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    Loan payments for Orange County’s record-high median-price house tops $10,000
    • June 13, 2024

    Southern California home buyers are reeling, no doubt, from record-high median home prices and high interest rates.

    In Orange County, a single-family home in May was selling for a median of $1,410,000, an all-time high, according to Patrick Veling, chief executive and founder of Real Data Strategies. That’s up 12.8% versus May 2023.

    The median condo price in May was $760,000, up 8.6% compared with May 2023. Veling, I will note, uses California multiple listing services to compile data on median home prices.

    CoreLogic, which is used by my peers at the Southern California News Group, has not released May data yet, but data for April saw a record median selling price of $760,000 for the region comprising Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties. Jonathan Lansner also recently told us that the median price for single family homes in April across California crossed the $900,000 threshold.

    Regardless of the current high mortgage rate environment (Freddie Mac is 6.95% for a 30-year fixed this week), Southern California home prices keep climbing.

    “Home prices will continue to increase,” said Veling. “Not many more listings than now. So goes Orange County, so goes the (Southern California) market.”

    As expected, the Federal Reserve held short-term rates steady June 12. The projection is one to two rate reductions for the rest of 2024.

    Here is a sprinkling of mortgages available for that $1,410,000 median priced home.

    You can get in with as little as 10% down or $141,000. You won’t have to pay for mortgage insurance, but the rate is higher than a kite at 9.875% on a 30-year fixed. Lenders typically require the borrower to pay for mortgage insurance if the borrower is putting less than 20% down or has less than 20% equity in the case of any refinance.

    For a loan amount of $1,269,000, your principal and interest payment is $11,019 per month. Taxes at 1% would be $1,167 per month. Add $350 for insurance and your total payment is $12,536. You’d need around $28,000 of monthly income to qualify. This loan costs 2 points.

    A Department of Veterans Affairs mortgage or VA gets you in with zero down and a 6.49% rate on a 30-year fixed. Assuming the VA funding is not financed into the mortgage, the principal and interest payments are $8,903 on a $1,410,000 loan. Add the same taxes and insurance from the example above, and you end with a total payment of $10,420. This loan costs 0 points. 

    VA income qualifying is more liberal. Assume you’ll need an income of $20,000 or more per month.

    Fannie Mae will get you in with a cool 20% down payment, or $282,000. A zero-point loan will offer a rate of 7.5%. The payment on a loan amount of $1,128,000 is $7,887. Add those same taxes and insurance. You’ll have to swallow a total payment of $9,404. You’ll need more than $19,000 of monthly income to qualify.

    For less qualified borrowers, there are nonqualified loans offered that use bank statement deposits as an income gauge. You’ll need 20% down. You can get a 7.5% rate using 12 months of bank statements. The difference between this and the Fannie Mae loan is this loan costs 2 points. Still, not bad.

    Reports on Housing’s cash tracker indicates 24.8% of all April 2024 Orange County sales were cash, according to Steven Thomas, its chief economist.

    If possible, one way to compete with other buyers is to raise enough money to offer cash. You can pull up to 75% cash-out after closing through a mortgage program called delayed financing.

    Not everybody agrees with Veling as far as home prices continuing to rise.

    “In the housing market, high-for-longer interest rates have become more restrictive, causing potential buyers to pull back and resulting in a large increase in housing inventory when compared to a year ago,” said Orphe Divounguy, senior macroeconomist, Zillow Home Loans. “Zillow now forecasts that home values will decline in the next year.”

    It’s worth providing some sage advice about sales transactions from Veling, who said that 67% of agents do fewer than three home transactions per year. Whether you are buying or selling, hire an experienced agent.

    “You should qualify your agent. Make sure you are working with the right agent. Hold your agent accountable for the level of service you are worthy of,” he said.

    Freddie Mac rate news

    The 30-year fixed rate averaged 6.95%, 4 basis points lower than last week. The 15-year fixed rate averaged 6.17%, 12 basis points lower than last week.

    The Mortgage Bankers Association reported a 15.6% mortgage application increase compared with one week ago.

    Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $766,550 loan, last year’s payment was $133 less than this week’s payment of $5,074.

    What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with 1 point: A 30-year FHA at 5.375%, a 15-year conventional at 5.625%, a 30-year conventional at 6.375%, a 15-year conventional high balance at 6% ($766,551 to $1,149,825 in LA and OC and $766,551 to $1,006,250 in San Diego), a 30-year high balance conventional at 6.5% and a jumbo 30-year fixed at 6.875%.

    Note: The 30-year FHA conforming loan is limited to loans of $644,000 in the Inland Empire and $766,550 in LA, San Diego, and Orange counties.

    Eye-catcher loan program of the week: A 30-year mortgage requiring 30% down, fixed for five years at 6.25% with 1 point cost.

    Jeff Lazerson, president of Mortgage Grader can be reached at 949-322-8640 or jlazerson@mortgagegrader.com.

     

    ​ Orange County Register 

    Read More
    California pushes insurers to cover more homes. Is your ZIP included?
    • June 13, 2024

    By Levi Sumagaysay | CalMatters

    California Insurance Commissioner Ricardo Lara unveiled on June 12 an effort to force insurers to resume writing policies in high-fire-risk areas — part of an overall plan to address the state’s insurance crisis.

    It consists of three different ways insurers can meet minimum requirements for writing policies in areas deemed “high risk” or “very high risk” by Cal Fire.

    Online readers can check their ZIP codes at CalMatters.

    Also see: Newsom unveils plan that would hasten insurance-rate reviews — and increases

    Insurance department regulators said this hybrid approach takes into account the state’s complex geography, as well as the different risk levels that big and small insurers can afford to assume. Lara said this should help homeowners who have lost coverage or been forced to turn to the last-resort FAIR Plan.

    Insurance companies would have these three options:

    —Write 85% of their statewide market share in high-risk areas. The department explains it this way: “If a company writes 20 out of 100 homes statewide, it must write 17 out of 100 homes in a distressed area.”

    More on insurance: Travelers raising California home rates by 15% on average

    —Achieve one-time 5% growth in the number of policies they write in high-risk areas.

    —Expand their number of policies 5% by taking people out of the strained FAIR Plan, a pool of insurers the state requires to provide fire-insurance policies when property owners can’t obtain insurance elsewhere.

    Insurers could meet these policy-writing quotas either at the county level or the ZIP code level.

    Specifically, they could apply the 85% or 5% option in counties regulators have identified as distressed, or in ZIP codes regulators have deemed “undermarketed” and high risk — meaning the ZIP codes have at least 15% of policies in the FAIR Plan and have a certain percentage of residents who can’t afford their premiums. Insurers who already meet the 85% threshold would be required to maintain that for at least three years after a rate application.

    Or they can choose the third option, reducing policies in the FAIR Plan statewide.

    Related: As Californians mitigate wildfire threats, why is there still an insurance crisis?

    The Insurance Department considers counties distressed if more than 20% of homes, condos, mobile homes and dwellings with fewer than five units are classified as high risk or very high risk. Ventura County was the only one deemed distressed in Southern California. (Source: California Department of Insurance; Map: Jeremia Kimelman, CalMatters)

    Regulators will update these areas at least once a year.

    Gov. Gavin Newsom hailed Lara’s announcement as “critical” to fixing the state’s insurance crisis. “As the climate crisis has rapidly intensified, the insurance system hasn’t been seriously reformed in 30 years – this is part of our strategy to strengthen our marketplace and get folks the coverage they need,” the governor said in a statement.

    A growing number of property insurers have paused or stopped writing policies in California in recent years, citing increased fire risk and inflation. If today’s proposal works as intended, homeowners could eventually find it easier to buy insurance with adequate coverage, as opposed to the expensive fire-only policies that many recently have been forced to buy from the FAIR Plan.

    The proposed options aren’t technically requirements, because the state cannot legally require insurers to write either homeowner or commercial property policies. But the state expects insurers to comply because failure to do so would mean insurers would not be able to take advantage of something they’ve lobbied for long and hard: catastrophe modeling.

    Lara unveiled the first part of his plan to allow for catastrophe modeling in March; this is the second part of that plan. Catastrophe modeling takes into account historical data and combines that with projected risk and losses — something insurers have been able to do in every other U.S. state but California. Insurers will be able to use it here once Lara’s overall plan takes effect as promised at the end of the year.

    The announcement made clear what the companies will have to do in return.

    “Insurance companies need to commit to writing more policies and my department will need to verify those commitments and hold them accountable,” Lara told reporters this morning. When they submit rate reviews, insurers will state which of the pathways they choose. If they don’t fulfill the requirements of that pathway, “my department will use its law enforcement authority and reconsider rate reviews,” the commissioner said.  That means possible lowering of rates and even refunds, according to his staff.

    Lara’s staff said they established the requirements for minimum coverage in distressed areas after talking with different stakeholders, including insurance companies that said the requirements were achievable.  But the draft regulations also include a possible out for insurers, who would be able to request “alternative commitments” because of changes in their size or scope of coverage, or the “frequency or severity of recent events” affecting them.

    The draft regulation would give insurance companies two years after a rate filing to comply with the quasi-requirements — time regulators said the companies need to be able to write those policies. “We expect them to get started right away, but recognize they just can’t flip a switch,” said Michael Soller, deputy commissioner and spokesperson for the Insurance Department.

    But Consumer Watchdog Executive Director Carmen Balber said in a statement that she sees those two years as a loophole that “lets insurance companies off the hook if they fail to meet their commitments.”  Meanwhile, she said, consumers would have been paying higher premiums.

    “The rest of the plan will still mean quick, massive rate hikes,” she told CalMatters.

    One insurance industry group, the American Property Casualty Insurance Association, did not address any specifics of the plan released today, other than to say it “remains committed” to working with the Insurance Department.

    Rex Frazier, president of the Personal Insurance Federation of California, called the proposal “complex, with many trade-offs,” but said his group also remains committed to working with Lara.

    As with all the regulations the commissioner is proposing, this latest one is subject to public comment. The department is holding a public workshop June 26 at 2:30 p.m. and is accepting written comments until June 27.

    Lara has yet to release the other main parts of his overall plan, including making improvements to the FAIR plan and allowing insurers to include reinsurance costs in their premiums.

    ​ Orange County Register 

    Read More
    Community celebrates completion of Newport Beach Junior Lifeguard’s new $7.8 million facility
    • June 13, 2024

    A ribbon-cutting ceremony was held this week to welcome the new Newport Beach Junior Lifeguard building, a years-long, $7.8 million project that will also be an events space for the community during the off season.

    Dignitaries, donors and the public checked out the new digs on Wednesday, touring the 5,400-square-foot facility that sits just south of the Balboa Pier.

    Newport Beach Mayor Will O’Neill, and other local officials, cut a ribbon to officially open the new Junior Lifeguard Headquarter on Balboa Peninsula during a Grand Opening and Dedication Ceremony on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Andrea McCarthy, a former Newport Beach Junior Lifeguard and Newport Harbor High School sophomore, sings the National Anthem during a Grand Opening and Dedication Ceremony at the new Newport Beach Junior Lifeguard Headquarters on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Hundreds gather to listen to remarks and watch a ribbon cutting during the Grand Opening and Dedication Ceremony of the new Newport Beach Junior Lifeguard Headquarters on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Dozens tour the inside of the Newport Beach Junior Lifeguard Headquarters, meeting Lifeguards and getting official souvenirs, during an open house following a ribbon cutting ceremony that officially opened the new facility on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Graham Harvey, who started the Newport Beach Junior Lifeguard Foundation in 2012, and who helped raise the necessary construction funds, speaks during the Grand Opening and Dedication Ceremony of the new Newport Beach Junior Lifeguard Headquarters on Balboa Peninsula on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Hundreds gathered for the Grand Opening and Dedication Ceremony for the new Newport Beach Junior Lifeguard Headquarters stand and cover their heats as they look up at a giant American flag suspended from a fire truck during the National Anthem on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Newport Beach Fire Chief Jeff Boyles welcomes guests to the Grand Opening and Dedication Ceremony of the new Newport Beach Junior Lifeguard Headquarters on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Newport Beach Lifeguards Emma Roberts, left, and Marley McCullough hand out official souvenirs to guests as they arrive for a tour of the new Newport Beach Junior Lifeguard Headquarters during an open house following the Grand Opening and Dedication Ceremony on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Reenie Boyer, who founded the Newport Beach Junior Lifeguard program in 1984, recounts a history of the program and its challenges and accomplishments during the Grand Opening and Dedication Ceremony of the new Newport Beach Junior Lifeguard Headquarters on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Newport Beach Mayor Will O’Neill makes remarks to hundreds gathered for the Grand Opening and Dedication Ceremony of the new Newport Beach Junior Lifeguard Headquarters on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Dozens tour the inside of the Newport Beach Junior Lifeguard Headquarters, meeting Lifeguards and getting official souvenirs, during an open house following a ribbon cutting ceremony that officially opened the new facility on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Newport Beach Chief Lifeguard Brian O’Rourke makes remarks to hundreds gathered for the Grand Opening and Dedication Ceremony of the new Newport Beach Junior Lifeguard Headquarters on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Gary Conwell, Newport Beach Junior Lifeguard Training Captain, leads the Pledge of Allegiance during a Grand Opening and Dedication Ceremony at the new Newport Beach Junior Lifeguard Headquarters on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Dozens tour the inside of the Newport Beach Junior Lifeguard Headquarters, meeting Lifeguards and getting official souvenirs, during an open house following a ribbon cutting ceremony that officially opened the new facility on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

    Newport Beach Lifeguards drop a tarp to unveil a “doner wall,” recognizing those who supported the creation of a new Junior Lifeguard Headquarters, during the Grand Opening and Dedication Ceremony on Wednesday, June 12, 2024. (Photo by Jeff Antenore, Contributing Photographer)

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    A  “donor wall” decorates the side of the building, a memento thanking community members who pitched in to cover more than $2 million for the project through the nonprofit Newport Beach Junior Lifeguard Foundation, which spreaheaded the fundraising efforts.

    The city used $5.2 million received through the American Rescue Plan Act for the remainder of the project.

    The Newport Beach Junior Lifeguard program, established in 1984, is one of the city’s most popular youth education programs, employing about 60 instructors and averaging 1,400 participants each summer. The seven-week program operates from late June through early August.

    And for its first 40 years, the Newport Beach junior lifeguard program operated out of makeshift trailers.

    There was no running water and each summer portable bathrooms were set up for the 1,500 kids who participated in the popular beach safety program.  The cramped trailers served as the office for the 50 or so instructors who each day showed up to teach the youngsters at the seaside classroom set on the sand.

    The new facility includes administrative and event space, expanded storage, locker rooms and private and public restrooms. Construction also included improvements to the nearby parking lot and the addition of electric vehicle charging stations.

    Graham Harvey, chairman of the Newport Beach Junior Lifeguard Foundation, said seeing the building open is an exciting, rewarding moment that marked 12 years of planning and fundraising efforts.

    “It really brought every stakeholder together, from junior guard families, regular citizens, city staff, nonprofits – all for one united project,” he said. “It just shows how important the program is to the community. Our hope is that this building truly generates the next generation of lifeguards and really enhances the program for the current junior lifeguards.”

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    ​ Orange County Register 

    Read More
    Motorcyclist ejected, killed in DUI crash in Fullerton, police say
    • June 13, 2024

    A motorcyclist was killed and the driver of a BMW sedan was arrested on suspicion of DUI after they crashed in Fullerton Wednesday night, June 12, authorities said. As police investigated, the driver of a Tesla on auto-pilot slammed into a police cruiser blocking traffic, but no one was injured.

    At around 9:45 p.m., a motorcyclist aboard a Harley Davidson was stopped on Orangethorpe Avenue at a red light at the intersection of Gilbert Street, according to Fullerton Police Department spokesperson Kristy Wells. The BMW was heading east on Orangethorpe and drove through the red light, rear-ending the motorcycle and ejecting the rider east of the intersection.

    The motorcyclist was pronounced dead at the scene.

    The BMW dragged the motorcycle under the front of the vehicle, and bystanders kept the driver from leaving until police arrived, Wells said.

    The driver, 44-year-old Francisco Garcia-Vargas, of Fullerton, was arrested on suspicion of driving without a license, felony driving under the influence and gross vehicular manslaughter while intoxicated, police said.

    Around midnight while authorities were still investigating the crash — with emergency lights on and flares placed in the roadway — a Tesla crashed into a patrolvehicle that was blocking traffic, Wells said.

    The patrol car was empty, and officers near the vehicle were able to avoid the collision.

    The driver of the Tesla admitted to engaging the vehicle’s ‘self-drive’ mode while using his cell phone, Wells said. The Tesla driver was uninjured and was not arrested though it was not clear if he was cited.

    Police are asking anyone with information about the collision involving the car and motorcycle to contact Fullerton Police Traffic Accident Investigator Manes at 714-738- 6815 or via email at jmanes@fullertonpd.org.

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    ​ Orange County Register 

    Read More
    As Californians’ stance on crime hardens, Republicans try to regain relevance
    • June 13, 2024

    Over the last dozen years, Democrats have gained, lost and finally nailed down supermajorities in the California Legislature. Now they hold more than 75% of its 120 seats.

    Having achieved total control, Democratic leaders could — and did — completely ignore the dwindling numbers of Republican legislators, now just 18 in the 80-member Assembly and eight in the 40-seat Senate.

    Republicans have been allowed to carry only minor pieces of legislation and are completely frozen out of budget negotiations, thanks to a 2010 ballot measurelowering the required budget vote to a simple majority, which Democrats and their labor union allies sponsored.

    Last year one Republican state senator, Shannon Grove, defied the odds by relentlessly pushing legislation to increase penalties on those who traffic in children.

    After her bill was blocked in an Assembly committee, she raised a stink in the media about Democrats protecting sexual predators. Gov. Gavin Newsom and Democratic legislative leaders felt the heat and the measure was resuscitated, passed and signed by Newsom.

    Other Republicans took note, realizing that growing public concern about crimeclashes with the Democratic Party’s aversion to putting more offenders behind bars by increasing criminal penalties.

    Since 2010, pressure from federal courts to reduce overcrowding in state prisons has spawned two major ballot measures — Proposition 47 in 2014 and Proposition 57 two years later — which reduced sentences for nonviolent crimes. The Legislature has enacted other criminal justice reform legislation and the prison population has been cut nearly in half.

    However street crimes, such as smash-and-grab raids on stores, home robberies and carjackings, have spiked. The public’s fear of crime has risen. Just before the 2022 elections, a Public Policy Institute of California poll confirmed public attitudes about crime were shifting.

    “Californians’ perception of crime spiked during the pandemic — as did certain types of crime,” the PPIC found. “Nearly 2 in 3 Californians call violence and street crime in their local community a problem. This includes 31% who call them a big problem, a noticeable increase from February 2020 (24%).”

    Law enforcement officials, with support from Republican political figures and some big city mayors, have qualified a ballot measure for next November’s election that would revise Prop. 47, one of the two prior measures that reduced criminal penalties.

    The proposal seems to have political legs, even though voters rejected a 2020 ballot measure that would have shredded Prop. 47.

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    Legislative leaders, worried about a crime backlash, have fashioned a 14-bill package that would tighten up punishment for the most blatant offenses, such as organized looting of stores, and hope it would undermine the pending ballot measure.

    This week, the leaders said they would amend their bills to automatically repeal them should the ballot measure pass. They said it would head off legal conflicts between their package and the ballot measure, but the amendments, dubbed “poison pills” by opponents, are obviously aimed at peeling off deep-pocket sponsors of the measure.

    Leaders of both parties staged news conferences to trade insults and allegations of playing political games with the public’s concerns about crime.

    If nothing else, the dustup indicates the Republicans may be down — way down — in terms of influence in the Capitol, but they’re not quite out. It also underscores an increasing role ballot measures may play as a way around the left-leaning policies of the Legislature’s Democratic supermajority.

    Dan Walters is a CalMatters columnist.

    ​ Orange County Register 

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    Here’s where to find $5 fast food deals until McDonald’s comes through
    • June 13, 2024

    When McDonald’s made news a month ago over a $5 value meal, it seemed likely that its competitors would respond in kind.

    It didn’t seem obvious that Starbucks would be among them. But the Seattle-based coffee chain came out with an offer this week.

    Its “pairings menu” includes tall iced or hot coffee or tea and a butter croissant for $5 and the same beverages with a breakfast sandwich for $6. Double Smoked Bacon and the Impossible breakfast sandwich raise the price to $7, according to terms on the Starbucks app. There are no substitutions, and customizations might cost extra.

    In Starbucks speak, tall is the same as small at other places.

    To order on the Starbucks app, select items individually. A deduction is made at checkout.

    The McDonald’s deal is expected but the fast food giant hasn’t posted a press release on the matter. According to news reports from outlets such as CNBC, it will start June 25, run about a month and include a sandwich, chicken nuggets, fries and a drink.

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    On Tuesday, Burger King came out with a similar deal called the $5 Your Way Meal, which also includes a sandwich, nuggets, fries and drink.

    Wendy’s continues to offer Biggie Bags with the same four items, but a spot check of Southern California restaurants showed prices ranging from $7 to $9.

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    Arby’s has a one-time offer for its rewards members, five Classic Roast Beef Sandwiches for $5. It’s available through Sunday, June 16. Orders must be made online or through the app.

    McDonald’s has been dogged by rumors in recent weeks, including one spread on YouTube that the chain will pull out of California. According to SFGate, the claim is not supported by evidence and appears in web postings that show signs of being generated with artificial intelligence.

    On May 29 Joe Erlinger, president of McDonald’s USA, released an “open letter” denying claims of price gouging in the midst of inflation.

     

    ​ Orange County Register 

    Read More
    Flag Day ceremonies planned in Newport Beach and Dana Point
    • June 13, 2024

    While many people pull out their flags for the Fourth of July holiday, June 14 is actually the day to officially honor Old Glory, the nation’s most enduring symbol.

    And, two coastal South Orange County towns are making sure people know about the national recognition with massive flag displays.

    The Newport Beach Civic Center has been covered in at least 249 flags, said Mayor Will O’Neill, “maybe even a few more.” The display was put up by volunteers from the city and the Newport Harbor Exchange Club.

    The number of flags is also a nod to the U.S. Army, which celebrates its 249th birthday on Friday. The Army was established on June 14, 1775, in Philadelphia, more than a year before the Declaration of Independence.

    “There’s so much negativity in the world, celebrating Flag Day and what it stands for is a simple way to celebrate and bring people together,” O’Neill said.

    Also read: Anaheim celebrates the red, white and blue ahead of Flag Day

    In Dana Point, 249 flags are also displayed at Baby Beach in the Dana Point Harbor. The idea for the display came from Fifth District OC Supervisor Katrina Foley, who also encouraged Dana Point boaters to raise flags on their vessels on Friday.

    “Flag Day offers an opportunity to celebrate our nation’s greatest symbol of freedom and our history,” Foley said in a statement. “The white stripes on our flag represent purity and innocence; the red, hardiness and valor; and the blue field represents vigilance, perseverance and justice. With the Army’s birthday falling on the same date, we also recognize our Army service members and their commitment to protecting our freedoms and the values our flag represents.”

    Flag Day was started by a Wisconsin school teacher in 1877. The date was exactly 100 years after the Flag Resolution of 1777, when the Continental Congress decided how the nation’s banner would look: “That the flag of the 13 united states be 13 stripes, alternate red and white; that the union be 13 stars, white in a blue field, representing a new constellation.”

    President Woodrow Wilson issued a 1916 proclamation declaring June 14 as Flag Day, and in 1949, President Harry S. Truman signed the formal observance into law. After another congressional dictum in 1966, it fell during Flag Week.

    In Newport Beach, a ceremony is planned for 1 p.m. and will include flag etiquette and a presentation of colors by the American Legion Post 291 Color Guard. Boy Scouts will also demonstrate flag folding.

    In Dana Point, a ceremony will include remarks from Dolores Padgett of the Dana Point VFW 9934 and an honor guard led by Rick Jauregui, commander of the Dana Point VFW 9934. Starting at 6 p.m., the ceremony will conclude with Foley slicing a U.S. Army birthday cake with a saber.

    For Capt. Angelo Matz, commander of the Army’s Anaheim Recruiting Company, the national holiday and the service branch’s birthday bring back memories of his own experiences as a boy in Port Jervis, New York, he said.

    “When I was 10 or 11, my grandfather, Art, helped me earn a merit badge with the Boy Scouts by showing me the correct flag-handling etiquette,” Matz said. “Folding, storage, and respect for that symbol of freedom throughout the world must have stuck with me because to this day – I think about that day with my grandfather during the ceremonies. He was drafted in World War II and went on to serve in the Navy as an ensign.”

    The Army’s local birthday celebration continues next week when Matz’s unit participates in a Change of Command ceremony planned for June 20 at Dana Point’s Lantern Bay Park.

    Lt. Col. Matthew Upperman will be replaced by Lt. Col. Edgardo Alvarez as the commander of the U.S. Army Southern California Recruiting Battalion.

    O’Neill and Foley both said they are hoping for a good turnout at the Flag Day ceremonies.

    “Remembering our nation and those who served it will always be worth the effort,” O’Neill said. “Grounding ourselves in our nation’s traditions matter.”

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    ​ Orange County Register 

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    Fontana’s widely condemned interrogation helps fuel efforts to stop police from lying
    • June 13, 2024

    They call it “the box” — the cramped, anxiety-inducing room where police conduct interrogations, pushing and probing for a confession or at least case-solving information.

    It was in the box that Fontana police detectives grilled Thomas Perez Jr. in August 2018, ardently urging him to admit to killing his missing father, saying they had recovered the body and it now bore a toe-tag in the morgue. They suggested the family dog, Margosha, would be euthanized because of Perez’s actions.

    After 17 hours, the psychologically coercive tactics did their job and a mentally exhausted Perez attempted to kill himself in the interrogation room and finally confessed. But the confession unraveled when police discovered that his 71-year-old father, Thomas Perez Sr., wasn’t dead, but was at Los Angeles International Airport awaiting a flight.

    While Fontana police had engaged in trickery, deception and outright lying, the department maintains it did nothing illegal and had substantial reason to believe an assault had been committed. But the tactics — which cost the city nearly $900,000 to settle a civil rights lawsuit — have added fuel to a growing movement in California and throughout the nation to change the way law enforcement officers conduct interrogations.

    Science-based training

    California’s Commission on Peace Officer Standards and Training (POST) has begun phasing in new science-based training that does not allow deceptive and aggressive, psychologically manipulative techniques. Instead, it favors a more empathetic, humane approach. Training programs that teach deception, such as lying about DNA results or an accomplice’s cooperation, will not be certified by the state, said spokesperson Meagan Poulos.

    Additionally, the Fontana case is being used by at least one trainer as an egregious example of what not to do.

    “Those are horrible tactics. You don’t tell someone, ‘We’re going to impound your dog if you don’t tell us the truth,’ ” said Dennis Gomez, a former Orange Police Department officer and the new owner of Behavioral Analysis Training, or BATI, in Tustin. “This is very extreme. … I was completely shocked (by the Fontana interrogation) and I was disgusted by it.”

    BATI has trained 40,000 officers throughout California and is changing its curriculum in line with the state’s shift in interrogation techniques, Gomez said. While some Fontana officers have taken the BATI course, it does not appear the detectives involved in questioning Perez went through the training, he said.

    “This is still happening and I don’t know why,” Gomez said. “(We teach) do not go through these aggressive tactics, do not lie, do not deceive, do not, do not, do not.”

    Wherever they were trained, the Fontana investigators thought they could stretch the limits.

    “It’s like if one aspirin is good, four would be awesome,” said El Dorado County District Attorney Vern Pierson, a leading reformer in California. “They’re well-intentioned. They think they’re trying to solve a case and they have been trained it’s acceptable to lie and be aggressive and, the fact is, it’s not.”

    Pierson added: “We need to take a pause and say maybe we shouldn’t be telling officers to lie to people to get them to tell you the truth.”

    Pierson has instructed his prosecutors to reject any case primarily built on confessions obtained through deceptive, threatening or psychologically manipulative interrogations.

    Why lying is legal

    For decades, hundreds of thousands of police officers throughout the United States have been told that it is legal to deceive suspects.

    The U.S. Supreme Court, in the 1969 ruling Frazier v. Cupp, held that deception alone wasn’t a good enough reason to throw out a confession. That ruling was supported by lower courts in various states and taught in interview and interrogation classes from coast to coast.

    Armed with the court decision, experts say, police were free to deceive and psychologically manipulate suspects, increasing the chance of getting a false confession. Research shows that one-fourth of the cases exonerated through DNA testing involved people who confessed to crimes they didn’t commit, according to a 2012 paper by Daniel Harkins in the Southern Illinois University Law Journal.

    “When your defenses are worn down, when you’re cognitively and emotionally depleted, when police lie … it creates this perfect storm where confession seems to be the best idea at the moment,” said Hayley Cleary, an expert in police interrogations at Virginia Commonwealth University in Richmond, Virginia.

    “That’s the fundamental problem in America, accusatory-style interrogation. They are trained to go in looking for a confession, confirmation bias,” Cleary said. “If you’re convinced this guy is guilty and he gives you information that conflicts with his guilt, you’re going to ignore their denials.”

    Roots in Salem witch trials

    Evidence of false confessions can be found as far back as the Salem witch trials, researcher Saul M. Kassin wrote in 2009. According to Kassin, from the 19th century through the 1930s, police employed the “third degree,” physically assaulting suspects and using psychological torture — including the deprivation of food — to draw out the “truth.”

    Kassin said the technique began to wane in the 1960s and was virtually nonexistent by 1986. Nowadays, police officers are trained, for the most part, not to inflict physical harm or deprive subjects of their physical needs, such as bathroom breaks.

    But aggressive, confrontational, manipulative techniques by detectives often feigning empathy are still taught, reformers say. Also taught are what reformers call “pseudoscience,” in which interrogators attempt to determine who is lying based on body language, word choice and behavioral cues, such as avoiding eye contact, giving a delayed response or not proclaiming their innocence ardently enough.

    Success through such methods amounts to a coin-flip, maybe a little more for law enforcement, reformers say.

    “Interrogators confront the suspect with accusations of guilt … that are made with certainty and often bolstered by evidence, real or manufactured, and refusal to accept alibis or denials,” Kassin wrote.

    He added that false confessions occur when a person develops such a profound distrust of their own memory that they become vulnerable to the influence of an interrogator.

    The Reid technique

    In the United States, the premier interview and interrogation program was developed more than 60 years ago and taught by Chicago-based John E. Reid and Associates. More than half a million officers nationwide have been trained in the Reid technique, which teaches that nonverbal and behavioral cues can be indicators of lying. Reid also counsels investigators to follow the law, which allows deception, but not to lie about “incontrovertible” evidence, such as the existence of fingerprints.

    The Reid technique distinguishes between the introductory interview and the harsher interrogation, counseling that investigators should only interrogate people they believe are guilty and disregard weak denials. Nevertheless, according to company literature, suspects should be treated with “decency, respect and understanding.”

    The Reid method has become the target of reformers and critics who say it could generate false confessions.

    “They maintain they don’t interrogate innocent people,” researcher Cleary said. “They’re thinking that they can deduce someone’s guilt or innocence based on their emotional reaction is false.”

    Joseph Buckley, president of Reid & Associates, disputes that there is any scientific evidence that the firm’s methods cause false confessions. Company literature also says that eliciting the truth, not getting a confession, is the main goal.

    ‘Society has changed’

    Besides teaching legal deception, Reid trains police officers to minimize the moral seriousness of the crime, to suggest “face-saving excuses” by blaming financial pressures, an accomplice, emotions or alcohol as a way of getting the suspect to open up. The interrogator implies the crime is somehow morally excusable, justified or accidental.

    “Your serious bad guys aren’t going to acknowledge anything unless they are caught,” Buckley said. “If they don’t think the investigator has it … and is just fishing, they don’t think there is reason to tell us anything.”

    He continued, “The courts haven’t changed. Society has changed. … When the courts change their view of something, all of us will change our practices.”

    Raul Saldana, a retired Hermosa Beach detective sergeant, says lying to suspects within the confines of the law is a valuable tool for investigators already hobbled by such requirements as advising suspects of their Miranda right to remain silent.

    “We’re just evening the playing field,” said Saldana, who served 28 years in law enforcement. “Sometimes you have to get creative. You do what you have to do against bad people. … Sometimes you’ve got to fudge.”

    In California and six other states, lawmakers have made it illegal for police to lie in any way to juvenile suspects, who are deemed more impressionable than adults. Lying to adults remains legal.

    Nuances of new techniques

    However, POST, the state agency in charge of certifying police officers and their training, is rolling out new interview and interrogation techniques that do not rely on deception or dishonesty. Downplaying the seriousness of the crime or justifying the behavior — a practice called minimization — while not condoned by POST, would not necessarily be considered dishonest unless the investigator is saying something he or she knows to be false, Poulos said.

    Presenters who teach behavioral analysis that relies on such things as body language to gauge deception also must submit proof to POST that this technique is supported by scientific evidence and doesn’t lead to false confessions.

    The changes by POST means that more officers will be taught and subsequently use more ethical techniques, said Pierson, who has pushed since 2020 for the change. He has hosted training sessions for 107 California law enforcement agencies in the new techniques.

    ‘Urban myth’ of old tactics

    “There has been an urban myth within policing for decades that the only way to obtain information is to use interviewing tactics that employ pseudoscience and psychological coercion, and that urban myth is finally being debunked,” he said.

    New courses are being developed through POST borrowing from scientifically confirmed methods first developed during the Obama administration by Liverpool-based forensic psychologists Laurence and Emily Alison for use in the international intelligence community.

    Their method, known as Observing Rapport-Based Interpersonal Techniques, or ORBIT, has shown that rapport-based methods based on active listening, genuine empathy and professional curiosity generate higher rates of evidential information. The end goal is to gather information to test against the evidence rather than get a confession.

    “(It’s) nonjudgmental, not ‘finger-wagging, finger-pointing, I’ve already figured it out,’ ” said Laurence Alison, who with Emily Alison analyzed thousands of hours of interrogations of suspected terrorists.

    “We are seeking the truth, what is able to be proven or not, not can I get this person to confess regardless of what the evidence says,” added Emily Alison.

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    ‘Being straight’ with suspects

    To that end, the method does not rely on threats, intimidation or making accusations, but on trying to clear up discrepancies in the subject’s story until it either becomes clearer or falls apart. It is based on curiosity, keeping an open mind and being straight with the suspect.

    “Rapport-building sounds very warm and fluffy, that’s why people think it’s not going to work,” Emily Alison said. “(But) if that person feels seen by you, it’s actually much harder for them to lie.”

    Laurence Alison said any method that encourages police to make their own judgment about someone’s guilt and then seek a confession is biased and shouldn’t be taught.

    The research couple said the United States is at a tipping point in how interrogations are conducted.

    “People want to keep a few bits of the old and tack on a few new bits, and that’s not the way it works,” Emily Alison said. “To be effective, the investigator’s whole mindset has to shift from seeking confession to seeking the truth.”

    ​ Orange County Register 

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