NMP National Mortgage Professional June 2021

JUNE 2021

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Volume 13, Issue 6

THE LURE of LATINX How Hispanic Demographics Are Remaking Mortgage Lending

BACK ON

The Conference Circuit

Perils Of Picking

The Wrong Partner

SPECIAL APPRAISAL DIRECTORY INSIDE

BACK COVER

PARTNER WITH THE LEADER IN NON-QM MORTGAGE LENDING MORE EXPERTISE | MORE SERVICE | MORE TECHNOLOGY

Visit AngelOakMS.com | 877.926.3073 ©Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-tobusiness communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. MS_A252_1220

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JUNE 2021

FRONT COVER

Volume 13, Issue 6

THE LURE of LATINX How Hispanic Demographics Are Remaking Mortgage Lending

BACK ON

The Conference Circuit

Perils Of Picking

The Wrong Partner

SPECIAL APPRAISAL DIRECTORY INSIDE

INDUSTRY PARTNER MEMBER

2

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Volume 13 Number 6 JUNE 2021

CONTENTS

nationalmortgageprofessional.com

4 Hire And Hire Market up or down?

Doesn’t matter. To succeed in any market, making the right hire is the most important management decision.

>

6 Time Of Your Life Recruiters say time is their biggest problem.

Here’s how to get it on your side.

COVER STORY PAGE 24

Hispanic Homeownership ready to remake mortgage Market

8 Masks Make Way For Live Events A helpful guide to get back in the swing of things and make the most of any upcoming events.

9 Non QM Showcase 11 People On The Move See who the movers and shakers are in the mortgage industry.

12 Build-A-Broker: Choosing The Partnership That Fits Best Brokers who plan to go into business with one or more other individuals may not realize there are several variations of partnerships to consider.

WE’LL BE THERE. YOU CAN BET ON IT. The wait is almost over. Originator Connect, the nation’s premier mortgage event, returns to Las Vegas this August with a lineup of events sure to prepare you better than ever before for an ever-evolving industry. You won’t want to miss these exclusive programs:

14 My First Million: Take A Second Look Free NMLS Renewal* To find new opportuniBuild-A-Broker ties, sometimes all you Your First Million Dollars need to do is change the Most Loved Employers Awards Gala way you look at things. & so much more!

See the full lineup of events and reserve your spot for free using our code NMPOCN at www.originatorconnect.com.

16 Dealing With ‘Too Much Business’ Don’t get so caught up in being busy right now that you don’t make any plans to stay busy in the future.

18 Wholesale Directory 19 NEW TO MARKET 22 NMP DATABANK Find quick economic info to give you insight into what’s happening that’s affecting the market.

23 AMC Guide

24 COVER STORY HISPANIC HOMEOWNERSHIP READY TO REMAKE MORTGAGE MARKET Latinos will account for more than 70 percent of the growth in home ownership over the next 20 years. Are mortgage lenders prepared for such a large demographic shift?

26 OriginatorTech Directory 28 SECOND HOME SLOWDOWN New research shows rate locks on second homes making a big dip this Spring.

39 Facebook Thoughts: AKA, ‘Pillow Talk”

AUGUST 20

22, 2021 LAS VEGAS, NV

Join us at Planet Hollywood, located at the heart of the Las Vegas Strip!

PRESENTING SPONSOR

NONNQM SPONSOR

REVERSE MTG SPONSOR

SHOW PRODUCER

nationalmortgageprofessional.com

Safety is our top priority. Learn about the safety precautions we take at each of our events to earn us 100% safety satisfaction from our attendees at originatorconnectnetwork.com/covid19. *Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers resereve the right to determine final eligibility.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

3

JUNE 2021

nmp

JUNE 2021

Volume 13, Issue 6

AN INSIDE LOOK:

THE LURE of LATINX How Hispanic Demographics Are Remaking Mortgage Lending

BACK ON

The Conference Circuit

Perils Of Picking

The Wrong Partner

SPECIAL APPRAISAL DIRECTORY INSIDE

Volume 13, Number 6

LETTER FROM THE PUBLISHER

STAFF CEO, PUBLISHER & EDITOR Vincent M. Valvo ASSOCIATE PUBLISHER Beverly Bolnick SENIOR CONTRIBUTING EDITOR Keith Griffin CONTRIBUTING WRITERS Lew Sichelman, Erica LaCentra, Harvey Mackay, Pam Marron, Nick Roberson, Mary Kay Scully, James Potter Charlet STAFF WRITER Katie Jensen GRAPHIC DESIGN MANAGER Stacy Murray

America’s Got Talent

E

very month, we run a column by Dave Hershman on recruiting talent, especially sales folks. It’s one of our shorter monthly items. But it’s probably one of the most important.

When markets are great and booming, companies need to hire as much help as they can get. But when things are good, how do you entice top talent to move?

Then markets will, inevitably, turn. And when that happens, lenders tend to pare back staff. But employees understandably get nervous. So how do you insure that your skittish workers that you want to keep don’t hightail it somewhere else? And if you’re looking to pick up great workers from somewhere else, how do you placate them as they watch your current ranks thin?

The mortgage industry is one where we already play a never-ending game of musical chairs. But no company, regardless of how great its products are, will thrive without a good team of people behind it. Attracting them, and keeping them, are critical success skills.

Dave Hershman gives good advice here every month. Find the talent, woo the talent, win the talent. But then, it’s important to keep doing that. Because it’s going to take a lot less time and energy if you accomplish the logical conclusion: Keep the talent.

VIN CE N T M. VALVO Publisher, Editor & CEO

4

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

INTERACTIVE DESIGN DIRECTOR Alison Valvo USER EXPERIENCE DESIGNER Billy Valvo ONLINE CONTENT DIRECTOR Navindra Persaud MARKETING & EVENTS ASSOCIATE Melissa Pianin HEAD OF ENGAGEMENT AND OUTREACH Andrew Berman FOUNDING PUBLISHER Joel Berman

Submit your news to editorial@ambizmedia.com If you would like additional copies of National Mortgage Professional Call (860) 719-1991 or email info@ambizmedia.com

www.ambizmedia.com

© 2021 American Business Media LLC All rights reserved. National Mortgage Professional magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher.

Advertising, editorial and production inquiries should be directed to: American Business Media LLC 345 North Main St., Suite 313 West Hartford, CT 06117 Phone: (860) 719-1991 info@ambizmedia.com

By If you give an investor a real estate loan.

Then they will ask for competitive terms.

When you give the investor competitive terms.

They will ask for top-tier customer service.

The investor will remember they have diverse scenarios and ask for nationwide funding.

With these potential opportunities, they will want a real estate loan.

If you want a real estate investment loan, contact us today!

Visit RCNCapital.com \ Email Info@RCNCapital.com \ Call 860.432.5858 RCN Capital, LLC is licensed as a California Finance Lender under Department of Business Oversight license number 60DBO-46258.

Arizona Mortgage Banker License BK-0932325. Oregon Mortgage Lending License: ML-5571; NMLS Company ID: 1045656.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

5

AVE HERSHMAN

RECRUITING, TRAINING AND MENTORING CORNER

Time, And Time Again Recruiters say time is their worst enemy.

Here’s how to change that.

BY DAVE HERSHMAN | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

W

here are you going to find the time to recruit? Do you have a full-time job without recruiting? Do you already work plenty of hours each week? Where is the extra time going to come from?

From the week(s) you lose when you have an opening and have no idea where to look. That is the worst vantage point to be recruiting from.

We will call that the desperation approach.

From the time you spend working with, trying to fix and finally replacing the wrong people hired, because you did not have time to recruit according to a plan. Nothing is more expensive than hiring the wrong people and dealing with the consequences. Think about the last time you hired the wrong person and the time you wasted.

From the time you will save creating synergies as you implement the plan. You will not implement a plan merely because it represents good business sense. The day after you make the commitment, the fires will start and the plan goes on the shelf. The only way that you will follow through with implementation

is if you receive short-term benefits that help you with other aspects of the job.

An example of such a shortterm benefit? How about increased production? This is exactly why we suggest that you focus upon referrals from other loan officers as a valid reason to make the appointment.

This is more likely to entice the candidate and produce secondary benefits.

MESH YOUR GOALS The real key to finding the time is creating real synergy with your other objectives.

Set up reciprocal relationships.

This will put you in position in the long run. The more loans they send to you, the stronger the relationship will become and the more likely they will realize the benefit of making a change. Obviously, this is a longterm approach, but recruiting the right people is a long-term proposition. You are less likely to hire the wrong person if you know them well over a longer period of time.

It will help to have a definable niche as part of your production

marketing plan. Limiting your focus puts you less in competition with other originators and facilitates the referral process. The rules of synergy marketing require that you focus deeply, instead of more widely.

How might networking among your competition help you increase your knowledge about the industry and your competition? How can that knowledge help your loan officers perform their job? The deeper your conversations, the more likely you will garner information which will help you and your direct reports in the future.

How might implementing the plan help improve your management skills? Learn what other managers are doing to become successful as you build an informal benchmarking process. Again, this requires going deeper and asking questions. Asking open-ended questions is a key within the sales process. It is no different within the recruiting process.

Dave Hershman, senior vice-president of sales for Weichert Financial Services.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

7

RICA LACENTRA

THE XX FACTOR

Face It: Prepping For Live Events

There’s still a national crises. But mortgage conferences are returning. Here’s how to prepare.

BY ERICA LACENTRA | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

In the mortgage industry, the summer usually signals the start of tradeshow season, an insanely busy time from June through mid-November where every major conference, expo, and event in this space happens in rapid succession.

As hectic as this time of year is for most companies, when coordinated properly, it can drive enough business to set you up for success well into the following year.

With COVID-numbers dropping and more people getting vaccinated, all signs point to tradeshow season having a strong return in 2021. Now if you are like me and have been off the trade show circuit for close to a year, your networking skills and general event etiquette may not be as polished as they once were.

However, not to worry, here is a helpful guide to

get back in the swing of things and make the most of any upcoming events.

clarify beforehand to ensure you are ready to go once onsite. There is no such thing as being too prepared.

BE PROACTIVE

BE PREPARED

A lot has changed with events post-pandemic, both for attendees and sponsors. In many areas of the country, there are still active COVID-related restrictions.

Everything from expected social distancing measures like oneway exhibit hall traffic and mask mandates, to more unexpected guidelines like temperature checks before entering, restrictions on being able to hand out printed materials, limits on the amount of attendees in speaking sessions and more may be in place. So, it’s important to be aware of what restrictions or requirements there currently are and prepare accordingly as events may not be in the same format as you were used to years past.

Most conferences have started to send out an event guide or will have one available on their event website for review before the show kicks off. And of course, when in doubt, reach out to event staff to ask or

Tradeshow preparedness rule number one is to have a way to provide the contacts you meet at events with contact information so they can get in touch with you once the event concludes. While business cards were the go-to method preCOVID, and are still a pretty safe bet, you may run into some folks that are looking for a more handsoff way to exchange information and thankfully there are several available options.

First, for exhibitors, many conferences continue to offer badge scanners which allow you to scan barcodes on attendee badges throughout the event and then you are provided with a final list of contacts and contact information in a format like excel that is easy to use for post-event follow up.

Some conferences have also started adding QR codes to attendee badges that can be scanned to download contact information.

The use of QR codes is also a

When in doubt, reach out to event staff to ask or clarify beforehand to ensure you are ready to go once onsite. There is no such thing as being too prepared.

particularly smart idea for exhibitors

sure you have it downloaded, and

note of this and be a bit more mindful

or sponsors to emulate at their own

your information is up-to-date since

of your interactions with others.

exhibit booths. Rather than handing

most events that have a app will allow

out numerous print materials or

you to have early access to attendee

usually pretty simple to figure out

having them on hand for attendees

information. This means you can

so you can still effectively network

to pick up, consider including a

scope out high priority prospects,

and connect with the right people. If

large, easily visible QR code at your

set meetings, and make connections

someone expresses their discomfort,

booth that allows people to instantly

before the event even starts, giving

just be courteous and maybe offer

download your marketing materials,

you an even better opportunity to

someone a fist bump or elbow bump

sign-up for more information about

make the most of your involvement.

rather than a handshake or suggest

your services, or get added to your

Thankfully, a work around is

a one-on-one meeting outdoors

email list for follow-up once the show

BE PROFESSIONAL

ends. This will provide attendees with

Displaying professional at industry

group setting. Not only will people

instant access to the information

events should go without saying,

appreciate the gesture, you will also

they need, take the guess work out of

but especially during this transition

more likely leave a lasting impression

signing up, and make it much easier

period back to in-person conferences.

by accommodating them.

for you to follow-up post show, rather

I continue to witness varying degrees

than shuffling through stacks of

of comfort from individuals at events

time time to get ready for trade show

collected business cards.

when it came to things as simple as

season and most importantly, safe

shaking hands and networking with

travels.

Finally, check to see if the

rather than a meeting in a large

conference you are attending has

large groups of people, to wearing

a corresponding app which should

masks when events were in parts of

be available for both attendee and

the country where restrictions were

sponsor use. If that is the case, make

looser. So, it is important to make

So, with these tips in mind, take the

Erica LaCentra is director of marketing for RCN Capital.

NON QM Showcase Angel Oak Mortgage Solutions Atlanta, GA www.angeloakms.com

Angel Oak Mortgage Solutions is the leader in the nonQM mortgage space. We offer alternative specialized mortgage solutions for brokers throughout the country helping borrowers who don’t fit conventional guidelines. Our innovative non-QM products include: Bank Statement, Platinum Jumbo, No Income Investor Cash Flow, "Just Missed" Portfolio Select and Asset Qualifier. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.

Visit https://angeloakms.com/ programs/ for details on our products that can help you grow your business.

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Luxury Mortgage Corp Stamford, CT

www.luxurymortgagewholesale.com

The Simple Access® NonQM suite of products was built around the idea that it doesn’t have to be complicated to finance a home. We have created a diverse selection of borrower friendly programs that are simple, innovative and flexible.

For information on our Correspondent division, visit www. luxurymortgagecorrespondent. com.

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Chandler, AZ www.oaktreewholesale.com

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Temple View Capital Bethesda, MD www.templeviewcap.com

Our business purpose loan products, Fix & Flip, Fix & Hold, Bridge and LongTerm Rental Investments for single-family, 1- 4 units, Condos, Townhomes. Our Rehab Loans & Bridge allow for the monthly Payments to be Rolled into the Loan.

With our Long-term rental, we offer 30 Year Fixed, ARM and Interest-Only. The borrower is LLCs, LPs, and Corporations. ( 58 words) We are a nationwide lender

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Conditions may apply. ©2000 - 2021 Quicken Loans, LLC. All rights reserved. Lending services provided by Quicken Loans, LLC, a subsidiary of Rocket Companies, Inc. (NYSE: RKT) “Quicken Loans” is a registered service mark of Intuit Inc., used under license. Quicken Loans, 1050 Woodward Ave., Detroit, MI 48226-1906

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HOW NMP’S MONTHLY SECTION OF HANDS-ON PRACTICAL ADVICE

BUILD A BROKER How To Decide Which Kind Of Partnership Works Best For Your Brokerage YOUR FIRST MILLION DOLLARS How To Look At Opportunities With A New Approach How To Balance Strategies In An Overheated Market CAREER TICKER: People On The Move

PEOPLE ON THE MOVE //

> Dawn Ryan

will serve as the branch manager for Embrace Home Loans’ newest branch in Newport, RI.

> Anthony

Jabbour was selected as Black Knight Inc.’s new board chairman.

> Samia

DeMarco was named director of sales for Birchwood Credit Services.

> Nations

Lending appointed Mark Bishop, national corporate training leader.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

11

BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE BUILD-A-BROKER

What’s Involved In Starting A Partnership?

Building a brokerage with another person takes some careful thought

BY NELLIE AKALP | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

B

rokers who plan to go into business with one or more other individuals may not realize there are several variations of partnerships to consider.

In this article, I’ll describe the different types of partnerships and what needs to be done to start and maintain them.

Business owners should keep in mind that there are legal and tax-related issues to consider when choosing a business entity type. So before deciding, it’s wise to consult an attorney and accountant or tax advisor for guidance.

FIRST THINGS FIRST: WHAT IS A PARTNERSHIP? A partnership is when two or more parties (“partners”) agree to go into business together and share profits and losses. Partners’ obligations in managing the company and their degree of personal liability for the debts of business vary depending on the type of partnership. Income tax responsibilities of partnerships pass through to the business owners’ individual tax returns.

Although partnerships do not pay income tax at the company level, they do have

reporting responsibilities to fulfill. Therefore, they need an EIN (Employee Identification Number) from the IRS for taxreporting purposes.

To follow, I’ll cover information about the three most popular types of partnerships: · General partnership · Limited partnership · Limited liability partnership

a general partnership are not considered employees of the company. Therefore, they do not receive a paycheck via payroll from the business. Partners usually get paid by withdrawing funds from their share of the profits (called taking an “owner’s draw” or “partner draw”). General partners pay both income tax and self-employment taxes (Medicare and Social Security) on their share of business profits.

HOW TO START A GP

GENERAL PARTNERSHIP (GP) This is the most basic form of partnership and does not usually require entity registration paperwork with the state. In a general partnership, ownership and profits are split equally between the partners unless the terms of the partnership state otherwise. All partners share responsibility for the company’s debts and legal obligations because no legal separation exists between the business and its owners.

General partnerships are typically simple to form and maintain, so they are an attractive option for entrepreneurs who want to keep administrative and compliance responsibilities minimal.

They do not have restrictions on how many partners they may have. Owners of

A partnership is established when its owners decide to do business together— even if there is no written plan or partnership agreement in place. To help ensure all partners are on the same page, it’s beneficial to have a partnership agreement that lays out the roles, responsibilities, and profit distribution of the business owners.

A GP may continue to exist when partners leave the business if its partnership agreement allows it. Otherwise, the business may have to be dissolved.

Possible Ongoing Compliance Tasks for GPs · Report and pay income and selfemployment taxes. · Register for a sales tax ID (seller’s permit).

PEOPLE ON THE MOVE //

> Avanze Tech

Labs appointed Shashank Cukkemane as the company’s vice president.

12

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

> SimpleNexus

founder Matt Hansen will pass the CEO baton to president Cathleen Schreiner Gates.

> Andrew

Spicer joined nonagency lender Deephaven as vice president of Client Development, Correspondent.

> Finance of

America Reverse LLC, hired Naomi Hart as senior director of marketing intelligence.

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· Register for payroll taxes (if the business will have employees). · Obtain required business licenses and permits and keep them up to date.

LIMITED PARTNERSHIP (LP) Limited partnerships are business entities formally registered with the state. One reason entrepreneurs may choose this type of partnership is to have the ability to bring on partners to invest in the company without incurring the expense and paperwork of forming a limited liability company (LLC) or corporation. A partnership agreement is used to describe partners’ responsibilities and document each partner’s percentage of profits.

An LP has at least one general partner and one or more limited partners. Limited partners provide money but do not actively take part in running the business day to day. As such, they have the protection of limited liability (to the extent of their investment in the business) for the partnership’s debts and legal issues. An LP’s general partner(s) are tasked with

> Ross

Mortgage Corporation, a full-service residential mortgage lender, hired Sheri Crump as vice president of mortgage lending operations.

handling the business operations and management. Those individuals have unlimited personal liability for the debts and legal issues of the business. So, creditors or lawsuits can go after general partners’ personal assets but not limited partners’ personal assets.

General partners in a limited partnership are also not considered employees of the company. Their income from partner draws or guaranteed payments to compensate them for their work in the business are subject to income tax and self-employment taxes.

In a limited partnership, limited partners make money from the business based on their share of the profits. The business may make periodic payments or partner draws to limited partners throughout the year. Because limited partners earn passive income from their monetary investment rather than income for any work done in the business, what they earn from the business is subject to income tax but not self-employment taxes. However, if a limited partner is paid

> Interfirst

Mortgage Company announced that Austen Richards joined the company as a wholesale senior account executive for the Western Division.

guaranteed payments for any work they’re allowed to do for the business, that income is subject to Medicare and Social Security taxes as well as income tax.

HOW TO START AN LP Forming a limited partnership involves filing a Certificate of Limited Partnership with the state and paying the required registration fees. An LP must obtain an EIN from the IRS for tax reporting purposes.

Limited partners may leave the company or be replaced, and the LP may continue to exist. If a general partner leaves, some states require that the other partners dissolve the LP unless the business’s partnership agreement states otherwise.

Possible Ongoing Compliance Tasks for LPs · File an annual report with the state. · Assign and maintain a registered agent in the state. · Report and pay income and selfemployment taxes.

CONTINUED FROM PAGE 27

> Tori Doucette was selected as branch manager for Revolution Mortgage’s new location in Auburn, ME.

> Nations

Lending announced Cindy Levorah, a two-time Scotsman Guide Top Women Originator, will lead Nations’ Santa Fe branch.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

13

HOW: HANDS ON PRACTICAL ADVICE LEADERSHIP LESSONS

EYE, EYE SIR

Change your perspective, change your life

BY HARVEY MACKAY | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

P

erspective has many definitions, such as the ability to understand what is important and what isn’t. And the capacity to view things in their true relations or relative importance.

Consider this excellent example of how differently people view the same subject in this ancient fable.

Four blind men were asked to examine an elephant and to describe its appearance.

The first blind man felt the elephant’s leg and declared that the creature was like a tree.

The second blind man felt the elephant’s enormous side and said that it was like a wall.

The third man felt the tail and was positive that the elephant was like a rope.

The fourth felt the tusk and likened

it to a spear.

Each man’s notion of reality was limited by the number and kind of attributes he had been able to perceive.

Four different perspectives, four different conclusions. None of them had enough information to arrive at a reasonable answer. Acting on limited information is one of the biggest mistakes we can make.

SWING Take, for example, the golf ball. For years, golf balls were smooth little orbs that were used by all the serious golfers. But in one foursome, a young golfer who couldn’t afford to replace the golf balls when they got a little

beat up kept playing with them long after his companions would have discarded them.

The others noticed that even though his skills were no match for theirs, his drives always flew further and more accurately. From their perspectives, that should not have happened given their superior experience. Their only explanation could be the nicks and dings on the golf balls.

You won’t find a smooth golf ball in any pro shop now. In fact, modern golf balls have as many as 450 dimples. The rough spots enhance the ball’s accuracy and distance.

I encourage you take advantage of the rough spots you encounter, for they can indeed sharpen your perspective as well as your performance.

Those rough spots often force us to look at other options, to see things from another perspective. They upset

PEOPLE ON THE MOVE //

> Churchill

of operations.

14

Mortgage promoted long-time employee Grant McFarland as vice president

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

> Chimin J.

“Jimmy” Chao will assume the role of chairman of the board for First Community Bank.

> James “Jim” Kitchens, Jr. will serve as vice chairman of the board for First Community Bank.

> NewRez

LLC appointed Rajinder Singh to its executive team as chief risk officer.

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the status quo. They challenge our tunnel vision and open new doors and windows. In many ways, they are a blessing in disguise.

THINK AGAIN As hard as that may be to believe, trust me. I’ve had to revise my perspective many times over my lifetime. It got easier every time as I realized that what I was doing wasn’t working, and maybe I needed to adjust my approach. When I widened my perspective, solutions seemed to fall into place.

Professional development coach Rich Gee offers two exercises to get started on the next step in your life or career. What I like about his advice is that it encourages you to get a fresh perspective on your situation.

First, he says, explain where you are right now compared to where you were five years ago. Tell your past self what to expect, both good and bad. He says this will help you

When I widened my perspective, solutions seemed to fall into place. gain insight into what you could have done differently that may help you influence your future decisions.

Looking back, you will realize that you can survive just about anything that comes your way.

Next, look to your future. Imagine that you are talking to a version of yourself five years from now. Think about where you want to be and what advice you might give yourself. This exercise will help you form a positive vision to work toward your personal and professional goals from a new perspective. George Bernard Shaw, the famous Irish-born playwright and critic, was a popular worldwide seer in the early 20th century. Here are some

of his views of the necessity for a man to have perspective on his life: “If a man sees with only one eye, the world appears flat to him, objects and people become mere twodimensional images. And he cannot discern any meaning in life beyond the crassness of superficial existence.

“If he uses both eyes, he gains perspective and can perceive a third dimension of depth, ideas and activities assume relative importance and value, and he understands that there is no more than one way of living.

“How deep his understanding and how acute his perception, then, if he sees through four or six or seven different eyes, each distinct and yet each focused on the same situation and the same conflict.”

Mackay’s Moral: When you change the way you look at things, the things you look at often change.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

15

HOW: HANDS ON PRACTICAL ADVICE

SPONSORED BY

MARY KAY SCULLY

BENCHMARKS & BEST PRACTICES

Balancing The Busy

What do you do when you’ve got too much business?

BY MARY KAY SCULLY | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

I

got another call today asking me to speak at an event, but – I’ve been getting this caveat more and more lately – no one wants me to talk about origination tips. Why? They “have enough business” already. It’s great that everyone is busy now, but I’m worried no one is planning for the future.

Things can change at the drop of a hat.

Don’t get so caught up in being busy right now that you don’t make any plans to stay busy in the future.

PLANNING FOR THE FUTURE It’s important to continue marketing yourself and developing relationships, even when you feel you’re already busy enough. It can be a challenge to balance everything now, but that is still easier than trying to drum up business from scratch during a time when you have none.

The industry is becoming much more transactional in recent days, rather than relationship-based. People can choose to get a loan from anyone anywhere these days. So why should they choose you?

According to the Conference of State Bank Supervisors’ 2020 MLO Report, there are more than 183,000 other loan officers in the U.S. to choose from, so there is

no shortage of options. It’s important to continue building and nurturing your borrower relationships so business doesn’t slump in the future – or worse – come to a screeching halt.

Just because volumes are high now does not mean they will stay that way. Take a minute to ask yourself where you see the market going. Don’t get so comfortable in the here and now that you’re not prepared for a change in pace.

In addition to volume, the type of transactions you’re able to handle may change in the future. Low inventory may lead to less purchases than forecast. 2021 total volume is expected to be 14% less, according to the MBA. The MBA expects refinances to fall by 33%, thus being the biggest driver of the reduction in volume.

Are you prepared if that happens? If we learned anything from 2020, it’s that anything can happen and change can rear its head without notice, so it may be best to be prepared for both reductions and increases in volume.

MANAGING THE PRESENT I can throw scenarios at you all day, but I get it – you’re busy. Networking and marketing yourself can feel like another full time job and managing a heavy workload along with these additional responsibilities can be a lot for one person to handle. Let’s talk about some ways to avoid burnout so you can take care of yourself and your business.

The first and one of the most obvious things you can do for yourself is take time off. It seems simple but so many people overlook this. You have earned your time off, especially after such a busy and stressful year. It’s easy to fall into a mindset where you think you “can’t afford” time off. However, this is what will refresh your mind and renew your energy that you can then channel into doing great work.

For the times you don’t take time off, figure out what centers you. Is it a hobby? Is it celebrating small victories in your work? Do you like to

meditate, pray, exercise or journal? Maybe it’s just simply taking some “me time.”

Whatever it may be, find what centers you and make time for that activity.

Finally, protect your schedule. Your time is valuable, so take a close look at what is on your schedule and prioritize accordingly. Don’t let other people – or yourself – waste your time. This ensures you have the time you need to do good work, without feeling rushed or overwhelmed.

There also are steps that you can take as a manager to help others prevent burnout. Prioritize a weekly “check in” with your employees. Make it a conversation and not just a meeting where everyone runs through a to-do list.

Take this time to truly empathize and listen to what your employees may be struggling with. Once you listen, then you can work on a solution.

As a manager, it is also important to promote connection and collaboration between employees. Any job feels easier when you have help and support.

Finally, something as simple as expressing appreciation for your employees’ efforts and accomplishments can make a world of difference in their attitude toward work. A simple recognition of hard work or acknowledgement of the importance of someone’s work can help defend against burnout.

STRIKING A BALANCE Juggling present responsibilities with future priorities can be a challenge, but you must stay motivated. To take care of yourself both now and in the future, take steps to prevent burnout so you have the energy to do what you need to do.

Mary Kay Scully is the Director of Customer Education at Enact, leading the development of the company’s customer education curriculum. The statements in this article are solely her opinions and do not necessarily reflect the views of Enact or its management.

WE’LL BE THERE. YOU CAN BET ON IT. The wait is almost over. Originator Connect, the nation’s premier mortgage event, returns to Las Vegas this August with a lineup of events sure to prepare you better than ever before for an ever-evolving industry. You won’t want to miss these exclusive programs:

Free NMLS Renewal* Build-A-Broker Your First Million Dollars Most Loved Employers Awards Gala & so much more!

See the full lineup of events and reserve your spot for free using our code NMPOCN at www.originatorconnect.com.

AUGUST 20

22, 2021 LAS VEGAS, NV

Join us at Planet Hollywood, located at the heart of the Las Vegas Strip!

PRESENTING SPONSOR

NONNQM SPONSOR

REVERSE MTG SPONSOR

SHOW PRODUCER

Safety is our top priority. Learn about the safety precautions we take at each of our events to earn us 100% safety satisfaction from our attendees at originatorconnectnetwork.com/covid19.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

*Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers resereve the right to determine final eligibility.

17

Wholesaler Directory

Acra Lending Specialty/ Niche: Non-QM / Jumbo Bio: Acra Lending is the leader in Non-QM Wholesale and Correspondent lending programs. Offering a range of programs and services geared toward helping mortgage professionals and borrowers achieve their purchase and investment goals. We are committed to providing simplicity, consistency and an optimal customer experience.

States Licensed in: AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, ME, MD, MI, MN, MT, NE, NV, NH, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY

Website: https://acralending.com/

Angel Oak Mortgage Solutions Specialty/ Niche: Non-QM, Non-Agency “Angel Oak Mortgage Solutions is the leader in the non-QM mortgage space. We offer alternative specialized mortgage solutions for brokers throughout the country helping borrowers who don’t fit conventional guidelines. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.”

States Licensed in: AL AK AZ AR CA CO CT DE FL GA HI IL IN IA KS KY LA ME MD MI MN MS MT NE NV NH NJ NM NC ND OH OK OR PA RI SC SD TN TX UT VA WA WV WI WY DC

Freedom Mortgage Specialty/ niche: VA and FHA As the #1 VA and FHA lender*, Freedom Mortgage Wholesale is dedicated to serving the needs of brokers, wholesale correspondents, banks and credit unions with a wide variety of products. Our local Account Executives, three Regional Operation Centers, and seasoned underwriters are committed to providing an unparalleled experience *Inside Mortgage Finance, Jan-Jun 2020 States: all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands.

www.freedomwholesale.com

The Money House, INC. Specialty/ niche: DIRECT HECM LENDER - GNMA ISSUER Money House On Demand is the US Division of The Money House, Inc., a Ginnie Mae Forward and Reverse Mortgage Issuer/ Servicer. The US Division combines a complete range of mortgage products with a unique seasoned and professional team of bilingual staff and resources supporting complete Wholesale and Correspondent Partner relationships.

States: CA. CO, DC, FL, GA, IL, MD, OR, PR, TN, TX Website: http://WWW.MONEYHOUSEUS.COM

www.angeloakms.com

Towne Mortgage Company Specialty/ niche:Manufactured Homes, Renovation Loans

First National bank of America Specialty/ Niche: Non- QM FNBA is a portfolio lender with over 65 years of experience. We understand that in the Non-QM business, service makes all the difference. That’s why we are committed to providing you with the fastest turn times, exceptional service and loan programs that make growing your business easy!

States Licensed in: All 50 States

www.fnba.com/mortgage-brokers

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Towne has nearly 40 years of experience in the industry. When you choose to partner with Towne, you join a team of seasoned industry experts and an unmatched client support team. We offer competitive pricing in a rapidly changing marketplace. Visit our website tpo.townemortgage.com or call us at (925) 727-2516 States: AL AR AZ CA CO CT DE DC FL GA IL IN IA KS KY LA MA MD ME MI MN MO MS MT NE NV NH NJ NC ND OH OK OR PA RI SC SD TN TX UT VA VT WA WV WI WY

tpo.townemortgage.com

New To Market column: E-mail: | editorial@ambizmedia.com

NEW TO MARKET MAY 2021

Acra Lending launched its Jumbo Prime mortgage solution, which is designed as an extension to its suite of programs for purchase or refinance of higher valued properties. The program features LTVs up to 90% and loan amounts up to $3 million.

ATTOM, a property database curator, announced the launch of ATTOM Cloud, a new cloud-based platform that provides immediate access to curated property data.

Fannie Mae launched Your Own Story, a campaign designed to increase consumer knowledge with facts and figures that dispel myths about what it takes to achieve sustainable homeownership.

Rocket Pro TPO launched its Jumbo Smart product available for loan amounts up to $2 million, 45 DTI or less and 80% LTV.

FMG Suite, a Saas Company specializing in market software for financial advisers and insurance agents, announced the integration of FMG Suite platform with new lead generation capabilities.

United Wholesale Mortgage launched its new Prime Jumbo product that according to the company, offers competitive rates, simplified guidelines and gives brokers the ability to run DU for approved eligibility on loans up to $2 million with an LTV up to 89.99%.

Plaza Home Mortgage unveiled the Jumbo AUS program. The program offers fixed-rate mortgages up to $2 million using the new Qualified Mortgage definition and leverages Desktop Underwriter and Loan Product Advisor documentation.

loanDepot.com, LLC and Farm Bureau Bank, a member-oriented bank serving over five million Farm Bureau members, announced a new joint venture, Farm Bureau Mortgage.

Fifth Third Bank expanded its Down Payment Assistance program to reach more homebuyers. The program will provide up to $3,600 towards a down payment for families with low to moderate income.

Evocalize, a Collaborative Marketing Platform (CMP) provider, introduced a new Blueprint within its CMP platform focused on Agent Recruiting.

Filo Mortgage launched its LowRate Guarantee, offering to beat competitors’ pricing by $1,000.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

19

DATABANK Month-overmonth change

Year-over-year change

4.66%

-7.11%

-27.68%

0.29%

-6.29%

-28.67%

3,700

-26.00%

-50.00%

Monthly Prepayment Rate (SMM):

2.58%

-22.79%

10.77%

Foreclosure Sales as % of 90+:

0.14%

-9.82%

26.99%

2,500,000

-172,000

-900,000

1,768,000

-151,000

1,306,000

153,000

-9,000

-58,000

2,653,000

-181,000

-959,000

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure):​ Total U.S. foreclosure pre-sale inventory rate:​ Apr-21

Month-overmonth change

Year-over-year change

4.66%

-7.11%

-27.68%

te:​

0.29%

-6.29%

-28.67%

t in e):​

Apr-21

ts:

3,700

-26.00%

-50.00%

M):

2.58%

-22.79%

10.77%

0+:

0.14%

-9.82%

26.99%

Total U.S. foreclosure starts:

12 Month Trend

Number of properties that are 30 or more days past due, but not in foreclosure:​

re:​

2,500,000

-172,000

-900,000

re:​

1,768,000

-151,000

1,306,000

ry:​

153,000

-9,000

-58,000

re:​

2,653,000

-181,000

-959,000

Number of properties that are 90 or more days past due, but not in foreclosure:​

oprietary and/or Trade Secret Knight IP Holding Company, LLC, or an affiliate. ta Analytics, LLC. All Rights Reserv ed.

22

Number of properties in foreclosure pre-sale inventory:​

Number of properties that are 30 or more days past due or in foreclosure:​

Page 1 of 1

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

12 Month Trend

nmp

SPECIAL ADVERTISING SECTION

2021 APPRAISAL MANAGEMENT COMPANIES

AMC GUIDE

2021

learning in assignment ensures all orders are sent to the most qualified appraisers.

ACT Appraisal, Inc. www.actappraisal.com 8883778901 East Dundee, Illinois ACT Appraisal manages the entire residential appraisal process, utilizing a network of certified appraisers nationwide, to complete assignments from an array of mortgage lending institutions.

Please contact us for more info.

ACT has been an AMC even before the term was used, dating back to 1998. We pride ourselves on excellent communication, 24/7. We also have the "Call First Program", dedicated team contacts, and offer personal service, no automated phones or voice mails.

Feedback from lenders References and testimonials available upon request. _________________________________

Class Valuation www.classvalution.com 2489559580 Troy, Michigan Class Valuation, is a top nationwide Appraisal Management Company (AMC), delivering outstanding quality and service to every client.

We are committed to combining the best people, products, processes, and technology to help our clients be successful. Our goal: to best serve our clients through continual innovation of the appraisal process.

Class leads through innovation to ensure our partners’ long-term success.

Our advanced technologies, collect more robust data for greater insight into property details.

3D Scanning enhances every aspect of the process, eliminating inspection errors, offering improved transparency. Advanced analytics validate accuracy and requirements in QC, and machine

Feedback from lenders "Class has been revolutionizing the way I can service my clients and real estate agents and has been a great experience as a loan officer. Class has been phenomenal, and I would highly endorse them to make your dreams come true."

untouchable, just outstanding. Their communication is more thorough than any other partner and they put it all together with competitive quality.”

“Clear Capital is our favorite partner to innovate in the valuation space with, investing in new programs to push the industry forward and learning quickly to ensure the new program is successful.” _________________________________

"Love the high levels of communication and the fast turnarounds!" _________________________________ Nationwide Appraisal Network www.nan-amc.com 888.760.8899 Location : Oldsmar, FL Clear Capital https://clearcapital.com 8666207577 Canonsburg, PA Our clients are innovative lenders focused on delivering the best experience in the industry to their clients. Every lender can benefit from our ability to be an agile valuation partner that leverages state-of-the-art technology with a team of seasoned professional valuation staff.

Clear Capital’s unique combination of innovative and modern valuation products, highly accurate real estate analytics, and our focus on the client experience—not quarterly profits—set us apart from the competition. We have extensive data and insight on nearly every U.S. property, nearly 20 years of completing boots-on-the-ground valuations, and industry-leading data science expertise.

Additionally, Clear Capital has passionate people using amazing technology, all of whom are focused on one primary goal: customer satisfaction. Our resources, both human and technological, continue to propel us to be the premier valuation partner for lenders.

Feedback from lenders Feedback from two of America’s largest lenders states: “Clear Capital has become our go-to AMC. Their turn-times are

NAN is an industry-leading appraisal management company, revolutionizing the world of appraisals by leveraging the industry’s most advanced technology and taking a conciergestyle approach to service. NAN’s predictive analytics streamline the appraiser selection process, and the company’s culture is one that aspires to deliver service levels that exceed all expectations.

Our technology gives our valued partners the confidence they deserve by ensuring that their appraisal orders are being assigned to the highest-rated appraisers in their markets based on thousands of data points that dynamically score appraisers in real-time. Our main goal is to consistently offer lenders competitive advantages that add up over time through innovation, transparency, accountability, and world-class service.

SingleSource Property Solutions www.singlesourceproperty.com 8666207577 Canonsburg, PA SingleSource provides nationwide valuations, title and settlement, REO asset management and field services to many of the largest loan-origination, servicing and secondary entities. Our client base ranges from top ten lenders to regional credit unions – we can customize our services to fit the needs of any client.

SingleSource’s experienced team provides a wealth of mortgage origination, servicing and property management experience. We provide national appraisal services utilizing industry-leading tools including a proprietary scoring model that grades every valuation report, MLS tools that verify data points in delivered products, use of RPA technology, and staff field appraisers in key markets. We are committed to the highest performance standards.

Feedback from lenders “I can honestly say that SingleSource is one of the most service-focused organizations I have encountered. Our relationship with SingleSource has been expanded numerous times over the past few years in large part due to our comfort and trust in dealing with them. Our inquiries and requests are always promptly resolved and in a professional and friendly manner.”

Feedback from lenders: “Your team is phenomenal. The borrower will never fully know how diligently everyone at NAN worked to make sure he can close on time, but I am acutely aware!” –AE “The communication, follow-up, and service with NAN have been really great!” -Broker “NAN continues to impress!

Crushing it on all fronts, especially the Appraisal Success Managers!

Fitting title for that team!” -VP

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EW SICHELMAN

COVER STORY

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Hablar Español: Your Next Client Is Likely To Be Hispanic But mortgage lenders aren’t yet prepared for big demographic shift

BY LEW SICHELMAN | NATIONAL MORTGAGE PROFESSIONAL CONTRIBUTING WRITER

G

ary Acosta was invited recently to sit in on a board of advisors meeting for a company that’s expanding its consulting services to include diversity training in the real estate sector. The founder and now CEO of the National Association of Hispanic Real Estate Professionals came away less than impressed.

Acosta would not disclose the name of this outfit, but he did gripe about what he saw as an effort to “trivialize a critical problem by turning a movement into a racket.”

While the company in question had a noble goal, he pointed out, it has no history of diversity, has almost no diversity in its leadership group and is best known for producing conferences. It also happens to produce a socalled “most influential” list in which the only diverse faces are at the bottom, he said, “huddled together like that scene from Animal House where Kent and Larry were rushing the Omega House.”

I, too, am a fan of National Lampoon’s 1978 classic film. But more to the point, Acosta worries that realty firms and mortgage companies will hire firms like this. That, in his words, they “will take the easy way out by hiring flyby-night diversity

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

consultants rather than making material efforts to bring about honest change.” A better choice, the NAHREP leader said, would be a Latino-owned corporate consulting firm. “There are plenty with strong track records.”

THE NEW MARKET The question isn’t why you might want to follow Acosta’s suggestion. It’s why you should. According to a recent report from the Urban Institute, Latinos will account for more than 70 percent of the growth in home ownership over the next 20 years.

That’s not a typo: While the nonpartisan think tank says the ownership rates for every other racial demographic will decline over the next two decades, seven in ten of ALL future buyers will be of Hispanic origin. Age and population growth are key factors in that assessment, but Acosta also notes that Latinos are willing to migrate almost anywhere and everywhere jobs and affordable housing exists. “There’s no question the passion is there,” he says. “They didn’t come here to be renters.”

According to the latest State of Hispanic Ownership Report from NAHREP, the rate of ownership among Latinos was not quite 49 percent last year. That’s not as high as it was in 2006 and 2007, the “go-go” years running up to the Great Recession when the rate topped out at nearly 50 percent. But the number of Hispanic home owner households reached 8.88 million, the highest it’s been in the 11 years the group’s report has been produced. That’s an increase of 725,000 owner households, the biggest single-year jump since 2000.

In comparison, the next largest increase was 414,000 in 2002.

(FYI: The terms Hispanic and Latino are used interchangeably in the report, so I am doing the same here. Also worth mentioning is that NAHREP has some 40,000 members nationwide. That’s more than five times as many as the National Association of Mortgage Brokers’ 7,665.

The group counts not only realty agents and brokers as members but also mortgage professionals as well as other allied professionals. Acosta himself built several mortgage companies and was a co-founder of the Mortgage Collaborative, where he is still vice chairman.)

DRIVEN BY YOUTH

Hispanic households are much younger than their Black and White counterparts, with a higher proportion in their 20s, 30s and 40s. Those, of course, are the prime years for buying houses.

Moving forward, the Urban Institute says, age will drive the projected increase in Latino ownership. Hispanic households are much younger than their Black and White counterparts, with a higher proportion in their 20s, 30s and 40s. Those, of course, are the prime years for buying houses, and together represent the single “biggest catalyst” for Latinos, says Noerena Limon, NAHREP’s executive vice president for public policy and industry relations. That the median age of Latinos is 29.8 years – 14 years younger than any other ethnic group – means the desire to own a home “is going to last way into the future,” says Limon. “They are the future of the housing market.”

According to the State of Hispanic Ownership Report, some 8.3 million Latinos under age 45 are now “mortgage ready.” But that’s not to say they don’t face considerable barriers to ownership. One, obviously, is a lack of affordable houses. But that’s something faced by all-ilk of would-be buyers, not just Hispanics.

FACILE FINANCES But because they are younger, they tend to have lower incomes and less wealth. Because they are “overrepresented” in the service industry, they have the highest rate of unemployment thanks to the pandemic. And even when working, they have the greatest pay discrepancy, earning just 55 cents for every dollar paid to White males.

Their credit scores tend to be lower as well – a median of 668, according to the State of Hispanic Ownership Report – and their all-important debt-to-income ratio is a median 41 percent. Also, they tend to put down as little of their own money as possible, a median of 3.5 percent. Consequently, they are “particular vulnerable to underwriting changes.”

(By the way, Latinos are not necessarily a homogeneous group. They come from 20 different Latin America countries and from different races, socioeconomic and migration backgrounds. Guatemalans, Dominicans and Hondurans have a ownership rate of just 32 percent, for example, while the rate among Afro-Latinos is 47.5 percent.)

These trends and issues mentioned have not been lost,

not on big banks or mortgage companies. “We need to focus even more” on the Hispanic market, Kristy Fercho, executive vice president of home lending at Wells Fargo, told NAHREP at its recent annual conference. “We really have to get diligent.” And Mark O’Donovan, CEO of home lending at JPMorgan Chase, agreed.

“It’s imperative that we focus” on the Latino segment of the market,” he told the group. “It’s not just the right thing to do. It’s a chance to grow as a business.”

BIGS STEP UP Chase, Wells and many other national banks have made major commitments to further minority ownership. Chase, for example, has promised $30 billion over the next five years to, among other things, originate an additional 40,000 home purchase loans for Black and Latino households, help an additional 20,000 households refinance into less expensive loans, and open 100 branches in underserved areas.

Bank of America is investing $60 million – $30 million in loans and $30 million in equity financing – to support Enterprise Community Partner’s five-year initiative to help facilitate racial equality in housing. The investment will increase access to capital and career opportunities for BIPOC (Black, Indigenous and People of Color) leaders developing multi-family, affordable and supportive housing across the country.

Still, independent mortgage bankers and brokers may hold the key to unlocking the Hispanic market, and not just because they often are willing to take a little more risk.

Bankers and brokers can take on the “trusted advisor role” many Latinos are looking for.

“That’s more important to Hispanics and that’s what we’re good at,” James Hecht, executive vice president for retail lending at Caliber Home Loans, told another session at the NAHREP meeting.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

25

DIRECTORY

Calyx

Global DMS

www.calyxsoftware.com Dallas, TX & San Jose, CA

http://www.globaldms.com Lansdale, PA

We offer mortgage origination technology for small to enterprise level organizations.

Finicity

Global DMS offers the most advanced appraisal technology on the market called EVO™, engineered and designed for both commercial and residential appraisal business. With a purposeful departure from outdated processes of older platforms, EVO combines 100% configurability, boasts the most user-friendly navigation possible, a user-role based workflow, the easiest to use reporting engine, as well as the only true cascading decision tool.

a Mastercard company http://Finicity.com Salt Lake City, Utah

Finicity's Mortgage Verification Service is the one-touch, GSE-accepted digital verification of assets, income and employment. MVS leverages Finicity's open banking platform so lenders can use the best data from the best sources in the best way to deliver a winning lending experience for their customers and business stakeholders. Finicity also provides account validation services to mitigate payment risk, as well as the use of transactions, account history and statements direct from FIs that can be used for loan servicing or other needs.

Mortech a Zillow Group business https://www.mortech.com/ Lincoln, NE

As a pioneer in the digital mortgage era, Mortech provides mortgage professionals with a number of services and tools including Product Pricing, Online Rate Quoting, and Secondary Marketing solutions to help automate their workflow, giving them more time to focus on business growth.

Product offerings: • Instant pricing from multiple investors at the touch of a button.

• Streamlined secondary desk with tools such as historical pricing, centralized lock desk, and more.

• Quote live mortgage offers to a broader audience with access to the largest portfolio of mortgage marketplaces.

• Ability to re-capture current customers and gain new purchase leads with predictive analytics

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ReadyPrice http://www.readyprice.com San Jose, CA

ReadyPrice, powered by SitusAMC, is a leading mortgage technology connecting mortgage loan originators and lenders to support more efficient loan origination.

Their technology enables MLOs to manage and choose pricing, run automated underwriting, and deliver approved loans to lenders at no cost to the MLO. For lenders, ReadyPrice provides an efficient way to scale their businesses, ensuring wholesale lending rates are included in every pricing engine search while providing brokers with the easiest path to directly transfer DU approved loans.

ReadyPrice technologies support FNMA, FRE, FHA, VA, USDA, VA, and non-agency (non-QM, jumbo, etc.) loan originations.

SPONSORED EDITORIAL

STARTING A PARTNERSHIP CONTINUED FROM PAGE 13

· Register for a sales tax ID (seller’s permit). · Register for payroll taxes (if the business will have employees). · Pay franchise tax. · Obtain required business licenses and permits and keep them up to date. · Keep a business’s and partners’ personal finances separate.

LIMITED LIABILITY PARTNERSHIP (LLP) A limited liability partnership is similar to a general partnership—all partners may be involved in managing the business. However, unlike a general partnership, all of the partners are protected by limited personal liability. This form of business structure is usually used by entrepreneurs in specialized professions (for example, accountants, attorneys, accountants, wealth managers, engineers, architects, and doctors). Besides the benefit of personal liability protection, the LLP structure also gives professionals the ability to pool resources (such as administrative staff, equipment, etc.) and reduce operational costs compared to operating independently. Most states require that all partners in the LLP are licensed in the same profession. In an LLP, all partners are personally protected from the business’s liabilities (the degree of liability protection they have varies by state) even though they have complete responsibility for the management of the business. Partners in an LLP get paid from the company’s profits, and those draws are subject to income and self-employment taxes.

HOW TO START AN LLP The paperwork involved in forming an LLP is usually called a “Certificate of Limited Liability Partnership.” It must be filed with the appropriate state agency along with payment of the required fee.

It’s important to note that not all states recognize the LLP as an entity, and some states only allow certain types of professionals to form one.

LLPs may continue to exist when individual partners leave or pass away if the business’s partnership agreement details those circumstances.

Possible Ongoing Compliance Tasks for LLPs · File an annual report with the state. · Assign and maintain a registered agent in the state. · Report and pay income and self-employment taxes. · Register for a sales tax ID (seller’s permit). · Register for payroll taxes (if the business will have employees). · Pay franchise tax. · Obtain required business licenses and permits and keep them up to date. · Keep the business’s and its partners’ personal finances separate.

IS A PARTNERSHIP RIGHT FOR YOUR BROKERAGE? The business structure you choose will be one of the most crucial decisions you’ll need to make. Because your choice will affect so many aspects of your business—how you manage it, how taxes are handled, your level of personal liability, and more, consider getting guidance from trusted legal and accounting professionals. Every situation is unique in some way, so it’s helpful to run through the pros and cons related to your specific circumstances before moving forward.

Nellie Akalp is an entrepreneur, business expert, professional speaker, author, and mother of four. She is the Founder and CEO of CorpNet.com, a trusted resource and service provider for business incorporation, LLC filings, and corporate compliance services in all 50 states.

MORTGAGES FOR TODAY’S SELF-EMPLOYED BORROWER

I

BY AC RA L E NDING

n today’s market, self-employed borrowers may find themselves hurdling through various obstacles when applying for a loan. Due to the impact of last year’s nationwide lockdowns due to COVID-19, many business owners have struggled to show enough adjustable gross income on their tax returns in order to qualify for a mortgage. Furthermore, because of the historically low interest rates and low inventory of properties, the current housing market has become extremely competitive; making it even more challenging for these borrowers to get the funds needed in a timely manner.

Qualifying for these loans can often be difficult, especially when a borrower works with a lender that does not have the programs designed to meet their needs. As a result, this often-underserviced group of customers can benefit from the expertise of a Non-QM lender like Acra Lending with their suite of programs.

Acra Lending offers a variety of non-QM programs tailored for self-employed borrowers. For example, the 3, 12, or 24-Month Bank Statement programs are popular and well-suited programs that allow the borrower to use their bank statements to qualify.

Acra Lending’s 3-Month Bank Statement program is a favorable option for this type of borrower. In today’s climate, providing the last three months of bank statements are often more useful than the past year (or two years) worth, especially in light of potential loss of income due to the pandemic and today’s economic environment. These bank statement programs could appeal to borrowers and brokers seeking faster times to close on their loans.

Today’s borrowers require programs designed to best suit their needs. Acra Lending is here to help; as we are committed to innovating, investing, and providing the optimal customer experience to our customers.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

27

One And Done?

Growth in mortgage-rate locks for second homes dropped to pre-pandemic levels in May

BY DANA ANDERSON | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

T

he number of buyers who locked in mortgage rates to purchase a second home nationwide rose 48% year over year in May. Though that’s a significant increase, it’s the first time in a year the annual growth rate has fallen below 80%. Yearover-year increases in this report are likely exaggerated because demand for second homes was relatively low in May 2020 due to the coronavirus pandemic slowing real estate activity.

Demand for vacation homes jumped in June 2020 as the U.S. real estate market came roaring back to life, with a 110% year-over-year increase in secondhome mortgage locks, and the level remained elevated through April. The annual increase in May is similar to pre-pandemic levels.

The number of buyers who locked in mortgage rates for primary homes rose 30% year over year in May. The report data is based on a Redfin analysis of mortgage-rate lock data for home purchases from real estate analytics firm Optimal Blue.

REASONS ABOUND There are several reasons for the cooling in second-home demand this spring.

High prices are likely playing a role, as is the reopening of offices. The typical spring slowdown in overall pending home sales is also impacting vacationhome sales. Plus, many people with the desire and means to buy a vacation home this year have already done so throughout the pandemic.

Additionally, mortgage-lending rules

28

for second homes tightened in April and May. Under new federal rules, second-home and investment property mortgages can make up just 7% of a lender’s total pipeline. That’s on top of regulations that make it difficult to get a loan for condo towers in resort areas that may be used as short-term rentals.

“In addition to tighter lending rules, vacation-home buyers are starting to react to rising prices,” said Redfin Chief Economist Daryl Fairweather. “Home prices have been climbing rapidly for the last several months, and it seems they’ve finally gotten prohibitively high for some people searching for second homes. Vacation-home buyers are quicker to back away from properties

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

that are potentially overpriced because they’re

not

a

necessity.

People

searching for primary residences may have to shell out more money than they want to because they need a roof over their heads.”

“A lot of the people who were driven to hunt for vacation homes over the last year have already bought them,” Fairweather continued. “The pandemic and remote work drove many affluent Americans

to

relocate

to

vacation

destinations, at least part of the time.

But with offices reopening and life returning to some semblance of normal, people are less focused on fleeing to the beach or the lake.”

Optimizing SOLUTIONS for Your Self-Employed Borrowers Qualify using the most recent personal or business account bank statements with our 3-Month Bank Statement program

Down to 600 mid FICO

DSCR program available for N/O/O loans with up to 80% Max LTV

Loan amounts up to $4M

The Leader in Today’s Non-QM Programs

(888) 800-7661 sales@acralending.com | www.acralending.com 25531 Commercentre Drive, Suite 160, Lake Forest CA 92630 Acra Lending is a dba of Citadel Servicing Corporation NMLS ID# 144549, Licensed under Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act license #41DBO-74196, Finance Lenders License # 60DB094450, and CA-DRE #01799059. For mortgage professionals only. This information is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations. Distribution to the general public is prohibited. Acra Lending is an equal opportunity lender. Rates, terms, and programs subject to change without notice. Offer of credit subject to credit approval per applicable underwriting and program guidelines, applicant eligibility, and market conditions. Not all applicants may qualify. Not valid in the following states: AK, HI, IA, MA, MS, MO, NM, NY, ND, RI, SD, and WV.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

29

FACEBOOK THOUGHTS

NICK ROBERSON

Pillow Talk

30

Nick Roberson

Nick Roberson is a long-time mortgage industry veteran and a board member of the California Association of Mortgage Professionals. He’s a forthcoming and giving guy, who shares his … unique … perspective on work and life on his Facebook account.

Here are some of Nick’s FB thoughts this month:

told him there must be some mistake. I have never met or hired him before. He laughed and said, “no, but your neighbors have!” Apparently, my neighbors paid him to plant tall hedges and trees to block their views of my living room windows during the Covid lockdown. I guess not everyone has my appreciation for nude yoga. Well, except for the gardner, that is.

He had to hire extra help to keep up with demand as my flexibility improved. They can laugh all they want. The neighborhood has never looked better, and I can scratch my ears with my toes.

I am pretty sure the person who designed the bread bag ties is the same person who designed camouflage for the military.

Too funny. The guy in line in front of me is wearing a giant penis costume. Oops, my mistake. It’s not a costume. He is just being himself.

Say, “no pun intended”. occasionally after saying something normal in a conversation. Most people won’t want to look stupid, so they will laugh uncomfortably while trying to figure out what the pun was.

Once again, I regret exposing my daughter to old movies and classic comedies. Tonight l was sitting there quietly, minding my own business and catching up with Sports Center. Suddenly, Savannah yelled, “Makeup!” and smacked me square in the face with a throw pillow as if it was an old giant movie powderpuff. She ran out of the room, laughing hysterically. I’m going to get even as soon as my vision fully returns and the little birdies stop flying around my head. Damn, volleyball girls hit hard.

I received a Thank You card from a local landscaper. I was a bit confused since it was not my landscaper. So I gave him a call to solve the mystery. He acted like I was someone famous or something. He put me on speakerphone, introduced me to his wife, kids, and his cousin Smitty. I

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

To see more by Nick, just go to www.facebook. com/nickroberson.

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Visit AngelOakMS.com | 877.926.3073 ©Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-tobusiness communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. MS_A252_1220