NMP Magazine January 2020

AMERICAN BUSINESS MEDIA LLC 345 NORTH MAIN STREET, SUITE 313 WEST HARTFORD, CT 06117

PRESORTED STANDARD U.S. POSTAGE PAID AMERICAN BUSINESS MEDIA LLC

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need to keep your pipeline filled, and you need the tools and directions to stay profitable, efficient, and effective. We’ve brought together the best in the business to create a top tier event specifically designed for mortgage origination pros.

2020 Speakers Include:

Paul Yatooma VP of Sales QLMS

Ralph Rosynek SVP MoneyHouse

Larry Mize

Regional VP of Sales Angel Oak Mortgage Solutions

For registration or sponsorship of this event, go to:

www.atlantamortgageexpo.com

n National Mortgage Professional Magazine n JANUARY 2020

The mortgage industry is going through a significant change. For mortgage origination professionals, it’s a struggle to keep on top of all the changes, and to keep your sales strategies and marketing initiatives at their peak. You

NationalMortgageProfessional.com

Do you have what it takes to be the best?

table of N A T I O N A L

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The Human Face on the Digital Revolution

By Jim Paolino

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The Beckwith Blog: Beyond Great

By Christine Beckwith

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A SPECIAL FOCUS ON “BRANCH OUT: EMPLOYMENT AND GROWTH OPPORTUNITIES”

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The Secret Sauce of Great Organizations: Corporate Culture

By Ken Bartz ......................................................................................50

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Know Your Worth … Is the Grass Greener? By Shachar Rand..........54 Making a Difference in the Contest for Top Talent

By Edward Pittman ............................................................................56

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Check It: The Three Cs of Employee Engagement

By Susan Sullivan ..............................................................................58

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Matching Employees With Your Company’s Corporate Culture

By Adam P. Smith ..............................................................................60 How to Foster a Positive Work Environment By Ward Morrison ......62

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National Mortgage Professional Magazine Presents 2020’s Top Mortgage Employers

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A Loan Officer’s Plan: How to Tackle 2020 By Tim Carroll ................64

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FEATURES

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Recruiting, Training and Mentoring Corner: A Few Things to Think About Before Changing Jobs By Dave Hershman ..............................6

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What Does the QM Patch (and Ending It) Mean for You?

By Tom Hutchens ................................................................................8 The Elite Performer: Thank You! Have a Great Decade!

By Andy W. Harris, CRMS....................................................................8 How a Simple, Targeted Program Can Grow Your Future Mortgage Business By Pam Marron ..................................................10 Resolve to Grow in 2020 By Patrick Welberg ....................................18 The Mortgage Godfather: What Is Time For? By Ralph LoVuolo Sr. ..20

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Part One: Is Customer-forLife an Impossible Dream?

By Rick Grant

V I S I T Company

Web Site

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A D Page

ACC Mortgage .................................................. accmortgage.com ............................................................9 Angel Oak Mortgage Solutions ............................ angeloakms.com ..............................................Back Cover Arc Home Loans ................................................ archomeloans.com ........................................................57 Atlanta Mortgage Expo ...................................... atlantamortgageexpo.com ................................................1 Brokers Compliance Group.................................. brokerscompliancegroup.com ..........................................80 Carolinas Connect Mortgage Expo .......................... mortgageconferences.com ..................................................3

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Here Are Three 2020 Predictions You Haven’t Heard Yet

By Steve Ozonian

Concord Church Finance .................................... concordchurchfinance.com ............................................74

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Deephaven Mortgage, LLC .................................. deephavenmortgage.com ..............................................23

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DocMagic .......................................................... docmagic.com ................................................................7 First National Bank of America............................ fnba.com/mortgagebrokers ............................................53 Greenbox Loans, Inc. ........................................greenboxloans.com ..................................Inside Front Cover

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Locke Law US, LLC ............................................ lockelaw.us ..................................................................59 Lykken On Lending ............................................ lykkenonlending.com ....................................................63 MBA-NJ/NJAMB .................................................. mbanj.com ..................................................................39

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MBS Highway .................................................... mbshighway.com/MNN ..................................................13

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California Consumer Privacy Act Effective January 1st

By Gavin T. Ales ................................................................................22 Money Laundering and Mortgages: How To Keep Yourself Safe

By Michael “Bret” Hood ....................................................................30 In 2020, Servicing Will be About the Experience By Allen Price ........42 BrokerNATION: Jason Andrews of Next Home Loans LLC

By Andy W. Harris, CRMS..................................................................46 Creating Happier Borrowers Starts With Choosing the Right System By Joey McDuffee........................................................48 Marketing Interrupt: How to Win on LinkedIn By Jason Frazier ........68

FTC/CFPB Consumer Reporting Accuracy Workshop Report

By Terry W. Clemans..........................................................................70

COLUMNS New to Market ..................................................................................12 News Flash: January 2020 ................................................................14 Heard on the Street ..........................................................................26 NMP Calendar of Events ..................................................................79

A D V E R T I S E R S Company

Web Site

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MCM Capital Solutions ........................................ mcmcapitalsolutions.com ..............................................75 Mortgage News Network (MNN) .......................... mortgagenewsnetwork.com ............................................65 NAMMBA .......................................................... nammbaconnect.org ......................................................19

Join your community of mortgage professionals at the

NAWRB ............................................................ nawrb.com ....................................................................15

Carolinas’ largest event for mortgage originators, The

New York Mortgage Expo .................................... mortgageconferences.com ..............................................27

Carolinas Connect Mortgage Expo. Don’t miss out on

NRMLA.............................................................. nrmlaonline.org ............................................................21

our lineup of engaging events centered around

Origination Pro.................................................. originationpro.com ........................................................58

networking, skill-building, and having a great time

Originator Connect ............................................ originatorconnect.com ..............................................40-41 Paramount Residential Mortgage Group, Inc. ...... prmg.net ................................................Inside Back Cover

with your peers at our early year edition in Charlotte.

PB Financial Group Corp. .................................. calhardmoney.com ........................................................63 Quicken Loans Mortgage Services ........................ qlmortgageservices.com/strongertogether ........................11 RCN Capital ...................................................... rcncapital.com ................................................................6 Ridgewood Savings Bank .................................... ridgewoodbank.com ......................................................55 Spring EQ .......................................................... wholesale.springeq.com ..................................................5 Velocity Commercial Credit ................................ velocitymortgage.com ....................................................17

To register, go to

www.mortgageconferences.com

FROM THE PUBLISHER & CEO JANUARY 2020 Volume 12 • Number 1 345 North Main Street, Suite 313 West Hartford, CT 06117 Phone#: (516) 409-5555 • Fax#: (516) 409-4600 NationalMortgageProfessional.com

STAFF Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 EricP@MortgageNewsNetwork.com Beverly Bolnick Associate Publisher (516) 368-1149 BBolnick@AmBizMedia.com Joey Arendt Art Director (516) 409-5555, ext. 323 JoeyA@MortgageNewsNetwork.com Phil Hall Reporter (516) 409-5555, ext. 12 PhilH@MortgageNewsNetwork.com Rick Grant Special Reports Editor (570) 497-1026 (direct) (516) 409-5555, ext. 311 RickG@MortgageNewsNetwork.com Andrew Berman Head of Engagement and Outreach (516) 784-4840 Andrew@MortgageNewsNetwork.com Jaclyn Leitermann Client Success Coordinator (516) 409-5555, ext. 316 JaclynL@MortgageNewsNetwork.com Francine Miller Advertising Coordinator (516) 409-5555, ext. 301 FrancineM@MortgageNewsNetwork.com Joel M. Berman Founding Publisher (516) 409-5555, ext. 310 Joel@MortgageNewsNetwork.com

Vincent M. Valvo CEO & Publisher (860) 922-3441 VValvo@AmBizMedia.com Keith Griffin Editorial (860) 719-1991 KGriffin@AmBizMedia.com Navindra Persaud Director of Online Content (860) 719-1991 NPersaud@AmBizMedia.com Alison Valvo Interactive Design Director (860) 719-1991 AValvo@AmBizMedia.com Melissa Pianin Marketing & Events Associate (860) 719-1991 MPianin@AmBizMedia.com Stacy Murray Graphic Design Manager (860) 719-1991 SMurray@AmBizMedia.com Donald Frommeyer Chairman, Originator Connect Network (860) 719-1991 DFrommeyer@AmBizMedia.com

Creating connections that count aul Yatooma is vice president of sales for Quicken Loans Mortgage Services (QLMS), the wholesale division of the country’s largest mortgage lender. Recently, he was delivering a Keynote Address at the New England Mortgage Expo–itself the largest regional mortgage conference in the nation. QLMS’s tagline these days is “Stronger Together,” a call to action that originators, lenders, vendors and borrowers all benefit from an industry working toward the same goal, not tearing itself apart by segregating into cliques and tranches.

It’s a strong message, and one that resonates with me personally. I’m a believer in entrepreneurship, and that independence is a strong motivator for excellence. The mortgage origination community is one in which everyone charts their own course. Independent brokers choose how they work and who they work with–they follow orders from no one but themselves. They decide their lineup of offerings, they decide how they’re going to compete, and they decide what tools they’ll use and what partners they’ll have as they build their businesses.

That’s what we’re doing as well at American Business Media (AmBiz) as we launch into 2020 as the proud new parent company of National Mortgage Professional Magazine, of Mortgage News Network and of all its specialized online content offerings.

AmBiz is the company behind the Originator Connect Network, the largest alliance of mortgage loan professionals. With nearly 160,000 people now in the network, we have a reach that’s unmatched. AmBiz is already the nation’s largest producer of mortgage originator conferences—with more than two dozen planned in 2020 alone—and is the leading provider of complimentary NMLS training in the U.S. (last year, we offered free NMLS license renewal classes to more than 20,000 originators). We publish Originator Connect Magazine quarterly, and produce the Originator Connect Network weekly e-mail news blast.

We pride ourselves on being a strong content provider. But this is a fast moving industry. And in Paul Yatooma’s keynote, he made note of something that drives his employer, and should resonate with every business strategist: “If the rate of change on the outside exceeds the rate of change on the inside, the end is near.”

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Change for the better National Mortgage Professional Magazine, meanwhile, is the industry’s most dominant media company. It’s easily the widest-distributed and most-read mortgage publication. Its frequent Webinar offerings give sales leaders insight into new, profitable products and successful sales strategies. Niche services, like its daily news digests and non-QM weekly newsletter serve this industry better than any other competitor. That’s why, when the opportunity came bring its many strengths into the American Business Media family, we jumped at the chance.

Here’s a company with unparalleled capability to showcase industry best practices, to highlight innovative and compelling new products, to educate and inform entrepreneurs so that they can independently choose what’s best for them. Through us now, mortgage professionals can find strategically critical videos, online specialty newsletters, the convenience and comfort of a print magazine at the top of its game, in-person events and training from New York to LA. So, to our readers, we promise you this: When you turn to us, you’ll find the information you need to thrive, you’ll find the companies you need to grow, you’ll find the resources to bring you to the next level, and you’ll find the inspiration to achieve your own entrepreneurship goals. At American Business Media, in all we do, we connect you to the story of your success.

Because we believe in the message Paul Yatooma delivered that day … “We are all stronger together.”

Sincerely,

Vincent M. Valvo, Publisher & CEO American Business Media VValvo@AmBizMedia.com

Subscriptions To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@mortgagenewsnetwork.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600.

Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of American Business Media LLC, or the officers or members of any trade association that National Mortgage Professional Magazine is designated as their official publication.

Participation in any trade association that designates National Mortgage Professional Magazine as their official publication, events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by American Business Media LLC, or any of the trade associations that designate National Mortgage Professional Magazine as their official publication..

National Mortgage Professional Magazine and any trade association that designates National Mortgage Professional Magazine as their official publication do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in American Business Media LLC publications. National Mortgage Professional Magazine and American Business Media LLC reserve the right to edit, reject and/or postpone the publication of any articles, information or data.

National Mortgage Professional Magazine is a publication of American Business Media LLC Copyright © 2020 American Business Media LLC

Opportunities That Exist In Home Equity Your past clients just bypassed you for financing and they didn’t even say goodbye!

Thursday, February 20, 2020 Featuring Jerry Schiano and Tod Highfield, two individuals who need no introduction in the mortgage world.

“How To Originate 2nd Mortgage-Home Equity Products” Case Studies with top producing home equity expert Lauri Preedge.

Thursday, March 19, 2020

Industry Leader POV - Market Shift: 2nd Mortgage Home Equity If you are a mortgage company executive or would like to get a high-level perspective on the Home Equity Segment this webinar is a must attend. Low rates are good for everyone except the companies that service loans. This latest refi boom has pushed prepayment of first mortgages to the highest level since May of 2013.

Webinar Contact: John Neihart l jneihart@springeq.com

www.wholesale.springeq.com Spring EQ, LLC NMLS #1464945

n National Mortgage Professional Magazine n JANUARY 2020

Register at nmp.bz/homeequity

NationalMortgageProfessional.com

Featuring Lauri Preedge, a Home Equity Expert and top producing home equity AE with Spring EQ and one of nmp's Most Connected Mortgage Professionals of 2019.

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Recruiting, Training and Mentoring Corner

A Few Things to Think About Before Changing Jobs

BY DAVE HERSHMAN

t is the New Year. Much of your pipeline has closed.

There are recruiters calling you left and right. Bonuses are being offered and you start thinking: “Maybe the grass is greener?” Before you jump, consider these thoughts:

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Stability pays off. There are many attributes for success.

Stability is one of them.

There are a host of loan officers who change jobs just about every two years. Most of them are not successful. If you look at the top producers

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R P OU TH: U S D I BUIL MERS W O CUST ding e Fu n l b i x r 5+ & Fle Fa s t fi c a l l y F o t s & n e S Apartm perties U n i t - U s e P ro d M i xe s Lo a n erm to $5M T t Sho $250k f ro m fo r tions jects p O g n c i n F l i p P r or t i e s i x & P ro p e F h t Bo bilized & Sta

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in the industry, they have found a home and stay for a long period of time. On the other hand, staying will not make you successful. Only you can do that.

Moving costs. No, you don’t have to hire a moving van, but moving companies will cost you. There will be an interruption in business as you learn new systems, adjust your marketing and more. Origination today is complex. Every company does it differently. Moving costs time and energy that you could apply towards your present business. On the other hand, that may be what the signing bonus is for—unless you waste the time the money is buying you. I have seen a lot of that.

Not just a company. You are also moving supervisors.

Thus, there are two parts of the decision. There are company support levels to consider, but also personal support levels. How will this person help you expand your business? Are you two compatible?

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The type of situation. There are a variety of situations that the mortgage business offers.

You could be a street loan officer, work inside a bank or real estate office, work with a builder, with a broker or take a position with an inside lead generation firm. Not everyone fits every situation. Someone who has been an independent broker for 10 years may not fit at a national bank or inside a real estate office.

The market. How might the market change and how might this change affect the entity you are thinking about going to? How many loan officers have changed jobs to find out their new company is closing or going in a different direction six months later?

Obviously, I could continue to throw out variables. One thing I can say is that the decision should be made about more than simple signing bonuses and commission plans. If you make the decision about a few basis points, you are thinking about a paycheck, instead of a career and where your career is headed.

L BE P I TA AT I O N A C D N OUN LID F ON. O S Y THE AN REL C YO U IA FORN CALI F AS A SED MENT O ART BER UM N ER E S N ING E CEN E BA L ND HT LI ORTGAG TGAGE LE LEND NCE O RSIG M 65566.

OR FINA S : 1045 ON M 8 OREG MPANY IID .

25 25 2 4 -446 O 23 0DBO E BK-093 ; NMLS C NS 57711; CEN ML-5 NSE: LICEN C IS

VISIT RCNCAPITAL.COM

EMAIL INFO@RCNCAPITAL.COM

LICEN

CALL 860.432.5858

Senior vice president of sales for Weichert Financial Services, Dave Hershman is a top author in this industry, with seven books published, as well as establishing the OriginationPro Marketing System and the OriginationPro Mortgage School–the online choice for mortgage learning and marketing content. His site is OriginationPro.com and Dave can be reached by e-mail at Dave@HershmanGroup.com.

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What Does the QM Patch (and Ending It) Mean for You?

By Tom Hutchens

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n Jan. 10, 2021, the Consumer Financial Protection Bureau’s (CFPB) “QM Patch” will expire, meaning that Fannie Mae and Freddie Mac will no longer be allowed to back loans for consumers with DTI greater than 43 percent. The impact on loan officers will be

dramatic.

According to CoreLogic, the patch—a seven-year exception granted by CFPB in 2014 to the Dodd-Frank Law— has allowed Fannie Mae and Freddie Mac (only those two GSEs) to take on loans featuring DTIs as high as 50 percent.

CoreLogic reports that in 2018, almost 16 percent of all loans, worth $260 billion, would not have been allowed QM status as proscribed by Dodd-Frank.

When the QM Patch expires, many more potential borrowers will need to obtain non-QM loans to purchase their homes. For loan officers who offer and focus on non-QM loans, the marketplace will expand dramatically. Those brokers and originators who have found it unnecessary to serve non-QM borrowers may find their pool of prospects significantly reduced.

According to CoreLogic, the patch was intended by CFPB to preserve “access for consumers during a period when mortgage markets were still in transition.” However, the Patch’s effect may have given the mortgage industry a faulty understanding of the long-term scopes of both QM and nonQM markets. Based on 2018 percentages, when the patch expires, Fannie and Freddie may be facilitating 30 percent fewer loans.

Yet, even with the QM Patch in place the non-QM marketplace has grown tremendously during the last five years. Non-QM lenders and investors have proven that they are capable of determining good credit. For example, at Angel Oak Mortgage Solutions, our delinquency rate is under two percent, which is lower than agency delinquency rates. When the QM Patch expires, the non-QM market will certainly spike as far fewer loans will be eligible for Fannie Mae and Freddie Mac participation.

If you are among the many mortgage professionals who have thought that your pipeline did not need to include nonQM borrowers, I hope you see how the reality of the marketplace will change in 2021. A wise course would be to start learning about the differences and nuances of non-QM lending. There is still plenty of time, but the day of reckoning is not too far off.

As the pioneer of non-QM loans and the market leader, Angel Oak Mortgage Solutions offers both technical support and personal service to enable loan officers thrive in the nonQM marketplace. To learn how, contact your Angel Oak account executive at (866) 837-6312 or visit AngelOakMS.com/MAP.

Tom Hutchens is executive vice president, production at Angel Oak Mortgage Solutions, an Atlanta-based wholesale and correspondent lender licensed in more than 40 states and operating in the non-QM space for over five years. Tom has been in the real estate lending business for nearly 20 years.

He may be reached by phone at (855) 539-4910 or e-mail Info@AngelOakMS.com.

SPONSORED EDITORIAL

the

elite performer Thank You! Have a Great Decade!

BY ANDY W. HARRIS, CRMS

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t’s hard to believe that I started writing this Elite Performer series nearly a decade ago. More than 100 articles released monthly, starting back in June 2011 with National Mortgage Professional Magazine.

Due to work and life demands, I have decided to discontinue this series of articles. I greatly appreciate each and every reader, and am truly humbled by the feedback that I have received over the last several years. I certainly hope people received something of value when reading “The Elite Performer” as I did when writing it.

Many thanks to the great team at National Mortgage Professional Magazine and the opportunities for sharing my content in this series and others I have provided for the last several years. I’m sure I’ll be back as my mind requires release through writing, but thank you all.

If you wish to connect with me, please find me on social media or Google and connect with me anytime. I wish you all thriving success now and in the future!

“Great is the art of beginning, but greater is the art of ending.”

—Henry Wadsworth Longfellow

Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and past president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 4960431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

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Addressing Post-Housing Crisis Issues

How a Simple, Targeted Program Can Grow Your Future Mortgage Business

BY PAM MARRON

n 1990, five years into my career in the mortgage business, I learned something from a successful new construction salesman that stuck with me for the last 30 years. The salesman’s name was Ed and he was the highest producing salesperson for a major builder. What was Ed’s secret? He listened to every prospect that came to his model center. If they weren’t ready to purchase a home yet, Ed would find out why and discuss the timeframe before they could purchase. After the prospect left, Ed would write conversation details on a card and file it in a small box that was always with him. It was not uncommon to see Ed pull out the “ready clients” to follow up with. It was also common for the builder to get notes that praised Ed’s follow-up as the reason that the prospect finally purchased a home! Ed simply determined an approximate time a client would be ready to purchase and then faithfully followed up to get their business.

From 2016 through 2019, I was on a U.S. Department of Housing & Urban Development (HUD) committee called the “Housing Counseling Federal Advisory Committee (HCFAC)”1. While serving, I learned a great deal about what HUD-approved housing counselors could do to get clients ready for a home purchase.

Housing counselors can help clients to correct, build and consolidate credit. Many counselors know about downpayment assistance programs, often more than my mortgage colleagues. And housing

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counselors educate clients on the proper budgeting needed to own a home. They are aware of the reasons that keep clients from purchasing a home … but work with these clients to get them ready for homeownership.

How many of us try ourselves to assist challenged clients … until business picks up and needed attention becomes scarce? What if there was a valid resource to send these clients to for detailed help to get “mortgage ready?” That resource is a HUD-approved housing counselor.

So I and others on the HUD HCFAC worked with housing counselors to develop a simple, structured path for loan originators to refer challenged clients to HUDapproved housing counselors.

Similar issues that prevent a home purchase were narrowed to three specific areas of greatest need: l Credit: Whether negative credit, no credit or too much debt (and NOT credit repair!) l Downpayment assistance: Including wholesaler programs available to independent mortgage professionals! l Budgeting: Saving for a home purchase

memorandum of understanding (MOU) was created to serve as an agreement between the challenged client and the loan originator and is provided to the HUD housing counseling agency.

The MOU states that the (predetermined) cost for housing counseling services paid upfront by the client will be credited back towards closing costs on a future mortgage by the referring loan originator (the MOU can also be used with real estate agents). The MOU outlines services and credit to be provided and was developed with direction from the HUD Model Funding Agreements and Fee Structures Manual.2 This provides multiple benefits to mortgage loan originators. The structure allows for: l An MOU for credit towards closing costs on a future mortgage from the referring loan originator if the client returns to that originator for their mortgage. l A bank loan originator who already uses housing counseling services that are

Utilizing housing counseling agencies (HCAs) is already done by banks who consistently send challenged clients to HCAs and pay for services with Community Reinvestment Act (CRA) funds.

But independent mortgage loan originators don’t have CRA funds to pay for services and most are not even aware of what housing counselors can do to assist clients.

To make this path possible, a

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paid for by CRA funds from their institution to continue using housing counseling services with the MOU agreement for credit if they migrate to the independent loan originator side of business.

A partnership with a HUD housing counselor who is trained to take care of client issues and will notify the loan originator when the client is “mortgage ready.”

Continued communication between a loan originator and a real estate agent about a referred client who is getting “mortgage ready.”

Never saying “no” to a client!

Provide the option for help with a HUD housing counselor.

Consistent communication between the loan originator and the HUD housing counselor provides your “approximate date of followup” to update your “future client cards” in your own box. I know, because it’s working for me.

Stay tuned.

1—12-member HUD HCFAC includes three members for mortgage, real estate and housing counseling sectors and includes three consumer advocates (www.hudexchange.info/programs/housing-counseling/federal-advisory-committee).

2—HUD Model Funding Agreements and Fee Structures Manual (files.hudexchange.info/resources/documents/Housing-Counseling-Model-FundingAgreements-Fee-Structures.pdf).

Pam Marron (NMLS#: 246438) is senior loan originator with Innovative Mortgage Services Inc. (NMLS#: 250769) in Tampa Bay, Fla. She may be reached by phone at (727) 375-8986, email PMarron@InnovativeMortgage.onmicrosoft.com or visit HousingCrisisStories.com, CloseWithPam.com or 8Problems.com.

ST T RO RONG GER R TOGE O ETHER ER Te em Schiimle imley QLMS Account Executive

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NationalMortgageProfessional.com

Call (8 888) 762-5 5035 QLMorrtgageSer viices.com/S StrongerToge o ether Equal Housing ng Lender. Licensed in all 50 states. NMLS #3030

n National Mortgage Professional Magazine n JANUARY 2020

Erik ka Araujo Ex xecutive Assistant NestMad de Mortgage Monrovia a, CA

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Carrington Mortgage Introduces New Prime Advantage Offering for the Non-Agency Market

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Carrington Mortgage Services LLC (CMS) has announced the launch of Prime Advantage, designed for higher-credit-quality non-agency borrowers who may have “just missed” qualifying for conventional or jumbo loans. The Prime Advantage product allows for the use of Alternative Income Documentation, while delivering competitive pricing. Prime Advantage is a perfect fit for borrowers who find themselves in between qualifying for the Carrington Flexible Advantage Plus program and conventional or jumbo products.

“Since the day I joined Carrington, our primary objective has always been to lead nonagency lending back into the marketplace,” said Greg Austin, executive vice president of Carrington Mortgage Services.

“We know how important it is to ensure our product offerings are sharp and industry leading. Our team works hard daily to deliver on that promise. Prime Advantage is an example of that commitment.”

Prime Advantage is the latest addition to CMS’s diverse product offerings, which are designed to meet the needs of today’s nondelegated originators, and include conventional Fannie Mae and Freddie Mac products, FHA, VA and USDA products and Carrington’s proprietary Flexible Advantage products, which were specifically developed to further demonstrate our ongoing commitment to underserved borrowers.

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“As the non-agency lending space experiences fast-paced change, at Carrington we have continuously met market demands for that change,” said Fred Quick, executive vice president of retail lending for Carrington Mortgage Services. “The key to a successful non-agency offering is to provide a complete suite of non-agency programs, and by adding Prime Advantage we’ve done just that.”

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make it easier, quicker and more intuitive to get to pertinent information. AFR Loan Center mobile app and mobile Web site also received a refresh to provide an even smoother user experience.

Top of Mind Expands Its Compliance Solutions With CCPA Readiness

AFR Announces Upgrades to Its Loan Center

American Financial Resources Inc. (AFR) has announced new features and upgraded functionality that have been integrated into AFR Loan Center, AFR’s proprietary online loan portal. Key improvements include integrated product support and a refreshed user interface for both clients and lending partners.

“AFR has a renowned tradition of listening to our clients and developing exceptional technology to meet and exceed their needs,” said Scott Dubnoff, chief technology officer of AFR. “AFR Loan Center was already an industry-leading platform, and we are excited about the improvements our technology team has implemented this year.”

The refreshed user interface for AFR Loan Center includes several enhancements to improve and simplify the experience, including a unified dashboard and pipeline home screen with dynamic filters, and a completely revamped loan view that includes a new “Loan Flows” system which provides the status of individual components of the loan process. Navigation has also been updated site-wide to

Top of Mind Networks has announced that its Surefire CRM is ready to help mortgage lenders meet their obligations under the California Consumer Privacy Act (CCPA).

Effective Jan. 1, 2020, the CCPA will impose significant new obligations on covered businesses, including mortgage lenders nationwide that do business in California. The law grants California consumers the right to know what information businesses collect about them. It also gives consumers the right to have their records purged from business databases, including CRMs, upon request, and consumers can opt out of having their information sold.

Businesses cannot discriminate against consumers who exercise any of their rights under the CCPA. Top of Mind’s CCPA Guide gives Surefire customers an overview of the law and outlines the internal and external processes mortgage lenders should review to ensure they are CCPA-compliant. The guide also tells Surefire customers what to do if they receive a CCPA request from a consumer.

“Our customers can rest

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assured that the Top of Mind team is fully prepared to handle all CCPA requests ahead of the law’s effective date,” said Top of Mind Chief Product Officer David Orisini. “Surefire gives mortgage lenders the flexibility to retain consumer marketing history as required by existing laws while simultaneously allowing them to delete consumer information when required under CCPA.” CCPA-readiness is the latest addition to Top of Mind’s full suite of compliance solutions. Surefire automates such essential compliance capabilities as approvals management for changes to print and digital assets; state-by-state licensing disclosures; review of rates displayed to leads and prospects; and full audit support.

Exceleras Adds REO Acquisition Screen to Aid RE Investors

Exceleras has announced that the company has added a new PreREO screen to DispoSolutions to aid investors and services in making better presale decisions as part of the company’s regularly scheduled software update.

“This new Pre-REO page has been added to allow users to track properties prior to entering REO status,” said Amy Bergseth, chief operating officer for Exceleras.

“Created at the request of investors who are now adopting DispoSolutions, the new functionality provides a useful dashboard that makes it easier for investors to make better decisions about the properties they choose to buy. In addition, it makes it easy for them to track the

transaction through the purchase process.”

The new Pre-REO screen offers data through three components: General Property Information, Offer Information and Closing Information. The screen makes it easier for investors to perform due diligence on transactions.

Investors seeking to buy a portfolio of properties can load bulk data into DispoSolutions and receive screens for each property. If they decide to make an offer, they can track it through to close.

“We are currently serving investors who are always on the lookout for new properties,” said Michael Harris, president and CEO of Exceleras. “When they find properties they are interested in acquiring, they can load them into DispoSolutions and then easily track everything involved in the acquisition, including the vendors who are running reports that will help them make better decisions.”

Freddie Mac Rolls Out eNote Solution

Vendorly has announced the launch of a third-party originator (TPO) oversight program for mortgage lenders to streamline the broker vetting process and create a central repository for due diligence documentation. The program further enhances the Vendorly third-party risk management (TPRM) methodology and

complements mortgage lenders’ existing vendor management programs.

Vendorly’s TPO oversight program helps an organization’s internal risk and broker approval department automate and streamline the broker approval process with the use of an electronic broker questionnaire package that is sent and tracked from the Vendorly platform.

“Vendorly created this service based on our deep understanding of the mortgage process to better assist our

clients in the mortgage origination space,” said Steve Greenfield, CMB, director of operations, Vendorly.

“Understanding the risks of the organizations you are doing business with is critical to making optimal risk-based decisions when working with the broker community. Each lender may have different TPO approval requirements and our approach to the TPO vetting process is customizable to our clients’ needs.” continued on page 22

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n National Mortgage Professional Magazine n JANUARY 2020

Always stay in touch with the market when on the go with our Mobile Web App. It's fast and easy to use. Whether you have an iPhone, Android, Blackberry, Windows Phone, you'll always have access to MBS Highway. No downloads, no annoying updates, just visit m.mbshighway.com in your phone or tablet's browser.

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Freddie Mac is now offering an automated eNote certification solution for third-party eNote custodians that is designed to offer a system-to-system integration from Freddie Mac’s Loan Selling Advisor.

According to the governmentsponsored enterprise, this solution will allow third-party eNote custodians to digitally compare lender-delivered loan data with information included in the borrower’s signed eNote and then pass along the results of the certification to the lender. Freddie Mac will remain as an eNote custodian option for its sellers and servicers and will notify them in advance of any changes to the custodian options.

“The ability to integrate with third-party eNote custodians for automated eNote certification is a digital needle mover for Freddie Mac eMortgage Sellers and Servicers,” said Samuel E. Oliver III, vice president of single-family major projects at Freddie Mac. “In addition to minimizing the need for the current bifurcated custody model for eMortgage Seller/Servicers, this integration lays the foundation for potential solutions to minimize some of the technology setup costs required in the eNote process.”

Vendorly Unveils New TPO Oversight Program

WSFLASH y JANUARY 2020 y NMP NEWSFLASH y JANUARY 2020 y NMP NEWSFLASH y JANUARY 20

New Home Purchase Mortgage Applications Up Nearly 40 Percent

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The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for December 2019 shows.

Mortgage applications for new home purchases recorded a 38.7 percent year-over-year spike in December, according to new data from the Mortgage Bankers Association (MBA). Compared to the previous month, however, applications decreased by five percent.

The MBA estimated new singlefamily home sales were running at a seasonally-adjusted annual rate of 689,000 units in December, a scant 0.1 percent increase from November’s 688,000 units. On an unadjusted basis, the MBA estimated there were 48,000 new home sales in December 2019, which is percent below the 51,000 new home sales in November.

The average loan size of new homes increased from $337,943 in November to $338,625 in December. By product type, conventional loans composed 68.7 percent of loan applications, FHA loans composed 18.4 percent, VA loans composed 12.1 percent and RHS/USDA loans composed 0.8 percent.

“The sizeable year-over-year increase in new home purchase activity in December capped off what was a strong 2019 overall,” said Joel Kan, MBA’s associate

vice president of economic and industry forecasting. “Our seasonally-adjusted estimate of December new home sales was virtually unchanged from November, forecasted at an annual pace of 689,000 units. The housing market is seeing signs of a more significant recovery in new residential construction, which is a promising sign for prospective homebuyers. Even though supply continues to lag, we expect to see another year of gradual growth in new home sales, supported by rising household formation and the healthy job market.”

Freddie Mac Details How Child Care Costs Impacts Homeownership

and West Coast.

“The list of expenses for a family can be never-ending, and we know from Freddie Mac’s semi-annual survey of homeowners and renters that the cost of everyday life presents challenges for many looking to buy or rent,” said Sam Khater, Freddie Mac’s chief economist. “One of the major challenges, when it comes to affording a home, is the high cost of child care. Our analysis finds that those families paying for child care generally are left with less money for housing. Specifically, we find they, on average, pay about half of the median mortgage payment and nearly 80 percent of the median rent.”

Rhode Island Mortgage Professionals Join Forces for Annual Toys for Tots Drive

Having a child can create financial stress for homebuyers in pursuit of property, according to a new study from Freddie Mac. The study noted the real price of child care (when adjusted for inflation) increased by 49 percent from 1993 to 2018, but the cost of housing increased by 14 percent during that period. Freddie Mac determined that the average family spends $715 a month on child care, with this figure rising to $758 when the main parent with child care responsibilities. The cost is steeper for children under five ($948 percent, or roughly 10.5 percent of the household’s average income). Freddie Mac also noted these costs took a greater toll on lower income households and were higher in the Northeast

Professionals working in the mortgage industry plowed through snow to participate in the recent Rhode Island Mortgage Bankers Association (RIMBA) Annual Toys for Tots Breakfast at the Metacomet Golf Club. Dozens of unwrapped gifts quickly piled up, marking another successful event for RIMBA. “It will take a little more than snow to stop our members from attending,” said Patrick Deady, president of RIMBA and senior vice president and director of residential and consumer lending at BankFive. “We are proud to continue a tradition that has

brought thousands of smiles to kids over the years.”

Throughout the month of November, RIMBA reminded its members about the importance of giving back and encouraged organization leaders to host their own toy drives leading up to the event. Stacks of toys and games were collected and brought to the event for that purpose, which RIMBA leaders say was very much appreciated.

“I want to thank all of you for coming out this morning, and for bringing these fabulous gifts,” said Tom Fleming, executive vice president at RIMBA. “These items mean the world to children who are facing financial hardship.”

The Marine Toys for Tots program was established in 1947 with the mission of delivering toys to children in need. Through the program, millions of toys have been successfully distributed to children from underprivileged backgrounds. At the end of the event, members from the U.S. Marine Corps Reserve accepted the charitable donations from Rhode Island’s mortgage industry professionals.

Affordability Gap Narrows Between Homeownership and Renting

The affordability gap between homeownership and renting has grown closer over the past year, according to new statistics from ATTOM Data Solutions.

home can still be the more affordable option, even as prices keep rising.”

ABA: Delinquencies Up in Most Home-Related Consumer Credit

Consumer credit delinquencies related to homeownership were

mostly up during the third quarter, according to the American Bankers Association’s (ABA) Consumer Credit Delinquency Bulletin.

Among closed-end loans, property improvement loan delinquencies fell from 1.29 percent in the second quarter to 1.17 percent. However, home equity loan delinquencies rose from 2.70 percent to 2.86 percent and mobile home delinquencies rose from 3.31 percent to 3.47 percent. Among open-end loans, home equity lines of credit delinquencies rose

from 1.06 percent to 1.07 percent.

The ABA reported delinquencies rose in eight of the 11 consumer credit categories tracked for this report. The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, rose 15 basis points to 2.03 percent of all accounts, although it remained below the pre-recession average of 2.09 percent.

“Home equity loans have continued on page 16

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The latest study by the Irvine, Calif.-based company found owning a median-priced, threebedroom home is more affordable than renting a threebedroom property in 455 out of 855 counties, or 53 percent of the markets analyzed for the report. Last year at this time, renting a home was more affordable in 442 of the 755 counties analyzed by ATTOM. The new report determined that renting was more affordable than buying a home in 94 out of 136 counties in the report that have a population of at least 500,000 or more, or 69 percent of the markets being studied.

Renting was also more affordable option in 36 of the 43 counties with a population of at least one million or more, or 84 percent– most notably in California’s Los Angeles and San Diego Counties, Illinois’ Cook County (Chicago), Texas’ Harris County (Houston) and Arizona’s Maricopa County (Phoenix).

The new report also found median home prices rose faster than average fair-market rents in 575 of the 855 counties analyzed, or 67.3 percent, while average rents rose faster than median prices in 280 counties, or 32.7 percent. Median home prices rose faster than average weekly wages in 567 of the 855 counties analyzed in the report, or 66.3 percent.

Furthermore, the report concluded that renting a threebedroom property requires an average of 37.6 percent of weekly wages across the 855 counties analyzed for the report.

The least affordable markets for renting are Santa Cruz County, Calif. (82.1 percent of average wages needed to rent), Marin County, Calif. (outside San Francisco, at 75.3 percent), Colorado’s Park County (southwest of Denver, at 74.3 percent) and Hawaii’s Honolulu County (74.2 percent) and Kauai County (73.7 percent).

“Homeownership is a better deal than renting for the average wage earner in a slim majority of U.S. housing markets. However, there are distinct differences between different places, depending on the size and location from core metro areas,” said Todd Teta, chief product officer with ATTOM Data Solutions. “For sure, either buying or renting is a financial stretch or out of reach for individual wage earners throughout most of the country in the current climate. But with interest rates falling, owning a

IN THIS EDITION ...

NMP NEWS FLASH continued from page 15

A Message From Founding Publisher Joel M. Berman

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The turn of the calendar to a new year generally comes with new beginnings. We all make those resolutions to shed some pounds, revamp our lifestyle, and basically do whatever is necessary to break the cycle that is holding us back from greatness.

That pursuit of greatness can be an introspective one. Taking a closer look at ourselves and making that personal commitment to take oneself to new heights in the new year. Whether it be cleaning up your own organizational skills, assembling that ideal team or making an investment in education, all are steps to optimize personal output and enhance growth.

Another path one could take is to determine your own selfworth. Again, taking a look in the mirror, what are you worth to your organization? What do you bring to the table each day to help you raise the bar? What share of your company’s success is due directly to your own efforts? If you removed yourself from the equation, could the company survive?

If the conclusion is that you are a key cog in the wheel and you are not feeling appreciated or appropriately compensated, maybe it’s time to seek new employment. Is there a firm that is a better fit for you? You will never know until you seek what else exists for you in the marketplace. Sure, there may be better options with better compensation packages, but is it really a good fit? One never really knows until they get out there and explore and seek out what options exist.

This month, we bring to you our list of America’s Top Mortgage Employers. This list of 2020’s Top Mortgage Employers took a number of factors into consideration, including compensation, marketing support, corporate culture, resources, support and innovation, while being compiled. This list represents the tops in the industry and should you come to that crossroads in your career and are thinking change, please use this list as a guide to finding your way to that ideal fit to take yourself to even greater results in 2020 and beyond.

Accompanying our list of Top Employers is this month’s Special Focus on “Branching Out: Employment and Growth Opportunities.” This collection of articles from some of the top minds in the business will help guide you on your journey. Both Adam P. Smith, president of The Colorado Real Estate Finance Group Inc., and Ken Bartz, chief visionary officer of Monster Lead Group, share their perspectives on the importance of corporate culture and finding the right fit. Tim Carroll, senior national account executive for Data Facts, examines tactics a loan officer can take to excel in 2020. Ward Morrison, president of Motto Franchising LLC, takes a closer look at the importance of a positive work environment in his article. In his article, Edward Pittman, VP of communications for Carrington Mortgage Holdings, plays the role of management and describes ways in which to attract the cream of the crop in the talent pool. Shachar Rand, chief business development officer for Jet Direct Mortgage, harps upon what I mentioned earlier regarding knowing your own value in his aptly-named article, “Know Your Worth … Is the Grass Greener?” And rounding things out, Susan Sullivan, SVP of human resources for Genworth U.S. Mortgage Insurance, takes a deep dive into “The Three Cs of Employee Engagement,” Confidence, Care and Consistency.

We hope you are off on the right foot for 2020, and with the resources provided in this issue and via our Web site, NationalMortgageProfessional.com, we are right there with you, on the path to improvement, greatness and the ability to excel in this new year and beyond.

Joel M. Berman, Founding Publisher National Mortgage Professional Magazine Joel@MortgageNewsNetwork.com

become a smaller share of banks’ home-related lending portfolios due to a slow recovery in the real estate market and changes in tax treatment,” said James Chessen, ABA’s chief economist. “The good news is that home values are rising, which boosts home equity and helps mitigate home-related loan delinquencies by incentivizing consumers to meet their obligations.”

Chessen added that the overall economy “remains fundamentally sound,” noting that while consumer savings levels are improving, “it remains critically important to focus on building up a financial buffer against unexpected expenses such as auto repair or replacing a major appliance.”

“Odd though it may seem, it’s the cities at the top that are ‘struggling’ the most during this return to normalcy in the market,” said Skylar Olsen, Zillow’s director of economic research. “More than just slower growth, home values good and truly fell in many of these hubs of luxury, a sign that the excessive home value appreciation of the past several years drove prices too high— even beyond the reach of those who could afford almost anything almost anywhere else.”

Redfin: Bidding Wars at Another 10-Year Low

Zillow: 218 Cities with $1M-Plus in Home Values

Zillow is reporting there are now 218 U.S. cities with a typical home value of at least $1 million, up by three localities over the past year.

Seven cities earned the $1 million distinction during 2019: Santa Ynez, Calif.; Telluride, Colo.; Forest Hills, Tenn.; Sierra Madre, Calif.; McLean, Va.; Moose, Wyo.; and Redondo Beach, Calif. However, four cities on the list experienced property depreciation and fell off of the list: San Jose, Calif.; San Quentin, Calif.; Lexington Hills, Calif.; and Laie, Hawaii.

This marked the first year since 2016 in which any cities fell off the $1 million list as home values declined in some expensive areas after a period of extreme price growth.

However, the concentration of these million-dollar cities relatively limited. More than half of the cities are based in only three metros: 46 in San Francisco, 43 in New York City and 30 in Los Angeles. Other metro areas with million-dollar cities include Boston (10), San Jose (10) and Miami (7).

Last year’s housing market data came to a close with bidding wars at another new 10-year low, according to data from Redfin.

The Seattle-based brokerage reported that only nine percent of offers written by its agents on behalf of homebuyers faced a bidding war during December, down from 12 percent one year earlier. Raleigh and Dallas reported a bidding war rate of zero during the month, with Atlanta recording an anemic four percent rate. San Francisco was the only market where there was some degree of competition of residential property, with a bidding war rate of 26 percent, down from 28 percent in the previous month and down from 35 percent one year earlier.

However, Redfin predicted the bidding wars will be back this year.

“Bidding war rates likely hit their true bottom in December,” said Redfin Chief Economist Daryl Fairweather. “Amid the current global economic uncertainty, mortgage rates will remain low in the coming months, which will boost demand for homes in 2020.

That means more buyers competing against each other and bidding up prices.” continued on page 78

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Other lenders focus on their mortgage programs.

We’re focused on providing brokers with a unique business opportunity. One that helps them attract new clients and grow their mortgage originations with less competition, higher revenues, and repeat business. Our flexible, asset-based mortgage solutions, focused expertise in investor and small commercial properties, broker marketing toolkit, and online loan submission portal provide an integrated, turnkey business solution for brokers.

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Think business.

Resolve to Grow in 2020

By Patrick Welberg

L

et’s be honest … how many of us crammed in our busy holiday and end-of-year schedules time to complete a couple, a few, or all of our required continuing education (CE) hours in December? (FYI: The SAFE Act mandates that state-licensed mortgage loan originators complete eight hours of NMLS-approved education each year by Dec. 31 to keep their license current and, thus, be able to continue originating loans.)

After fulfilling what some believe to be boring and repetitive CE drudgery, how many of us then found ourselves thirsting for more knowledge, a different perspective, a new approach—particularly at the end of the year when we tend to reflect on the state of our careers and where we want to take them in the New Year.

That’s where a strong personal and professional development program comes in. Mortgage employers across the United States have become more focused than ever on cultivating a culture that encourages personal growth as well as professional growth.

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How can you grow personally?

Personal growth can take many forms, whether building a new skill, pursuing a passion, improving physical and mental well-being, allocating more time for volunteer service, or making some sort of change in day-to-day behaviors. Personal development is not onesize-fits-all; it must be driven by you and your interests.

Creating a personal growth plan is a great place to start. To facilitate this process, utilize any analytical and assessment tools your company may offer to help define your purpose and passion, identify your strengths, establish a solid personal vision, and set goals with concrete action plans. Two resources that Academy Mortgage uses with team members are the Myers-Briggs Type Indicator (MBTI) and CliftonStrengths Assessment, both of which lead to the self-discovery of natural characteristics, strengths, and talents essential to achieving our potential.

A driving force in personal growth is when a manager or mentor takes the time to really get to know an employee’s capabilities and goals and then works with them one-on-one to make their dreams a reality. This growth process also involves setting realistic milestones to hit along the way. Real growth doesn’t happen overnight, but real growth does happen when a person makes a genuine investment in helping another person grow. Of course, it’s a two-way street; for growth to be sustainable, we must commit to investing in ourselves.

How can you grow professionally?

Occupational behavior study after study shows that if you are happier in and living your personal life with greater purpose, inevitably you will be more engaged and passionate about advancing your career.

Professional development initiatives often come in the form of training. Make no mistake … there is a definite need for formal training covering a range of topics in the workforce. But a strong professional development program goes deeper than a one-hour session that only scratches the surface.

Make a plan to achieve your professional goals that complements your personal growth plan. As you’ve heard time and time again, we are much more likely to reach our goals if we write them down to begin with. There are numerous job aids available, either from your employer or online, to assist you with time-blocking and setting daily/weekly/monthly production milestones, not to mention playbooks on how to effectively use the CRM, technology, and marketing tools at your disposal to build your pipeline.

Take advantage of any incentives your employer may offer, especially opportunities to attend industry courses, workshops, or

conventions. If your company has a training program geared specifically toward increasing your business, join it.

For some, registering for a new course or development program is outside their comfort zone. It’s true that participating in a solid program designed to advance your career may be time-consuming, require travel, have homework, etc., but it’s all worth it in the end. The case-based learning modules, forums, field workshops, and experiential team projects included in the curriculum plant and nurture the seeds for significant professional and personal growth.

Academy Mortgage offers a program to develop the mortgage leaders of tomorrow. The Leadership Academy requires a firm 12month commitment, but the lessons learned and experience gained last a lifetime. Three classes of strong future leaders have participated in the program, which is designed to help improve how they personally and professionally influence and effectively lead people and teams. Many graduates move on to assume advisory and mentoring roles in the company.

Don’t underestimate the power of mentoring. Connect with the leaders and top producers in your company. With all of the technology at our fingertips today, you don’t even need to schedule a time to meet face to face! Ask your questions and get advice over social media or via text. You can also turn to the suggestions and recommendations of experts and thought leaders outside of the mortgage industry, representing a variety of backgrounds and disciplines.

More importantly, recruit an accountability partner to hold you to your goals, personal and professional. This could be your spouse, friend, colleague, or manager. Don’t hesitate to ask your manager to step into this role. A good manager knows the benefits that come— for all—from supporting, coaching, motivating, and inspiring you to achieve both your personal and professional goals.

Whether you are a rookie loan officer or a 12-time “President’s Club” pro, there is always room to grow both personally and professionally.

SPONSORED EDITORIAL

Patrick Welberg is a senior vice president on the sales leadership team at Academy Mortgage, one of the top independent purchase lenders in the United States as ranked by CoreLogic. The sales leadership team oversees all sales, recruiting, market expansion, and business development. Patrick is an industry veteran, with more than 23 years of experience in the mortgage business. Patrick may be reached by e-mail at Patrick.Welberg@AcademyMortgage.com, or visit Join.AcademyMortgage.com for more information.

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What or more than a month, this subject of this article and every version that I’ve written, has seen the figurative bottom of the circular file. It’s so personal to me, that I’ve been unable to properly express my feelings of sadness, faith, anger, hope, fear, optimism, apprehension, courage and gloom.

What do I use my time for, what did God put me on this Earth for and how about you?

What are you here for? Is time something that is in such large supply that we have no need to try to save it. Should we hoard it?

I have long sought the reasons for my work ethic, some might call it “aggression” and some call it “action” akin to Napoleon. How could someone who lives in a body not more than five feet seven inches and never more than 170 pounds be so aggressive?

Believe me, it is difficult to live in this body. I’m lying of course, because while suffering a serious illness many decades ago, my skinny body ballooned to a very chubby 186 pounds. But mind you, I never had an increase in weight when healthy.

I recently visited with my son, Ralph Jr., an executive officer at Plaza Home Mortgage who has moved back to the East Coast. That’s what he says, so I’ll live with that description. I’m not fully prepared to call Pittsburgh the East Coast, but won’t make a federal case out of it. Anyway, while there, my wife Chris and I were entertained to the max, spent lovely holiday time with Ralph and his angelic wife Tracey, and their extremely talented and beautiful daughter Alexis, now a member of the freshman class at Penn State. I don’t want to deviate too far from the subject, but a clue to my dilemma presented itself while driving with the family.

My granddaughter asked her dad if she could drive us to the mall and was quickly given the keys. I was already in the

F

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The

Mortgage

Godfather

at Is Time For? your time. Read as much as your brain will absorb.

Dispense with failure. Be unmindful of fear. The worst thing someone with whom you want to do business with might say to you is “NO,” and I promise you that “NO” is not personal, it’s just business. They don’t mean “NO,” they mean “Maybe.” You just haven’t yet given them a good reason to do business with you.

But you should find that reason as soon as you can because maybe you won’t get another chance. Time might run out on you.

Before you go to see someone,

find out whatever can be found about them. It will pay off surprisingly well. Use your time wisely. You can’t do business with people who don’t do business. So being sure you’re not wasting your time is paramount.

Get yourself organized, have a productive daily routine. Spend your time in productive endeavors.

Do you know what “time is of the essence” means in a contract?

Look it up. It will be a good investment of your time.

It’s about time that I came to end this. Or maybe you think it is past time.

Me, I’m going to take a nap.

Ralph LoVuolo Sr. has nearly 60 years history in the mortgage business. He was a co-founder/president of the NYAMB and a long-term member of the board of directors of NAMB. The Mortgage Godfather is available to help your salespeople do more business. He does sales rallies, Webinars, personal coaching. Call, text or e-mail (917) 5761230 or e-mail Ralph@MortgageGodfather.com.

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n National Mortgage Professional Magazine n JANUARY 2020

notice the quotation marks. It never occurred to him what it would cost “ME!” Look, I don’t want any of you to be like me, at least the old me.

I swear, I’m not like that guy anymore. At least until you piss me off. And God saved me the pain of having any offspring that fills that bill. My son, God love him, is the nicest person walking the face of the Earth, next to his sisters. He’d give anyone the shirt off his back. My daughters have no reference to the me that they knew when growing up.

They are both so pleasant and kind, they take it way too far for my liking. They decided that not being around me was enough to let the world know they would be different than their old man.

Where did I learn these habits of being so concerned about time? When did it dawn on me that there is a limited supply?

What do I use my time for, what did God put me on this Earth for and how about you?

What are you here for? Is time something that is in such large supply that we have no need to try to save it. Should we hoard it?

I’m now asking you? What are you waiting for?

The other day, I was on the phone with a couple of young clients who are new to my way of thinking. They never met anyone like me, thank you! And they found that out after a couple of sessions where I had pleasantly requested a set of goals and action plan for 2020. The conversation was so agonizing for me as I listened to why they couldn’t do this and shouldn’t do that and that brokers would get tired of them if they followed my schemes. This was the fourth or fifth time spent with a couple of guys who finally pushed me too hard and I lashed out.

Please understand, my dear reader, when you get to be my age the thought of dying enters one’s head every single day.

People my age who would deny that are lying, even if their family tree shows a life expectancy of being a nonagenarian.

My advice to you as we enter the 20th year of the 21st Century is to get on with it. Move faster, be more interested, do more with

NationalMortgageProfessional.com

shotgun seat, having called for it while coming out of the house.

Ralph told me to stay. It is the seat of honor while traversing the hills of Pittsburgh on anyone’s family vacation. Holy crap … what an experience!

That kid drives like Mario Andretti with the mindset of Evel Knievel! I was scared to death.

So frightened that I was anxious enough not to utter a word while not enjoying the experience. I was truly fearful she might take her eyes off the road and take a glance at me while maneuvering a left turn. When that short drive ended, miraculously able to breath since I had not taken a breath in the previous 20 minutes, I escaped to have a cup of tea, stress relief Purely Plants Anxiety Away Non GMO Organically Grown Tea Stress Relief with Rhodiola, Linden, Milky Oats, Licorice and Skullcap.

Taking Ralph Jr. aside, I asked if she drove like that all the time.

“Sure, just like you,” he replied.

“What?!” I almost screamed, “Get out of here!”

“Dad, she drives just like me and that’s just like you,” Junior replied.

“Ralph,” says me. “Not possible, I never took that many chances in my life.”

“Oh yeah?” he asked. “Look up your driving record from when you were her age!”

Eventually I did review it, mentally. I got into an accident on the day I got my driver’s license. And that about sums it up.

Now, as to the question at hand … why was I such an aggressive, pushy little snotnose? Blame my father. My saintless, overbearing, in-yourface, loud-mouthed father. The guy who taught me the mortgage business. The guy who pushed me over the edge more times than can be counted. The root cause of me spending 19 years in therapy.

The guy who stood in my attorney’s office when I was negotiating to be un-married and told my attorney: “Give ‘her’ whatever she wants.” You’ll

BY RALPH LOVUOLO SR.

California Consumer Privacy Act Effective January 1st

NEW TO MARKET continued from page 13

Finicity Releases New Asset Pre-Qualification Report

Verus Mortgage Introduces New Prime Ascent Plus Offering

Finicity has announced the release of its new AssetReady Report that will rapidly identify a borrower’s assets using consumer-permissioned data during a lender’s pre-qualification process.

Lenders have the option to receive balances and other data without having to ask for or include consumer SSN or date of birth. Fast, high-value data with less friction on lower probability applicants can provide lenders with better insights on how to strategically move borrowers forward in the application process without asking for detailed verification reports. Once leads have been qualified, borrowers can seamlessly permission their data for Finicity’s other digital verification solutions like assets, income and employment required for the origination process. This singlesource solution model for verification optimizes lender workflows to maximize ROI. “Now, lenders can receive more data earlier in the application process than ever before,” said Steve Smith, Finicity CEO. “This report will provide the opportunity for even more customization and better experiences for borrowers from their first interaction to close.”

The pre-qualification report includes current account balances and average balances over the previous two and six months, as well as the number of negative balances in the past six months and the most recent negative balance. The report also provides account owner and other account details.

“Getting a verified snapshot of borrower assets during the prequalification stage is key to speeding up our business processes,” Bill Cosgrove, president and chief executive officer of Union Home Mortgage, said. “Once a borrower has engaged with our digital prequalification solution the stage is set for a seamless transition into Finicity’s full suite of asset, income and employment verification tools. A single-source solution provider is a great fit for our business model.”

Verus Mortgage Capital (VMC), a fullservice correspondent investor offering residential non-QM, investor rental and fix-and-flip loan programs, has announced the launch of Prime Ascent Plus, a higher balance loan program for applicants with alternative income documentation.

Through Prime Ascent Plus, the following features are available to choose from: LTVs up to 90 percent; FICOs down to 660; 24-month standard documentation options; 12and 24-month alternative documentation options for selfemployed borrowers; 24-month Alt Doc 1099; DTI up to 50 percent; and loan amounts from $150,000-$2.5 million.

Prime Ascent Plus is available for second homes, investment properties and interest-only loans. There are cash-out options as well.

“There is a significant number of creditworthy individuals that need higher balance loans but struggle with qualifying for one reason or another,” said Verus Executive Vice President of Correspondent Sales Jeff Schaefer.

“Our new Prime Ascent Plus Program is inherently flexible which makes it a suitable option that lenders can confidently offer their borrowers.”

By Gavin T. Ales

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he California legislature passed, and Gov. Jerry Brown signed into law on June 28, 2018, the California Consumer Privacy Act (CCPA), effective Jan. 1, 2020. The CCPA imposes significant new duties on businesses who collect the personal information of California consumers, including mortgage lenders and brokers, as well as their service providers such as DocMagic.

While the CCPA is effective Jan. 1, 2020, there is an included provision which prohibits the California Attorney General from bringing any enforcement action until at least July 1, 2020 or six months after final regulations are published, whichever is sooner. As of Dec. 31, the California Attorney General has not published final regulations for the CCPA, so enforcement may not occur until at least July 1, 2020.

The CCPA requires that businesses that collect personal information of California consumers provide a Notice of Collection at or before the collection occurs. The Notice of Collection must include the categories of information that are to be collected and the purposes for which the categories will be used. Businesses must also disclose to California consumers that they have a right to request to know what personal information has been collected about them by a business and that they have a right to request to delete such information. Businesses that sell the personal information of California consumers must also include a description of the consumer’s right to opt out of the sale of their information.

Businesses must have processes to verify consumer requests to know or delete personal information and respond appropriately in place.

While not finalized, the Attorney General’s proposed regulations included requirements for businesses to provide certain notices to consumers, procedures for handling consumer requests, as well as rules regarding personal information of minors and rules regarding non-discrimination practices. The AG’s office proposed regulations in October and then held a series of meetings and hearings to solicit public feedback. Comments on the proposed regulations were accepted until Dec. 6, 2019. As of Jan. 2, 2020, the Attorney General has not yet posted final regulations for enforcing the CCPA. As a result, no enforcement by the Attorney General may occur until July 1, 2020, according to the terms of the CCPA statutory text.

Businesses that collect the personal information of any California consumer should review their own privacy policies and disclosures to ensure compliance with the provisions of the CCPA. Lenders and brokers will likely find it necessary to amend their public-facing privacy policies, such as on their Web sites or on any online application or prequalification request portal, to include notices to California consumers of their rights under the CCPA.

Gavin T. Ales is chief compliance officer with Torrance, Calif.-based DocMagic Inc. He may be reached by phone at (800) 649-1362, ext. 6446 or e-mail Gavin@DocMagic.com.

SPONSORED EDITORIAL

Wolters Kluwer Launches New Consumer Lending Online Application Offering

Wolters Kluwer’s Compliance Solutions business has launched Online Applications for Consumer Lending (CLA), a digital offering that enhances the online loan origination capabilities of U.S. community banks and credit unions. CLA allows consumers to begin a loan application from any digital device, at any time. It integrates seamlessly with Wolters Kluwer’s ComplianceOne solution, a loan documentation and processing system that helps lenders optimize their lending and document preparation processes in a secure, fast and cost-effective manner.

With just a few clicks from their device of choice, a prospective borrower can begin the process for obtaining a loan online, rather than visiting a branch to get started. With CLA, the borrower enters information continued on page 47

SHINING THE LIGHT ON

NON-QM

LENDING

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Deephaven Mortgage is shining the light on Non-QM lending by providing products specifically designed to address the needs of millions of borrowers who are unable to obtain a traditional mortgage. In return, this allows originators to expand their business by reaching out to a broader group of borrowers.

Help shine the light on Non-QM for your potential borrowers. Contact us by visiting www.deephavenmortgage.com and selecting either Correspondent or Wholesale.

We look forward to you getting in touch with us today!

Deephaven Mortgage® LLC. All rights reserved. This material is intended solely for the use of licensed mortgage professionals. Distribution to consumers is strictly prohibited. Program and rates are subject to change without notice. Not available in all states. Terms subject to qualification. For more information on Deephaven’s state licensing, visit the NMLS Consumer Access webpage at http:// nmlsconsumeraccess.org/. NMLS #958425

n National Mortgage Professional Magazine n JANUARY 2020

Millions of potential borrowers are locked out of today’s conventional mortgage market.

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or many, technology has become the knight in shining armor destined to save the mortgage industry from margin compression and disjointed processes. We’ve spent the past two or three years researching and investing in major technological upgrades designed to do just that. However, it turns out that just implementing a new LOS or online application process isn’t an instant panacea. It still takes well over 40 days to close most loans, and most lenders are only reporting moderate improvement at the margin. From the real estate agent to the mortgage originator to the closing agent, all can still provide numerous recent examples of unnecessary delay or error over the course of the daily mortgage process.

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What happened?

It turns out that adoption and implementation are only a part of

a much larger strategy needed to turn technology into a true “solution.” The challenge continues to be age-old, and the true answer to the problem is something that’s been before us for decades.

Ours has always been an industry of partnership and collaboration, even if the pieces haven’t always fit perfectly. Today, too many of the service providers charged with stewarding the close of a mortgage loan still don’t easily mesh on the virtual production line of the typical loan—in terms of technology or general process. Thus, even if every actor has a shiny new solution, the result remains delay, confusion and frustration if and when each provider’s solutions don’t work well with those of others. As a result, even in the aftermath of the eMortgage revolution, there are still real estate agents residing in voice mail hell. There are still loan officers struggling to communicate with underwriting. And there are

still closers waiting endlessly on the “clear-to-close” without real insight into where the process really is.

To truly make the homebuying process as close to seamless as we can, we should take a look at how some of the transactions smallest providers make things work from a strategic outlook. In the coming months and years, the small business especially—be it mini-correspondent, community bank or independent originator— will have a huge role to play in making the new tech work. The following are a few elements that will be necessary for all parts of the mortgage equation (broker, lender, closer) to make fundamental for the process to truly advance. And all are things that virtually every successful small mortgage-related business has already incorporated as a matter of survival.

Flexibility Flexibility is an easy, catch-all “strategy” that can be

recommended for virtually anything. It can mean a lot of different things. But it’s still definitely something the mortgage industry could use a lot more of.

Too often, the technologies or systems we adopt have been designed with only one function in mind. Lenders have their LOS. Title insurance firms have their own production systems.

Wholesale lenders and brokers have their own solutions. But when they all come together—as is wont to happen in a typical mortgage loan transaction—they all seem to vie for “control” of the overall process. As a result, where touchpoints and handoffs turn into chokepoints and traffic jams, we see countless, inefficient “work-arounds” used at the front line simply to make the process work any way possible. We need to see more of (and are starting to see) a recognition that there isn’t “one solution” to the mortgage process. That kind of thinking creates silos.

Similarly, we all need to be

The Human Face Digital Revolution The mortgage industry can solve one of its longest-standing challenges by learning from some of its smallest members

By Jim Paolino

A global strategic outlook The mortgage industry has long understood, more or less, that it needs to improve the way its various producers collaborate.

The mortgage transaction, at its heart, is a complex collaborative process. While more and more technology providers are finally starting to incorporate that understanding into their systems, we still have a long way to go on the whole. Again, a great example of this can be found at the small loan originator’s level. Out of necessity, independent originators tend to think at a level that puts the borrower first. To do that successfully, that small business must think globally: “Where can I go to get the best solution for this borrower? What is the fastest and best way to deliver the product?”

In other words, to serve at a granular level, the mortgage broker has no choice but to think at the highest of levels. To insist on taking a siloed or inwardlyfocused strategic outlook will bring a swift death to all but the hardiest (or luckiest) of brokerages.

We can learn from this. In fact, we’re already showing signs that we are. But from the GSEs to the largest lenders to the mid-sized wholesale lenders right down to the single loan officer, our thinking when it comes to collaboration and process needs

to consider the reality of what the other parts of the transaction need to serve their purposes effectively. Our strategic thinking has to evolve beyond “how can I do my part in the transaction as best I can?” toward an approach that asks “given the realities facing me, how can my firm improve the transaction as a whole?” More and more, the most successful mortgagerelated businesses are incorporating and accommodating the realities of their partners and vendors. We need to start doing this universally.

It’s been said again and again that technology is only a tool.

That concept is being proven before our very eyes. Perhaps some firms purchased systems in the hopes that they’d serve as some kind of keystone, bringing all of the disparate processes into order with the flip of a switch. There’s no doubt that technology can and should be an integral part of speeding the pace and reducing the cost of the transaction. But it’s going to take sweat and collaboration on the part of all the players to truly make it work.

Jim Paolino is chief executive officer of Lodestar Software Solutions. He manages the day-to-day operations, as well as overseeing business development and the long-term strategic direction of LodeStar, which develops loan estimator, sales management and closing portal technology.

He has a decade of experience developing software solutions specifically for the mortgage and title insurance space. Jim speaks frequently on technology trends as they relate to compliance, operational efficiency and sales growth.

He can be reached at JPaolino@LSSoftwareSolutions.com.

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Breadth, as well as depth, of knowledge This is another symptom of an industry that, while acknowledging its segmentation, continues to cling to a “throw it over the fence” mentality once its own respective part of the job is done. There are a lot of great new (and great existing) technological products in our space, with more coming. And while we are seeing more of the tech developers show

a willingness to build in integrations and flexibility, there’s still often a lack of understanding or even some misperception as to how our partners and their systems work. To truly make the mortgage origination process more seamless, more firms of all sizes and in all segments need to better understand how all of the parts fit together. This will inform our own processes and serve the ultimate customer—the borrower—in the end.

The small firm, such as the mini-correspondent, has to understand a multitude of systems used by its various clients. Some are proprietary, some are widely used. That minicorrespondent simply doesn’t have the luxury of turning down a wholesale partner simply because their respective technologies aren’t compatible. The minicorrespondent has to make itself compatible, or find a way to make the marriage work. A broker may work with dozens or even hundreds of different solutions deployed by his or her wholesale partners. Similarly, the very best wholesale lending partners are flexible enough to work with brokers who may not have the latest technology. Simply having a better understanding of how the different parts of the transaction tick, and how each part of the product is made and delivered, could greatly serve virtually any business in the mortgage industry and go a long way towards ending the severe segmentation we still see today.

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more flexible in how we work with our clients as well as their vendors and partners. Too many times, the prescribed processes of each partner to the transaction fail to meet. As we design (and redesign) our workflows and processes, we as an industry need to show even more of an ability to adapt and adjust quickly and without pain. That understanding alone can inform the developers making the technology advances happen.

This is where the small business will play a huge role.

Although tech investment costs can be a huge burden for the smaller firm, it’s generally the small business (like the individual broker) which needs to show the most flexibility. After all, it often falls to the trusted advisor in a transaction, such as an LO or broker, to be the “fixer” where the process breaks down between two different firms. A lot of the larger players in the industry could benefit from observing some of that inherent flexibility.

While this is not to say a large cap firm can be as fleet of foot as the three-person shop, there are characteristics, starting with strategic outlook and willingness to adapt, that any firm of any size can study and emulate.

heard street on the

Our Heard on the Street column is a chronicle of events, changes and passages in the lives of the people and companies shaping the mortgage industry.

Home Point Financial Partners With Hippo Insurance

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Hippo, a California-based insurtech company, and Home Point Financial have teamed up to bring Home Point customers access to modern home insurance.

With Hippo Insurance’s online application process integrated directly into the Home Point online mortgage portal, customers can now take advantage of home insurance savings and better coverage, with premiums that can be paid directly through their escrow payments. Hippo Insurance is the exclusive home insurance provider offered within Home Point’s portal, ensuring that qualifying customers have the opportunity to select the very best coverage available for their properties.

During the partnership’s initial phase, Home Point customers purchased policies in all 20 of the states where Hippo Insurance’s policies are currently sold. In addition, Home Point customers who have purchased home insurance from Hippo have realized an average savings of $421, or 32 percent, versus their previous premiums.

Hippo Insurance saves customers money on their home insurance, with online quotes in under 60-seconds and coverage geared towards today’s homeowner. The partnership was formed due to Hippo’s unique ability to refocus home insurance back on the customer, including the company’s great strides towards providing clients protective coverage through proactive underwriting and smart home integrations. Home Point is

able to access the true value of Hippo’s technology by matching each quote to specific customers based on their current financial and home financing situation. This greatly reduces the overall work customers need to do to find home insurance tailored to their needs.

“There is a massive shift happening across financial services to put a laser focus on the individual customer and their respective needs, while promoting the right type of products and engagement,” said Brian Brizard, chief operating officer, Home Point Financial. “Hippo is as passionate about customer experience as Home Point, and so it’s our aim, together, to provide all the additional value borrower’s need as they manage what’s often the most important financial purchase of their lives. We deeply investigated home insurance providers for their customer experience, tailored coverage, pricing and technology before landing on Hippo, truly the best inclass solution for businesses like Home Point Financial and customers alike.”

PennyMac Broker Direct Joins the Lender Price Marketplace

Lender Price has announced that PennyMac Broker Direct has been added to their Marketplace pricing engine. PennyMac Loan Services LLC, a wholly-owned subsidiary of PennyMac Financial Services Inc., is a multi-channel national lender headquartered in Westlake Village, Calif.

The Lender Price Marketplace

pricing engine user base has grown five-fold since May 2019, becoming a go-to resource for mortgage brokers to search prevailing pricing from multiple wholesale lenders.

The addition of PennyMac increases the total number of wholesale lender partners to 27.

“We are aggressively growing our Broker Direct Channel and believe that brokers can leverage our Perfect Rate, Perfect Term and other granular pricing structures to grow their business” said Kim Nichols, managing director at PennyMac. “The Lender Price Marketplace is a valuable tool for brokers and we see this partnership as an opportunity to increase our visibility to brokers who could benefit from partnering with PennyMac.” Lender Price distributes the Marketplace pricing engine through a partnership with the National Association of Mortgage Brokers (NAMB). Together, Lender Price and NAMB offer the Marketplace to all of its members at no cost.

“We’re extremely pleased to partner with PennyMac,” said Dawar Alimi, chief executive officer and founder of Lender Price. “In just the past seven months, we’ve grown our user base by 500 percent and have added numerous lenders to the Marketplace. This demonstrates the demand that mortgage brokers have for a convenient way to find loan products and lenders such as PennyMac that want to reach out to a broader customer base.”

Company, the largest subsidiary of First American Financial Corporation (FAF), has announced that in less than a year, more than $1 billion of real estate transactions have successfully funded and closed using FlexClose, a warehouse financing and closing service from FirstFunding, a whollyowned subsidiary of First American Financial Corporation. FlexClose gives lenders and real estate agents the ability to control the exact time funds arrive for a residential real estate transaction closing, even after the daily Fedwire cutoff.

FlexClose brings together the capabilities of three First American businesses: Settlement services from First American Title Insurance Company, banking from First American Trust and warehouse financing services from FirstFunding.

“Surpassing $1 billion in real estate transactions funded with FlexClose reflects First American’s commitment to innovation and the company’s ongoing efforts to enhance the closing and settlement process for lenders, settlement agents, real estate agents, homebuilders and consumers,” said Chris Leavell, chief operating officer at First American Title Insurance Company. “Because we can bring together First American Title, First American Trust and FirstFunding, we can offer the real estate industry the ability to fund and close anytime, providing a level of service and flexibility that cannot be matched.”

First American Title Hits $1 Billion Milestone With FlexClose

Startup Lender Aimed at Teachers and School Employees

First American Title Insurance

NewRez LLC and its Shelter Mortgage Company LLC have

formed Landed Inc., a San Francisco-based joint venture focused on downpayment support and homebuyer education programs aimed at helping teachers and school employees afford to buy homes.

The new joint venture will include a Colorado-based lender named Landed Home Loans LLC. According to the companies, Landed Home Loans is now creating a centralized platform with a customized origination and operations system, designed specifically for Landed customers.

No timeline was given regarding when this new entity will be operational.

“We are excited to join Landed in its mission to help these critical community supporters purchase homes that might otherwise be out of their reach,” says Randy VandenHouten, senior vice president for joint venture and retail lending at NewRez. “As we continue to seek out creative leadership and innovative partnerships to complement and expand our joint venture channel, we are impressed by Landed’s outside the box and thoughtful approach to the homebuying experience.”

renovation mortgages is due to both the expertise our associates have with these loans, and the interest our customers have in them once they discover these mortgages are a viable option.”

In its report, HUD stated that Homebridge 203(k) loan production was 20 percent higher than the second-highest lender on HUD’s report, and 46 percent more than the third-highest lender on HUD’s 203(k) endorsement report.

Housing markets where Homebridge was the leader in FHA 203(k) loans include: New York; Los Angeles; San Antonio, Texas; Jacksonville, Fla.; Columbus,

Ohio; Washington, D.C.; Boston; Baltimore; Miami, Fla.; Tampa, Fla.; Pittsburgh; Newark, N.J.; and Burlington, Vt. loanDepot Expands With Opening of New Arizona Ops Center

loanDepot has announced the opening of its newest operations

site in Chandler, Ariz., marking the brand’s continued expansion within the state and across the country.

The Chandler operations center will be home to a host of loan processors, underwriters, closers and other mortgage origination professionals, who will support loanDepot’s wholesale, direct and, shortly, retail efforts. Leading the charge in Chandler for loanDepot Wholesale are Andrew Hutcheson, VP of operations; Matt Bowers, site operations leader; Jeff Carter, VP of underwriting; and Corey Williams, site underwriting leader. Matthew continued on page 38

HUD Recognizes Homebridge Financial as a Top 203(k) Lender

NationalMortgageProfessional.com

The New York Mortgage Expo is the Empire State’s largest mortgage event for loan origination professionals, bringing together hundreds of mortgage brokers, loan originators and bank and credit union lending officers from throughout the region for an event full of education, networking and fun. The event includes a broad array of event partners from throughout the mortgage community, multiple education sessions and top speakers. You’ll be growing your business and your contacts in a setting packed with passion, professionalism and fun.

To register, go to

www.mortgageconferences.com

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For the third consecutive year, Homebridge Financial Services has been ranked first in helping homebuyers with their renovation mortgage needs, according to the U.S. Department of Housing & Urban Development (HUD) yearend 203(k) Endorsement Summary. Homebridge first began offering 203(k) loans in 2011, and has made them a priority because their unique attributes can help customers breathe new life into distressed or outdated properties.

“Unfortunately for homebuyers, renovation mortgages are one of the best-kept secrets in our industry and a very misunderstood loan category,” said Steven Marshall, Homebridge’s national director of renovation lending.

“They should be on the radar of almost any homebuyer, and even homeowners looking to renovate, but they’re not because many lenders do not offer them to their customers. When a borrower cannot find a home that meets their needs in terms of location, design and affordability, they delay their purchase and the entire housing market suffers.

Homebridge’s success with

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David Anderson (Ex-NFL athlete): “Separate yourself.

Whether that’s taking a chance, whether that’s working harder, whether that’s never giving up.

Ultimately, I think you separate yourself from the pack, and in turn, you can become great.”

Drew Canole (fitness celebrity): “Living an authentic life the best way that you know how to do it.

It’s your own path, it’s your own life, so you should live it

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on your own terms. And when somebody does that, and they get happiness out of it, then that’s a great life.”

Rich Roll (UltraMan World Champion): “To me, being great means being the most actualized version of yourself; the best version of yourself.

Having the ba*** and courage to look inside yourself and do the work to figure out what gives you a heartbeat and what gives you purpose. To find that passion inside of you. And then set in motion a series of actions that lead to a plan to help you more fully actualize that and live that.

Because that is what being great is, and that’s what will make you happy.”

So how do you go beyond great?

The reason being if you are going to go “Beyond Great,” how are you going to know how to do that? If your best is what you already have been giving, then how do you give more. Well as the story goes, there is always more. There is always a little more oomph in the engine.

I would tell you what “Great” is to you is going to change. Our lives evolve. I remember saying to my parents, “When I am an adult, I will never say the words just because” as a reason for making my children do something. I said I would give an appropriate and acceptable reason. Well, turns out I have used that many times. We change.

When I was a young originator, I wanted to become the best. My quest was for glory, for bragging rights, for “greatness” as I defined it. When I got there, my eyesight moved, to the next mountain I had to conquer, always testing my limits. I was

looking every single year for greatness. The new greatness.

And here we are, coming off an exhausting and rewarding year that broke all records for the higher percentages of business owners in our field. We reached a “great” level of production. A “greater” than the year before level of volume. We did a “great” job.

There is still some fuel left in the greatness tank for others!

So, when I think about going into this year, it is as if we need to go “Beyond Great” and I am going to tell you that I think that place is where we give more. Not to our wallets, per say, not to our companies, although I know we will do an astonishing job grabbing market share everywhere we can this year and in every way we can learn. But to give it back and pay it forward.

How are you going to go “Beyond Great” I ask? Some people have already begun foundations that have created scholarships. Others upped new charity amounts or found new and meaningful ways to give back. More people went to school to educate and be the stand-in guest speaker. Even more began to mentor those

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See, if you look around and you ask me, we are living in a year of “Beyond Greatness.” I call it “Beyondness!” So, what I am hoping to do this year is see more of it, so I can applaud it and maybe even feature you here in this blog. So, I am throwing down a challenge. The “Beyondness” Challenge. I am challenging you to go “Beyond Greatness” with us this year!

If you do something this year that is even greater than you imagined or did a prior year, if you find a new way to take our ample living and spread the cheer, the warmth the love and the greatness, I ask you to tag me, Christine Beckwith and hashtag the word #beyondness and the #thebeckwithblognmp and I ask you to share a positive thought, a lesson or post an image of you serving others in your “Beyond Great” way.

Yes, this year, the year of the 2020 which lends to all the OCD people in the world. The year movies talked about that provoked an entire world to say the words “2020 Vision” and for my company 20/20 Vision for Success Coaching which was named in 2006, when I never even gave thought to the year 2020, I find myself here with you … in the “Beyond” portion of my career … and I keep thinking of ways still after 30 years to find new greatness.

What will yours be? #beyondness ... #thebeckwithblognmp ... Show me your “Greatness in 2020!”

I truly look forward to seeing readers participate in this. It will be a movement if we all find ways to do this. And, copy the link to this very article over to your post, pay forward the “Beyondness” purpose and meaning!

Let’s go Beyond in 2020!!!

Christine Beckwith is a 30-year mortgage industry veteran who has broken many glass ceilings and has blazed a trail for many female professionals to come. Christine is currently president and chief operating officer of 20/20 Vision for Success Coaching and Consulting, a decorated, sought after and award-winning leader. Christine may be reached by e-mail at Christine@VisionYourSuccess.net.

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“When I was a young originator, I wanted to become the best. My quest was for glory, for bragging rights, for ‘greatness’ as I defined it. When I got there, my eyesight moved, to the next mountain I had to conquer, always testing my limits.”

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Who is “Great?” and what defines “Greatness?”

Well I took to my search engine to ask: “What defines ‘Greatness’” because I have my opinion, but I want to know what the rest of the world thinks! Bing offered me these top three quotes! As it turns out “Being Great” to these athletes is not just about MORE, it’s about ultimately understanding what your GREAT is!

What defines Greatness?

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have the pleasure every single day, and for decades now, to work with professionals who want to better themselves. Coming to this intersection in my life where I have been seeing what plagues professionals and what sets apart the true sales studs of our industry, I think this January’s “Beckwith Blog” should help people look to the year ahead with some real clarity.

What is that called … 2020 VISION! Right … the overused phrase of the year. Pun intended!

So, what truly sets apart those looking “Beyond Great” to a place where they can still “up their game?” I think it’s attitude, desire, competitiveness, regimen and goals. Do you have any of these? I see people who broke records last year striving for the next level. I see people who moved from one employer to another and just now are breaking a stride.

But I see it … I see the return of the true contenders, the competitors, the fighters and the champions.

And the most beautiful part about the view I see is the entire fire that has been set in our industry. How this new world we are living in today has a sense of growth again and excitement renewed.

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Money Laundering and Mortgag

By Michael “Br

urjit Singh and Rashjeawar Singh, a father and son from Dublin, Calif., recruited straw buyers to purchase properties in and around Dublin, Calif. The Singhs purchased at least 14 properties and were able to collect origination fees and commissions on approximately $9.3 million worth of real estate.

The Singhs, as part of the scheme, created fraudulent loan applications and supporting documents in order to induce lenders to fund the mortgages.

The Singhs also set up various limited liability companies (LLCs) to receive some of the commissions and fees trying to avoid further scrutiny of the transactions. As you would expect, the fraud was eventually discovered and the Singhs were sentenced to 11-plus months in

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prison in 2018.1 This is just one example of how mortgage brokers and other real estate professionals can fall into money laundering traps. If you don’t take steps to protect yourself and your colleagues, a similar incident could occur in your organization.

Real estate has always been appealing to money launderers.

Real estate is often the preferred destination for a financial criminal’s ill-gotten gains for the same reason real estate is attractive to any investor: Real estate prices are generally stable and will appreciate over time.

Real estate is also functional; a money launderer could use the property as a second home or rent it out, earning income from the investment.2 High-dollar transactions allow money launderers to legitimize millions of dollars in illicit transactions in

a single step, and they do not mind paying the high commissions and origination fees to do so.

As late as 2012, some mortgage lenders and originators were not subjected to the provisions of the U.S. Government’s Bank Secrecy Act, but the Financial Crimes Enforcement Network (FinCEN) changed the rules. Now, even non-bank residential mortgage lenders and originators are required to, among other things, identify specific information about their customers, maintain appropriate records, and maintain an adequate Anti-Money Laundering (AML) program. Yet despite these rules, how much has really changed?

Money launderers have clearly not backed off in their real estate purchases. In 2015, the “Towers of Secrecy” investigations in the

New York Times exposed the scale of foreign dark money clouding Manhattan’s glittery skyline. More than half of the $8 billion spent annually on New York real estate worth more than $5 million involved shell companies.3 Money launderers utilize shell companies because they serve multiple purposes and the United States is leading the charge. The U.S. has 10 times more shell companies than the next 41 jurisdictions combined, according to the World Bank.4 Money laundering consists of three stages commonly identified as placement (getting the money into the banking system), layering (moving money around to hide its’ source), and integration (utilizing the money as if it were from legitimate sources). With real estate transactions, the most common stage encountered is integration, but with a little help

ages: How To Keep Yourself Safe

ael “Bret” Hood

from corrupt or willfully blind professionals, both placement and layering can also be accomplished. Fictitious loans, false loan applications, fraudulent attestation letters, and simultaneous closings can produce a paper trail designed to deceive other financial professionals as well as governmental and regulatory authorities.

One of the biggest red flags for mortgage brokers is the utilization of shell companies or LLCs for the purchase or sale.

Shell companies, despite their legitimate uses, allows buyers and sellers to hide their true identities by masking ownership in deep layers or by placing ownership in countries and states, which lack transparency.

When setting up a limited liability company (LLC) in states like Delaware, Nevada and Wyoming,

the owner doesn’t even have to list their name. They have to name a director and an agent, but that person can be anybody, and there are companies that exist simply to serve as director of LLCs where the beneficial owner doesn’t want to be named.5 As you would expect, the anonymity provided by shell companies is very attractive to criminals who are seeking to legitimize ill-gotten gains.

There are efforts underway to mandate greater accountability via transparency through the open sharing of beneficial ownership of LLCs, but until that happens, mortgage brokers are at risk for knowingly and unknowingly participating in illicit transactions. FinCEN has now required financial institutions, including non-bank residential and mortgage lenders and originators, to verify the identity

of beneficial owners who are utilizing LLCs in a real estate transaction.6 Verifying beneficial ownership of foreign LLCs may be quite difficult. Some mortgage brokers may be forced to rely on paperwork submitted by the lender of borrower, which may not be the best verification method. The World Bank has tried to address this issue by setting up a site that could assist mortgage brokers and other financial professionals in identifying beneficial ownership in LLCs established in countries outside the United States (https://Star.WorldBank.org/Cont ent/Beneficial-OwnershipGuides). The published guide lists 24 countries detailing what information is available and how you can go about requesting said information. While the list is certainly not all-encompassing, it can give you a reference point to

determine what is and isn’t available, as well as the processes used in the referenced country to set up LLCs. When you come across an LLC formed in a country that is not on the World Bank’s list, the Financial Action Task Force (FATF) is yet another tool for mortgage brokers to utilize. At the FATF Web site (FATFGAFI.org), there is a list of countries that are on “monitored” and “call for action” status. FATF officials have identified these countries as lacking in effective money laundering controls. If you, as a mortgage broker, see funds coming to/from these countries or if LLCs are registered in these countries, it should serve as a red flag to take further steps to ascertain whether or not the transaction is continued on page 74

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National Mortgage Professional Magazine is proud to announce its annual list of Top Mortgage Employers. We polled our readers about their employers based on the following criteria: l Compensation

l Corporate culture

l Training resources

l Speed

l Long-term strategy

l Industry participation

l Marketing support

l Day-to-day management

l Innovation

l Technology

l Internal communications

Based the above criteria, we weighted factors that are more important to our readers (i.e. our readers told us that factors like corporate culture was considerably more important to them than speed of company), collected votes and factored in industry reputation to create a list of Top Mortgage Employers.

Mortgage Lenders: Regional (26 to 500 MLOs) Company Name

Web site

Phone #

CFIMortgage.com

(407) 869-0008

Entrepreneurial originators who need a solutions-oriented support team behind them.

DelmarMortgage.com

(314) 434-7000

Knowledgeable mortgage loan originators who can convey proper expectations to clients and trust the office support to handle the rest.

[INSERT: Direct_Mortgage

DirectMortgageLoans.com

(888) 604-2525

We believe that a solution-focused, positive attitude drives extraordinary results.

[INSERT: Equity_Resourc

CallEquity.com

(800) 270-7082

Service-driven individuals who are passionate about helping to improve the lives of families in the modern technology era.

[INSERT: Family_First_Fund

Fam1Fund.com

(800) 542-7895

Employees with the motivation to learn and grow will excel and reach their full potential at Family First Funding.

FBCHomeLoans.com

(407) 872-3383

Anyone at Team FBC has the ability to reach their full potential, whether you are in sales, operations or administration.

Christensen_Financial_Logo]

Delmar_Mortgage_Logo]

[INSERT: FBC_Mortgage_Logo]

Who excels at this company?

33 [INSERT: First_Guaranty_Logo]

Self-starters who are passionate about helping borrowers reach their mortgage goals.

[INSERT: George_Mason_

GMMLLC.com

(703) 273-2600

Goal-setting and effective communication allows every employee the opportunity to further advance their expertise.

[INSERT: Gold_Star_Mortg

GoldStarMTG.net

(888) 696-1344

Technology-focused individuals who are driven to always improve the customer experience.

[INSERT: Hancock_Mortgage_

HancockMortgage.com

(888) 391-8237

Our loan originators, as we work hard to help them with their marketing needs and training (onboarding, leadership, training, etc.).

[INSERT: Inlanta_Mortgage_L

Inlanta.com

(877) 326-5626

Top originators looking to focus on what they do best—sales—while being supported to build and better their business.

JetDirectMortgage.com

(800) 700-4JET

Originators who are driven to excellence in customer experience.

MyKeyMortgage.com

(847) 296-5757

Individuals who are continuously improving to become the best version of themselves and are excited to have their best year.

MortgageCorp.com

(800) 964-5363

Conscientious, hard-working employees who consistently go the extra mile to provide uniquely-personalized service to their clients and colleagues.

[INSERT: Jet_Direct_Mo

[INSERT: Key_Mortgage_Logo]

[INSERT: Mid_Island_Mortga

n National Mortgage Professional Magazine n JANUARY 2020

(703) 556-3333

NationalMortgageProfessional.com

FGMC.com

Mortgage Lenders: Regional (26 to 500 MLOs) Company Name

Web site

Phone #

MEPLoans.com

(781) 309-1800

Employees who work as a team and are willing to share ideas to make the workplace better!

MWFInc.com

(888) 793-6470

Motivated individuals who are dedicated to providing its customers the courteous one-on-one attention they deserve, every step of the way.

[INSERT: Nations_Lending_Log

NationsLending.com

(877) 816-1220

Success-focused individuals who root themselves in the company culture and put the customer first over everything else.

[INSERT: NewFed_Mortgage_Lo

NewFed.com

(781) 241-1200

Producing loan officers strive at NewFed Mortgage because they offer an extreme amount of management support and administration support.

[INSERT: NFM_Lending_Logo]

NFMLending.com

(888) 233-0092

Loan originators who embrace technology to provide a better customer experience, while assuring a personal touch in every home purchase.

[INSERT: Penrith_Home_Loans_

PenrithLoans.com

(800) 383-3355

Sales managers keep Penrith mortgage consultants encouraged and provide support to help better serve its clients.

[INSERT: Planet_Home_Lendi

PlanetHomeLending.com

(844) 358-8163

Branch managers and MLOs seeking growth through the industry's best onboarding and a full support business model.

[INSERT: Premier_Nationwide_

LoansByPremier.com

(866) 831-5111

Dynamic individuals who are dedicated to providing an extraordinary mortgage experience by exceeding client expectations one loan at a time.

RadiusGrp.com

(781) 742-6500

Radius employs some pretty cool people who work as hard as they play, frequently volunteering their time and energy to benefit the communities in which they live and work.

RMSMortgage.com

(800) 640-0753

Technology-comfortable individuals who are motivated to provide an excellent borrower residential mortgage experience.

SDCapitalFunding.com

(855) 549-7001

Someone willing to challenge the status quo. Always looking for a better way and different and bring in more loans!

[INSERT: Sierra_Pacific_Mortga

SierraPacificMortgage.com

(800) 447-3386

Any Sierra Pacific Mortgage employee that champions the company motto: Promises Made. Promises Kept. Everyday. Every Customer.

[INSERT: Success_Mortgage_P

SuccessMortgagePartners.com

(734) 259-0880

Loan officers who want more loans to come in and want somebody else to chase conditions and put out fires.

WAFirstMortgage.com

(425) 576-5462

Washington First Mortgage values teamwork, respect and motivation. We strive for growing knowledge inspire ourselves as well as those around us.

INSERT: MEP_Logo]

[INSERT: Mountain_West

Who excels at this company?

JANUARY 2020 n National Mortgage Professional Magazine n

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[INSERT: Radius_Financial_Logo]

[INSERT: RMS_Logo]

[INSERT: SD_Capital_Fundin

[INSERT: WA_First_Mortgag

Mortgage Lenders: Regional (26 to 500 MLOs) Company Name Wallick _Volk_Logo]

Web site

Phone #

WVMB.com

(800) 280-8655

Who excels at this company?

Top mortgage advisors focused on providing an exceptional customer experience.

Mortgage Lenders: Larger (More than 500 MLOs) Company Name

Web site

Phone #

Who excels at this company?

Join.AcademyMortgage.com

(800) 660-8664

Purpose-driven mortgage professionals who want to grow both personally and professionally.

[INSET: AFN_Logo]

JoinAFN.com

(888) 636-7573

Entrepreneurs who love to grow, learn, have the freedom and autonomy to do business their way with full support.

[INSERT: American_Pacific_Mo

JoinAPM.com

(916) 960-1325

Employees who make it their personal mission to deliver the best possible loan experience and solutions to their borrower.

[INSERT: CMG_Financial_Logo]

CMGFI.com

(925) 983-3000

Innovative originators looking to try new programs and products to grow their market share.

NSERT: Academy_Mortgage_Lo

[INSERT: JMAC_Lending_Logo]

Mortgage professionals who are focused on technology and customer services.

NewRez.com

(888) 673-5521

Make your job as big as you can—contribute, add value, achieve!

[INSERT: PRMG_Logo]

PRMG.net

(866) 776-4937

Employees who embrace PRMG’s core philosophies to help provide its customers with an enhanced experience through better technology, pricing and service!

[INSERT: PRMI_Logo]

PrimaryResidentialMortgage.com

(800) 255-2792

Driven originators who thrive under the freedom to run their own business, but want the support of a nationwide company.

UFFWest.com

(855) 953-2453

Go-getters and team-players, going above-and-beyond to make the borrower happy, and those leveraging technologyautomation to enhance the borrower experience.

[INSERT: NewRez_Logo]

[INSERT: UFF_Logo]

Mortgage Lenders: Independent (Less than 25 MLOs) Company Name INSERT: RCN_Capital_Logo]

[INSERT: University_Lending_G

Web site

Phone #

Who excels at this company?

RCNCapital.com

(860) 432-5858

Motivated individuals who are dedicated to providing superior customer service and thrive in a fast-paced work environment.

University-Lending.com

(586) 783-7900

Team-oriented originators with a self-sourced business line, driven to excel in superior customer service.

n National Mortgage Professional Magazine n JANUARY 2020

(949) 390-2688

NationalMortgageProfessional.com

JMACLending.com/contact-us

35

Mortgage Lenders: Independent (Less than 25 MLOs) Company Name Vantage_Mortgage_Group_Logo]

Web site

Phone #

VantageMortgageGroup.com

(503) 496-0431

Who excels at this company?

Those with internal motivation and unrelenting integrity who see the digital future and wish to thrive as an independent mortgage broker.

Service Providers—Services and Other Non-Originators (More than 20 Employees) Company Name

Web site

Phone #

INSERT: ARMCO_Logo]

ARMCO.us

(800) 858-1598

Employees who go above and beyond are always praised by team members and rewarded by the executive team.

[INSERT: Class_Valuation_Logo]

ClassValuation.com

(248) 955-9580

Class Valuation looks for employees who are passionate and believe in going the extra mile for its customers.

[INSERT: Credit_Plus_Inc_Logo]

CreditPlus.com

(770) 380-6970

Individuals dedicated to customer service excellence and professional growth who value teamwork and the unique culture excel at Credit Plus.

[INSERT: DocMagic_Logo]

DocMagic.com

(800) 649-1362

Employees who thrive at DocMagic are smart, tech-savvy, highly-motivated, service-oriented and take extreme pride in what they do.

[INSERT: IDS_Logo]

Info.IDSDoc.com

(800) 554-1872

Thorough, thoughtful, fun-loving, tech-savvy individuals with a passion for customer service

[INSERT: MCT_Logo]

MCT-Trading.com

(619) 543-5111

Team players who collaborate and help one another, and are laser-focused on providing excellence in lender client support.

Out-of-the-box thinkers.

OpenClose.com

(561) 655-6418

OpenClose is big on hiring staff that has experience working at both mortgage lenders and mortgage technology vendors.

[INSERT: Quandis_Logo]

Quandis.com

(949) 525-9000

Quandis has an unwavering desire to innovate, charge ahead, navigate through new terrain and deliver superb mortgage technology solutions.

[INSERT: Verus_Morgage_C

VerusMC.com

(651) 352-4400

Professionals committed to staying ahead of the curve in this industry and helping lenders succeed in non-QM excel at Verus Mortgage Capital.

JANUARY 2020 n National Mortgage Professional Magazine n

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[INSERT: OpenClose_Logo]

Who excels at this company?

Wholesale Lenders Company Name SERT: A_D_Mortgage_Logo]

[INSERT: ACC_Mortgage_Logo]

Web site

Phone #

Who excels at this company?

ADMortgage.com

(305) 760-7000

Individuals who are driven to provide exceptional customer service and a memorable experience for all parties.

WeApproveLoans.com

(240) 314-0399

The employee that excels is the employee who effectively communicates and sets the right level of expectation.

Wholesale Lenders Company Name

Web site

Phone #

Who excels at this company?

NSERT: Angel_Oak_Logo]

AngelOakMS.com

(855) 539-4910

Those who excel ask smart questions and listen. They know their products to get to the closing table quickly.

[INSERT: Carrington_Mortgag

CarringtonWholesale.com

(949) 517-5569

Carrington Mortgage Services is a brokerand banker-focused organization that delivers exceptional loan solutions, customer experience and results to our partners.

[INSERT: Flagstar_Bank_Logo]

Flagstar.com/retailmortgage

(800) 945-7000

Innovative, customer-focused, relationship builders with a passion for delivering the best solutions while developing and utilizing best of breed technology.

[INSERT: Greenbox_Loans_Logo]

GreenboxLoans.com

(213) 235-4204

Employees who focus on making everyone around them successful in the company goals, mutually achieve beneficial goals.

[INSERT: REMN_Logo]

REMNWholesale.com

(732) 738-7100

Self-starters and driven salespeople thrive at REMN!

[INSERT: UWM_Logo]

UWM.com

(800) 981-8898

Driven, team players who demonstrate a strong work ethic, positive attitude, and are committed to delivering elite client service.

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Your State SpeciďŹ c Digital Edition Want to stay informed on a more local level? The contents of our state e-editions include all of the content from our national publication plus state-specific mortgage association information, including the President's Message, which highlights local issues, such as regulatory and legislative matters, along with the state calendar of events. (

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n National Mortgage Professional Magazine n JANUARY 2020

The NMP Mortgage News Ticker is a daily news feed that gives you a snapshot of the hottest mortgage news stories from around the web. Stay informed of the most recent headlines and blogs, all compiled into one convenient daily email.

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The NMP Daily Email Newsletter is your source for breaking news, insights and tips. Get free access to full articles including the hottest industry headlines, featured articles and other mission critical mortgage industry stories delivered to your inbox each day.

HEARD ON THE STREET continued from page 27

Wimer, VP of underwriting, will oversee production operations for loanDepot Direct.

Founded in 2010 by Anthony Hsieh, loanDepot has risen as one of the nation’s second largest nonbank lenders and retail home lender, thanks in part to its proprietary mello technology.

“It’s exciting to see the foundation of such great talent as they start something amazing here in Arizona,” said loanDepot Chief Operating Officer Tammy Richards.

“Having the best people and technology is critical to help us transform and lead the industry under the vision and direction of loanDepot’s Founder and CEO Anthony Hsieh. Our operations superstars are an invaluable component to providing a seamless experience for our customers.”

American Financial Network Now Licensed to Lend Nationwide

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American Financial Network Inc. (AFN) has announced that it has obtained its final state license, making it a true nationwide lender licensed in all 50 states, plus Washington, D.C. In addition to expanding its reach across the country, AFN announced its technology expansion whereby a single-source Command Center portal will encompass most of the company’s technological needs and streamlines processes for its branches and all personnel.

“As a constantly-growing company, we are excited to expand and bring our brand to New York and Vermont, the final two states rounding out our national lending status,” said John Sherman, president of AFN. “We have a large presence on the West Coast and have spent the last decade extending our reach across the country. New York licensing is a goal we are very pleased to have achieved.”

The Command Center portal will offer many valuable tools that were either not available prior to implementation or were found in multiple programs and online sites.

Development of this tool makes virtually all technology required to perform myriad tasks as a mortgage banker available when on the go, giving flexibility and portability to aspects of the job

that were previously office-centric.

The Command Center’s Loan Workbench tool is an LO point of sale that will enable all sales personnel to perform all duties within the portal, eliminating the need for multiple logins to multiple apps and offering a very efficient, time-saving platform for Team AFN’s loan originators.

Verus Mortgage Capital Finishes 2019 on a Strong Note

Verus Mortgage Capital (VMC) finished 2019 strong, recently finalizing its 14th and 15th rated Residential Mortgage-Backed Securities (RMBS) transactions for $533.5 million and $680.7 million respectively. The 14th transaction, Verus 2019-INV3, for $533.5 million was comprised of 1,564 investor loans. The 15th transaction, Verus 2019-4, for $680.7 million was comprised of 1,451 loans.

Verus, a non-QM issuer, had nearly $3.8 billion of collateral across seven transactions in 2019 and 15 transactions overall, and nearly $6 billion overall securitization volume. Compared to 2018, Verus more than doubled its shelf issuance and increased participation from unique bond investors by more than 60 percent.

“Our commitment to leading the non-QM space and establishing it as a viable, mainstream lending alternative is evident in the success we’ve experienced over the last four years,” said Dane Smith, president of VMC. “As one of the first entrants in this sector, we’ve seen it transform into one of the most promising and exciting opportunities in the mortgage industry. We’ve made tremendous progress in a fairly short timeframe which is due, in part, to our talented team and complete dedication to helping lenders thrive in non-QM.” ISGN Acquired by Sagent Lending Technologies

Sagent Lending Technologies has announced its acquisition of ISGN Corporation, a provider of

SaaS technology solutions to the residential mortgage industry. The terms of the transaction were not disclosed.

Sagent is headquartered in King of Prussia, Pa., and was formed as a joint venture between Fiserv and Warburg Pincus in 2018. ISGN is based in Melbourne, Fla., and is best known for its TEMPO default management software.

“We look forward to having the ISGN clients and team members join our broader Sagent community. Together we will remain focused on providing a superior borrower experience and lowering the total cost of servicing,” said Bret Leech, chief executive officer of Sagent Lending Technologies. “Clients and borrowers expect real-time engagement and access to their data. Like Sagent, ISGN built its offerings to meet these expectations and together we will move forward with an inclusive and comprehensive servicing solution.”

New American Funding Honored With Ethics Award From the Better Business Bureau

New American Funding has been presented with the 2019 International Torch Award for Ethics by the Better Business Bureau (BBB), serving the Pacific Southwest. The mortgage company is the first independent mortgage banker to win the Elite International Torch Award.

Matthew Fehling, President and CEO and Brad Smith, Board of Directors Treasurer of BBB, serving the Pacific Southwest, presented the accolade at an award ceremony that took place at New American Funding’s corporate headquarters in Tustin, Calif.

“We are extremely honored that Matthew Fehling from BBB presented us with the International Torch Award for Ethics accolade,” said Rick Arvielo, chief executive officer of New American Funding.

“Receiving this award is a testament to the high regard we place on truth and honesty in all that we do. I want to thank the Better Business Bureau organization for providing a platform that recognizes our organization’s ongoing commitment to

marketplace ethics.”

New American Funding qualified for entry in the Better Business Bureau International Torch Awards for Ethics by first winning the 2018 Torch Award for Ethics in the 500-plus employee category from its local BBB serving California’s San Diego, Orange and Imperial Counties.

NewDay USA Honored as a “Top Workplace”

NewDay USA has been named a “Top Workplace” by The Baltimore Sun, based on confidential surveys of its employees. NewDay USA was selected from hundreds of companies in Baltimore and surrounding counties that were nominated for the award. The Top Workplaces lists are based on the results of an employee feedback survey administered by Energage LLC, a research firm that specializes in organizational health and workplace improvement. Several aspects of workplace culture were measured, including alignment, execution, and connection.

“It is an honor to be recognized by The Baltimore Sun as one of the area’s best employers,” NewDay Founder and CEO Rob Posner said. “The team at NewDay has the creativity, energy and spirit to not only build NewDay USA into the number one company in the nation serving veteran families but to also build a business that focuses on the importance of both profit and purpose. I am proud of our employees who do an incredible job of serving veterans and military families each and every day.”

It is the third time that NewDay USA has been named a Top Workplace by The Baltimore Sun. The company was also recently recognized among the “Top Entry Level Employers” by CollegeGrad, selected as “One of America’s Fastest Growing Private Companies” by Inc. 5000, and most recently awarded the title of “Best Military Lender” by National Mortgage Professional Magazine. NewDay additionally received the “Corporate Culture Award” from SmartCEO. “While it is our mission to serve active-duty service members and veterans, it is our employees who make it happen,” said Rear Admiral Thomas Lynch continued on page 77

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NationalMortgageProfessional.com

To register, go to www.originatorconnect.com

n National Mortgage Professional Magazine n JANUARY 2020

Be part of the nation’s largest and most innovative mortgage conference focused solely on the origination community at brokerages, banks and credit unions. A three-day weekend event that motivates originators, drives your business forward with new tools, and energizes and educates on ways to propel volume to new heights. And, to make this an event truly different from all others, welcome to the nation’s first Live & Live-Streamed mortgage event. Our exhibit hall center showcases our unique Media Broadcast Plaza, where we’ll be broadcasting live sessions, podcasting live interviews, and showcasing the best in the mortgage industry.

In 2020, Servicing Will be About the Experience

By Allen Price

42

hen explaining the success behind the world’s biggest retailer, Amazon founder Jeff Bezos once likened the company’s customers to guests invited to a party.

“We are the hosts,” Bezos said. “It’s our job every day to make every important aspect of the customer experience a little bit better.”

Mortgage servicers aren’t typically known for being as innovative or as technology-driven as Amazon. In fact, many people in our industry view servicing as being about administering daily tasks—sending statements, receiving payments and managing escrow accounts. But this is beginning to change, with technology playing an increasingly valuable role in our industry.

W

In the coming year, I believe we’re going to see greater consolidation and diversity in mortgage servicing operations, thanks to the growth in non-QM loans, as well as new business opportunities in the single-family rental market and with Ginnie Mae. These trends could make for an interesting and challenging year. But for servicers that can deliver a world-class experience to their customers, 2020 might just be fantastic.

New trends and opportunities While non-QM loans still represent a fraction of the origination market, in 2019, we saw significant growth in the number of non-QM originators.

We also saw an increase in securitizations brought to market by savvy non-QM investors. Both are going to continue in 2020– and greater numbers of non-QM

originations will mean greater demand for non-QM servicing.

Another area of momentum in mortgage servicing is in single family rentals. With a strong economy and rising incomes, many consumers have the capacity to buy a home, but are unable to qualify for agency loans because of tighter lending criteria. At the same time, these people don’t want to live in an apartment–they want a house, and they want to find a different way to get into the housing market.

For this reason, we will see significant growth in companies that operate single-family rental properties and rent them to consumers with the option to buy the home at some point in the future. We’ll also see growth in companies that buy rental properties and fix and flip them in order to originate new loans on these properties. Both types of

companies have a need for loan servicers who understand the unique needs of originators and investors that operate in this space.

Yet another area of growth in the mortgage servicing arena is the growing influence of Ginnie Mae. While many consumers cannot qualify for traditional agency loans, a large number can still qualify for FHA and other government-backed loans, which offer slightly less strict underwriting standards.

However, Ginnie Mae is sensitive to having too much risk concentration on governmentbacked loans, which will open up additional opportunities for thirdparty servicers that are adept at servicing FHA, VA and USDA loans. This has been a significant area of growth in our own business. We are acquiring Ginnie MSRs on the capital and servicing side, where we service

43

them in our own system and on behalf of other investors.

The growing influence of technology Whether or not servicers will be able to successfully capture any of the above opportunities and leverage them for growth will depend largely on the type of experience they are able to offer–both for borrowers and, on the subservicing side, for the larger servicers and investors they work with. For this reason, I see enormous demand for more technology-driven servicing in the year ahead.

Ultimately, a good servicing operation is founded on having the right data and knowing what to do with it. More than ever, servicing loans effectively relies on the ability to understand what data you need and making the appropriate analyses on it, which allows you

to then make good decisions on the data.

The best servicing organizations in our industry have built core systems that they continue to invest in. Whether designed to service an organization’s own portfolio or those of investor partners, these systems must be able to provide visibility and insights into their portfolios so that loan performance is constantly monitored. Doing so allows the organization to make timely decisions that increase business opportunities and minimize losses.

However, I see very few organizations that have developed customized, digital platforms that enable daily reporting on loan conditions or that leverage exception processing. There are not many systems capable of applying hundreds of business rules

across thousands of loan level data elements that are updated daily. But platforms that do offer these capabilities allow servicers and their clients to truly gain realtime insights into loan status and performance, giving them the ultimate choice and control over their portfolios.

In the coming year, I also see servicers relying more heavily on data analytics, which play an instrumental role in effective default management and loss mitigation. These tools enable servicers to better manage specialty assets, including nonQM mortgages.

In addition, servicers that want to remain competitive will need technology that gives them scalability, or they will need a technology partner that offers the ability to scale. This will lead to a growth in business among specialty servicers who are nimble, responsive and capable

of moving on a dime.

Increasingly, servicers must be capable of managing servicing assets from cradle to grave, but must also be able to allow investors to manage certain parts of the servicing chain themselves. For example, some servicers and investors need specialty servicers that manage only the front end of the business, but once loans become 60 days delinquent or more, they want to manage the loans themselves. This has led to increasing demand for specialty servicers that can decouple this process, which certain large servicing organizations cannot or choose not to do.

For this reason, I see growth among specialty servicers that offer a component servicing structure. Yet not every servicing partner can decouple the continued on page 76

Creating Happier Bo Choosing the

here is no loyalty in the mortgage business. If you talk to any experienced broker or loan officer, they’ll tell you this is true … they’ve seen it. You can spend all the time you want with the borrower, get them into the home of their dreams, hit the closing on time and without a hitch, and they’ll still forget you by the time they’re ready for the next loan, especially on the purchase money side. also “Customer-for-Life” found that borrower ost concept of us don’tof the This makes the satisfaction levels slipped during spend much seem like a poor fit for our industry, at least on the that same time period, from 869 time thinking surface. There about are some whotowould youIn 853 onargue a scalewith of 1,000. spite of adding new self-service But about that and systems. a few others (a much smaller set) technologies, a J.D. Power have wrong. who can prove systems that you’re It is possible to win executive said, most lenders still a huge impact on our daily lives. the loyalty in thestruggled mortgage but withbusiness, an unexpected How consumer’s we communicate, how we you to rewire your business torefinancing do it. surge of volume travelhave and how we do business about that by lower areIn allthis dictated by a we’ll systemlook of at brought series, a company is rates.

The lesson is that most lenders one type or another. approaching the business in need a new way in the hope of better systems than the Recently, I came across an changing the way consumer attoday, the especially if ones looks they use interesting quote aboutthe systems. they hope to capture younger “Dangers lurkindustry in all systems,” mortgage and how homeowners think about buyers who demand a faster, science fiction author Frank their trusted financial advisors.

T

M

easier mortgage experience. And Herbert once wrote. “Systems for most, the answer lies in new incorporate the unexamined systems that put the beliefs of their creators. Adopt a borrower experience first. system, accept its beliefs, and There so many mortgage These systems must you helpare strengthen the reasons the include consumerresistance to change.”

Nowhere industry needs to find a way to build loyalty facing technology that is this truer than in the mortgage among home loan borrowers.makes It’s not just that shopping and business. it When makes harder grow the business.

It applying for weitthink aboutto systems mortgages much in the mortgage industry, we also costs a lot more to keep the business easier and more typically think about the loan operating. intuitive. More origination system or LOS. Howmost much more?loans Let’s little math importantly, they…

Today, mortgage aredo a shouldwill allow lenders created by a relatively small Conventional business wisdom tell you to do business the number of origination systems, that it costs 10 times as much to get a new way today’s most of which were originally customer as it does to retainborrowers an existing prefer. designed years—if not decades— know that ago. But howDoes well do these customer. that hold up in We ourallbusiness? spend a systems still work We know thattoday? aboutAnd half ofMillennials the cost-to-close great deal of time how well will they work is marketing and sales expense that are spent online compared to tomorrow? by the time the customer makes older application generations offor a consumers.

At the same The need a faster and to originate new loan.for With the cost a mortgage time, younger borrowers—just easier experience still above $8,000, that means about $4,000 is spent like most borrowers—do not According to the National on the front end for2020 each customer.

But for every necessarily understand how Association of Realtors’ mortgages work.

The (pullsystems National Housing customer who Forecast, gets closed, another gets away lenders need today must combine Millennials will comprise more through for the average lender is about 50 percent), customer engagement with than half of all purchase which means we have to double that cost. technology, putting originators in originations by mid-year 2020. a position to deliver advice and WeOn all the knowother by now that if a loyal hand, borrower realizes they help guide borrowers at the Millennials have significantly need a new loan and call up the broker, how much opportune time. different approaches to has been spent attract that customer? costing These systemsIt’s must also allow homeownership andtogreater altercustomers. their sales expectations for customer us much more than 10 timeslenders to get to new approaches depending service than older generations of But it’s not just loan origination fees that the on the borrower’s comfort level with homebuyers. But just how well lender is losing.

Depositoriestechnology. and others can while a Forthat example, lenders are meeting these offer additional financial services will miss out allan Millennial borrower mayon want expectations is questionable. exclusively online experience, In its 2019 U.S.and Primary that revenue, you can kiss your referral Mortgage Origination Satisfaction another borrower may prefer business good-bye as well. more direct interaction with a Study released this past The industry has&so much to gain

by New figuring out loan officer. systems must November, J.D. Power enable lenders to identify Associates found that mortgageborrowers how to get their existing to come back the to originations increased 54 percent borrower’s style and adapt their them. But, can we really blame them for not doing approach based on what they between the first and second that? learn about a borrower’s quarter of 2019. Yet the survey

Why we need to crack this code

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Why there is no loyalty in the mortgage business

If you ask an old mortgage originator why borrowers never come back, they tell you it’s a frequency of transaction problem. They’re not wrong … that’s just part of it.

It’s incredibly difficult for a broker or loan officer to build a meaningful relationship when their transactions are seven to 10 years apart. It doesn’t matter how good the experience was, over the memory will fade. particular preferences along the time, of automation in the origination way. which includes who The event will be replaced byprocess, savvy advertisers Fortunately, new mortgage automatically loan know how to implant false memories by populating streaming the systems have already been built disclosures with real-time fees right images and sounds commercial spot. that allow lenders to adopt a via television and generating disclosures just And there is plenty of competition. leaner, more economical moments after a borrower fills out approach to sales.

By simplifying anaapplication. loan Even if the loan officer uses service toAsremind the tasks, they can let borrowers who circumstances change during the borrower of the experience on birthdays and holidays, are more self-driven take on more origination and underwriting few see and these as anything than of theconsumers work themselves processes, other fees are then the reposition staff to help borrowers who need a higher level of personal service.

These new systems also leverage a higher level

automatically and instantly recalculated, and disclosures regenerated. Ordinarily, these tasks could take hours. With newer systems, they take

Part O Is Custome an Impo Drea

By Rick Gr

Borrowers Starts With e Right System computer-generated annoyances that they must delete out of their e-mail inboxes.

Of course, part of that stems from the fact that regardless of how good the loan officer is, the process of approving a borrower will convince them that to someone up the value chain, they are only a number—or a collection of numbers. No one likes to be treated like a By commodity and the loan origination process as it exists today effectively imprints that onto the mind of the borrower. seconds. use these very same tools It comes as no surprise thatcan overall customer Newer systems are also themselves, allowing them to satisfaction has been traditionally so low for our delivering greater efficiency in the communicate and work with industry—although it has been improving late. origination process through borrowers at anyoftime and any device agnosticism. place.

Finally, all too Until often, the real estate agent is the first recently, our industry failedborrower and they can to approach a newhas home to make loan production The benefits of streamlining effectively steer the consumer to the lender of their technology accessible through back-end production choosing.

This isthat’s happening less frequently these days, mobile devices.

But Consumer-facing technologies changing fast.

New systems now are critical to improving the as consumers fully embrace the online loan application enable borrowers to get virtually the same loan tools and resources and upload and download data no matter what platform they use. Loan officers

borrower’s experience and lowering costs. Yet newer, modern systems available to lenders today are capable of improving the borrower

Rick Grant

The way to win loyalty in the enables lenders to integrate the experience by reducing friction mortgage latest and greatest AI and behind the scenes industry as well.

Joey McDuffee is a vice president at Blue Sage, a provider of cloud-based digital lending technology for Rick Grant is special reports editor for National retail, wholesale and correspondent lenders. McDuffee Mortgage Professional Magazine and Mortgage News has more than 25 years of mortgage technology Network. He may be reached by phone at (570) 497-1026 experience. He can be reached by e-mail at or e-mail RickG@MortgageNewsNetwork.com.

JMcDuffee@BlueSageUSA.com.

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n National Mortgage Professional Magazine n JANUARY 2020

machine learning tools and For example, using Shoemaker, traditional According to Phil executive managing services, which are taking off systems, it can take time for a director and chief business officer at Home Point loan officer or processor to open throughout the financial services Financial inaccess Ann Arbor, Mich.,industry. the key to winning over While they are still loan files and and analyze the customer in the hands of the mortgage servicer. somewhat new to the mortgage third-party data. is Increasingly, arena, AI and machine learning borrowers are less inclined to Shoemaker believes that the servicer is in a better tools have an almost unlimited wait—they want immediate position than the real estate agent to control the new feedback to see if they qualify for potential to streamline the most relationship because they’re the first to of know when a complicated consumer a loan or if there are conditions to meet in order get approved. homeowner istoready to make financial a move.transactions by speeding up the decisionWith new systems, borrowers Now, Home Point isn’t the first big financial services can get answers instantaneously, making process. With newer company with a loan servicing division to think of this. systems, lenders can take just like they can when shopping advantage these emerging for almost any other of But according totype Shoemaker, no otherofcompany has yet technologies to deliver a faster, product or service. unlocked the secret to turning the servicer’s more intuitive and ultimately This is largely because relationship into new purchase money loans. journey. more delightful borrower new mortgage systems have been built in why the other companies aren’t doing “The reason A choice between current cloud computing this is because the industry, as a whole, is wired diminishing returns or era, not before. Unlike against Shoemaker said. “The rationale unlimited potential traditionalit,” LOS behind the investment in the servicing asset is Providing a better borrower technologies, they experience is a critical challenge were designed with that the company can use that relationship to an open architecture for every lender, but it’s not the drive its consumeronly direct operation. The one. In today’s environment, and have an problemability comes a result the servicer lenders must of navigate a dizzying unlimited to in as array of federal and state integrate other being driven to recapturing that capital requirements as well as investor technologies through outlay. It’s how the industry is wired.” guidelines. In recent years, the more flexible According to Shoemaker, means thatfile the need tothat review every loan for application programming accuracy and compliance has interfaces, or APIs. This servicer will simply turn the relationship over to added significant cost toward newer approach to APIs its call center and start interrupting the producing mortgages. accelerates loan borrowerbyduring an attempt the lenders to canbe take production creatingdinner inToday’s nothing for granted. Interest much faster system-tofirst to refinance their loan. rates change, new competitors system communications “It’s a very reactive approach,” Shoemaker said. are constantly emerging, and the between the origination platform “They’re basically hunting own borrower. economy can flip on a dime. and third-party services such as their Consumers don’t like Right now, we have a relatively credit, title insurance, and it.” asset healthy housing have marketisand a and income verifications.

The other problem traditional servicers that healthy outlook for originations in Ultimately, these capabilities they don’t work well with originators, even those that 2020. But it’s almost guaranteed make newer systems much are part of their own companies.

It’scurrent fine ifmarket your won’t call last that the easier for loan officers, forever.

The dual challenge processors and underwriters to center handles a refinance, but when it comes to a of use by putting all the information lowering costs and competing purchase money loan, it seems to break down successfully for new business they need instantly at their consistently. will grow formidably in the years fingertips. ahead.

This same open-API approach But Shoemaker says it can be done right and the Successful lending is all about servicers who do so will retain their borrowers longer while meeting their changing needs. To find out how he’s doing it, come back for part two of our series on “Customers for Life.”

NationalMortgageProfessional.com

t One: mer-for-Life possible am?

process. But that brings its own challenges, often delivering the loan to the fastest lender to respond.

Given all of this, should we even be talking about borrower loyalty and customers for life in the mortgage industry? One lender we spoke to recently said that we absolutely should. But it still may not have that much to do with the borrower’s relationship with their loan Joey McDuffee officer.

Independent Mortgage Originators

By Andy W. Harris, CRMS

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This month, I had the opportunity to speak with Jason Andrews (NMLS#: 102708), owner of Next Home Loans LLC (NMLS#: 1854986) in Charlotte, N.C. Established in 2019, Next Home Loans (nexthomeloans.net) is an independent mortgage firm that offers services to consumers in North Carolina, South Carolina and Florida.

“I have always had a passion to educate the consumer on their mortgage options while taking an in depth look at their overall financial goals,” said Andrews. “I’ve spent countless hours educating the consumer on a variety of topics and I am always surprised with how much confusion and fear still exists towards our industry. As a homeowner is considering purchasing a home or refinancing they are bombarded with a sea of terms, misinformation, and countless mortgage products that they may or may not qualify for. Next Home Loans is going to make a difference through education. We are here to throw them a life vest in a sea of misinformation and do all we can to change the perception of mortgage lending.”

Tell us a little about yourself and your career.

Jason Andrews: I am originally from a small town in Illinois called New Berlin. Fun fact … my high school mascot was “The Pretzels” and as unique as that might sound, is one of two schools in Illinois with the same mascot. I moved to Atlanta in 2004 and then to Charlotte in 2006. I started my mortgage career shortly after moving to Charlotte. I am single, have no pets and no plants. I can’t use “time” as an excuse to not get things done.

I understand you are a broker now after previously working as a banker. What motivated you to make this change?

Jason Andrews: MONEY! Nah … just kidding. Financial freedom was one reason, but ultimately, it was the idea of being my own boss that appealed to me. I have always had an entrepreneurial spirit with endless ideas of how to make things better while working at different mortgage companies that always fell on deaf ears. Now I get to make changes and implement tech, procedures and best practices as I see fit.

What would you say so far are the biggest differences you’ve experienced coming from the retail side?

Jason Andrews: I was surprised with how much more quickly I could actually close a loan for my clients and real estate agent partners. The ability to do this has opened up many doors for us and has given us the ability to grow in a market saturated by mortgage companies that pay-toplay. In addition, we are also able to close more loans with more favorable terms for our clients because our rates/pricing are so much better than typical retail lenders. The differences don’t stop here, but the list would be too long if I continued.

How would you compare pricing when compared to the mortgage banker world?

Jason Andrews: I use this analogy quite a bit …

A consumer walks upon two car dealerships selling the same vehicle.

Dealer A, the one with all the commercials, gigantic staff and highly paid CEO, says they’ll sell you the car for $30,000 and free tire changes for life!

The consumer thinks this is great, but just for comparison sake, they walk to Dealer B. Dealer B says they can sell the same exact car for $25,000 and reminds them that the manufacturer of the vehicle offers free tire changes for life. The consumer is inquires with Dealer B how they can offer the car so much cheaper. Dealer B Responds, “Someone has to pay for the CEO, staff and advertising.”

What are you seeing in your local market on trends, inventory, and consumer/real estate agent mortgage education?

Jason Andrews: The barrier to entry is tough in my home area of Charlotte, N.C., as gentrification is really taking over the city and with new surrounding neighborhoods sometimes starting at and over county limits for FHA. Low income housing is fairly non-existent, apartment buildings are popping up everywhere as city growth keeps up demand, housing prices continue to increase as inventory remains in high demand, especially in the $250,000 range.

I know the myth of losing control as a mortgage broker is finally being exposed to the market and quite the opposite. What are your experiences on controlling the process?

Jason Andrews: In 13 years as a loan originator, I have NEVER had the amount of control over a loan file that I do now. I have NEVER closed loans as quickly as I have since I became a mortgage broker. This myth should die as quick and painful death because it is just blatantly FALSE and just one more failed attempt by the banking and retail channels to discredit us.

What would you say are your best forms of marketing today to generate new business?

Jason Andrews: Consumer first! I love my real estate agent partners, but I do not count on them or rely on them for my current or future business models. I want to make the bread, not wait at the bread line. Relying on real estate agents for your business is very much like relying on someone else for your meal. Instead, find the consumer and educate them, preapprove them, introduce them to the agent you think they would work the best with. You create value to the consumer and your referral partner and you no longer rely on others to prop up your business. Marketing to the consumer can take all sorts of forms, from creating online educational content, to just interacting with people on the street. There is no shortage of people who are looking for a connection to a service they desperately need.

Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and Past President of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 4960431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

NEW TO MARKET continued from page 22

such as the desired loan amount and terms, contact details, and collateral—and the lender can use that information without re-keying.

“Until now, community banks and credit unions had few options available for providing online consumer loan applications, other than to build their own in-house functionality,” said Steven Meirink, executive vice president and general manager of Wolters Kluwer Compliance Solutions. “CLA helps level the playing field with larger institutions and internet-only banks, delivering an appealing consumer design and high-tech experience without a heavy technology investment. Ultimately, it empowers smaller, regional lenders to compete in a compliant, convenient and efficient manner in today’s rapidly evolving financial marketplace.”

MCT Launches InvestorMatic to Enhance the Whole Loan Trading Experience

Advantage Systems has announced that phase II of AMB 7 Sierra is now available. This phase of AMB 7 rolls out the total reporting suite with updated AMB

Finance of America Reverse Lowers Eligibility Age on Products

Finance of America Reverse LLC (FAR), a San Diego-headquartered reverse mortgage lender and provider of retirement solutions, has lowered the eligibility age for borrowers on its HomeSafe Standard, HomeSafe Flex and HomeSafe Second products from 62 to 60.

The company added that the lower age eligibility will not take effect in Texas and Utah, which have retained 62 as the minimum age for borrowers to qualify for such products.

“We are pleased to meet industry demand for this amendment but stress that borrower responsibility is paramount in factoring in whether this new timeline makes sense for their long-term retirement goals,” said Kristen Sieffert, president of FAR. Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

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Advantage Systems Unveils New Web-Based Reporting Tool

Sierra Pacific Launches SPM GO Mobile App Sierra Pacific Mortgage Company Inc. has launched “SPM GO,” Sierra Pacific Mortgage’s mobile application, providing users with a simplified loan application, while providing simultaneous progress updates to borrowers, their real estate agents and Sierra Pacific Mortgage loan officers.

Powered by Simple Nexus LLC, SPM GO streamlines the application process by eliminating the need to scan, fax or hand-deliver loan documents.

Instead, borrowers may photograph and upload supporting documents instantly.

In addition, SPM GO provides all users with instant loan status tracking, updates and messaging functionality within an encrypted platform. Sierra Pacific loan officers have additional access to SPM GO via their laptop which enables them to personally manage each application.

“We’re genuinely excited to introduce this new technology,” said Jay Promisco, Sierra Pacific’s chief production officer.

“This native app provides seamless, secure communication and updates to our loan officers, borrowers and real estate agent associates. In addition, borrowers can apply for home financing in 20 minutes or less, thanks to the technology that powers the application.”

NationalMortgageProfessional.com

Mortgage Capital Trading Inc. (MCT) has introduced a unique program called InvestorMatic, designed to improve the lender experience in selling whole loans to their correspondent investor counterparts.

Company officials at MCT say the secondary market has traditionally been wrought with diverse and inefficient methods by which to communicate, initiate and accept loan bids, and complete whole loan sales between sellers and buyers.

The InvestorMatic Program aims to address this problem and is the latest in a series of client-driven innovations that have been helping MCT clients optimize secondary marketing performance.

InvestorMatic is comprised of two core components: A technology certification process that reviews and rates correspondent investors based on the convenience and depth of their whole loan sale process; and a suite of supporting software that assists correspondent investors in elevating the seller experience in key areas. This combination results in a much more efficient, streamlined, and secure whole loan trading process.

“For years, MCT has been helping lenders automate secondary marketing mortgage processes.

Their continuous feedback and technology collaboration has played an instrumental role in the success

of our core capital markets platform, MCTlive!,” said Phil Rasori, chief operating officer at MCT. “MCT’s InvestorMatic Program is our newest advancement, this time with a laserfocused goal of improving the lender experience in selling whole loans to their correspondent investor counterparts.”

MCT conducted extensive research in the development of InvestorMatic, which identified five key components of the loan selling experience that lenders are looking for from their correspondent investors. Among them are faster pricing and commitment turn times; fully functioning Bid Tape AOT delivery channels; encryption of data in transit and at rest; real-time shadow bids and pricing; and bid tape mark-to-market pricing.

Based on performance in these key areas, MCT will be certifying applicable correspondent investors at bronze, silver, and gold technology certification levels before said levels are published in early December. These certifications will provide a handy reference to lenders on the technology experience they can expect when considering a relationship with a particular investor. These certifications are made free-of-charge and regardless of the systems used, but InvestorMatic software is available to support interested investors. As always, MCT provides lenders with best execution analysis and recommendations designed to achieve their goals, and in which price competitiveness is the leading factor.

“Put simply, the MCT InvestorMatic Program is yet another step we’ve taken to move the mortgage industry forward in the secondary marketing space,” said Curtis Richins, president at MCT. “Part of our long-term corporate vision is to digitize the entire secondary marketing process, and InvestorMatic will help our lender clients and the investor community get another step closer to achieving this goal.”

features in an entirely browserbased environment, offering a new look and feel for accounting users, branch managers, C-level executives and loan officers. The new reporting tool offers easier navigation, extensive capability to drill down, up and through the data as well as the capability to take the data directly to a grid for easier filtering and export.

AMB is known for the breadth of reporting that comes standard with the product. Recreating the number of reports and the options available within those reports represents a significant body of work. This level of reporting is a major reason AMB is so easy to deploy, and why most clients have no need for custom programming.

In mortgage banking, as in any industry, better information leads to better decisions. The real-time nature of the AMB product is key to providing management the most accurate and timely information possible. AMB does not require a data warehouse or reporting cube. The reports and charts available are drawn directly from the AMB database in real time.

“This phase of the AMB7 development marks a huge milestone. AMB7 is giving clients browser-based access to a level of reporting not available elsewhere, and that reporting was built and honed for mortgage bankers over AMB’s long history in the industry. The reporting is tailored for each user class so that each user sees only what they’re allowed to see,” said Brian Lynch, president and founder of Advantage Systems. We are excited to see AMB 7 Sierra help accountants and non-accountants alike get the information they need.”

Creating Happier Bo Choosing the ost of us don’t spend much time thinking about systems. But systems have a huge impact on our daily lives.

How we communicate, how we travel and how we do business are all dictated by a system of one type or another.

Recently, I came across an interesting quote about systems.

“Dangers lurk in all systems,” science fiction author Frank Herbert once wrote. “Systems incorporate the unexamined beliefs of their creators. Adopt a system, accept its beliefs, and you help strengthen the resistance to change.” Nowhere is this truer than in the mortgage business.

When we think about systems in the mortgage industry, we typically think about the loan origination system or LOS. Today, most mortgage loans are created by a relatively small number of origination systems, most of which were originally designed years—if not decades— ago. But how well do these systems still work today? And how well will they work tomorrow?

M

The need for a faster and easier experience According to the National Association of Realtors’ 2020 National Housing Forecast, Millennials will comprise more than half of all purchase originations by mid-year 2020.

We all know by now that Millennials have significantly different approaches to homeownership and greater expectations for customer service than older generations of homebuyers. But just how well lenders are meeting these expectations is questionable.

In its 2019 U.S. Primary Mortgage Origination Satisfaction Study released this past November, J.D. Power & Associates found that mortgage originations increased 54 percent between the first and second quarter of 2019. Yet the survey

also found that borrower satisfaction levels slipped during that same time period, from 869 to 853 on a scale of 1,000. In spite of adding new self-service technologies, a J.D. Power executive said, most lenders still struggled with an unexpected surge of refinancing volume brought about by lower rates.

The lesson is that most lenders need better systems than the ones they use today, especially if they hope to capture younger buyers who demand a faster, easier mortgage experience. And for most, the answer lies in new systems that put the borrower experience first. These systems must include consumer-facing technology that makes shopping and applying for mortgages much easier and more intuitive. More importantly, they should allow lenders to do business the way today’s borrowers prefer.

We all know that Millennials spend a great deal of time online compared to older generations of consumers. At the same time, younger borrowers—just like most borrowers—do not necessarily understand how mortgages work. The systems lenders need today must combine customer engagement with technology, putting originators in a position to deliver advice and help guide borrowers at the opportune time.

These systems must also allow lenders to alter their sales approaches depending on the borrower’s comfort level with technology. For example, while a Millennial borrower may want an exclusively online experience, another borrower may prefer more direct interaction with a loan officer.

New systems must enable lenders to identify the borrower’s style and adapt their approach based on what they learn about a borrower’s particular preferences along the way.

Fortunately, new mortgage systems have already been built that allow lenders to adopt a leaner, more economical approach to sales. By simplifying tasks, they can let borrowers

who are more self-driven take on more of the work themselves and reposition staff to help borrowers who need a higher level of personal service.

These new systems also leverage a higher level of automation in the origination process, which includes automatically populating loan disclosures with real-time fees and generating disclosures just moments after a borrower fills out an application. As loan circumstances change during the origination and underwriting processes, fees are then automatically and instantly recalculated, and disclosures regenerated. Ordinarily, these tasks could take hours. With newer systems, they take seconds.

Newer systems are also delivering greater efficiency in the origination process through device agnosticism. Until recently, our industry has failed

to make loan production technology accessible through mobile devices. But that’s changing fast. New systems now enable borrowers to get virtually the same loan tools and resources and upload and download data no matter what platform they use. Loan officers can use these very same tools themselves, allowing them to communicate and work with borrowers at any time and any place.

The benefits of streamlining back-end production Consumer-facing technologies are critical to improving the borrower’s experience and

Borrowers Starts With e Right System

By Joey McDuffee

lowering costs. Yet newer, modern systems available to lenders today are capable of improving the borrower experience by reducing friction behind the scenes as well.

For example, using traditional systems, it can take time for a loan officer or processor to open loan files and access and analyze third-party data. Increasingly, borrowers are less inclined to wait—they want immediate feedback to see if they qualify for a loan or if there are conditions to meet in order to get approved.

With new systems, borrowers can get answers instantaneously, just like they can when shopping for almost any other type of product or service.

This is largely because new mortgage systems have been built in the current cloud computing era, not before. Unlike traditional LOS technologies, they

were designed with an open architecture and have an unlimited ability to integrate other technologies through more flexible application programming interfaces, or APIs. This newer approach to APIs accelerates loan production by creating much faster system-to-system communications between the origination platform and thirdparty services such as credit, title insurance, and asset and income verifications. Ultimately, these capabilities make newer systems much easier for loan officers, processors and underwriters to use by putting all the information they need instantly at their fingertips.

This same open-API approach enables lenders to integrate the latest and greatest AI and machine learning tools and services, which are taking off throughout the financial services industry. While they are still somewhat new to the mortgage arena, AI and machine learning tools have an almost unlimited potential to streamline the most complicated of consumer financial

transactions by speeding up the decision-making process. With newer systems, lenders can take advantage of these emerging technologies to deliver a faster, more intuitive and ultimately more delightful borrower journey.

A choice between diminishing returns or unlimited potential Providing a better borrower experience is a critical challenge for every lender, but it’s not the only one. In today’s environment, lenders must navigate a dizzying array of federal and state requirements as well as investor guidelines. In recent years, the need to review every loan file for accuracy and compliance has added significant cost toward producing mortgages.

Today’s lenders can take nothing for granted. Interest rates change, new competitors are constantly emerging, and the economy can flip on a dime.

Right now, we have a relatively healthy housing market and a healthy outlook for originations in 2020. But it’s almost guaranteed that the current market won’t last forever. The dual challenge of lowering costs and competing successfully for new business will grow formidably in the years ahead.

Successful lending is all about providing the best possible service as quickly and as costefficiently as possible. With the right system in place, these goals are not mutually exclusive. The question is, does a lender have the right system in place?

While most LOS providers are adding new consumer-facing tools to their systems to improve the borrower experience, lenders

also have the choice of adding a number of different fintech products to their current system.

But both approaches require keeping the same legacy system. And it’s that system that will hold lenders back and prevent them from reaching their true potential.

Consider what automakers did when newer, better technologies such as electric motors became available. These technologies were not built as add-ons to gaspowered motors. Automakers built new hybrid and electricpowered vehicles—basically, they built new systems. While it took time to perfect these systems, they eventually resulted in more efficient vehicles that save consumers thousands of dollars annually at the pump (and are saving the environment, too).

Similarly, in our industry today, there are better, higher performing systems available to lenders that allow them to not only originate mortgages more efficiently but to lower costs and deliver a better borrower experience.

The bottom line is that we are all limited by the systems we use. And in the mortgage industry, not all systems are built the same. When tasked with providing a better borrower experience, lenders and mortgage professionals can stick with the systems they have used for years, or they can find new, better ones to capture additional market share.

Remember, borrowers also have a choice. While they may not know a lender’s system, they will discover which lenders offer the best mortgage experience.

Shouldn’t you be one of them?

Joey McDuffee is a vice president at Blue Sage, a provider of cloud-based digital lending technology for retail, wholesale and correspondent lenders. McDuffee has more than 25 years of mortgage technology experience. He can be reached by e-mail at JMcDuffee@BlueSageUSA.com.

a special focus on BRANCHING OUT: EMPLOYMENT AND GROWTH OPPORTUNITIES a spe

Branching Out: Employment and Growth Opportunities The Secret Sauce of Great Organizations: Corporate Culture

By Ken Bartz

here may be nothing more beautiful in all of sports than seeing an athlete who is in the zone.

Everything seems to slow down for them, and they make the game seem effortless. Ever imagine what your company would be like if all your employees were “In the Zone?”

As a past owner of a large mortgage company and current co-founder and chief visionary officer of a growing mortgage marketing agency, I’ve been intensely intrigued by this goal.

Recently, I had the pleasure of joining several industry leaders at a retreat to learn more about corporate culture. Speakers included Ginger Hardage, senior vice president of Culture for Southwest Airlines; and David Salyer, one of the original Chick-Fil-A pioneers and the company’s first chief marketing executive.

Contrary to many conventional beliefs, these companies realized long ago that you cannot just hire for talent alone. In fact, many of the companies we admire for their service, efficiency and innovation have figured out that the “Magic Bullet” is a well aligned and well-defined corporate culture.

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Why hire for culture before capability?

Before we answer this, you need to know your current culture. If it’s toxic or in flux, then that’s an entirely different conversation and this philosophy is of course not applicable (yet).

When leadership embraces the concept that their first customers are their employees, the right foundation is set for building a powerful and enviable corporate culture.

If your culture is healthy, then hire first for

culture because you will have less employee turnover, easier recruiting, a better place to go to work every day, be more profitable over the long run and, most importantly, make and keep lots of happy customers.

At our agency, I’m often asked for advice on hiring. I cannot count the times I’ve heard from mortgage clients, “We only hire top talent,” or “We only hire seasoned pros.”

But I cannot remember a time when I’ve heard, “We hire and fire around our core values and protect our corporate culture.”

Many in the industry believe that “we can’t afford culture” or that “if I empower my employees, I will lose control” or that having a vision statement and core values on the wall is enough. The truth is far greater.

At least 80 percent of what you do is exactly the same as your competitors … it’s the other 20 percent is what makes you special in a good or a bad way.

Let’s look at a familiar example …

The fast food industry is crowded, competitive and commoditized. They all ostensibly do the same thing: Provide fast and cheap meals to consumers with limited time or budgets … that’s the 80 percent.

So, what makes any one company stand out above the rest?

The fast food industry averages $700,000 gross revenue per store, with McDonald’s averaging $2.5 million per store. They all hire low-skilled, low-paid labor and their largest single day of revenue happens on Sundays. Then how can it be that Chick-Fil-A averages almost $6 million per restaurant and is closed on Sundays? continued on page 52

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The answer is simple: Corporate culture–the other 20 percent.

Would it be even more impressive to know that they reached $1 billion in revenue with little to no marketing budget?

I use this example because at the retreat, David Salyer pointed out that they hire within the same labor pool as the other fast food chains and, at a basic level, provide the same service. But they don’t provide the same customer experience.

Simply put, David explained, they hire for culture first, model the behavior they expect and create a framework of values that each employee has the freedom to work within.

And if you’ve ever been to a Chick-Fil-A you’ve experienced it firsthand, starting with attitude.

What a pleasure to be served by people genuinely happy to be there. That experience results from their “people over profit” culture, also evident in the fact they do not open on Sundays, which sets the tone for those who work in the organization.

In a time when companies such as McDonald’s are moving to automated ordering to replace minimum wage employees, ChickFil-A is hiring extra minimum wage employees to make sure your drive-through experience is remarkable.

Chick-Fil-A knows the secret that by putting culture first, you will have engaged employees, that leads to loyal customers, and ultimately leads to being more profitable.

In fact, Chick-Fil-A focuses on making raving fans out of their employees because employees that love the company they work for spread that feeling to their customers and create raving fans out of them.

How do you build a corporate culture of raving fans?

Hopefully by now, you are convinced that corporate culture can make or break a company, but maybe your just not sure how to go about building a great corporate culture. This is not an easy answer, but there are some fundamentals that cannot be missed.

First … create well-defined core values Values differ from “Mission

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“At least 80 percent of what you do is exactly the same as your competitors … it’s the other 20 percent is what makes you special in a good or a bad way.”

Statements” in that they are behaviors that speak to the character of the individuals in the organization, rather than its purpose. I am sure most companies have these, but values need to be more than just a framed statement on the wall.

They must come first in all that the company does, or they aren’t values, they’re just buzzwords.

Can you guess which company’s core values are “Communication, Respect, Integrity and Excellence?” I bet you’ll be shocked to find out these were Enron’s core values. They put these on the walls and in annual shareholder reports, but did not live them in their actions.

This is a good example of why modeling the behavior you want through those core values at the very top of an organization, then hiring and firing to protect those values, is fundamental to a healthy, profitable business.

Second … focus on your extra 20 percent At our retreat, Ginger Hardage from Southwest Airlines shared how they always hire according to Southwest’s core values: “A

Warriors Spirit, a Servants Heart and a Fun-Loving Attitude.”

When a Southwest Airlines flight attendant went above and beyond carrying a crying child around the plane or returned a child’s teddy bear after taking pictures of it flying around the world with their team, that’s the extra 20 percent. The interesting part is there is no process or manual that tells them to do such things, it’s the corporate culture and core values.

Third … hire, fire and promote based on those core values This can be difficult given traditional recruiting and interviewing techniques, so here are a few tips: l Have your recruiters filter for values first and then capabilities, many times in the

mortgage industry, we hire to fill an immediate need, and capability and experience are all that matters. Be careful this approach doesn’t negatively affect your corporate culture.

Some hot shots are not worth it in the long run.

Ask questions during interviews that will uncover more about the candidate’s values and beliefs.

Remember that experience shapes beliefs, beliefs shape thinking, and thinking drives actions so ask questions that can uncover life experiences. Most interviewers only ask about taskbased experiences to see if someone has some experience or the capacity to perform the tasks necessary for the position.

Imagine you were interviewing for a new family member. You might want to find out what they stand for, rather than how they load the dishwasher.

Create a system of recognition to reinforce culture and core values.

All too often, we only recognize performance and that can send the wrong message that profit or money is the most important thing.

I could give dozens of examples of how a company recognizes people based on their loan volume or margin and then is surprised by abysmal borrower retention. These companies are modeling the behavior that profit and production comes first. I am not saying that incentivizing production is bad, but a system that recognizes production first is flawed.

Recognizing is not the same as incentivizing. By recognizing the behaviors you desire, you are modeling those behaviors for the rest of your employees. The flip side of that is removal of those who do not value what you value regardless of production. This sends the message that we value people and customers over profit and we stand for something more.

Remember, corporate culture and core values need to start at recruiting, be a part of the employee journey throughout that lifecycle. In short … practice what you preach.

Chief visionary officer of Monster Lead Group, Ken Bartz has spent 25 years in the mortgage industry, working his way from loan officer to owner of a 100-person mortgage company. In 2005, he sold his business and built a successful loan operating system. In 2013, Ken created Monster Lead Group, a direct marketing agency for mortgage companies. Their solution, The Monster Way, is an eight-week program of direct marketing, sales training and strategic business consulting for mortgage companies looking for radical growth.

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Adam P. Smith is president of The Colorado Real Estate Finance Group Inc., a commercial and residential real estate finance firm, and the owner and sales coach of Just The Tips Coaching. He may be reached by phone at (303) 770-2262, ext. 112 or e-mail Adam@CoreFinanceGroup.com.

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Know Your Worth … Is the Grass Greener?

By Shachar Rand

ortgage companies are growing these days.

From brickand-mortar to digital lenders, there are numerous places a mortgage professional can work at. In fact, the mortgage sector is the largest part of the lending industry in the United States, valued at approximately $9.2 trillion. Recruiters are upping their game, with strong pitches and constant bombardment.

The question is still “is the grass greener on the other side?”

The sheer presence of a large pool of companies doesn’t mean you should work for absolutely anyone. Each person has their own unique requirement, and only a handful of companies will be able to meet your needs.

So, how do you find the right mortgage company to work for?

In this article, we’ll look at some of the factors you need to consider before you switch companies in mortgage industry.

A big brand name that has a solid history and always receives hundreds of applicants. You would get to associate with a huge brand, work in a very corporate environment, service customers who generally have great FICO scores. These companies have very structured daily and weekly schedules. The compensation tends to be less with these companies; however, they may offer more attractive benefits.

The mid-sized mortgage company offers mortgage originators a wider job scope and greater entrepreneurial opportunity. These companies have some name recognition and have a larger pool of products to service more clients. Mid-sized lenders differentiate themselves by having user-friendly marketing departments and accessible underwriting. They usually pay more, and you tend to have greater flexibility to make strategic decisions related to

not know your name unless you do five or more loans. Try to spend time getting to know the key players you will be working with. It shouldn’t be all about business. Meet over a meal, spend time understanding how upper management thinks.

These things will help you understand how they value their employees.

In terms of attrition rate … while attrition of 10 percent is acceptable in a mortgage company, anything higher can be alarming. A high attrition rate could be indicative of a toxic company. It could also indicate:

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“The sheer presence of a large pool of companies doesn’t mean you should work for absolutely anyone. Each person has their own unique requirement, and only a handful of companies will be able to meet your needs.”

your business and make a difference to the company’s future.

In addition to compensation, you also need to consider the benefits. Factors like leave policy, sick leave, health savings account contributions, insurance, tuition reimbursement, pension, 401(K), profit sharing, company car/cellphone, and so on are a few important perks you can check out.

Banks, mortgage lenders and even mortgage brokers for the most part all have very similar products, systems and pricing.

The differences from company to company vary depending on size and extras. The main thing that’s really different in all companies is how much does upper management value you!

Even more important does that equal the true self-evaluation you give yourself.

As a professional in the mortgage industry, you’ll have a particular idea about the career

path you wish to forge in the industry. A key factor here is true self-evaluation … it is the hardest thing for most people to really figure out. Once you figure that out, that’s when you need to match it up to the right company for you. Remember, every company will view your value differently.

Be brutally honest with yourself! List all the good things about yourself, and then list all of your shortcomings. The key is finding a company that can improve your shortcomings, while allowing you to show off your skills. Also, remember if you only handle jumbo loans, a mortgage banker will view your value much different than a bank that has a wealth management division. If most of your business is FHA, VA or conventional loans, a mortgage banker might value you at higher worth.

Similarly, a smaller company might put higher value on you if you do one to two loans per month, where a larger firm might

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Poor hiring processes which lead to “zero fit” between the candidate and the job.

Limited operational resources and employee support.

Very low growth opportunities.

Poor leadership and team mismanagement.

Lack of transparency.

Zero employee engagement.

This is why it’s very important for applicants to also consider the attrition and retention rate of the company. You don’t want to join a company which you may be forced to leave in just a few months. It may affect your future job prospects. How a mortgage company treats its employees indicates whether it will give you the dignity, respect and opportunities that commiserate with your role and experience.

Does the company encourage out-of-the-box thinkers? Is the company rife with toxic politics?

Do managers resort to coercion, unjustified pay cuts and other wrong practices to discipline employees? What type of leadership style do they have– autocratic, democratic or transformational? Have there been any cases of sexual or mental harassment in the company? These are some questions you can ask.

A mortgage company may offer all the benefits, facilities and perks you could possibly want. Yet, if you personally don’t feel a “cultural fit” with it, you may resent your time at that

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company. Some of the criteria you need to consider for a culture fit are: l

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Degree of freedom versus centralization in decisionmaking at the company.

Level of formality between juniors and seniors–opendoor vs. closed-door policy.

Language and style of communication (explicit or implicit).

Daily work scheduling and common office practices.

Level of cooperation and competition in the company.

Company’s treatment of its stakeholders.

The morality of the company–what is the company’s stance on honesty and transparency.

Stories and legends ‌ how the company has dealt with issues in the past and whether it matches your perceptions or not.

Apart from a cultural fit, you also need to consider the strategic fit with the company.

What this means is, you should ask yourself whether you both have the same professional goals or not. l l l

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Does the company have the same/similar dream as you?

Does the leadership think the way you do?

Are you mutually compatible, and can you benefit each other?

Will you be able to align with the company’s future plans and strategies?

Will you be able to make a difference to the future of the mortgage company?

roles? How frequent is the performance appraisal cycle?

What are your prospects if you move out of this company in the future? Seeking answers to these questions will help you make an informed decision.

One of the most important things to ask in deciding “is the grass greener,� is “What’s my worth and do they know my value?� Understanding upper management at the company is vital to determine if the value you bring will be heard.

Don’t rush to judgment.

Recruiters are supposed to get

Every mortgage job applicant joins a company with the intention of growing in it. Before taking the step to switch jobs, check if the company you’re considering can offer you a good career path or not. Does the company have a massive hierarchy with numerous roles?

Is there scope for mobility within the company? Will the company offer you adequate training and opportunities to reach new

you excited about a company.

They often don’t really know what the company is about. Ask the recruiter if they have spent time with upper management.

Do they really know the culture of the company or just using talking points?

Whatever you use to make your decision, remember that most people stay longer at a company that values them. If you are valued where you are it might be better to solve some of the issues that are causing you to look, then to make a switch.

Shachar Rand is chief business development officer for Jet Direct Mortgage. He may be reached by e-mail at S.Rand@JetDirectMortgage.com.

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Making a Difference in the Contest for Top Talent By Edward Pittman n the current job market, indemand professionals know how valuable they are; and if a company doesn’t market itself effectively, it could lose the best potential employees to a competitor. It’s important for companies to note that for many employees, a career is about much more that the size of their paycheck. In the midst of a job market that is more competitive than at any time during the past half century,1 companies are pulling out all the stops to attract, and retain, top talent. In this environment, there are several ways to win the war for talent.

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Social responsibility is essential Employees of all ages, Millennial and post-Millennial workers in particular, express a greater need to not only feel like their work makes a difference, but also that their company has a conscience and is dedicated to improving the communities where employees work and live.2 One study found that 75 percent of Millennials would take a pay cut to work for a socially responsible company; 83 percent would be more loyal to a company that helps them contribute to social and environmental issues; 88 percent say their job is more fulfilling when they are provided opportunities to make a positive impact on social and environmental issues; and 76 percent consider a company’s social and environmental commitments when deciding where to work.3 Stories of good deeds shared on social media reinforce a company’s commitment to doing the right thing, and provide important recognition for the employees who volunteer to help non-profit causes with which they have a personal connection.

One such cause is Carrington House, one of the Signature Programs of Carrington Charitable Foundation (CCF), the non-profit organization of The Carrington Companies. Carrington House builds custom, adaptive homes for catastrophically wounded veterans.

To date, Carrington House has built 22 homes for deserving veterans and their families, and two more homes for veterans are planned for completion in 2020.

“Carrington House gives

identified two key findings: Tuition reimbursement programs reduce turnover and general skills training increases retention. When it comes to retaining top talent, education and career development are important components of a company’s benefits mix.

Tuition reimbursement Many companies, as part of the benefits package, include some type of tuition reimbursement program that supports education for employees who take classes or enlist in courses of study that are relevant to their job roles. Better educated employees, equipped with knowledge of the latest methods, are very often considered better able to contribute to company goals.

“For each of the past two years, we’ve issued almost $100,000 in tuition reimbursement to our associates,” said Ginger Crawford, senior vice president of human resources for Carrington Mortgage Holdings. “Because we take an interest in the careers of our associates, they take more of an interest in us as a company.”

“Corporate social responsibility is only a piece of what it takes to attract and keep top talent.”

wounded military veterans who have returned from service, and who need support, a home they deserve and can call their own,” said Shelly Lawrence, executive director of community relations.

“CCF is a big part of associate life at Carrington.”

In addition to joining in on company-sponsored charitable initiatives, employees often choose their own non-profit causes to support, based on their personal beliefs or because causes have a personal connection. Rob Petruska, vice president of retail lending for Carrington Mortgage Services, has coordinated his company’s support of the Leukemia & Lymphoma Society’s annual Light the Night Walk for the past three years.

Petruska’s connection with Light the Night is very personal: His son Ross was diagnosed with large T-cell lymphoma at the age of 17, just before his senior year in high school. Fortunately, after treatment, Ross is in remission. After Ross’ chemo, Petruska says he asked two family friends who had lost their son how he could get more involved to help beat blood cancer. They referred him to the Leukemia &

Lymphoma Society. Incidentally, Petruska says that after graduating from Ball State in 2000, his son enrolled in a 16-month accelerated nursing program to become a nurse, so he could give back in his career.

“I became a board member in late 2016, and still sit on the board today,” he says. “Carrington and CCF have been great supporters of Light the Night–from providing publicity for upcoming events to grant matching. That means a lot to me and to my family.”

Continuous career improvement Corporate social responsibility is only a piece of what it takes to attract and keep top talent. Ongoing career development and lifelong learning are more important than ever, and companies that provide opportunities for employees to learn and grow stand out from the corporate competition. These opportunities can include comprehensive internal self-training education programs, tuition reimbursement, or sponsorship of speaking opportunities. A 2007 survey by the Stanford Institute for Economic Policy Research4

Self-paced training In addition to tuition reimbursement, some companies create comprehensive libraries of training materials that extend far beyond obligatory compliance courses.

Company training libraries are often available on-demand, so employees can learn and grow whenever they want. Training can encompass courses to build essential software skills, such as MSOffice, as well as company- or industry-specific programs. And some companies offer much more, with courses of study that include sessions devoted to personal development, customer service, sales and management.

“Our online portal offers management courses on coaching employees, managing conflict, effective communications, interviewing and more–and they’re open to everyone,” said David Morris, vice president of training and HR operations for Carrington Mortgage Holdings. “And our sales and customer experience classes are great tools for getting new associates up to speed fast, so they can drive business and create great interactions with customers.”

Singular benefits Most companies offer diverse benefits to employees. In addition to paying part of medical, dental and vision benefits, some companies offer profit sharing and 401(k)

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contributions. In addition, many companies may offer such diverse add-ons as discounted fitness club memberships; discounted event tickets; legal assistance packages for such things as wills, trusts and apartment leases; and more. Some companies go further, developing unique ways to give back to employees. Many retail companies and big box stores routinely offer discounts on merchandise to employees. Other companies create unique opportunities to benefit employees and create customers at the same time. A mortgage company, for example, might offer loan program incentives to employees to help them purchase a home.

“Our Employee Loan Program gives associates a discount off the rate, or the waiver of some processing and underwriting fees,” said Greg Austin, executive vice president of lending for Carrington Mortgage Services. “We have an associate who is the primary contact for all mortgage loans to employees to make sure our people are always well taken care of.”

Recognition programs with cash rewards Most companies who care about retaining talented employees include employee recognition as part of a well-rounded internal communications strategy. But some companies go further with cash incentives–and not just for employees in sales-related roles. From financial rewards for performance, or just for submitting great ideas that benefit the business, companies that reward employees with cash stand out from the rest.

“Our Fish Tank program rewards associates for great ideas that drive business profitability or improve the customer experience,” said Jeff Gillis, executive vice president of operations for Carrington Mortgage Services. “We’ve had employees suggest process changes, system improvements, and ways to better serve our customers–and every month we reward them with recognition and financial incentives for their suggestions. The bigger the idea, the bigger the incentive.

Employees bring us their best ideas, and they take home cash as part of our thanks.”

What it takes To attract high-quality applicants and retain the best employees, it’s critical for organizations to differentiate themselves from other companies within their industry. It is also imperative that companies demonstrate to in-demand professionals how joining a

company, and staying there, can help them reach their goals–all of them. Employers who encourage doing good and becoming better, and who offer unique benefits, are more likely to attract and hold on to top talent, and are creating legions of happier, more fulfilled, employees.

Footnotes 1—Eric Morath and Lauren Weber. “Inside the Hottest Job Market in Half a Century.” The Wall Street Journal. March 1, 2019. https://www.wsj.com/articles/inside-the-hottest-job-market-inhalf-a-century-11551436201.

2—Peggie Pelosi. “Millennials Want Workplaces With Social Purpose. How Does Your Company Measure Up?” Chieflearningofficer.com. Feb. 20, 2018. https://www.chieflearningofficer.com/2018/02/20/millennials-want-workplaces-social-purposecompany-measure/.

3—2016 Cone Communications “Millennial Employee Engagement Study.” Cone Communications. Nov. 2, 2016. https://static1.squarespace.com/static/56b4a7472b8dde3df5b7013f/t/5819e8b303596e3016ca 0d9c/1478092981243/2016+Cone+Communications+Millennial+Employee+Engagement+Study _Press+Release+and+Fact+Sheet.pdf.

4—Colleen Flaherty. “The Effect of EmployerProvided General Training on Turnover: Examination of Tuition Reimbursement Programs.” Stanford Institute for Economic Policy Research, Stanford University. February 2007. http://www-siepr.stanford.edu/RePEc/sip/06025.pdf.

Edward Pittman serves as vice president of communications for Carrington Mortgage Holdings. Edward is a creative and strategic communications executive with more than 20 years of experience driving global communications strategy for such high-profile international companies as JCPenney and Brink’s. He may be reached by phone at (469) 344-4465 or e-mail Edward.Pittman@CarringtonMH.com.

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Check It: The Three Cs of Employee Engagement By Susan Sullivan or years, industry professionals and culture champions have been attending conferences, participating in panels and watching Webinars to better understand employee engagement, what makes employees tick and how to not only attract new talent, but also how to retain and develop it.

Yes, we just kicked off a new decade, but when it comes to working it out on the employee playing field, 2020 is no different.

Rightfully so, employee engagement remains a top priority for most leaders, especially those involved in hiring, developing and/or instituting workplace programs to aid in the retention of talent.

There are many pieces and parts that have to work together to keep employees engaged and effective, and it all boils down to the three Cs: Confidence, Care and Consistency.

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Confidence in your team You’ve done it! You’ve hired a diverse and talented team of professionals and can’t wait to see what they accomplish in moving your organization forward. Except, there’s a problem. You micromanage

“There are many pieces and parts that have to work together to keep employees engaged and effective, and it all boils down to the three Cs: Confidence, Care and Consistency.” every decision, dictating how each project should be executed and maybe even doing your team members’ work yourself. Apart from it not being terribly efficient

for you or your team, micromanagement can be an engagement killer, and you’ll be at a much higher risk for losing those talented team members. If

they stay, you’re crushing creativity as you perpetuate the idea of a single right answer— which is your answer, killing efficiency as your team does work to align with your directives, hindering professional growth as they learn to just wait for you to tell them what to do, and diminishing team morale as they lose all sense of ownership over their work. When employees have the confidence of their leader to ideate, experiment and see their projects through to the end (within company guidelines, of course), they not only feel empowered, but also more invested in the success of your entire organization. They’ll be passionate about bringing their ideas to life, invested in development so they can continue to contribute, and proud to be part of your team.

So, have confidence in the team you hired—and if you don’t, make the changes you need to find it. Let go of the reins and give your team the authority and freedom to do the work their way. While their approach and process may differ from yours, that diversity of thought, perspective and process yields a better product 10 out of 10 times.

Care for your team and your role as leader Feeling supported within your team is critical to every employee’s engagement.

Humans are pack animals where a sense of belonging and acceptance is the foundation of our contributions to the group.

While feeling that sense of caring from other team members is important, your care—as leader—has an especially profound impact on employees’ personal and professional well-being, and you have to show it in three ways.

First, show you care about your role as a leader. Be intentional about how you lead your team. Commit to strengthening your team’s culture and displaying company values in every action and interaction. Seek out leadership development opportunities, whether that means a course of study, or just making time to gather perspective from articles like this one. Ask for feedback

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Be the example for your team and set the tone that diversity and inclusion are critical, nonnegotiable components to empowering and engaging your team. Steps one through three are certainly an investment in your time and energy, but the return in engagement—when done properly and genuinely—is out of this world.

Care for the person in their entirety, not just the attributes that make them a good employee. At the end of the day, we’re all just humans experiencing all of the same emotions that come with the ebbs and flows of life and work.

your decisions and reactions.

Whatever the three Cs look like is completely up to you and what makes sense for your team. Every leader (and every team) is different, but generally speaking, people want to feel trusted, seen, respected and empowered to do the job they were hired to do. Your role as a leader is to create an environment where those feelings can grow and flourish, and the three Cs merely keep these principles top of mind for you to incorporate into your practice. Use them to your advantage to foster a truly engaged team.

Susan Sullivan is senior vice president of human resources for Genworth U.S. Mortgage Insurance. Susan is responsible for all HR accountabilities across Genworth’s USMI organization, which includes driving the overarching people strategy for USMI, and leading employee relations, internal communications, learning and development, and facilities teams.

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nl@lockelaw.us All inquiries will be kept strictly confidential. This is not an offer for legal services, but rather for his expert review and opinion about your particular compliance situation. All fact patterns are different so the results will vary. No guarantees are expressed or implied. Licensed by California and Federal Bar. NMLS 149450.

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Be consistent In any relationship, whether it’s personal or professional, consistency is something we all crave and value greatly. As infants, consistency is what makes us feel safe and secure.

As children, consistency helps us understand our boundaries, and in the workplace, consistency from leadership plays an important role in our day-to-day engagement. While the importance of consistency in processes and communication channels is obvious, your interaction and reactions as a leader are equally (if not more so) important. With the pace of change in the world and the daily “surprises” that inevitably come with working in today’s tech-heavy world (and with other people, for that matter), this consistency gives your team comfort in knowing how you’ll react or how you would respond to a given situation, allowing them to operate with confidence when you’re not in the room. This comfort, however, can take time to build and can also be easily eroded by a single inconsistent action.

Being consistent inevitably helps you build trust within your team—and trust in leadership, or the lack thereof, is more times than not what makes or breaks engagement, productivity and innovation.

Remember, trust is a two-way street. You need to trust your team if you are asking them to trust you. So, be consistent in your decisions and reactions, explaining your rationale or response, so your team knows—and can rely on—where you stand.

Conclusion At the core, we all want the same thing and that’s to foster teams that are engaged and highly effective. The three Cs help with not only increasing engagement, but also boost the overall morale of your teams resulting in a productive and pleasant work environment.

Confidence … believe in your team’s ability to see their projects through to the end.

Care … invest the time in your skills as a leader and in knowing how to best lead each of your team members.

Consistency … create a sense of order for your team through

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at regular intervals, and share your plans to address issues as they arise.

Second, show that you care about the whole team. With the advent of smartphones and social media, the lines between work and home are forever blurred. Employees should feel safe to bring their whole selves to work, and much of that safety lies in your investment in caring about them. It’s not as simple as going out for a team lunch once a month or building some small talk into your weekly one-on-ones. While both of those things have their place, you need to take an active interest in learning what drives each team member to really drive engagement. You don’t need to be best friends with everyone—professional boundaries must be maintained, but you do need to build an understanding of the circumstances and forces that make each team member do their best, or conversely, what gets in the way of their success. To do this, you need to build an understanding of their life, their experiences and their values … whether that’s through observation or direct conversation. And once you build that understanding, you need to respond to events through that lens. Maybe it’s giving them some flexibility on a project deadline that coincides with their last child leaving for college, or knowing they’d rather just get back to work and not be asked how they’re feeling following a death in the family.

Third, show you care by being intentional about working in an inclusive manner and be clear about how important it is for your team to follow suit.

Now that you have a better understanding of each team member’s experiences and what makes them tick, give those experiences the respect they deserve and room to come to the forefront to present different perspectives in various business situations. Since we all don’t view life through the same lens, there are bound to be strengths, weaknesses, threats and opportunities that each person will see differently.

It’s one thing to say and show that you’ve hired a diverse team, but it’s another to breathe all aspects of inclusion.

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Matching Employees With Your Company’s Corporate Culture

By Adam P. Smith

s your company grows, one of the most difficult things to do is to build up your team. We’ve all heard how hard it is to find good help, but in our industry, that takes on a whole new meaning.

Working in the mortgage space, on any level, can be a unique job, to say the least. It can be a very stressful environment, for a number of reasons, whether you’re a loan originator, an assistant, underwriter, processor, account executive, whatever. As a result, the mortgage industry brings a unique set of challenges when it comes to your company’s culture and how to grow and add employees without disrupting that. Hiring someone who even minimally derails your company culture, to any degree, will not only do harm to the position you need filled, but it will harm the productivity of every other employee and have significant impact on your company as a whole. The effort and energy you might waste hiring and training someone, only to find they are not a good fit for your company’s culture, and then have to do it all again with someone else, is only one example of the time and money lost because you didn’t put your company’s culture above all else when adding a new employee.

One of the very first things to do when you want to add to your team, whether it be an assistant, a processor, someone in marketing, another loan originator, etc. is to discuss it with the team you already have in place. Make sure they know the intent, why more help is needed and what the impact or result would be for them. You need to address if someone is being replaced, if their tasks are being cut, are they being promoted, etc. That kind of transparency will not only help to reinforce your existing culture, but it will make them accomplices in solving the problem. They will know people

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who could be qualified to work at your company and fit into your culture. These could individuals they already spend time with and can already tolerate for dozens of hours every week … and they will help you find these people.

They want to be working with, and spending that kind of time with people they already know and like.

That makes the people on your team today some of your best recruiters for finding more employees in the future. They will go out to their neighborhood groups, their PTA groups, their social media communities and help you find more help. They also become excellent gatekeepers in that sense, and will do everything in their power to make sure that you never make the mistake of interviewing, and possibly hiring, someone who would disrupt your current company culture. Your existing employees want your office culture to remain intact, or get even better, just as you do.

So, when it comes to matching candidates that your existing team already sniffed out to fit in with your current culture, always start with a personality profile. There are plenty of them online, for free, and can be done by the candidates in a very short time. They will all do it if they are serious about wanting to work at your company.

Yes, you should look at resumes to see if a candidate has the essential skills, like being able to work a computer, but nearly every candidate should and will these days. Most of what goes on in your company, barring stellar sales skills, can likely be taught. You probably already have manuals, handbooks, flow charts or diagrams of the workload and job tasks, so this isn’t the thing to focus on. You can teach someone how to be a loan officer assistant or how to process and underwrite loans.

You cannot teach them a better personality. If their personality sucks, it will always suck. A personality profile will not only ensure that they could fit into

your company culture nicely, but it will also help ensure that you never have employees with identical or near identical personalities in your company or in the same department. This will help you eventually assign tasks and duties that suit those employees’ personalities best, and it will also help prevent having two people with identical personalities butting heads for one reason or another on a regular basis.

Extend that culture-centric process to your interview process, as well. Don’t do traditional interviews where someone sits across your desk, you proceed to ask boring questions about where they see themselves in five years, and they respond with even more boring, semi-canned responses that they learned to sculpt in every other boring job interview they ever had. We’ve all been through and seen that process and not only is it boring and unproductive, but it doesn’t reveal anything about whether or not someone would fit into your company’s culture. Try having a lunch meeting with your existing employees, or even just those who would work closest with your candidate, and the candidate and just have a casual conversation. Talk about things that don’t have anything to do with the job or your company. Talk about things outside the office like spouses and kids or sports and vacations. This will help reveal things about them that will help you determine if they really would fit into the culture, and if your existing employees would want to spend that kind of time with this person. Your office

culture is likely very familial and this is a person you are considering adding to that family. They say you don’t get to choose your relatives but you do get to choose these people and that’s a good thing since you probably spend more conscious time with them than your family, anyway.

Make sure your candidate also really knows what they are getting themselves into if they accept a job with your company.

What they need to know about the other employees, the work, the environment and the overall culture are all important. Do you have a dress code? Is your office pet friendly? What does their future work space look like?

What kind of hours or schedule will be expected? Make sure they know everything and go in with their eyes open, so that there are no surprises, and you’ll greatly increase your chances of getting and keeping happy employees that fit into your company’s culture.

All told, I believe the company culture to be one of the most important things in a work environment. The mortgage industry lends plenty of its own stressors in the day to day, so I want to do what I can to minimize stress and drama in every other aspect for everyone on my team. My mortgage company has no set schedule for employees. Just get your work done. We have no dress code.

We only ask that you do wear clothes. It is a pet friendly environment and you’re going to find at least a dog or two any time you’re in our office. Our waiting area is more like your living room than an office lobby and we congregate there often.

Our company culture is designed and reinforced with the idea that people should want to come to work every day, want to be around the other employees and will therefore be more productive and more fun to be around. And it works.

Adam P. Smith is president of The Colorado Real Estate Finance Group Inc., a commercial and residential real estate finance firm, and the owner and sales coach of Just The Tips Coaching. He may be reached by phone at (303) 770-2262, ext. 112 or e-mail Adam@CoreFinanceGroup.com.

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How to Foster a Positive Work Environment By Ward Morrison s leaders, we all strive to foster positivity in our work environments.

Who doesn’t want happy employees and a cheerful office? However, positivity isn’t the true goal in a productive business environment. It should simply be a pleasant and useful symptom of the essential objective of workplace culture efforts–efficiency. With efficiency at the core of your actions, incentives and examples, you can enhance your recruiting efforts, strengthen employee retention, and ultimately, create a positive work environment for your team.

Think of it this way … you can have an excessively “positive” environment in which work outcomes are chaotic. In truth, the positivity would likely wane as employees begin to lose purpose and self-efficacy due to the lack of focus and goal completion. On the other hand, if you champion efficiency, you can avoid overwhelming your employees while bolstering feelings of success, thus promoting positivity. In other words, efficiency begets positivity in the workplace.

Efficiency acts as the starting line for positivity. It frees your staff by minimizing needless tasks and work overload. When you have an efficient office, you make room for creativity, ideation, social activities, worklife balance and potency of achievement.

Start by promoting efficiency.

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It comes down to trust In order to lead efficiently, lead with trust. Trusting your employees makes your leadership work more efficient, since you can delegate decision-making. But more importantly, it encourages your employees to maximize their work hours as opposed to viewing their time in the office as hours to be added up. In the former scenario, each team

“Efficiency acts as the starting line for positivity. It frees your staff by minimizing needless tasks and work overload.

When you have an efficient office, you make room for creativity, ideation, social activities, work-life balance and potency of achievement.”

member works diligently to complete high-quality work, knowing you trust them to do so. In fact, research published by the Harvard Business Review in 2017, indicates that employees who work in trusting environments felt more than 75 percent more engaged in their professional duties. Accomplish this by empowering those working in the field to make decisions without fear of criticism and by demonstrating workplace flexibility with a focus on output vs. timeaccumulation.

Incentivize efficiency Positive reinforcement and individual performance evaluation are two additional and essential components of fostering efficiency in the workplace. Publicly acknowledge employees who display exceptional efficiency or, better yet, incentivize efficient performance with

monetary rewards. This can tie directly into individual performance evaluations, as can feedback for improvement.

When the need arises to train someone on efficiency, rely on your understanding of what’s expected for their efficient workload and discuss that employee’s personal barriers to executing said workload. There may be technology that can assist, or other process-related adjustments that you can make.

If external factors aren’t the issue, then the employee can help formulate a plan for their personal improvement. Never hire additional staff as a remedy for lack of efficiency.

Follow a hiring roadmap Conversely, ensure your team isn’t overwhelmed with work.

Never hold off on hiring a new team member if expansion exceeds your current employees’ bandwidths.

Overloaded staff simply cannot

function efficiently and will struggle to remain positive and productive. At Motto Franchising LLC, we know from past experience how many clients our support staff members can each handle. The moment we reach that maximum ratio, we add a member to the support team.

When it comes to the management team, follow the “Rule of Seven:” If a manager’s team exceeds seven individuals, it’s time to either promote someone on that team to a managerial role or hire someone else to take on that management role. This supports efficient management, prevents bottlenecking, and mitigates manager burnout. The practice is actually where “middle management” comes from and is a necessary function of efficient and growing teams.

Utilize your best resources Open-door policy Your best tool for continued efficiency evolution is your team. As a leader, you might lose touch with the nitty-gritty of your office operations, but everyone in the trenches understands where the bottlenecks are. They see them every day and struggle to hurdle them. Maintain an opendoor policy and listen without judgment. I find that by listening carefully and communicating appreciation for candor, employees continually feel they can bring ideas to me, regardless of the implementation outcome. I’ve heard time-saving, moneysaving, and value-driving proposals, just to name a few.

Not only does this approach improve efficiency, it bolsters morale and communicates the high value you place on the expertise of each employee. It’s essential you don’t rely solely on department heads for this invaluable information—they might not want to say, “My department is inefficient.”

However, the employees experiencing those inefficiencies might be more inclined. Just remember never to use this information as punitive ammunition. While a staff member may want to alleviate a bottleneck, it’s extremely rare that they would want to punish a manager or co-worker. Using this

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information as a watchdog enforcement tool will stop future ideas from coming through that open door.

Encourage creativity If you’re not brainstorming or collaborating periodically, you’re missing out on ingenious ideas for efficiency and stifling the creativity that leads to office positivity. Some of the most successful companies in the world build ideation time into the workweek and reap the rewards of improved employee morale and ingenious ideas to drive revenue. In fact, as a product of 3M’s commitment to allowing staff to utilize paid time to innovate, the Post-It Note was born. December and January are ideal times for collaboration. It allows the office to start the new year with fresh ideas and inspires continued creativity.

Ward Morrison is the president of Motto Franchising LLC. With more than 150 franchises sold and more than 100 offices open in 30-plus states, Motto Franchising LLC’s unique national franchise mortgage brokerage model is the first of its kind in the U.S. Under Ward’s leadership, Motto Mortgage has received numerous industry accolades in its short three-year history, including recently ranking on the 2020 Entrepreneur magazine Franchise 500.

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Demolish information frustration Presenting, meeting, and brainstorming with only your own learning style in mind presents another barrier to efficiency—and ultimately positivity. Think about it … the average employee attends

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Solutions only, please It’s easy to notice problems, to walk into an office and complain, or to use a group brainstorm as an airing of the grievances. To counteract such temptation, add the caveat that ‘new ideas must be solution focused’ to your open-door policy and brainstorming sessions. Focusing on issues might be easy, but it’s not productive. By redirecting staff input to solution-oriented conversations, you channel thoughts in a positive direction while also requiring the employee to evaluate the viability of possible solutions.

about 60 meetings every month.

If information is not presented in an easily digestible way, that time is wasted, and the staff involved must seek that information again. Perhaps even more damaging, employees with predominant learning styles that differ from those presenting will likely leave each meeting frustrated, which reduces productivity long after the meeting’s conclusion.

Consider diversifying your presentation and meeting formats to accommodate different learning styles and see your efficiency and positivity increase.

Most people lean heavily on one or two learning styles when absorbing and processing information. While many learning styles have been identified over the years, the three basic types are verbal, visual, and tactile.

Predominantly tactile learners will likely struggle to remain focused on the typical slidebased presentation, while predominantly visual learners probably won’t retain much from pure discussion formats.

Attempt to include all three foundational learning styles in each meeting and presentation to avoid unnecessary stress and to maximize the time spent in those meetings.

Similarly, you’ll notice that some of your staff thrives on efficiency alone while others depend on interpersonal relationships to motivate them.

Still, others will crave creativity opportunities. It will behoove you to notice the styles and personalities of each person on your team in order to maximize engagement, productivity, efficiency and positivity. When you strive purposefully toward efficiency, you’ll simultaneously make way for the interpersonal and creative activities that so many of your employees crave.

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A Loan Officer’s Plan: How to Tackle 2020 By Tim Carroll e all know New Years’ resolutions are hard to keep. Just 35 percent of us will stick to our resolutions past the end of January, and only 23 percent of us will keep them until the end of the year. If you’re skeptical about making resolutions for your lending team in 2020 (or if you’ve given up altogether), we’ve got good news … you can do it.

And we’ve put together some helpful strategies that’ll get you there, including how you can: l Set better goals l Increase your productivity l Maximize your closings in 2020

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Here are some of the most common behaviors we’ve seen among successful loan officers, and why we think you should adopt them in 2020.

sidetracked on the way to your goal.

Reward yourself Are you rewarding yourself periodically for hitting your goals?

It’s a simple idea, but good oldfashioned Pavlovian conditioning can go a long way. If you aren’t rewarding yourself for creating patterns of good behavior, you aren’t doing much to solidify those habits. For every milestone you hit, take note of how you’ll celebrate.

Each positive reward can provide you with the boost you need to reach the next one. Of course, you don’t need to incentivize yourself with fancy dinners or expensive toys, but a simple reward structure can keep you motivated on the way to your goals.

Think specific If you want to enjoy success in the new year, you’ll need to make sure you’re setting goals that are specific. Get down to what you want—a vague goal isn’t going to cut it.

Think about a loan officer who wants to “expand their network” in 2020. Doesn’t sound very specific, does it? Instead, consider providing some specifics about what you want to achieve. For example: “Make three new connections per week starting this month.” This is more specific, and it also aims to quantify your goal.

Monitor your progress and schedule time to learn Sometimes, we all fall short of achieving our goals. Maybe your target was to produce 150 leads per quarter, and you only hit 100.

Given this situation, you understand that you need to figure out a way to generate 50 more leads per quarter. Because if you continue on the same path, chances are you’ll fall short again.

This is where learning comes in.

Dedicate some time to research what you can do better. In this case, maybe you’ll need to set aside an hour to study lead generation techniques. Not only will you need time to brainstorm, but you’ll also need to schedule time to implement these strategies and monitor your results.

Set smaller, achievable goals Break your goals down into small, manageable steps. Eating an elephant might sound daunting.

But if you can break that elephant down into smaller, simpler parts, it doesn’t seem all that difficult. We, as humans, have the propensity to set our goals too far out, so it’s important to bring our goals back down to Earth.

Think about how our early ancestors managed to survive. For cavemen, survival was a day-today struggle. The same goes for your mortgage lending team. If you set your sights too far out, you might procrastinate or get

Don’t be afraid to say no What’s one thing you can say “no” to that’s a waste of time? Most of us have things that creep into our schedules that might dominate our workday. Getting rid of nonproductive behaviors might free up some time to work on productive tasks you can say “yes” to.

A good way to sort out these daily activities is to split your day up into tasks based on the level of urgency. This is where the Daily Priority Matrix, otherwise known as “The Eisenhower Matrix” comes in.

If the task can’t be done now or later, and it can’t be delegated, then it must be deleted. Let’s

break down these categories: Do it: Items with clear deadlines that require immediate action Examples: l Meeting with mortgage applicants l Approving loans l Calculating payment schedules Schedule it: Items that don’t have a specific deadline, but help you get closer to your goals Examples: l Strategic planning l Networking l Professional development Note that these tasks are easy to procrastinate on.

Delegate it: Things that need to be done, but may not require your specific set of skills Examples: l Advertising your services l Building a Web site l Sending certain e-mails Delete it: Distractions that detract from your performance at work … may not be harmful in moderation Examples: l Social media l Office politics l Water cooler chit-chat Again, if a task cannot be done, scheduled or delegated, then there’s a good chance it should be deleted from your work schedule.

Automate processes For loan originators, time is money.

Lucky for us, we live in an age where technology can help us work faster. Think about the actions that you complete during the average workday. Are some of these actions repetitive? Would you consider them low-level cognitive tasks? If so, there’s a good chance

they can be automated using mortgage software.

For example, collecting borrower documentation can be time-consuming. However, GSEs and data providers now offer ways to complete income and asset validation without having to manually track down bank statements.

Emotional health is key If you’re feeling inundated with daily tasks, try incorporating small breaks into your schedule. Take a quick break to read something that you’re interested in and isn’t workrelated. Research shows that the human brain is 50-60 percent less productive at the end of the workday than the beginning, and taking short breaks can help you stay more productive, later into the day.

If possible, try to stop surrounding yourself with people who bring you down. Take cranky clients or referral sources, for instance. If someone continues to bring bad vibes to your day, what’s the point in keeping them around? Ridding your work environment of negative influences can help you and your team think positively and can even impact your bottom line.

This mindset shouldn’t stop when you leave the office either.

We know that as humans, happiness is directly tied to our relationships, especially those outside the workplace. Remember: you are the sum of the four to five people you spend the most time with. The more you associate with quality people who inspire you, the happier you’ll be in the workplace.

Dreaming is easy, but coming up with a cohesive plan is hard. If you’re going to succeed, you’ll need to stick to that plan. And don’t be afraid to write it all down.

Having your strategies listed on paper will help you hold yourself accountable.

If you can roll out your plan while focusing on each of these areas, you’re well on your way to knocking it out of the park in 2020.

Tim Carroll is a senior national account executive for Data Facts. A veteran of the industry, Tim comes from a background that is rooted in mortgage lending. He is a long-serving member of various MBA’s throughout the Northeast U.S. Tim is currently a director on the board of the New York MBA, as well as the Central New York MBA. He may be reached by phone at (315) 956-0511 or by e-mail at TCarroll@DataFacts.com.

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Here Are Three 2020 Predictions You Haven’t Heard Yet

By Steve Ozonian

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early 30 years ago, I set off to begin my amazing career in homeownership and mortgage finance. I’d like to think that in that time, I’ve learned a thing or two about how we should emphasize the importance of smart, precise change into our industry, especially for the benefit to the homeowner. The sad truth is that, in those years, the process of homebuying has not seen a revolutionary change, like I once thought, and instead is on an evolutionary path. Like it or not, this is simply the way it goes, and the march toward the digital mortgage can be measured not in leaps and bounds, but in small steps forward.

Let me put some context around how tech gets introduced and then slowly realizes its potential. What has changed in the last 30 years? When people are thinking of buying, not as much when they are selling, but when they first set out to buy, they head to the Internet. We all know there are very dominate players who engage with that consumer first.

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Prediction #3: The vendor landscape will change immensely At a recent Innovate Housing Forum, hosted by Fannie Mae, several representatives from the startup community gathered to discuss their next steps. During those discussions, it can be interpreted that the discourse is moving from not just saving time, but saving costs. The best example of the need for this can be found in this quote: “The average cost of a home transaction is 10.5 percent

across the nation, which is insane,” said Chief Revenue Officer Tyler Baldwin of Reali, a tech-enabled real estate platform streamlining the process for home buyers and sellers. “Name any other industry where you’re charging 10.5 percent just to execute that transaction.”

Fannie Mae said that the cost to close is enormous and ultimately off-putting for the consumer and it’s no wonder as they estimate that there is an average of nine different service providers—title companies, escrow providers, appraisals and notaries—required for one real estate transaction. Efforts should be made to help reduce the complexity of the transaction.

While these startups are focused on improving the customer’s experience, who’s taking the lead on improving the lender’s experience? As the startup landscape shifts, so does the vendor landscape.

Simplifying the mortgage process needs to beneficially link to advances on the real estate side.

Mortgage lenders need flexibility and speed from their partners. As mentioned above, the way people are buying homes is changing and so we must adapt the way in which we are selling to them. Superior tech must be leveraged through the entire system, from the moment a property search begins online, all the way to the final closing.

Good services adapt to the customer and lender, not the other way around. For those services to find success in 2020, they’ll need to see this fact very clearly.

Steve Ozonian is president and chief executive officer with Williston Financial Group (WFG). Over the course of his career, he has engineered the dramatic growth of multiple real estate-related businesses. Prior to joining WFG, Steve was a senior executive at Chicago Title & Trust, where he headed the real estate services segment, which acquired and sold thousands of homes a year. He also served as an executive vice president with Coldwell Banker, where he helped build the company to 70,000 sales associates. Steve served as chairman and CEO of Prudential Real Estate and Relocation Services and expanded annual sales volume to more than $200 billion. Steve is perhaps best-known for building the world’s most successful real estate research portal during his time as CEO of REALTOR.com. Steve has also served Bank of America as its National Homeownership Executive.

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Prediction #2: The great shakeout is going to start Deeper data availability will define this key trend, moving forward. None of the companies I described are going to collect less data this year. Because we are living in an ever-upward, rosy real estate trend with low rates, high prices, refinance opportunities and sustained volumes, what will happen is a shakeout will begin to start.

What do I mean by this? One way to collect more data and add more transparency is to acquire tech to do so or to even directly acquire companies that offer those services or retain that information itself. In other words, once enough time has passed for these many business models to evolve, companies using them will begin to fall into one of two buckets: Winners or Losers.

The losers will be those who get swallowed up or drop out altogether. Or, they will be the companies that get rolled into other companies, or employ business models that are unsustainable. The losers’ access to capital will begin to dry up in 2020, as investors mature in their approach to these business models. The “WeWork Phenomenon,” that this is an endless game where we can keep feeding the beast–is not going to work in our industry. We are going to see signs of this weakness in 2020, when this ever and overflowing capital that’s flooding our industry starts to slow down as investors evaluate which models have legs and which don’t.

This will be especially apparent in the iBuyer space. These new forms of business models are no different in that they need to be clear and transparent about what services they provide and the premiums they charge if they expect to be successful and have

investors determine that they are a sound investment.

The single-family residential (SFR) space is also set for explosive growth as the demand for rental units continues to grow on the back of the housing supply crisis. The SFR space is now analogous to the iBuyer space and may see some significant crossover. The iBuyers are acquiring and flipping and when they are moving the properties, they carry those properties. They will look for opportunities to rent those units out. As the holding times go up, so does the risk profile. There will need to be more of a delta between the purchase price and the value of the home.

At one point in my career, we had 20,000 homes on the books.

In my experience, at that level, if those homes aren’t flying off the shelves, then either you change the game or the game changes you. The cost of carrying those home and the cost of capital will eat and erode margins in the buy/sell spread. And in a declining market, you can end up upside down, very quickly.

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Prediction #1: The tech revolution is now more of an evolution Did we all wake up on Jan. 1, 2020 and decide that tech advances will be huge in the mortgage finance space this year? Not quite, it’s been coming for some time, but several key factors have shifted on the journey up until this point.

When I was the chief executive officer of Realtor.com 18 years ago, I would march around with a sign saying, “The revolution is coming, you better get with it.”

The rallying cry, logically, was that we were in for the ride of our lives and we buckled up.

However, the high-speed race never really shot straight out the gate. The reality is the use of the Internet in mortgage finances took years to develop and to take hold.

Nearly two decades later, consumers now jump on the Internet before they even go look at a home physically. The appetite for gathering facts about the demographics of the neighborhood, as well as information on the property itself, is now widely available and transparent.

This access is very empowering to the consumer and they now expect to have that

transparency throughout the entire transaction from start to finish. We tied “MyHome” to the escrow number, so the consumer, agent, whomever, can simply input their escrow number to see at what stage the title/closing process is in. The same goes for being able to select a real estate agent through a cloud-based “Realty,” or a real estate company that’s online and doesn’t use any agents at all.

These companies certainly exist and it’s the consumer discretion to use them. The plethora of opportunities to connect will continue to grow into 2020 and beyond.

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MARKETING INTERRUPT

How to Win on LinkedIn

By Jason Frazier

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Edit your headline: Start by writing a specific headline. You can tell the network what value you add, who you are, and what you do. Keep your audience in mind and avoid technical terms that may be unfamiliar to them.

LO Example (David Koch): Your friendly, neighborhood, independent mortgage broker.

Update your summary: Your summary is where you can add more details and showcase your achievements. Provide statistics to describe your impact.

Pro tip: You can add multimedia attachments like videos and articles to help you stand out.

For Pete’s sake, upload a photo! I see so many people without a photo or using a bad picture. Pick an image that looks professional, clear and recent.

Use keywords: LinkedIn has incredible SEO potential. Think about keywords that are popular in your field and include them in your profile, including the headline and summary.

Choose your URL: LinkedIn gives your profile a URL, but you can change it to something that you like better or might work more effectively for you.

The best practice is to use your name, and if that is taken, then be creative.

Don’t forget social proof: Gather recommendations and endorsements to help your network see what others say about you. Ask customers, former employers and other contacts for recommendations.

Use this social proof to highlight your expertise.

Create content and build authority One of the great things about LinkedIn is the ability to establish yourself as a thought leader.

LinkedIn is a business-focused social media channel, so the audience’s intent is different than that of Facebook or Instagram. As a mortgage professional, this is where your expertise can make a difference by posting content that informs, advises and educates your audience. Try these tips for creating some winning content. l Content-type: With LinkedIn,

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you can do video (only 10 minutes), long-form (text only), Images, and Live Video (although you need to be approved). Make sure to try a combination of these to see what works best. For me, my text-only posts are always a winner.

Show your expertise: What to talk about is always a question I get from loan officers. But as I said earlier, LinkedIn is a business-focused network, so think about the audience. For example, did you just help a borrower with consolidating debt? What about helping them understand the value of buying a less expensive house by understanding their long term goals? Talk about those scenarios and others to enhance your reputation as a mortgage advisor.

Be consistent: The best practice is to post every day.

Just like other social media networks, LinkedIn wants its users to spend as much time on the platform as possible.

The more interest-based content you create, the more LinkedIn will show your love in the news feed.

Create articles: You are limited to 1,300 characters in your LinkedIn posts, so if you have a great thought leadership piece, creating a LinkedIn article is the way to go. Just like a blog post, you can embed images, videos and even audio. LinkedIn articles are trendy, and thus LinkedIn will get your profile in front of more people if you are actively publishing articles.

Pro tip: Your LinkedIn article can be shared outside of the network and can help with SEO for your profile.

Best times to post: Just like with everything you want to do your own testing. What I say is the best time may not be the best time for you. However, in my experience, the best times to post are between 8:00 a.m.10 a.m., Noon, and after 7:00

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p.m.-8:00 p.m. (all local time).

Pro tip: Try posting on weekends. It goes against what a lot of “gurus” say, but some of my best performing posts (over 20k views) have been on a Sunday morning.

Build relationships: People are still trying to figure out how to use LinkedIn to sell, so you will see a lot of those canned messages or connections with an immediate sales pitch. It is one of the reasons why people hate LinkedIn, but to me, this is a HUGE advantage. Instead of selling your services, get to know those in your network, and find ways to add value by answering questions when they come up.

Engage with others: This is part of building relationships.

Engage with others on their posts with commenting, reacting and sharing. Unlike Facebook, LinkedIn will tend to have some great professional discussions where your expertise as a mortgage professional can add value. This is also a great way to build your network as others will reach out to you just by engaging in the comments.

Use hashtags: LinkedIn does a great job with hashtags (#).

Putting hashtags in your posts (like #mortgagebrokers) will help your content get discovered by others. On LinkedIn, you can follow hashtags that allow users to have a very specific newsfeed. If your post is gaining traction, your content can start to trend for that hashtag, which will open the door to thousands of views.

Right now, LinkedIn is a great channel to get a lot of free/organic views on your content, just like Facebook was five to six years ago.

Eventually, like Facebook, LinkedIn will become a pay to play channel as others have done. Don’t miss this opportunity to build awareness of your brand, grab attention and ultimately, attract business.

Jason Frazier is chief creative officer for Mortgage X Creative. He may be reached by phone or text at (801) 702-3176, e-mail Frazier@MarketingInterrupt.com or visit MarketingInterrupt.com.

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It starts with the profile There is no excuse to not have a dialed-in LinkedIn profile in 2020. It is time to take charge of your future and attract more attention from your network. Try these tips for creating a winning profile.

l

NationalMortgageProfessional.com

o you hate LinkedIn or do you love it? Generally, when I see people talk about using LinkedIn, they fall into one of those two camps. It is funny to see the contrast between the two positions because I was once in the “hate it” camp.

It wasn’t too long ago that I had written off LinkedIn. It was dead, gone and irrelevant. Boy, was I wrong! In my defense, I wasn’t alone in that thinking, and in fact, some of that past perception is why people are still lukewarm on the channel. However, you can now put me firmly in the “Love It” camp.

LinkedIn as a social network is right up there with Facebook for where I spend most of my time. It is where I focus most of my attention right now because the business potential is off the charts.

From a business perspective, it has already been a great value for building my brand, and I still see a high ceiling of opportunity.

I am sure I am not the first person to tell you that you should be leveraging the power of LinkedIn. The popularity of the channel is growing, and I am seeing more people talk about it at events and online, including super marketers like Gary Vaynerchuk, who called 2019 “The Year of LinkedIn.” I couldn’t agree with Gary more, and I think 2020 will be just as significant for the channel.

Because of the opportunity for growth on LinkedIn, I have made it a point to build as much expertise as I can on using the platform. Not only do I want to make sure I am correctly leveraging the channel, but I want to be in a position to help others leverage it as well.

I could go on and on about why I love this channel and why you should too, but that isn’t what this article is about. This article is to help those that don’t know where to start and those that need some solid practical tips on how you can “Win on LinkedIn.”

FTC/CFPB Consumer Reporting

By Terry W. C

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n Dec. 10, I was honored to be a participant in the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) co-sponsored Workshop titled “Accuracy in Consumer Reporting.”

The Workshop featured four panel discussions, all equally balanced between industry representatives and consumer advocates, with additional featured speakers from both the FTC and CFPB. The daylong discussions focused on all aspects of consumer reporting as it pertains to the accuracy of consumer data being reported.

From traditional credit transactions, collection accounts, public records of all types (civil judgments, eviction records and criminal histories which are used in resident and employment screening consumer reports) were all addressed in the sessions.

Accuracy of the data is an area in which the NCRA has a major interest, and has played a major role in over the years. Way back in 1993, under the National Association of Independent Credit Reporting Agencies (NCRA’s founding name), we studied the accuracy implication of the move from the then

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required Residential Mortgage Credit Report (RMCR) to the current standard, the automated tri-merge. That study showed that there would be very little new data found by adding the third national credit bureau file, and significantly lost data from eliminating the RMCR requirements in the quest for speed and cheaper reports. Fastforward nearly 30 years and those findings were upheld.

In 2002, the largest credit reporting accuracy study still ever conducted was performed

by NCRA and the Consumer Federation of America, examining more than 1.2 million live trimerge consumer reports and scores in three various size phases. We saw areas of concern, which Congress acted to address in 2003 with the passing of Fair and Accurate Credit Transactions Act (FACTA).

FACTA created the annual credit report Web site that provided consumers a free copy of their credit report for the first time without some type of adverse credit action happening to them, along with many other changes to improve the industry.

Most recently, the sweeping reforms known as the National Consumer Assistance Plan (NCAP) rolled out in 2015 incrementally over a three-year period made further changes that

have increased the accuracy of consumer credit reports. NCAP eliminated areas that were problematic, and created new ways to improve other long time challenges. Of the multiple changes NCAP created, one of the most notable was the wholesale elimination of civil judgments from the national credit bureau databases. With the loss of Personal Identifying Information (PII) like Social Security Numbers and date of birth from many of those records, matching them to the proper consumer became inconsistent to a level in which they were removed from the system.

Panel One addressed the credit furnisher practices and compliance with accuracy requirements, featuring Panelists Leslie Bender, chief strategy officer and general counsel with BCA Financial Services; Francis Creighton, president and chief executive officer with the Consumer Data Industry Association; Syed Ejaz, policy analyst with Consumer Reports; Nessa Feddis, senior counsel and vice president with the American Bankers Association (ABA); Elisabeth JohnsonCrawford, chief technical officer with Credit Builders Alliance; and Moderators Susan Stocks, office of enforcement with the CFPB and David Wake of the Office of

Supervision Policy with the CFPB. All of the data in consumer reports start from a source of many types. Traditional creditors, collection agencies, private and government public record sources to name the most common. This group addressed some issues with each that set the foundation for future panels.

The opening of the Workshop was provided by Tiffany George, a senior attorney with the FTC Division of Privacy and Identity Protection, specifically focused on our industry. FTC Commissioner Noah Joshua Phillips and Peggy Twohig, Assistant Director for Supervision Policy for the CFPB both provided remarks with long-time industry regulator Twohig’s address, “Setting the Stage–A Decade of Developments in Consumer Reporting” really hit the mark laying the framework for the sessions to come.

Panel Two addressed the current accuracy topics for traditional credit reporting featuring Panelists Roberto Cera, senior manager of data acquisitions for TransUnion; E. Michelle Drake, shareholder with BergerMontague PC; Troy Kubes, vice president and deputy chief compliance officer with Equifax; Ed Mierzwinski, senior director of federal consumer

Attendees listen to Panel One, which addressed credit furnisher practices and compliance with accuracy requirements

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Moderators Amanda Koulousias of the Division of Privacy and Identity Protection with the FTC and Beth Freeborn of the Bureau of Economics with the FTC. The proper handling of consumer disputes is the battleground of consumer accuracy. Wrong data harms everyone, and unfortunately, there those trying to beat the system via identity theft and other methods that will dispute accurate items as inaccurate. Complicating matters worse is the credit repair firms, most of which use highly questionable and sometimes illegal practices to remove any derogatory items, regardless of legitimacy.

The day’s closing remarks were provided by Maneesha Mithal, Associate Director of the Division of Privacy & Identity Protection with the FTC. Maneesha made several interesting reflections on the day and discussed how this Workshop and the written comments submitted both prior to and through Jan. 30, 2020 will be digested by both agencies

and lay the groundwork for future FTC and CFPB actions in the consumer reporting industry over the coming months. The current consumer reporting system is a robust and accurate one, however, there is always room for improvement.

It is very gratifying as a very active, long-time industry participant to see that so much has improved in the quality of consumer reporting over the past 30 years. The level of accuracy and the speed in which a consumer disputes are both processed vastly better today than in the past. All segments of the industry continue to improve the system that is regarded as the best in the world, and a key element of the world’s strongest economy. While the credit reporting system is not perfect, and it never will be, something that Sen. Proxmire realized back in 1970 with the original FCRA— we as an industry should be proud of the changes that we have advanced to benefit all Americans.

Terry W. Clemans is executive director of the National Consumer Reporting Association (NCRA). He may be reached by phone at (630) 539-1525 or e-mail TClemans@NCRAInc.org.

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Nelson, staff attorney with the National Consumer Law Center; Melissa L. Sorenson, executive director for the Professional Background Screening Association; Matt Visser; chief executive officer with VICTIG Screening Solutions; along with Moderators Tiffany George and Amanda Koulousias from the Division of Privacy and Identity Protection for the FTC. Background consumer reports have a major impact on consumer ability to obtain rental housing and employment and is in need of help in the areas of missing and inconsistent data coming from the sources, the various types of municipal, states and private sources who collect, store and provide that information for reporting.

Panel Four addressed “Navigating the Dispute Process,” and featured Panelists LaDonna Bohling, chief compliance officer with Receivable Solutions; Eric J. Ellman, senior vice president of public policy and legal affairs with the Consumer Data Industry Association; Stephanie Froelich, chief executive officer with True Hire; Kristi C. Kelly, and attorney with Kelly & Guzzo; Rebecca Kuehn, a partner with Hudson Cook; Chi Chi Wu, a staff attorney with the National Consumer Law Center; and

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programs with the U.S. Public Interest Research Group; Donna Smith, chief data officer with consumer information services for Experian North America; Michael A. Turner, president and chief executive officer with the Policy and Economic Research Council; with Moderators Tony Rodriguez and Kiren Gopal from the Office of Supervision Policy of the CFPB. This panel did a deeper dive into the traditional credit trade lines, the vast majority of most consumer report data that source is the creditors who furnish the information about their consumers to the credit bureaus.

After lunch, Brian Johnson, Deputy Director of the CFPB and Andrew Stivers, Deputy Director of the Bureau of Economics for the FTC, made remarks to recap the morning sessions, set up the day, and underline the importance of this industry to our nation’s economic health. Those remarks led into Panel Three, addressing “Accuracy Considerations for Background Screening.” Those panelists were: Terry Clemans, executive director of the National Consumer Reporting Association (NCRA); Eric Dunn, director of litigation for the National Housing Law Project; Jamie Gullen, supervising attorney with Community Legal Services; Ariel

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01 Peggy Twohig, Assistant Director for Supervision Policy for the CFPB, presents “Setting the Stage–A Decade of Developments in Consumer Reporting” 02 Panel One Moderators Susan Stocks of the CFPB with David Wake of the FTC 03 Nessa Feddis of the American Bankers Association and Elisabeth JohnsonCrawford from Credit Builders Alliance share their thoughts on compliance 04 Francis Creighton from the Consumer Data Industry Association and Syed Ejaz from Consumer Reports address attendees during the opening panel discussion 05 Panel Two Moderators Tony Rodriguez and Kiren Gopal from the Office of Supervision Policy of the CFPB took a closer look at traditional credit trade lines 06 Troy Kubes of Equifax shares his insight during the second panel discussion 07 Panelist Roberto Cera of TransUnion discusses traditional credit reporting 08 Ed Mierzwinski of the US Public Interest Research Group discusses traditional credit reporting during his Panel Two session 73 09 Donna Smith of Experian North America shares her thoughts on traditional credit reporting 10 Brian Johnson, Deputy Director of the CFPB, highlights how the Bureau enforces its mandates 11 Terry Clemans of the National Consumer Reporting Association takes part in the Panel Three discussion 12 Eric Dunn of the National Housing Law Project explains the role of his firm 13 Melissa L. Sorenson of the Professional Background Screening Association shares her thoughts during the “Accuracy Considerations for Background Screening” panel 14 Panel Three’s Matt Visser of VICTIG Screening Solutions explains the screening process 15 Chi Chi Wu of the National Consumer Law Center takes part in the “Navigating the Dispute Process” discussion 16 Rebecca Kuehn of the law firm of Hudson Cook details the legalities of the dispute process 17 Eric J. Ellman of the Consumer Data Industry Association 18 Panel Four Moderators Amanda Koulousias and Beth Freeborn of the FTC 19 Tiffany George, Senior Attorney with the FTC delivers her Opening Remarks

MONEY LAUNDERING continued from page 31

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utilizing legitimate funding.

In addition, the FATF regularly audits countries as to their money laundering efforts and controls.

The reports and findings are available on the web site and could be a good source of information if you have a mortgage application in the name of an LLC in that country.

The increased scrutiny on LLCs has caused money launders to adapt to the regulatory climate. Straw buyers have developed into a viable alternative for real estate transactions to include mortgage applications. When property is bought for laundering, it is usually placed in the name of a third party, such as a relative, associate, relative of an associate or a corporation.7 FinCEN recognized that real estate is a money laundering haven and issued Geographic Targeting Orders (GTOs) to identify certain high dollar transactions in various American markets. The findings have proved revelatory. As of May 2, 2017, over 30 percent of the real estate transactions reported under the GTOs involved a beneficial owner or purchaser representative that had been the subject of unrelated Suspicious Activity Reports (SARs) filed by U.S. financial institutions.8 Examples of behavior include known criminal organizations utilizing straw buyers to acquire high-end luxury properties.9 The most dangerous quandary facing mortgage brokers today, however, is something called willful blindness, which can be caused by bounded ethicality, systematic and predictable ways in which people engage in unethical acts without their own awareness that they are doing anything wrong. Enterprising money launderers will often combine techniques and utilize straw buyers with foreign LLCs to create a tangled web that is difficult for the mortgage broker to trace. A long-term money launderer will want to set up companies to then use to open corporate bank accounts, without having to put their name on anything that would be public.

Typically, they hire a law firm in the tax haven jurisdiction to establish a company, using the names of local nominees to be the directors of record, so no trace of the true owner is publicly

available. The legally registered company is then used to open bank accounts, like several in different jurisdictions.10 The fees generated by these high-dollar real estate transactions are substantial and your brain has a natural tendency to both consciously and unconsciously overlook certain relevant information especially when there is a significant monetary gain involved.

In the 2008 financial crisis, sub-prime mortgages played a central role in the market collapse and subsequent recession. At every stage of the lending, structuring and purchase chain, the key actors had incentive to understate and under-investigate mortgagebacked securities (MBS) risk.11 In hindsight, experts are suggesting that bankers, financiers, regulatory authorities, and mortgage brokers should have seen the collapse coming.

Charles K. Whitehead, the Cornell Law School Myron C. Taylor Alumni Professor of Business Law and Bernard S. Black, the Northwestern University Nicholas D. Chabraja Law Professor affirmed this idea. We collected evidence that the risk of a nonprime housing bubble (not the certainty, but a meaningful risk) should have been obvious to the originators, securitizers, rating agencies, money managers, and institutional investors who participated in the markets for nonprime lending and related mortgage-backed securities (nonprime MBS). Those who did not see the risk, we argue, were willfully blind.12 Although you strive to be ethical, your mind doesn’t always cooperate. Bounded ethicality works against you because you will frequently discount the decisional impact of your wants and desires as well as the normal stresses and pressures in life.

People tend to mispredict how they will behave in the future, often overestimating the extent to which they would engage in socially desirable behaviors.13 In order to combat the natural processes in your brain that lead to bounded ethicality, you could pursue something created by Kriti Jain and referred to as consequential reflection, which is the technique of prompting people to reflect on the positive and negative consequences of their

decisions. By getting people to stop and reflect on what they are about to do, you would be activating the conscious part of the brain, which is where more rational-based decision-making takes place.14 Very few mortgage brokers intend to commit fraud and those who do tend to believe that they won’t be caught. Bounded ethicality and willful blindness are enablers that assist people in rationalizing the strange LLC or the mysterious bank transfer the straw buyer uses to make the down payment on the multimillion dollar property. When there are high stakes involved or when the ordinary stresses and pressures of life get in the way, you are more likely to make decisions that you will come to regret. If you take a moment to think about what you are doing, carefully consider the information and documentation before you, and take the time to pursue consequential reflection, you may be able to avoid the dangers that come with questionable mortgage transactions.

Footnotes 1—Unknown Author(s) (2018). Three Sentenced for Mortgage Fraud Scheme Involving 14 Properties in Elk Grove,

Sacramento, Modesto, Stockton, And Elsewhere, U.S. Attorneys’ Office, Eastern District of California, Nov. 9, 2018 (Justice.gov/usao-edca/pr/threesentenced-mortgage-fraud-schemeinvolving-14-properties-elk-grovesacramento).

2—Andrews, J. (2018). “Why Financial Criminals Use Real Estate to Launder Money,” Curbed, Aug. 10, 2018 (Curbed.com/2018/8/10/17674584/moneylaundering-real-estate-paul-manafort-trial).

3—Judah, B, & Sibley, N. (2018). “The Enablers: How Western Professionals Import Corruption and Strengthen Authoritarianism,” Hudson Institute, 2018 (https://s3.amazonaws.com/media.hudson .org/files/publications/EnablersFINAL.pdf).

4—Luce, E. (2019). “How Money Laundering is Poisoning American Democracy,” Financial Times, Nov. 28, 2019 (FT.com/content/99bf2b62-116211ea-a225-db2f231cfeae).

5—Andrews, J. (2018). “Why Financial Criminals Use Real Estate to Launder Money,” Curbed, Aug. 10, 2018 (Curbed.com/2018/8/10/17674584/money -laundering-real-estate-paul-manaforttrial).

6—Unknown Author(s) (2016). “Customer Due Diligence Requirements for Financial Institutions,” FinCEN, May 11, 2016 (FederalRegister.gov/documents/2016/05/ 11/2016-10567/customer-due-diligencerequirements-for-financialinstitutions#citation-3-p29398).

7—Humphreys, A. (2019). “The Underworld Laundromat: How to Clean $10 Million in Mob Money,” National Post, Nov. 28, 2019 (NationalPost.com/news/the-underworldlaundromat-how-to-clean-10-million-inmob-money).

8—Unknown Author(s) (2017). “Advisory to Financial Institutions and Real Estate Firms and Professionals,” FinCEN, Aug. 22, 2017 (FinCEN.gov/sites/default/files/advisory/2 017-0822/Risk%20in%20Real%20Estate%20Adv isory_FINAL%20508%20Tuesday%20280 02%29.pdf).

9—Ibid.

10—Humphreys, A. (2019). “The Underworld Laundromat: How to Clean $10 Million in Mob Money,” National Post, Nov. 28, 2019 (NationalPost.com/news/the-underworldlaundromat-how-to-clean-10-million-inmob-money).

11—Black, B. & Whitehead, C. (2015).

“The Nonprime Mortgage Crisis: Willful Blindness and Positive Feedback

Lending,” The CLS Blue Sky Blog, Columbia Law School, Dec. 3, 2015 (CLSBlueSky.Law.Columbia.edu/2015/12/ 03/the-nonprime-mortgage-crisis-willfulblindness-and-positive-feedback-lending).

12—Ibid.

13—Tenbrunsel, A.; Diekmann, K.; WadeBenzoni, K.; & Bazerman, M. (2007). “The Ethical Mirage: A Temporal Explanation as to Why We Aren’t as Ethical as We Think We Are,” Harvard Business School, 2007 (HBS.edu/faculty/Publication%20Files/08012.pdf 14—Jain, K. (2018). “When Competition Between Coworkers Leads to Unethical Behavior,” Harvard Business Review, Dec. 12, 2018 (HBR.org/2018/12/whencompetition-between-coworkers-leadsto-unethical-behavior).

After serving 25 years as a special agent in the FBI, Michael “Bret” Hood became a member of the ACFE faculty, as well as an adjunct professor of forensic accounting for the University of Virginia and Mt. St. Mary’s University. During his tenure with the FBI, Bret worked many complex financial crime, money laundering, corruption and major cases such as the 9/11 terrorist attack, the HealthSouth fraud and the Maricopa Investments case. Bret is a federal-court certified expert in money laundering and financial crimes. Currently, Bret serves as an instructor, investigative consultant, and as an expert witness for 21st Century Learning & Consulting LLC (21puzzles.com). He may be reached by e-mail at 21puzzles@gmail.com.

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SERVICING IN 2020 continued from page 43

servicing process while still maintaining the appropriate governance over their portfolios.

In a transitioning market, more investors will be looking for servicing partners that offer this level of flexibility.

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Improving the borrower experience As the adoption of new technologies increases in the year ahead, the highestperforming servicers will operate less like loan administrators and more like fintech companies. But there are two sides to this challenge. Servicers need technology that helps both their investor clients as well as their borrowers. The very best servicers in our space will be able to address each one with the right technology.

On the borrower side, it’s important to note that borrower behaviors are evolving quickly.

It’s been reported that, for the first time, Millennials will make up the largest portion of U.S. homebuyers in 2020. Servicers will need to adjust their approach to customer service to fulfill the needs of this new generation of homeowners.

Generally speaking, younger borrowers use technology quite differently than their older counterparts. These borrowers want a wider number of options to access their loan information, whether it’s by phone, computer or mobile device. Here again, we see growth opportunities for servicers that can leverage technologies that not only provide investors with greater insights into their portfolios but are also capable of delivering an exceptional experience to the borrower. The goal is to make the borrower’s experience as convenient, seamless and robust as possible, without requiring multiple sign-ons.

And ultimately, leveraging technology to provide a worldclass experience for the borrower makes it more likely

that borrowers will turn to their current servicer when it’s time to refinance or get a new mortgage. Indeed, technology that enables servicers to engage, build trust and maintain ongoing relationships with borrowers can often lead to future sales opportunities.

Servicers can leverage these relationships to provide borrowers with special offers, such as the opportunity to save 20 percent on their document fees if they choose to refinance to a lower rate.

There’s yet another reason why servicers need technology to upgrade their customer service: communicating with borrowers during natural disasters. Whether it’s wildfires in California or hurricanes and floods in the Southeast, the number of natural disasters is accelerating, adding greater uncertainty and risk to servicers and borrowers alike. Fannie Mae reported 36 major disasters last year alone. And an estimated 775,000 residential properties in 13 Western states are at risk of wildfire damage, according to recent CoreLogic data. The best mortgage servicers will be able to communicate quickly with borrowers facing damage or destruction of their homes in order to provide instructions, and to show compassion.

The bottom line is that technology will play an everincreasing role in the servicing industry in 2020 and the years ahead. But the future holds the greatest opportunities for servicers that use technology to improve their borrowers’ experience. That calls to mind another Jeff Bezos quote: “We have focused like a laser on customer experience, and that really does matter, I think, in any business.”

In our industry, I believe the servicers that truly focus on delivering an excellent experience will come out far ahead of their competitors.

nmp.bz/daily Allen Price is a senior vice president at BSI Financial, a provider of mortgage servicing and special servicing, loan quality control, REO and asset management services, and life-of-loan performance reporting using advanced data analytics tools. Price has 20 years of mortgage servicing experience and has held executive positions at RoundPoint Financial Group, ServiceLink and NationStar Mortgage. He can be reached by e-mail at APrice@BSIFinancial.com. © 2020 American Business Media LLC | 345 North Main Street, Suite 313 | West Hartford, CT 06117 | 516-409-5555

HEARD ON THE STREET continued from page 38

l (USN Ret.), chairman of NewDay USA. “They are some of the best and brightest in the mortgage industry.”

The Mortgage Collaborative’s Preferred Partner Network Adds Black Knight

FormFree has announced a strategic partnership with Teo, a lead generation platform and AI assistant that helps mortgage lenders close more loans faster.

Teo will leverage FormFree’s market-leading Passport

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Applied Business Software (ABS) has announced that Carlos Nodarse has been appointed chief executive officer, replacing Jerry Delgado, current CEO, who has been appointed executive chairman. ABS has also announced the appointment of AJ Poulin as chief sales officer.

Poulin began his career at ABS 19 years ago as a sales representative and was later promoted to vice president of sales.

Gateway First Bank has named Tony Taveekanjana as executive vice president and chief production officer, subject to regulatory approval, where he will oversee all retail and correspondent mortgage production across the country out of Gateway’s offices in Dallas. Gateway First Bank has also appointed Thomas Ramm to the position of chief investment officer, and has also announced that Greg Wagner is joining the team as retail banking executive.

LERETA LLC has named Steve Orgill as its new chief technology officer. LERETA has also announced the hiring of Shannon McClaughry as vice president of customer success.

New American Funding has named Belinda Price as area manager for the Twin Cities area, based in Edina, Minn.

New American Funding has also announced that Marlene Veal has joined the company as vice president of its Western Builder Division, based out of New American Funding’s corporate office in Tustin, Calif.

Docutech has hired Jamie Mottern as its new senior vice president of partnerships and strategy.

Your turn National Mortgage Professional Magazine invites its readers to submit any information, events, passages, promotions, personal or professional occurrences that seem appropriate and/or other pertinent data to the attention of: Heard on the Street/Mortgage Professionals to Watch column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

Note: Submissions sent via email are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

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FormFree Partners With Teo on Customer Acquisition

Mortgage professionals to watch l Caliber Home Loans has named David Schroeder as its new executive vice president, third-party originations. In this newly created role, Schroeder will focus on improving Caliber’s use of data and analytics to advance TPO production capabilities, while partnering with Operations to enhance fulfillment. l OptifiNow has named Linn Cook as vice president of sales, joining the organization to lead the sales of their cloudbased sales and marketing platform. l Guaranty Home Mortgage Corporation (GHMC) has announced the promotion of Andrew Fishback to AVP of compliance. Guaranty Home has also announced the promotion of Mike Grimsley to senior vice president, Western Regional manager, bringing more than 25 years of experience to the position. In addition, GHMC has announced the following promotions: Chip Adkins to the role of chief production officer; Heather Kent to vice president, director of marketing; Julia King to vice president, director of human

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The Mortgage Collaborative (TMC) has announced that Black Knight Inc. has been added to its Preferred Partner network. Black Knight’s solutions help mid-market lenders significantly reduce origination costs while driving greater efficiencies in the loan production process.

“Black Knight is renowned in the industry for its innovative and transformative technology,” said Jim Park, chief executive officer of The Mortgage Collaborative.

“We’re thrilled to have the company join our Preferred Partner network and offer such best-inclass products to help our member lenders manage their operations more effectively.”

The suite of solutions offered to members of The Collaborative Mortgage include: A best-in-class, scalable loan origination system that is quick to deploy, with the configurability lenders need to support compliance and reduced turn times; machine-learning capabilities to read and index documents to help process more loans at scale; client-configurable compliance testing available within the workflow; advanced business intelligence for actionable insight into their operations; comprehensive fee service used to minimize costly fee cures related to the Loan Estimate and Closing Disclosure; product pricing and eligibility software to help lenders deliver competitive products at the best price; and eClosing and eSign solutions that help lenders systematically determine the best way to close each loan.

verification service to help assess the quality of incoming prospects.

Teo re-imagines the way mortgage lenders attract, prequalify and communicate with prospects. The platform’s 24/7 AI assistant helps lenders identify and target profitable market segments and set up compliant Facebook and Instagram ad campaigns—all in just a few clicks.

After incoming leads are prescreened to ensure quality, Teo’s AI assistant manages follow-up communication using the prospect’s preferred channels to quickly convert leads to loans.

“When it comes to the digital superhighway, if you’re not first, you’re last,” said FormFree Founder and Chief Executive Officer Brent Chandler. “Our Passport verification services are already used by thousands of lenders to gain insight into loan applicants’ ability to pay, and by partnering with Teo, we’re moving those insights even earlier in the sales funnel to power an entirely new way of engaging with prospects.”

resources; and Connie Robinson to senior vice president, director of servicing.

LenderClose has announced the addition of Andrew Deignan as director of operations.

LenderClose has also announced the additions of Sales Development Representatives Dylan Sawyer and Dustin Halma, bring the total number of sales executives representing LenderClose to 12.

Troy, Mich.-based Ross Mortgage Corporation has announced the appointment of Nancy Aupperle as vice president of branch growth and development, and Teresa Ferman as chief compliance officer and corporate training executive.

Guild Mortgage has added Loan Officer Stacy Williams to its Chandler, Ariz. branch.

Williams joins Guild with close to 18 years of mortgage lending experience.

Homebridge Financial Services Inc. has announced the addition of Bill Stern as branch manager for its Middleburg, Va. location. Stern is a veteran of the mortgage industry and has helped the northern Virginia real estate community with their homebuying needs for 20 years.

River City Mortgage has announced its plans to expand its operations into eight new states–Oregon, Massachusetts, Vermont, Rhode Island, Connecticut, Delaware, Maine and New Hampshire. The company also announced that Ray Brousseau has joined the firm as a partner, and will serve as executive vice president, strategy and expansion.

Title Alliance Ltd. has named Joe Rose as its new chairman.

As head of the board of directors at Title Alliance, Rose will focus on setting long-term goals and implementing strategic moves to maximize profitability and protect investor interests.

Impac Mortgage Corporation has announced Michael D. Falce is returning to the Irvine, Calif.-based company as director of national correspondent sales.

Mortgage Network Inc. has announced that Ryan Hayes has joined the company as senior vice president of residential lending. Mortgage Network Inc. has also announced that Geoff Worrell has joined the company’s Braintree, Mass. branch as a loan officer.

NMP NEWS FLASH

Photo credit: Getty Images/Sean Pavone

continued from page 16

New Study Examines Impact of Military Service on Homeownership

stable anchor employer, providing stable employment opportunities to local residents.”

Survey: Nearly Two-Thirds Believe Time is Right for Homebuying

Save the Date …

Wednesday-Friday, April 22-24, 2020

NAMMBA CONNECT 2020 The Westin Buckhead Atlanta 3391 Peachtree Road NE • Atlanta

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NAMMBA’s CONNECT 2020 provides you with an opportunity to network with mortgage and real estate professionals from across the real estate finance industry and will feature some of the top speakers in the mortgage and real estate industry.

Featuring: l Three days packed with professional development, training and networking l More than 50 sales and training sessions l More than 60 Corporate Exhibitors in the Pavilion l Network with more than 800 attendees sales, operations and real estate agents Keynote Speakers and Featured Speakers currently booked for NAMMBA CONNECT 2020 include: l Jonathan Lawless, Fannie Mae’s Vice President for Product Development and Affordable Housing l Samuel Luna, Senior Director of Single-Family Affordable Lending for Freddie Mac l Roberto Monaco, Founder of InfluenceOlogy l Mitchel Kider, Chairman and Managing Partner of Weiner Brodsky Kider PC l Rob Chrisman, Capital Markets Consultant for Chrisman Inc. For more information, visit

NAMMBACONNECT.org/Connect2020

The Urban Institute’s Housing Finance Policy Center has published a new report that details homeownership trends by active-duty and military servicemembers.

The 44-page report, titled “The Impacts of US Military Service on Homeownership and Income,” determined that veterans have higher homeownership rates and incomes than the general population, even within the racial, ethnic and age groups that face disparity in homeownership and income levels. The report also found active-duty service members generally have lower homeownership rates but higher incomes, while the presence of a large military base within a housing market narrows the differences in homeownership and income between racial and ethnic groups.

The report acknowledged the diversity within the military and added “military service is a catalyst for people of color to achieve both homeownership and increased earnings.” It also credited the Department of Veterans Affairs (VA) on the prominence of its home loan program with servicemembers.

“VA lending has become an increasingly important credit source since the financial crisis, particularly for servicemembers and veterans buying their first home,” the report stated. “There are several explanations for increased homeownership and higher earnings for people serving in the military. Military service gives people (1) access to affordable mortgages through the VA loan guarantee program, which has no down payment or mortgage insurance requirements; (2) educational and health care benefits; and (3) a stable income. The presence of large military bases can have a further incremental impact because they improve access to information about VA lending, and the military base itself is a

A new survey conducted during the fourth quarter of 2019 by the National Association of Realtors (NAR) found 63 percent of respondents believing now is a good time to buy a home, unchanged from the level in a similar survey held one year ago.

Thirty-three percent of respondents said they “Strongly Believe” now is a good time to buy, while 74 percent stated it is a good time to sell a home, identical to the percentage in last year’s third quarter.

Furthermore, 41 percent of respondents predicted that prices will remain the same in their communities during that period, while 48 percent said they believe prices will rise and 11 percent said they expect prices to fall in the next six months. As for the potential of a recession, 52 percent of those polled believe the U.S. economy is improving.

Lawrence Yun, NAR’s chief economist, observed, “With mortgage rates low, the timing is indeed ideal for those who want to enter into homeownership and for those looking to move on to their next home.”

Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of: NMP News Flash column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

calendar of events FEBRUARY 2020 Monday-Thursday, February 3-6 MBA’s 2020 Independent Mortgage Bankers Conference Hyatt Regency New Orleans 601 Loyola Avenue New Orleans For more information, visit MBA.org.

Thursday, February 6 2020 California Mortgage Expo at San Diego Crowne Plaza San Diego 2270 Hotel Circle North San Diego For more information, visit CAMortgageExpo.com/SanDiego/SanDiego.

Tuesday, February 18 2020 Coastal Connect Mortgage Expo Doubletree by Hilton at Jacksonville Riverfront 1201 Riverplace Boulevard Jacksonville, Fla. For more information, visit CoastalConnectExpo.com.

Sunday-Wednesday, March 8-11 MBA’s 2020 Mid-Winter Housing Finance Conference Ritz-Carlton, Bachelor Gulch 0130 Daybreak Ridge Avon, Colo.

For more information, visit MBA.org.

Thursday, March 12 2020 Atlanta Mortgage Expo Atlanta Marriott Northeast 2000 Century Boulevard NE Atlanta For more information, visit AtlantaMortgageExpo.com.

Thursday, March 19 2020 Carolinas Connect Mortgage Expo Embassy Suites Hilton Charlotte 4800 South Tryon Street Charlotte, N.C. For more information, visit CarolinasConnect.webflow.io.

Sunday-Wednesday, March 29-April 1 MBA’s 2020 Technology Solutions Conference & Expo JW Marriott Los Angeles L.A. LIVE 900 West Olympic Boulevard Los Angeles For more information, visit MBA.org.

Thursday, April 23 MBA’s 2020 Capital Markets Summit Sheraton New York Times Square Hotel 811 7th Avenue, West 53rd Street New York, N.Y. For more information, visit MBA.org.

Thursday, April 16 MAY 2020 2020 California Mortgage Expo Sunday-Wednesday, May 3-6 at Irvine MBA’s 2020 Legal Issues and Hilton Irvine/OC Airport Regulatory Compliance Conference 100 MacArthur Boulevard New York Marriott Marquis Irvine, Calif.

1535 Broadway For more information, visit New York, N.Y. CAMortgageExpo.com/Irvine/Irvine. For more information, visit MBA.org.

Sunday-Thursday, April 19-23 2020 Regional Conference of MBAs Harrah’s Resort & Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, visit MBANJ.com.

Tuesday, May 5 2020 Motor City Mortgage Expo DoubleTree by Hilton Detroit– Dearborn 5801 Southfield Expressway Dearborn, Mich.

For more information, visit MotorCityMortgageExpo.com.

Monday-Tuesday, April 20-21 MBA’s 2020 State & Local Workshop Renaissance Washington, D.C.Downtown Hotel 999 19th Street, NW Washington, D.C. For more information, visit MBA.org.

Tuesday-Wednesday, May 12-13 NYAMB’s 32nd Annual Regulatory Compliance Conference & Trade Show Westchester Marriott 670 White Plains Road Tarrytown, N.Y. For more information, visit NYAMB.org.

Tuesday-Wednesday, April 21-22 MBA’s 2020 National Advocacy Conference Renaissance Washington, D.C.Downtown Hotel 999 19th Street, NW Washington, D.C. For more information, visit MBA.org.

Wednesday-Friday, April 22-24 NAMMBA CONNECT 2020 The Westin Buckhead Atlanta 3391 Peachtree Road NE Atlanta For more information, visit NAMMBACONNECT.org/Connect2020.

Thursday, May 14 2020 Chicago Mortgage Originators Expo Holiday Inn Chicago SW 6201 Jollet Road Countryside, Ill. For more information, visit ChicagoOriginators.com.

Sunday-Wednesday, May 17-20 MBA’s 2020 National Secondary Market Conference & Expo New York Marriott Marquis 1535 Broadway New York, N.Y. For more information, visit MBA.org.

To submit your entry for inclusion in the National Mortgage Professional Calendar of Events, please e-mail the details of your event, along with contact information, to newsroom@mortgagenewsnetwork.com. *Looking for additional exposure at key industry events? Call 516.409.5555, ext. 4 to discover how to maximize your event coverage.

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Tuesday, February 11 2020 Texas Mortgage Roundup at San Antonio Marriott Plaza San Antonio 555 South Alamo Street San Antonio, Texas For more information, visit TXMortgageRoundup.com/SanAntonio/San-Antonio.

MARCH 2020 Tuesday, March 3 FAMP Gold Coast Chapter 2020 Annual Trade Show Bonaventure Resort & Spa 250 Racquet Club Road Weston, Fla. For more information, visit FAMPGoldCoast.org.

APRIL 2020 Thursday, April 9 2020 New York Mortgage Expo Crowne Plaza 63 Executive Boulevard Suffern, N.Y. For more information, visit OriginatorConnectNetwork.com.

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Sunday-Wednesday, February 9-12 MBA’s 2020 CREF/Multifamily Housing Convention & Expo Manchester Grand Hyatt San Diego 1 Market Place San Diego For more information, visit MBA.org.

Sunday-Wednesday, February 23-26 MBA’s 2020 National Mortgage Servicing Conference & Expo Hyatt Regency Orlando 9801 International Drive Orlando, Fla. For more information, visit MBA.org.

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