorbed during the past year. Applying these heavily restrictive standards just as real estate is again showing signs of recovery is strategically counterproductive to the Agency’s proclaimed objective of “rescuing the housing market.” Fannie Mae’s timing “couldn’t be worse,” said Jack McCabe, a Deerfield Beach real estate analyst who believes the region is mired in a housing recession. “This is effectively going to make it much more difficult to qualify.” McCabe estimates as much as 25 percent of the market in the tri-county area will be shut out of Fannie-funded financing. A litany of industry officials agree, predicting that this policy will worsen the condition it portends to ameliorate. While Fannie Mae is not the only funding source for lenders who want to make condo loans, No. 2 mortgage guarantor Freddie Mac typically follows Fannie Mae’s lead. On January 30^th, Freddie Mac issued a “Sellers Guide Bulletin” increasing fees for cash-out refinancings, interest-only adjustable rate mortgages, and condominium unit mortgages (75 basis points for condominium unit mortgages with loan to value ratios greater than 75%).

CHARLES FOSCHINI CB RICHARD ELLIS

Certain others claim that this is just what the doctor ordered - a cold turkey fiscal High Colonic of sorts. Vice chairman of debt and equity finance Charles Foschini of CB Richard Ellis, a Miami Real Estate firm, said “In a climate of increased risk, Fannie Mae’s primary responsibility is to protect investors, borrowers and taxpayers.” Foschini’s contention is that borrowers benefit from knowing they are moving into a well-funded condo association awash in reserves, implying assessment stability. He is unconcerned, however, that his buyer’s peace-of-mind comes at the risk of bankrupting thousands of existing associations struggling to survive.

His perceived protection for taxpayers took the form of a sound bite, “The quicker we can instill sounder underwriting practices for mortgages for Fannie or anyone else the more confidence we’ll have in the market.” While true, it fails to clarify how this action shelters taxpayers. Adequately collateralizing loans is widely considered central to effective risk management and the Congressional Fannie Mae bailout stipulated the revival of sound underwriting practices for mortgages. However, more than doubling the fees and setting significantly tougher credit requirements for only one class of homeowner in only one state is hardly a credible confidence builder.

Spinning the new rules as a boon to investors borders on Burlesque. The action will admittedly precipitate further price declines and more foreclosures. This translates into additional losses for the GSE - and its investors. Perhaps Foschini conjures a secret Fannie Mae shareholder cult based in an abandoned Northwest Pacific logging camp that aspires to personal growth via diminishing equity.

BROKER GRANT STERN

Industry experts agree on who will ultimately benefit from this policy direction. The “Fannie-less” finance vacuum will create a garage sale for cash-rich buyers. Well funded investment predators will be able to command unprecedented discounts. Grant Stern, principal broker of Miami-based Morningside Mortgage, explained, “Fannie Mae declared Christmas for hedge funds who want to buy bulk in these buildings, but it’s leaving everyday investors and people who want to buy for their own personal use in the dust.” Asserting that the restrictions exemplified the self-fulfilling, cyclical nature of the credit crisis, Stern hypothesized “Fear provokes a knee-jerk reaction that inflames the problem, causing more fear.”

Since the Country is currently navigating uncharted economic waters, Agency officials are understandably having difficulty distinguishing between hopefully productive actions and regressive fear-based reactions. Palm Beach housing investment consultant Shirley Evans waxed metaphorically, “When they realize that they shot themselves in the foot, they will either take aim at their other foot or lower the gun. The GSEs are experimenting and the Florida condo market is the Guinea Pig!”

On the bright side, the Federal Housing Finance Agency has been in a state of perpetual flux since the Congressional GSE rescue. Congress is currently crunching legislation to provide executive agencies with clearer policy objectives. Housing guidance is anticipated from broad recovery bills such as the American Recovery Act of 2009 and dozens of targeted vehicles dedicated to averting imminent foreclosures through debt restructuring, promoting bank liquidity and strengthening regulatory and supervisory oversight of the housing finance system.

FINANCE CHAIR BARNEY FRANK

For example, Chairman Barney Frank’s House Financial Services Committee just introduced H.R. 703 and H.R. 787, legislation designed to ease loan modifications and improve refinancing options for troubled homeowners by revamping the HOPE for Homeowners program. While HOPE for Homeowners (H4H) was enacted to help families refinance into safer, more affordable mortgages and avoid foreclosure, program constraints deterred lender participation. Frank’s “adjustment” bills are expected to make the program more lender-friendly while limiting risks to the FHA fund and the American taxpayer. Since President Obama’s challenge will be to artfully weave dozens of such program initiatives into a cohesive recovery policy, we can reasonably expect more agency “experimentation” as new legislation is incorporated into the Obama Administration’s “Financial Stability Plan”. As intimated by Ms. Evans, if we survive the experiments, we may survive the recession!

NICK’S ITALIAN RESTAURANT

January 20, 2009 - On January 15^th, early in the morning, Cooperative Feeding Program Executive Director Scott Woodburn met Fort Lauderdale Real Estate proprietor Domenic Faro and headed to Nick’s Italian Restaurant. They weren’t hungry. The food Scott was thinking about wasn’t on the menu. When they arrived, they navigated to the back of the well-known eatery, where Domenic greeted about thirty of his friends and neighbors scattered about the room. However, Scott and Dominic were there on business. They then greeted City Manager George Gretsas, Assistant City Manager David Hébert, City Commissioner Christine Teel and Property Appraiser Media Director Bob Wolfe, who were also there on business. At 11 AM, everyone took their seats as GMCA President Pio Ieraci convened the neighborhood association’s monthly Advisory Board meeting. Pio called on Scott to address representatives from the member associations on the Advisory Board.

DOMENIC FARO

Scott and Domenic represent Broward County’s lead agency in the provision of services to the hungry and homeless. For 23 years, the Cooperative Feeding Program has provided counseling and support to help economically besieged families out of the throes of difficult times. In November, as Thanksgiving ritually encourages Americans to appreciate their families and reminds us how good it feels to share blessings, we look forward to extending that warm feeling through the Holiday Season. The Cooperative Feeding Program has institutionalized a methodology for accomplishing that. Last Thanksgiving, the CFP fed more than 4,200 families, distributing turkeys, hams, or gift cards. In keeping with modern delivery systems, they implemented a “Drive Through” to efficiently expand outreach. As the economy increasingly victimizes families, lines at The CFP wind further down the sidewalk, often into the street. Close to 200 showers per week are being provided. More than 350 hot meals are distributed each day, along with another 150 sandwiches for lunch.

FIRST LUTHERAN CHURCH

The program was launched in 1982 when Pastor Luther Anderson of the First Lutheran Church in downtown Fort Lauderdale turned donations from Church members into a small pantry with food for the needy. The neighbors took umbrage when homeless and hungry people pleading for something to eat filled the street. As the service proportionally grew with demand, it had to undergo several relocations and otherwise adapt. Its initial 1987 501(c)(3) certification as a not-for-profit organization was later restructured as a 501(c)(3) Nondenominational, passing both control and outreach from Lutherans to anyone in need - also enabling eligibility for FEMA resources.

COMMISSIONER TEEL & DOMENIC FARO AWARD TROPHY TO ANNEMARIE ADAMS & EDGEWATER ARMS *** CLICK ON PICTURE FOR LARGER VIEW ***

From the humble beginnings of distributing a few peanut butter and jelly sandwiches to the homeless, to today’s provision of 1.2 million meals a year, the agency’s dramatic development has reflected both the growing numbers and the growing needs of the poor in our community. Operating solely on the funds and gifts generated by socially conscious individuals, businesses and organizations like the Galt Mile Community Association, the Cooperative Feeding Program doesn’t abide corporate conveniences. A remarkably pork-free 8% administrative overhead - audited - means resources are smoothly expedited from donors to hungry families. Rents were paid and move-in costs were provided to help families facing the tragic national disgrace of homelessness. The CFP has entered into formal collaborative service agreements with about 100 agencies, entitling them to prescreen clients for emergency services.

SCOTT WOODBURN

Reading from a letter previously sent to each association, Woodburn requested participation in the upcoming 2009 food drive. To compensate for the economic downturn’s impact on families struggling to survive, he suggested that a special effort be made to surpass last year’s record collections. To help stir the formulaic competition meant to incentivize increased contributions, Woodburn reminded the assemblage that little Edgewater Arms, the smallest member of the neighborhood association, handily won last year’s trophy, both for total and per unit contributions. Domenic Faro, a L'Hermitage resident and local business owner who serves as Vice President of the CFP Board of Directors, introduced the program to the Galt Mile neighborhood two years ago. Partnering with the GMCA imparted legs to the annual local event, creating the competitive framework that yielded two consecutive successful food drives. Scott’s address was as follows:

6 TONS OF GALT MILE FOOD FILLS VAN

Our 2008 Galt Food Drive, which included 21 Galt Condo Associations, was a huge success. Over 11,000 lbs of food and money donated and the Edgewater Arms was crowned Champion Condo Association.

Once again we are poised to initiate the 3^rd Annual Galt Ocean Mile Food Drive. CFP Director and Committee Chair Domenic Faro, of L’Hermitage invites the entire Galt Ocean Mile Condo Association to join our campaign and participate in another exciting Galt Ocean Mile Food Drive.

The month of March has been designated the 2009 GALT Ocean Mile Food Drive month. A special “Walk against Hunger” will kick off the month long Food Drive.

GALT MILERS START 5K WALK AT WINN DIXIE LAST YEAR

We have the food collection boxes, posters, mail box stuffers and flyers to help you announce the walk and food drive to your residents and provide a description of what types of non-perishable items are needed.

We will also work with each Condo Association to advise you on organizing the food drive, promotional considerations, food collection and handling pick up and delivery to the Cooperative Feeding Program.

Please take a moment to fill out and fax to us the attached form ASAP. We also would appreciate an opportunity to meet with you and make a presentation to your Condo Association at your next meeting. Please RSVP and confirm the date of our appearance before your Board.

Hunger remains a real problem in Broward County as 1 out of 4 goes to bed hungry every night. With your help, fighting it will be as easy as A-B-C!

Scott A. Woodburn
CFP Development
954-629-7381
scott@feedingbroward.org

For more information, please call the City Commission office at 954 828-5004, Fax: (954) 828-5667, Email: RUptegrove@fortlauderdale.gov

Ocean Club Condominium

Police began searching for the Fort Lauderdale woman - who recently moved here from Montreal, Canada - following her suspicious disappearance on Thursday afternoon, one day before she was supposed to attend an August 22^nd hearing for a restraining order against her husband. Josephine Frenna, 51, was reported missing after her 14-year-old son returned from school to their home in the luxurious Ocean Club condominium at 4020 Galt Ocean Drive and became concerned about his mother’s unexpected absence. Police said her car keys and credit cards were inside her Galt Ocean Drive apartment, but following an intensive search of nearby apartments, hospitals, jails and airlines, declared that she was nowhere to be found. Frenna’s family and friends were interviewed as well. Frenna was last seen Thursday morning, when she accompanied her son to the bus stop in front of the Ocean Club condominium complex.

Friend Steve Stabile

“She went back into her apartment,” family friend Steve Stabile said during a news conference Friday outside the Fort Lauderdale Police Department. “At some point she left her apartment and then her whereabouts are unknown.” Stabile explained “She’s a mother, she’s a daughter, she’s a sister, she’s an aunt and she’s a friend, and yesterday she didn’t show up at her apartment and she didn’t call anybody and that is very unlike Josephine.” Frenna’s family and friends said her disappearance is out of character. “Josephine was the type of person that she’d speak to her mom and dad four or five times a day,” Stabile said. “She’d speak to her sisters, her brothers four or five times a day.” She is a stay-at-home mom and owns the Ocean Club condo she shares with her son. Relatives are taking care of the teen in her absence.

Broward Circuit Court Judge Jack Tuter

Detectives said Frenna was in the process of filing for divorce and had an active domestic violence order against her husband. A hearing was scheduled for Friday morning to secure a restraining order. Although Frenna was absent from the hearing, Broward Circuit Court Judge Jack Tuter extended the restraining order, according to attorney Michael Emery. In her handwritten Court papers, Frenna testified that she and her son were afraid for their lives, contending that her estranged husband, Gerardo DiMarco, is “violent” and “dangerous.” In the restraining order application filed July 14^th, Frenna claimed her husband had broken through locked doors with an ax and subsequently changed the locks on their home to prevent Frenna and her son from entering. Frenna claimed that DiMarco issued a threat to throw her off the couple’s balcony and physically grabbed her and “started screaming, cursing at me and calling me names.” In the court-filed domestic violance injunction, Frenna wrote, "He is a threat to me and my son and my son does not want to go with him." Attached to the injunction were photographs of the door that was allegedly axed by DiMarco. Labeled “HORROR,” the pictures focus on a missing chunk of wood near the knob. Court records show that a judge granted Frenna temporary sole custody of her son last month and said DiMarco could only visit the teen four days out of the week. According to her Fort Lauderdale lawyer, Caryn Carvo, Frenna never showed up to a scheduled meeting on Thursday. Frenna had been served with divorce papers on Wednesday. “Her primary concern was her 14-year-old boy,” said Carvo. “Hopefully we will find her, and we will find her in good physical condition.” With the couple in divorce proceedings, Judge Arthur Birken will consider extending the restraining order again on September 18^th.

Fort Lauderdale Police BOLO Flier

Crime scene investigators spent Friday morning rummaging through the garbage from the Dumpsters at her apartment complex, looking for any possible evidence. "I don’t know that a crime has been committed," Collins said. “Right now she is a missing person. Until we find out otherwise, we will treat it as that.” Although police haven’t as yet ascertained exactly what happened to Frenna, the case has enough suspicious elements to require investigative participation by homicide detectives.

Fort Lauderdale police Detective Kathy Collins

The 58-year-old DiMarco was located Friday by Fort Lauderdale police and has been cooperative, according to Fort Lauderdale police Detective Kathy Collins. The Canadian couple reportedly moved to South Florida within the last year. Di Marco had indicated he planned to leave Florida and was seeking joint custody of the couple’s son. He tried to get a court order barring Frenna from selling their assets and was named the beneficiary of her life insurance policy. Di Marco’s divorce attorney, Marc Shelowitz, said he had spoken to his client a few days ago to discuss the divorce, but did not know Frenna was missing when contacted on Friday. “I am shocked to hear that,” he exclaimed when informed that Frenna was missing.

Missing Persons Flier

On Sunday, August 24^th, Fort Lauderdale police released a Be-On-The-Lookout flier with a description of Frenna’s appearance -- listing her as 5-foot-6 with a medium build and brown, shoulder-length hair. Later in the day, the U.S. Coast Guard discovered a woman in a blue bathing suit in the ocean, 24 miles east of Sebastian Inlet. The sheriff’s office said Monday that the body was that of 5-foot, 6-inch woman, 160-pounds with black shoulder-length hair pulled back. Her toenails were painted red and she wore a dark-blue, floral print bathing suit. She also wore two large diamond and gold stud earrings.

Brother Vito Frenna Spreads Word

“There are enough similarities so we sent detectives down to that area to get further information,” explained Detective Collins. Fort Lauderdale police detectives went to St. Lucie County to determine if the unidentified body found earlier was Frenna. The body was taken to the U.S. Coast Guard’s Fort Pierce Station and the St. Lucie County Sheriff’s Office continued lending assistance to the investigation. “It has not been determined whether the body is that of the woman whose name has been released by the Fort Lauderdale police as a missing person,” said St. Lucie County Sheriff Ken J. Mascara. “The body had no obvious signs of trauma.” An autopsy was performed on Monday to determine the cause of death. Sgt. Frank Sousa of the Fort Lauderdale Police Department said that they expected results of the dental records check to be completed on Tuesday.

Vito Frenna Enlists Passersby

Frenna’s family - some from as far away as Canada and New York - gathered near her Ocean Club condo on Monday morning to organize a search strategy. They decided to fan out near her beachfront condo to track down clues to her whereabouts. “We want to find out what happened,” said family spokesman Steve Stabile. Since Frenna’s disappearance, her family and friends have rallied together, handing out missing persons fliers and pleading with the public for help. “We’re all very distraught. This is a very close family and we’re grieving.” said her brother, Pat Frenna. Lisa Stabile, a family friend, said Frenna’s disappearance has hit those close to her hard. “The family is distraught, She wouldn’t just leave without notice.” she said.

Ocean Manor President Frank Talerico

Volunteers visited every member association of the Galt Mile Community Association to distribute fliers identifying Frenna for posting all over the neighborhood. Ocean Manor President Frank Talerico, a friend of the family, called GMCA President Pio Iereaci to secure participation of the neighborhood association. Ieraci immediately arranged for an article to be posted in the Association’s web site in hopes of locating Josephine.

Pat Frenna

The medical examiner in St. Lucie County officially determined on Monday that the woman retrieved from the ocean had drowned. Tragically, with the help of dental records, the Medical Examiner also confirmed that the victim was Josephine Frenna. As the news spread throughout the community, hundreds of ongoing prayers for a brighter outcome were exchanged for expressions of sympathy and grief for the family’s loss. Police said that they will continue to investigate the circumstances surrounding her death. Although the autopsy confirmed that there were no signs of a struggle, her death has not been ruled accidental. Sgt. Frank Sousa said that in addition to awaiting toxicology reports, authorities were collecting surveillance video footage from nearby buildings.

Family friends Steve Stabile, Raymond Vizzi and brother Joe Frenna at Ocean Club Press Conference

On Wednesday, DiMarco’s attorney confirmed that his client was cooperating with detectives, stating that he passed several lie detector tests administered by police investigators. “He reiterated that he had nothing to do with the disappearance,” said Shelowitz. Police reported finding a set of keys in a bag on the Ocean Club Beach, intimating that Frenna was somehow dragged by the current 100 miles to the Sebastion Inlet after going for a swim. The bag was found over the weekend by an employee of a neighboring condo who was unaware of Frenna’s disappearance.

Frenna’s family and friends held a news conference on Thursday, August, 28^th, claiming that since she was afraid of the water, it is unlikely that she simply went for a swim. “There is no way that Josephine went into the water of her own volition,” advised family friend Steve Stabile. Stabile made a public plea for help with the case, asking for “any leads, any information that anyone may have that can help us solve this matter.” His sentiment was echoed by Josephine’s brother Pat Frenna, who also threatened, “The person responsible for this will pay the price.”

Commenting on the prospect of Frenna being carried out to sea, oceanographers surmised that although the Gulf Stream could have easily carried Frenna’s body 100 miles north, they questioned how she could have entered the strong currents which start about three miles offshore. They speculated that winds from Tropical Storm Fay were possibly a contributing factor. Friends and family, however, put little stock in the scenario, contending that Frenna’s fear of swimming in the ocean muddies the theory’s credibility.

Anyone with information is asked to call Broward Crime Stoppers at 954-493-TIPS.

Bob helped organize the Galt Mile Improvement Project, the most successful neighborhood improvement project in Fort Lauderdale’s history. The decorative lighting, colorfully pavered crosswalks, high-end landscaping, pink aggregate sidewalks and bookend neighborhood mini-parks are a testament to Bob’s unique ability to achieve consensus. Spearheading a contingent of Galt Mile officials and civic leaders, Rozema blended compromise and fiscal good sense with unrelenting political pressure to enlist municipal participation in this watershed project.

BOB ROZEMA & GMCA LEADERSHIP ACCEPTING PLAQUE FROM CITY FOR GALT OCEAN MILE IMPROVEMENT PROJECT

President Rozema shared responsibility for a broad spectrum of neighborhood improvements. He promoted campaigns to abate motorcycle noise and traffic violations, upgrade and maintain the neighborhood landscaping, incept the “Mile’s Corner” construction upgrades (Oakland Park Boulevard & A1A), install improved signage and traffic lights and helped to attract the Beach Community Center as a neighborhood anchor. Bob was also instrumental in assisting the County with their ongoing efforts to renourish critically eroded Broward beaches.

Bob had the unique capacity to create an environment in which participants could set aside differences in order to achieve mutual objectives. He applied this talent on many levels. Bob served repeatedly as the President of Southpoint Condominium where he also assumed managerial responsibilities. His administrative accomplishments at Southpoint helped create and maintain its reputation as one of Fort Lauderdale’s most well run Condominiums.

MAP to QUEEN OF HEAVEN CEMETARY

Rozema realized early on that Associations are not only evaluated by how well they are maintained and administered, but also by the quality of their surrounding neighborhood. Upon moving to the Galt Mile in the early eighties, Rozema dedicated his efforts to improving his home and community. Since he framed every issue in the context of this broader perspective, he elicited the respect and admiration of Galt Mile residents, merchants, civic leaders and political representatives. Under his administration, the Galt Mile Community Association addressed issues on every level (local, state, national, etc.) that impacted the Galt Mile. His ability to see the “big picture” and unremitting commitment to Southpoint and the Galt Mile Community will be sorely missed.

Southpoint Condominium

In addition to dozens of close friends and hundreds of grateful neighbors, Robert is survived by his fiancé, Marilyn Peters; children, Darlene Joy Scruggs, Robert John Rozema, Jr. and John Frank Rozema; sisters, Marjorie Unser and Kathleen Venema; grandchildren, Meghan Buselli, John Rozema, Mallory Rozema, Tim Rozema, Kyle Rozema, Ted Scruggs, Cora Scruggs, Dustin Albanese and stepson, Richard Albanese; and five nieces and nephews. Click Here to read an article about Bob’s passing in the Sun-Sentinel.

Visitation will be 1-2:00 PM Friday, December 1, 2006 with a 2:00 PM funeral service at the Kraeer Funeral Home and Cremation Center at 4061 N. Federal Highway in Fort Lauderdale (Tel: 954-565-5591). Entombment will follow at Our Lady Queen of Heaven Mausoleum at 1500 S State Road 7, North Lauderdale, FL 33068. In lieu of flowers, donations may be made to: