NMP National Mortgage Professional October 2020

Page 1



Volume 12, Issue 10


From preferential policies to suburban redlining, the next president will change housing in the U.S.

BE A PRO, BRO How to communicate professionally with clients

NOTE TAKING Private investors see seller financing as the next big score

VIRTUAL SEXISM How women are being

demeaned at mortgage conferences







Volume 12, Issue 10


From preferential policies to suburban redlining, the next president will change housing in the U.S.

BE A PRO, BRO How to communicate professionally with clients

NOTE TAKING Private investors see seller financing as the next big score


How women are being demeaned at mortgage conferences


MORTGAGE’S MOST INFLUENTIAL WOMEN Cover image by iStockphoto / yogysic

Experience The Difference MORE Expertise MORE Service MORE Technology Experience the Biggest and Best Originator of Non-QM1 Visit AngelOakMS.com | 855.631.9943 Š 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-to-business 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. 1Inside Nonconforming Markets, August 30, 2019. Based on Google reviews of comparable lenders. MS_A052_0520


The Leader in Non-QM



Volume 12 Number 10



4 New Voices Two talented female columnists join NMP.



6 Private Gold Mine Pending tidal wave of note sales leaves investors ex.

Trump, Biden take wildly divergent approaches to housing policy.

10 Don’t Be Lazy Use the tech at your disposal for flexibility and accepting change. 15 People On The Move See who the movers and shakers are in the mortgage industry.

16 Build-A-Broker: How Minorities Can Move Ahead A step-by-step look at opening your own mortgage brokerage.

22 Failure For Your Future Don’t let career setbacks set back your advancement.

27 Special Section: Inspiring Women Twenty women making an impact in the mortgage industry.

18 Avoid The Comforts Of Home Keep things professional when working from your sofa.

24 Female In A Virtual World There’s a need for a digital sexual revolution.

47 New To Market The new products impacting your dayto-day work.

20 No Business For A Loner Success and a healthy lifestyle requires teamwork.


PAGE 27 The 2020 National Mortgage Professional’s Inspirational Mortgage Women

37 It’s A ReFi World Volume hits its highest point in almost 17 years. 39 Housing Optimism Buyers are scooping up properties in record numbers. 41 Heard on NMP Words to remember from our broadcasts and website.

Photo credit: iStockphoto / Bet_Noire

The House Is Up For Grabs!

8 Change At A New Level Plan for chaos with an open mind. 10 Tackling Client Challenges Four positive ways to help your clients overcome obstacles.


42 Divergent Policies The presidential campaign shows what the future brings for housing. 48 Dropping Forbearance The housing market gets healthier – except in one key segment. 51 My Best Deal: A Life Changing Deal Kimberly Kissane inked a deal with a major impact. 53 NMP Calendar of Events 74 Facebook Thoughts: Grownups Need A Dewarsmobile!







Volume 12, Issue 10


NOTE TAKING Private investors see seller financing as the next big score

From preferential policies to suburban redlining, the next president will change housing in the U.S.

BE A PRO, BRO How to communicate professionally with clients


How women are being demeaned at mortgage conferences




Volume 12, Number 10


Women Leading The Way


ne of the things any editor enjoys is finding new voices to bring to a publication. In this issue, we’re thrilled to have not just one but two new columnists, and that both are female leaders in the mortgage world. Erica LaCentra is the marketing director for RCN Capital. She spoke for us last year at the Mortgage Star conference for women, where she delivered an impressive and impassioned presentation on being a young woman rising through the executive ranks and finding her voice in an industry dominated by a lot of machismo. Now she’ll be writing monthly for NMP on those same kinds of topics, or sometimes just on insightful marketing ideas. Either way, we’re looking forward to the ideas and insights from one of the industry’s most thoughtful participants. Meanwhile, for anyone who’s ever seen Mary Kay Scully doing a live workshop, it’s no surprise that she’d be a prize catch for any publication. As national sales trainer for Genworth Mortgage Insurance, Mary Kay brings great hands-on advice on how to be the best at our jobs, and she does it with wit, directness and clarity. If you want to be a better national mortgage professional (and who doesn’t?), then time spent with her column here in National Mortgage Professional magazine will be well worth it. We’re working to be sure that we not only bring readers great advice, strategies and insight, but to showcase differing views from multiple demographics. Clearly, mortgage origination, especially, is dominated by men. And there’s nothing wrong with admitting that sales in general often needs a little chutzpah to make it happen and make it fun. But there’s no shortage of advice columns by men in our industry, and it’s good to bring in great ideas from a different perspective. And while we’re at it, we’d be remiss not to point out that in this issue we also feature a score of inspiring women in the mortgage industry. Some have reached the top of their profession. Others are claiming success in various niches. But all of these women are approaching their careers, and serving the industry, in ways that are inspirational and motivational. Learning from people who bring their “A” game, after all, isn’t limited by what chromosomes are in play.

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




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


© 2020 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





Seller Financing May Be Gold Mine For Private Capital Industry looking at opportunity created by changing mortgage rules. BY LEW SICHELMAN | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL


nvestors in private mortgages are licking their chops over what some see as a pending tidal wave of note sales in the coming months. They believe many sellers will be forced to finance their own sales – or, in the parlance of the trade, “hold the paper” – because their buyers won’t be able to qualify for a mortgage from traditional lenders. “More than half of the loans made in 2019 would not meet today’s criteria,” says Sarah Strochak, a research analyst in the Urban Institute’s Housing Finance Policy Center. Some sellers will be content to collect their money bit-by-bit over the months, as though they were landlords. But note-buyers think those who want their proceeds sooner, and in one lump sum, will want to sell their paper, even if it means putting less cash in their pockets.

“A seller-held tsunami is on the horizon,” says William Mencarow, publisher of The Paper Source newsletter.

BIDING TIME Scott Arpan of Advanced Seller Data Services, a supplier of leads for seller “carry-back” notes, believes a slew of paper will hit the market in the coming months. “History shows we will see a flood of new notes,” Arpan says. “Unless the economy can quickly return to full employment, many (buyers) will suffer damaged credit even when they are responsible borrowers.” The question for sellers, then, is how to create a financing vehicle that investors will want to take over if and when the time comes to sell it. For starters, they should spend the money to have a local real estate attorney create the necessary, statespecific documents. Absent that, sellers should find a paralegal to handle the task, or search the legal websites. Their house is too valuable to rely on standard forms sold at office supply stores. Realize, too, that they’ll have to sell at a discount, otherwise there’s no reason for an investor to take the mortgage off their hands. And the price they pay depends on any number of variables. The closer the paper is to bank quality, though, the smaller the discount. Says Mencarow, most legit notebuyers are looking for seasoned

notes – those that are at least six months old, and that have been paid on time. Even more important, however, is what is collected each month. The monthly payment is “the single most powerful financial aspect determining the value of a note,” according to Mencarow.

THE RIGHT NOTES An amortized note is more valuable than one with a balloon payment at the end of the loan’s term, he adds. In other words, all else being equal, a 10-year note with a large monthly payment and no balloon is worth more than a 10-year note with a smaller monthly and a balloon payment at the end. According to Mencarow, a single-family house in a stable neighborhood and occupied by a borrower with an excellent credit record and an unblemished payment record is “the best collateral possible.” Some note-buyers might use a different hierarchy. Either way, a seller will want their mortgage to be in the first lien position, because if you have to foreclose on your borrower, you’ll want to be the first creditor to be paid from the proceeds of the property’s sale. That’s why a first lien is more valuable than a second -- and a second, though not as valuable, is more so than a third. In taking back paper, the seller becomes the lender. Consequently, they should check out the buyer in the same way a conventional lender

would. That means asking for a fullblown credit report, which the buyer pays for. Sellers should also check the buyer’s employment history, looking for at least two years at the same company (or at least in the same field). Ask for their tax returns, a list of all assets and debts, rental history and perhaps even a criminal background check. Why go to all this trouble? For one thing, they will be protecting themself from dealing with someone who doesn’t pay as promised. But for another, someone who buys the note will want to know the same.

THE UNDERWRITE STUFF Mark Donoghue of the Americus Financial Group says he pays “careful attention to our due diligence and underwriting.” Nathan Turner, also known as “the Canadian Note Guy,” says his pencil “is a little sharper” these days. And Kevin Clancy of the American Funding Group requires a borrower interview before closing the deal.

“We’re very concerned about a borrower’s ability to pay,” Clancy told The Paper Source recently. “Last week, we were buying a nice residential note in Florida. Our final step was a payor interview. When we talked to the borrower, he asked if we could defer payments as he has lost his job. We can’t buy a note when the borrower doesn’t have income.” Sellers should always seek as large a down payment as they can obtain. Just like a conventional lender, they’ll want their borrower to have as much skin in the game as possible. After all, the more money the buyer has in the deal, the more difficult it will be for him or her to walk away. “Equity, equity, equity,” says Donoghue. “This remains our No. 1 risk characteristic.” The property’s location also may determine the ability to sell the loan to an investor, at least for a better price. For example, Donoghue is not buying in California, New York, Connecticut and a few other states. And Gene Powers of Nationwide Secured Capital

Photo credit: iStockphoto / skynesher

Investors are retooling in anticipation of a strong market starting in the third quarter, as sellers begin a search for liquidity.

is shying away from places related to large airline and tourism employment. Paige Panzarell, aka “the Cashflow Chick,” says she has always been careful about buying paper in states where it is difficult or takes too long to foreclose. And she may eliminate even more states over the coming months. Fuquan Bilal of NNG Capital, which buys mostly second liens, is also retooling in anticipation of a strong market starting in the third quarter, as sellers begin a search for liquidity. “It will be a buyer’s market again real soon,” he told The Paper Source.

Lew Sichelman has been covering the housing and mortgage sectors for 52 years. His syndicated column appears in major newspapers throughout the country. He also has been the real estate editor at two major Washington, D.C., dailies and spent 30 years on the staff of National Mortgage News, formerly National Thrift News.





Planning For The Future

Set ranges instead of specific goals that encumber you BY DAVE HERSHMAN | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL


have been in the mortgage industry for almost 40 years. Among many other things, this makes me old. And for all these decades I have been saying that the one constant we have in the mortgage industry is change. This year, with the onset of the COVID pandemic, we have taken the concept of change to another level. But the constant of change remains the same. For example, many ask me questions like – what does the average loan officer make in this industry? I answer with this – there is no average loan officer. Some make $20,000 and some make $900,000. You can’t get a statistical average from two ends that are not in the same stratosphere. Likewise, there is no average year in the industry. It is either feast or famine. It used to be we have a refinance boom for a year every decade or so. Now it seems the cycles happen much more frequently. I am actually tired of telling people -- you may never see rates go lower than this -- and being wrong. So how do you plan for this chaos? With a very open mind. Long ago I

abandoned the static numbers approach to planning. What is the static numbers approach? Here are some examples: • I will do $20 million in volume next year • I will make $150,000 next year • My company will make $1 million in profit next year. Long ago I abandoned these statics for ranges. For example, instead of saying that I will do $20,000 million in volume next year, I might say: • My low target is $16 million in volume next year (Conditions, no refinances – moderate sales volume) • My medium target is $20 million in volume next year (Conditions, moderate refinances – moderate sales volume) • My “reach” target is $24 million in volume next year (Conditions, good refinance volume, strong sales volume) Obviously, this is a simplistic example. The volumes are not likely to be symmetrical and they don’t have to be limited to three scenarios. And this is only part of the equation. We have started with the results, but not the actions necessary to get us to the results. Want to attain your "reach” goals? What actions are you willing to take? And how do you hit the high end if an assumption

changes? In my business planning exercise, I always try to take a look back because that gives me a hint about the future. I ask my students two questions:

• What factor(s) hampered you last year? • If you had a “do-over” what would you do differently about these factors? The answers to these questions will give you a good idea of what needs to change for the year coming up. You can’t go forward without looking back and making adjustments, because you can’t plan for the future with a blank slate. As good as the business was this year, I sincerely hope that we never ever again have a year like we are having in 2020. But it is just a reminder that the new year will bring new challenges. To be ready for these challenges we must drill down and assess where we have been, where we are now and where we want to go. Most of all, we need to be ready for just about anything to happen. Because anything could happen.

Dave Hershman, senior vice-president of sales for Weichert Financial Services, has published seven books.

“In my business planning exercise, I always try to take a look back because that gives me a hint about the future.”

WILDFIRES DON’T CARE ABOUT YOUR RACE. BUT WHEN WE TRIED TO RENT A NEW PLACE TO LIVE, WE LEARNED THAT SOME LANDLORDS DO. When the fire came, we had to run from our home. Fortunately, we found temporary shelter. But as we started looking for a place to live, we ran into housing discrimination, which isn’t just unfair – it’s illegal. If you feel that a landlord or broker has denied you the sale, rental or financing of a home based on your race, color, religion, sex, national origin, disability or because you have children, report it to HUD or your local fair housing center.

Go to hud.gov/fairhousing or call 1-800-669-9777 Federal Relay Service 1-800-877-8339

FAIR HOUSING: THE LAW IS ON YOUR SIDE. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |







here are two common ways that loan originators usually deal with issues that can stop a client from purchasing a home. One way is that the loan originator tells the client to go get the problem fixed and to return when the problem is resolved. The second way is that the loan originator fixes an issue as best as they know how … until the problem blows up during the mortgage process. Challenging client issues are increasing. Clients are coming out of forbearance with income that may have been reduced, so there are questions about declining income and job continuance to address. Some clients are selling homes to downsize but have had recent late payments due to income loss from jobs, loss of a spouse, divorce and other reasons that must be explained to underwriters who want to be assured that the client is on firm ground to purchase again. All this is happening while home prices in general continue to increase in most areas, though pockets across the US are starting to see a decrease in home values. Short sales and foreclosures are starting to appear in the marketplace again. I get that some loan originators don’t want to deal with client issues. Frankly, that’s not a loan originators job. And dealing with clients that have challenges is not easy, can be time-consuming, and sometimes results in less compensation. However, there are multiple positive reasons to deal with challenged clients. 1. When our country goes through a national crisis, the negative outcome for those affected is often similar. It


is common to hear that most people wait too long and wipe themselves out financially before asking for help. Knowing of solutions and having referral partners ready to work with clients to get through these issues can be a lifeline for many. Knowing HUD housing and credit counselors to recommend becomes a benefit to you as well as a service to your client. 2. Working through challenges can result in a niche for yourself that can provide business during rougher times. Clients I’ve worked with through the housing crisis who had a foreclosure code placed on past short sale credit, that then caused a new mortgage denial even when the client was eligible to purchase again, were the majority of my business when there was none for many loan originators. 3. Challenged clients that you can help are by far the most loyal clients you will ever have. They often know of others who need the same help and refer them. When challenged clients successfully get a loan, they will hunt you down the next time they or someone they know needs a mortgage. And you know that client retention is something we all work hard on. 4. Personally, assisting clients that need to overcome a challenge is rewarding to the soul. Understanding what people went through, realizing hardship that you may have never seen or experienced before gives you a different

perspective on the value to others of being approved for a mortgage. Currently I am working with clients that have had a forbearance, sometimes on multiple accounts. Thanks to the National Emergency Proclamation made on March 13, 2020 due to COVID-19, negative credit seems to have been suppressed for forbearance accounts, so getting an automated approval is possible. I am also helping a client who had a short sale four years ago and his lender did not know how to do the Fannie Mae workaround in the desktop automated system. (There is no workaround in Freddie Mac.) Being aware of existing solutions and finding new ones while referring clients who need extra help to HUD approved counselors to get them “mortgage ready” is how I will make it through an uncertain mortgage future. The Clients2Homeowners.com website was set up to provide help for the most prevalent client issues including credit help, downpayment assistance, budgeting and referring to the right HUD housing or credit counselor to fit your client’s needs. And if you have a consistent problem and a solution is needed, contact me. Professionals that worked on problems during the past housing crisis are still on the forefront and are aware of new problems coming out of these unusual times. The goal is to provide solutions, or a referral to a HUD housing or credit counselor, for clients who are willing to do the work to purchase a home. Stay tuned.

Pamela M. Marron is a senior loan originator with Innovative Mortgage Services Inc.


STRONGER TOGETHER Bill Thams QLMS Account Executive

Lindsey Peterson Marketing Coordinator Loan Pronto Charlotte, NC

Call (888) 762-5035 QLMortgageServices.com/StrongerTogether Equal Housing Lender. Licensed in all 50 states. NMLS #3030





Train To Be Flexible And Accept Change Being ahead on technology also important for mortgage brokers BY RALPH LOVUOLO, SR. | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL


t’s Aug. 16, 1971 and it’s time for my first inclusive weekly sales meeting. Inclusive will be explained in a bit. It’s 8 a.m. and I’m sitting in a glass walled conference

room. I had come to the office early at Bill’s “be there” invitation. He had called me at home the night before to let me know we had to discuss my raise, prompted by the President of the United States. Well, President Nixon hadn’t actually called Bill, but what had been on TV had changed my life forever. The day before, as I recall it, on that Sunday evening, the president, in a televised address announced, “I am today ordering a freeze on all prices and wages throughout the United States.” The announcement kicked me in the gut. The effect on me and my family was going to be catastrophic, a serious blow to my future and the plans I had for our growth, both for me personally, and the other three members of my burgeoning family. Financially it would cause a bit of a strain. The

previous week Bill had let me know that he was going to give me the raise we had discussed. That was a big deal to me. It meant that my future was tied to him for the foreseeable future. I respected his business skills more than anyone I had yet worked with. His personality was not something to be copied, but the trust I had in his business skills were very high. My salary on that Sunday was $12,500 a year. It was double what I had been earning five years before when I took my first job at a “real” mortgage company. My previous mortgage experiences had been with my father who started his mortgage brokerage business in the late ‘50’s.

LIFE CHANGING That salary was adequate, maybe even more than that. Well, I’m not counting the credit card bills that needed to be brought under control. But overall, we were fairly comfortable with that income, living with a $20,000 mortgage and one car payment. You can imagine how much sleep I had that Sunday night, not knowing what to expect. Meeting with Bill about half an hour before the weekly sales meeting, he showed me the approval that had been signed by the president of our parent company. Little did I know that that half-hour would change my life forever. He did his best to mollify

me, but I was inconsolable. Getting raised to $15,000 a year would have been the fulfillment of all my wishes. [That’s about $96,000 in today’s money.] I would have been almost 30 years old and content. My raise was effective on Monday morning. Bill said there was nothing he could do. He had called the corporate president right after the announcement and was told I would have to wait until Nixon lifted the ban. Our discussion centered on not knowing when that would be and then Bill suggested that maybe there was a way for me to earn the kind of money I felt I deserved. The circumnavigational way to foil the gods of Washington D.C. was to become a salesman! No, no, no, no, NOOOOOO! I didn’t want that. It was the farthest thing in my mind. It was impossible. I was not going to be a salesman. I was not a salesman! I knew my life was predetermined by the God I worshiped. He had my whole life planned. I was NOT going to be like my father. I was not going to be that blue suede shoe operator that my father represented. I guess Bill said he understood. I don’t remember. But what he then said immediately made the conversation turn in his favor. He had planned the meeting down to the number of words it would take to get hooked.

COULDN’T REFUSE Paraphrasing, “So, here’s what I

can do. I’ll turn over a couple of house accounts to you at full commission, give you a weekly draw of $200 and pay you any overages each month. You’ll make the money you want and when the president lifts his order, you can decide what you want to do. Deal?” How could I refuse? I needed the money, wanted the money and what the hell, what I knew of those guys and how they conducted their lives looked like a lot of fun. So, we went into my first inclusive sales meeting. No longer a businessman.

let you know that I’m trained to be flexible, to accept change as part of my life. I am forced to think about it every day now that I’m working with managers and salespeople who need to acquire that skill. The pandemic has been earth shattering insofar as change happening quickly. WOW, I bet you didn’t expect that. Let me ask you to consider changes that I see as key to the mortgage industry being able to thrive as change continues to proliferate our profession. Zillow wants to put you out of

“When are the leaders of our industry going to accept the innovations that computer power could bring to streamline and improve the mortgage process?” The prospects were daunting. Instead of my previous label, I was going to be a loan solicitor. Yes, that’s what they called us. The label was well known in the mortgage industry, and lest I forget, imprinted soon on my new business cards. After spending a bit more than four years toiling in the bowels of South Jersey Mortgage Company, learning the inside operations of mortgage banking, I was now going to be a loan solicitor. Within the year I was the number one salesperson, more than doubling what my raise would have been. I’ve had a life full of changes and challenges, but some things have not changed, and the lack of serious forward thinking to enable change disappoints me.

ACCEPT CHANGE The purpose of letting you in on my first big unexpected life change is to

business. Yet mortgage loan officers who are tied to a one-day-at-a-time business plan with no thought about tomorrow’s challenges are allowing the Zillows’ and their like to move forward even more rapidly. This shows a lack of professional business thinking in the mortgage brokerage industry. Why do brokers need to depend on a big brother to protect them from themselves? The kerfuffle that has been recently wending through the mortgage brokerage industry is an anomaly that was totally unnecessary. It is because of the laziness of mortgage brokers to use the marketing tools they already possess. If mortgage brokers would just do their jobs and stay in touch with their clients, this whole sordid mess would not have occurred. When are business owners who have purchased a companywide CRM

going to realize how much business they are losing because of the lack of their loan originators and marketing people non-use of some of the most sophisticated intelligence gathering and business development tools at their disposal?

WORKING TOGETHER When is there going to be cooperation between the many diverse mortgage organizations that profess to represent their membership going to sit at the same table and, for the benefit of the public, going to discuss those areas of law, rules and regulations that would forestall the government taking their incomes away from them? Why didn’t those organizations see what the FHFA was thinking? Because the leaders don’t have think tanks to forestall attacks. When will this happen? When are the leaders of our industry going to accept the innovations that computer power could bring to streamline and improve the mortgage process, so we can actually approve and close a mortgage in a matter of minutes? Why hadn’t the more well healed national mortgage organizations been dealing with state legislators and overseers to allow e-closings? When the pandemic hit there were about 38 states that did not allow this sort of benefit to their citizens. It has always seemed to me that the industry that I’ve been a part of for over 60 years is always behind, technologically, every other industry that I come in contact daily. When will it stop? When will there be leadership?

Ralph LoVuolo creates a daily video @ www.oneideaaday.com






BUILD-A-BROKER: Overcoming Challenges To Start A Minority-Owned Brokerage YOUR FIRST MILLION DOLLARS: Don't Get Too Comfortable! It Takes A Team For Success CAREER TICKER: Photo credit: iStockphoto / kupicoo

People On The Move


> First American Financial Corporation appointed Jon Wierks as vice president of its data and analytics division.

> Nations

Lending hired Casey Herd to head two new branches in Farmer’s Branch, Texas and Orange County, California.

> FormFree

promoted Cindy Snow to chief operating officer.

> Flagstar Bank

named Lee M. Smith president of Flagstar Bank Mortgage.




Helping Minorities Succeed Against All Business Odds

Follow these steps to overcome challenges to starting your brokerage BY HANNAH FERNANDEZ | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL


re you a minority in the mortgage business with aspirations of owning your own brokerage? Expanding your existing business? There are practical considerations to undertake, especially as your economic grows. Aspiring entrepreneurs and small business owners can significantly boost the U.S. economy. However, many have to overcome challenges including inadequate access to capital among other barriers. Minorities, including Hispanics, are starting businesses at incredible rates. In fact, Hispanicowned small businesses are the fastestgrowing groups of entrepreneurs in the United States, and according to a study from Stanford University, they contributed approximately $500 billion to the U.S. economy in annual sales. Although Hispanic and other minority entrepreneurs are becoming an economic force, they are underrepresented in business. Eliminating obstacles that hinder the progress, growth, and success of these small businesses is an imperative that can drive innovation, create jobs, and grow our nation’s economy. Lack of access to capital is one of the major issues faced by Hispanic business owners, and it blocks business growth. Many do not get the funding they need.

Most who were denied financing got turned down more than once, and they don’t even know why their applications got declined. As a result, Hispanic, Black, and women-owned businesses are either hesitant or not applying for loans altogether due to frustration and fear.

SECURING FUNDING Most banks won’t lend to small businesses because they consider them risky as small businesses typically have fewer assets to provide as collateral. Additionally, transaction and underwriting costs are almost the same for small loans as larger ones. This causes banks to focus on loan amounts over $1 million. Non-profit microlenders fill a niche for small businesses that might not otherwise qualify for a loan. However, these lenders usually focus on loans under $50,000. Thus, in the spectrum of small business lending, there exists what’s called the “missing middle” gap, where the capital amount of $50K to $1MM that most business owners seek is too small for a big bank but too large for a nonprofit lender. The good news is there are various funding options available, including · business credit cards · invoice factoring · equipment leasing

· unsecured short-term business loans · asset-based loans or lines of credit · SBA guaranteed loans The key to getting approved is understanding exactly what lenders are looking for and knowing what your financials are telling them. When you know your numbers and have your financials in order, you increase the likelihood of getting approved for funding.

PREPARATION IS KEY There are countless stories of how unwavering persistence led to massive success. For instance, in order to get his coffee company Il Giornale off the ground in 1985, Howard Schultz had to raise more than $1.6 million. He spoke to 242 people, and 217 of them said no. It was disheartening, but he pressed on. Two years later, Il Giornale bought Starbucks and Howard Schultz became its CEO. All businesses experience challenges so do not get discouraged or frustrated if your plans for a mortgage business face roadblocks. Remember you do not have to do this alone. There are many organizations that can provide you with technical assistance on becoming fundable. Make sure to monitor and know the exact financial health of your business. Be upfront and do not lie


> SimpleNexus

appointed board member Cathleen Schreiner Gates as its president.



> Roostify

named Chris Boyle to the newly created role of president at Home Lending.

> SLK Global

Solutions added Casey HughesWade as vice president of mortgage relationship management.

> C2 Financial

Corporation promoted David Temko to president.

to yourself or the lenders. The due diligence and underwriting process will reveal all details of your financials anyway. To improve your financial situation, you have to face the good, the bad, and the ugly head-on. The reasons why businesses get rejected include · Bad or no credit · Weak cash flow · Lack of collateral · Lack of preparation · An incomplete application · Seeking small loans · A Criminal record · High risk or restricted industries. By knowing these factors, you can work on improving your numbers ahead of time, filling in the gaps in the application, and getting technical assistance early. Understanding the basic funding fundamentals is crucial to the success of your business and getting approved for funding. Make sure you set up a business bank account and separate your personal from business

transactions. Get clear on what you want to accomplish, and before going to a lender, prepare the answers to the following questions: · What are your annual gross revenues? · How much capital do you need? · What do you need the financing for? · How will these funds affect your business and what is the return on this investment? A common misconception among business owners is, “If I can just get the funding I need, my problems will go away.” That is far from the truth. In fact, when you get funded, there will be increased pressure because now you are responsible for paying the funds back. Whether you get funded or not, the bottom line is you can never stop focusing on getting more clients, generating more revenues, cutting costs, increasing profits, and improving your cash flow. Entrepreneurship can be exhilarating and empowering. It

Depend on Us. Deliver for Your Clients. As a trusted local wholesale lender, we’re committed to providing great service for you and great results for your clients – each and every time. No FICO score (unless PMI loan)

Up to 97% financing

Cash-outs* up to $2.5M (no seasoning)

Discounted rates

Loan amounts up to $3.5M with CLTVs to 90%**

Bijan Farassat (917) 731-4870 bfarassat@ridgewoodbank.com NMLS ID# 646654

24/7 access through our online portal

Joseph Noviello (718) 240-4780 jnoviello@ridgewoodbank.com NMLS ID# 625762

*On primary residences. (LTVs apply). | **1–2 family and condo purchases and rate and term refinances – primary residences. | Terms and conditions subject to change without notice. Loans subject to credit approval. © 2020 Ridgewood Savings Bank. All rights reserved.

can also be lonely and challenging. Leverage the experience, advice, and wisdom of mentors, coaches, and seasoned business owners who know first-hand what works and what doesn’t. It is vital to put yourself out there, show up, and join various circles of influence by giving value. Networking can lead to new leads, strategic partnerships, access to debt or equity financing, and other business opportunities. Our population is becoming increasingly diverse and fostering business ownership among Hispanic and other minority entrepreneurs is critical to our economic growth and prosperity. When diverse businesses thrive, our neighborhoods and communities flourish.

Hannah Fernandez is the founder and CEO of ROI Business Funding. This column originally appeared on SCORE.org.

“I cannot express how grateful I am to have a broker relationship with Ridgewood. Time and time again, you’re the lender I count on for personal attention and unparalleled service.” Mary Ann Scaggs Sr. Mortgage Loan Originator Purchase, NY






Don’t Get Too Comfortable How to keep business communications professional when working from home BY MARY KAY SCULLY | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL


n this new age of working from home, sweatpants seem to be everyone’s favorite “new normal.” We joke about it, but in reality most of us are cheating our way through video conferences with dress shirts on top and pajama pants on the bottom. Remote work brings with it a host of new opportunities, as well as some added flexibility that many are not used to having in an office. It can be good to take a break from the rules we are used to abiding by. However, getting a little too comfortable at home can spill over into the quality of your work. Even when you are no longer under your company’s roof, you must still represent them well. Especially when communicating on behalf of your organization, there are a few items to keep in mind.

KNOW YOUR AUDIENCE When communicating with borrowers, or even fellow employees, it’s important to know how they prefer to connect. This is crucial regardless if you’re working from home or in the office. Even the best emails will go unanswered if your borrower prefers a phone call. Be sure that you understand the best channels of communication for each person you’re working with and move forward accordingly. Let them know that certain information and documents can only be shared in a specific manner. For example, the loan estimate is sent via email requiring acknowledgement and the intent to proceed, but you may want to send a text alerting them to check their email and take action.

KEEP EMAILS PROFESSIONAL While working remotely, you may find that you are sending more emails than ever before. So many things that would have been communicated across your desk are now shared through emails or instant messages. While you may be used to speaking to someone one way in person, email is a completely different ball game. The words you say are transcribed. They can be shared, saved and read again. With this in mind, be sure to always consider how you approach others via email. Whether communicating inside or outside your organization, make sure



# of people that read emails from their smartphone first. your tone is always professional. Check for spelling and grammatical errors. Be sure any attachments are correct before sending and determine if they need to be encrypted. All these small details can make a big difference when it comes to keeping a high level of professionalism at home. According to a recent article by Contact Monkey, 40% of people read emails from their smartphone first, so be sure you are keeping communications short and to the point, as recipients are often scanning. This is especially important for subject lines, as many recipients may only see the first few words before they decide if it’s worth reading.

LEAVE EFFECTIVE VOICEMAILS In the same way, you may find you are making more phone calls than usual. While talking on the phone is simple, it is surprising how many people struggle with leaving a message. Voicemails are usually the part of the call you don’t think of until you hear the tone that signals the recording. If you, as the caller,

Photo credit: iStockphoto / nensuria

While you may be used to speaking to someone one way in person, email is a completely different ball game.

that people outside your organization can see? There are so many things to consider in the background, so keep a watchful eye on what your camera angles reveal.

EMBRACE TECHNOLOGY are unprepared, the tendency is to quickly ramble on and on. Not only does no one want to listen to a long message, but a sloppy voicemail may discourage people from calling you back. Before you call, think about what you would leave as a message, in case they don’t answer. This way, the dreaded voicemail “beep” doesn’t catch you off guard. Briefly mention the reason for your call, leave your name, company and number – twice – and the good times to receive a call back. This gives the recipient all the information needed to reply promptly. Be sure not to include any Non Public Information (NPI) or sensitive information that could be intercepted

by someone else. Video calls are arguably the method of communication that has gained the most traction while everyone works from home. We still have a desire to keep employees, borrowers and prospects connected, and video is a great way to achieve some of that face-to-face time so many of us are missing out on. However, video tends to be the channel where many people mess up. Aside from being mindful of how you look on camera, there is a whole world of information on camera right behind you. Is it messy? Is anyone else sitting in the background or walking by? What objects are lying around? Is there any sensitive information

While there are so many things to be careful of when communicating these days, it is important to view it as a blessing rather than a curse. All of the technologies we use to communicate on a daily basis are allowing many organizations to stay up and running in a time that would have otherwise been devastating to their operations. While working from home, it’s okay to be comfortable, but, when communicating on behalf of these organizations, we have to keep it professional.

Mary Kay Scully is the director of customer education at Genworth Mortgage Insurance.




Photo credit: iStockphoto / PeopleImages

Superproducers Build Teams To Succeed You can grow your volume and still have a life BY DAVID LUNA, SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL


s I visit with thousands and thousands of good mortgage loan originators, I see a trend that holds many in this (and in

the real estate) business from going to new heights. May I share a recent conversation? We’ll call this MLO Matt. He has been in the industry for years. Matt had a good amount of business “back in the day” but can’t seem to get things going today. He’s plateaued, he’s stuck, he still does

business the way he used to and can’t seem to get ahead. What Matt can’t see and doesn’t seems to realize is why! He is hard working, smart and really cares about his borrowers. Why do I start with Matt? There are many of you that are in the same situation and can’t seem to make it to the next level. May I offer some advice? I will use my own examples to illustrate my point. I have closed over 7,000 loans. I think I know how to do this business, but it wasn’t until I got some help that I really

started to grow. Grow my business, grow my income, have more time to spend with my family. What I am saying is that you do not want to do it all, by yourself. I know what some of you are thinking “Dave I will lose the quality,” “I’ll lose contact with the real estate agent.” Or “They’ll build a relationship with someone else, not me.” I had those same thoughts. I felt the same way. However, it is NOT TRUE! If you start to build a team you can offload what you don’t like to


> Mid America

Mortgage hired Julas Hollie as sales director for its correspondent lending division.



> First

Community Mortgage named Stephen Mearman as its new assistant vice president.

> Martin Ford

was named Churchill Mortgage’s new vice president of credit risk.

> ReverseVision hired Justin Burns as the company’s vice president of operations.

do, aren’t good at doing or find you waste too much time doing. Give it to someone else who is probably better at it than you are. Find someone who is great at what you are not good at and that extra boost will get you to that next level that has been eluding you. You need a team. You will have to start with someone else besides you. All super producers have teams, assistants, staff and others to help them become better than they were all by themselves. Don’t make the mistake that you are “all knowing,” and “no one can do it better.” Get out of your own way. I remember when I first realized I was standing in my own way to growing a multi-million-dollar business. I thought that of the 22 business days in a month that if I could get a transaction a day, I would have 22 closings a month. Then I thought could I get two a day or three new transactions per day? It was not until I had two borrowers at the same time filling out paperwork at my desk that I realized I was doing it wrong. Imagine two different families in my office at the same time trying to fill out an application on my desk. True story. Obviously, this was before the powerful technology we have today, but you get the mental picture. Next trying to move all that business through the pipeline I had to stop generating and had to go into processing. So, I really stumbled at first before I figured out I had been doing it all wrong. The next question I get is, “Do I build up the volume first before hiring an assistant?” No, hire the assistant first then go out and get the business. This extra expense will also motivate you. This extra mouth to feed is a

> Promontory

MortgagePath announced Scott Turnquest as its new chief technology officer.

Love what you do. Spend time working on your business instead of working in your business. tremendous push to get out there and do what you are probably incredibly good at meaning getting new business instead of chasing docs. The assistant can help move the volume through the pipeline and out the back door as you bring it in the front door. Another gentleman listened to what I was telling him and hired his first, then second assistant and is now closing 35 transactions per month. I see him smiling more. I see him dressing up more. I hear him talk about his family and their vacations. He talks more about how he has time to give back to his community. He is happier and doing much better than when we first visited. Today I am in the educational space. The things I have learned translate exactly. I have a much larger team of genuinely great individuals. We get 300 people that we talk to every day. We make money on weekends and holidays when everyone should be spending time doing something other than working because we have automated many processes. We have a 4.7-star review rating on Google. Some people do leave a 1-star rating then tell us how great we are and we leave it just so that we look real. This year looks to be even better than last year which was also a record year for us. We are up almost 90% over last year’s results. Why? Because we do the things that need to be done when they need to be done and get it done by someone who is much better

> ReverseVision hired software engineer Aron Weiler.

at it than I am. You want to do more volume than you can imagine? You want to have a life and not lose your family in the process? I feel that for me the three most important things I can do, and this has grounded me is: 1. When you are working, work hard. Do your job and be great at it 2. When you are at home be with your family. Give them your time and attention. Isn’t this why we do what we do - for our families? 3. Give back. Whatever that means to you. Your church, your community, your kid’s school, soup kitchens, charity whatever. To count your blessings to help those who can never pay you back. To give back to those communities that helped make us great. Love what you do. Spend time working on your business instead of working in your business. To do this and not have the machine stop making money get some help. Looking at our numbers and what lies ahead we are all going to have a fantastic year. Go out, work hard, have fun and give back!

> Promontory

MortgagePath named Jordan Higgins coregional vice president of its sales division.

David Luna is president of Mortgage Educators & Compliance.

> ReverseVision hired Alan Guiterrez as a senior software engineer.




Getting Fired … Up Why sudden ‘career change’ can be the best thing that ever happens to you. BY HARVEY MACKAY | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL


any people have lost their jobs during this pandemic through no

fault of their own. For my book, “We Got Fired! … And It’s the Best Thing That Ever Happened to Us,” I interviewed 29 people who landed on their feet and excelled after they were furloughed or given a pink slip. These were high profile people, often fired in a very public arena. To sum up each of their inspirational stories, I asked everyone what advice they would give to people looking for a job today.

Pat Mitchell was the first woman president and CEO of PBS at the time. She had been working as a researcher/ writer for Look Magazine when it went out of business. Her advice was: “Be determined … I was determined not to give up. I figured it would all come around if I could find a way to survive financially while I stayed focused on what I wanted. It didn’t come easily. If you look at my resume, it seems like one exciting jump from one run to the next. Every one of those moves was somewhat of a risk. Some didn’t work out as I planned or hoped. I didn’t follow a straight line to get where I am, but I never went backward either.” She added: “Seize every chance you have to learn. It’s amazing how many skills we seem to acquire by accident.” Bernie Marcus was CEO of the Handy Dan Home Improvement Center chain when the parent company declared bankruptcy. Marcus was fired by a vindictive board even though the Handy Dan division was not in bankruptcy. “They threw me out of my office and put bars on the door. They searched my files. It was pretty terrible – one of those corporate things. You hear about them, but you don’t really know what they are like until you live through one.” He was convinced to drop his lawsuit against the company by a mentor who encouraged him to get on with his life. Another friend advised him to open the store he had always dreamed of. And that’s how The Home Depot was born. He was fired from a top spot in hardware retailing and went on to redefine the hardware industry. Billie Jean King, winner of 39 women’s tennis grand-slam titles, experienced a series of career

Photo credit: iStockphoto / retrorocket


> Promontory

MortgagePath hired Kim Joyce as co-regional vice president in its sales division.




Corporation promoted Molly Merchant to vice president of operations, REO

> Scott Lascelles was selected as a board member for LendingUSA management and HOA services.

> Baird & Warner

hired Nina Fotopoulos as senior vice president, strategic growth.

Seize every chance you have to learn. It’s amazing how many skills we seem to acquire by accident.

have called me, I probably would have just taken it, partly to say to Salomon, ‘Stick it … shove it … you guys made a mistake.’ Thank God, I got fired!

setbacks. She said: “Have faith and believe in yourself. It’s okay to feel what you’re feeling. Don’t be afraid to ask for help. This was one of my weaknesses. I was embarrassed to ask, but I’ve since learned that people want to help. Develop skills and try your best.” King, who became the first woman in any sport to earn more than $100,000 in a year, added: “Understand delayed gratification. We live in a society of instant rewards. You must learn your craft and earn what you get. It takes a lot of work and sweat, but you have to be willing to pay the price.” Michael Bloomberg, former New York City mayor, told me that he first had a vision for his Bloomberg media empire the day he was fired from Salomon Brothers. He and 62 other partners were summoned to a conference center and told the firm was being merged into another company. They were all fired. “I started thinking, ‘What are you gonna do?’ I probably had much too big an ego to go out looking for a job. If another investment house like Goldman Sachs would

Even more, thank God, Goldman didn’t call,” he said. One message from Mayor Bloomberg really stuck out: “People remember two things in life – who helped you on the way up … and who kicked you on the way down.” Lest you think these examples don’t relate to your situation, stop and think again. These folks could have wallowed in self-pity, spent fortunes in lawsuits and harbored bitterness that would taint their future job searches. But they chose a different path. They traded on their strengths, determined to forge ahead. And they didn’t give up. That’s the most important lesson of all. If you would like a free copy of my book, “We Got Fired! … And It’s the Best Thing That Ever Happened to Us,” visit www.harveymackayacademy.com/fired to complete a form to download the eBook. Mackay’s Moral: Tough times don’t last; tough people do.

We means business. TCF Home Equity Solutions is now accepting applications. Contact us at RLUCorporate@tcfbank.com to get started. Or visit our website at tcfbank.com/brokerloans for offerings and rates.

©2020 TCF National Bank. Equal Opportunity Lender. Member FDIC All loans subject to credit approval. For approved brokers only. NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |




Virtually, Still A Boys Club Digital conferences don’t level the field for women. They might even make it worse. BY ERICA LACENTRA | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL


ith COVID-19 putting a damper on in-person events this year, many conferences turned to a virtual alternative. With virtual exhibit halls, chat and video-based networking, live or recorded speaking sessions and many of the other hallmarks a live event offers, the thought is that virtual conferences can be a just as good as the real thing and achieve many of the same goals for sponsors and attendees alike. Well, maybe. While I truly admire the effort of conference coordinators to pivot and still try to offer value to their clients, what I have found (and commiserated about with numerous folks in the industry) is there really is no substitute for the real in-person event. However, I would be lying if I said that there weren’t some real advantages

to a virtual event, and many of those advantages go beyond simply being able to generate business from the comfort of your own home. As someone who has worked in the mortgage industry for just over seven years now, and traveled to more conferences than I can count, there is something invigorating about attending live events. Nothing beats being able to get away from the office, look for fresh ideas and inspiration on the trade show floor, meet with old friends, and cultivate new business. However, being a woman in the industry adds a whole different level of pre-event mental preparation. The boys’ club mentality that exists within the mortgage industry means that before I go to the trade show floor every morning, I prep myself to be ready to handle any attendees or fellow exhibitors that are rude, demeaning, or inappropriate. I still have to remain professional, avoid being in any unsafe situations such as walking or sitting alone even at trade show sanctioned events, and navigate a multitude of other situations that no male colleague would ever have to worry about. To say it can be

exhausting is an understatement, and there are many times when I question if the pros of attending truly outweigh the cons.

SEARCHING FOR E-EQUALITY This is precisely why virtual trade shows and conferences appealed to me. Being in a virtual exhibit booth with other members of your company meant there was little to no chance of an attendee treating you like a piece of meat and being inappropriate or harassing you. Even if they were, you could simply boot them from the video chat, a luxury you don’t have in person. After attending several virtual conferences though, I realized that they, too, posed unique challenges for women sponsors and attendees. Mainly that the “men know better” mentality that exists in our industry has also pervaded this platform. Attendees were not only not talking to me or the other female staff members at our virtual booth, they were completely ignoring us and going straight to male team members to start a oneon-one conversation. Now you’re probably thinking, that’s crazy, it’s got to be in your head. I assure you this is not a case of paranoia. I have attended about

“Of all of the potential challenges of participating in a virtual conference, I did not think my biggest obstacle would be sexism.”


HEAD O MARKET F ING Photo credit: iStockphoto / vm


a half dozen virtual events this year, and while it is more apparent at some events than others, it is happening. It is something that my colleagues, both male and female, noticed and commented on at a number of different shows. Take the last virtual event I attended for example: about halfway through the day, I checked in with my fellow co-workers to see how things were going and the responses could not have been more drastically different. My female team members asked if there were issues with the platform, and if their computers were glitching, because that made more sense than not getting a single response, no matter how many times they sent messages to greet visitors at our booth. On the flip side, my male team members said conversations were great, they were getting direct messages from a lot of viable leads and looked forward to seeing what happened with these potential clients. There was nothing wrong with the virtual platform. The problem was with the biases of our booth visitors.

Initially I shrugged it off and tried to justify what was happening. Maybe booth visitors were interacting with the guys at our booth because they were loan officers. They wanted to get right to the people that could help them. That made sense. Even if some of the women at our booth had seniority at the company, they still had marketing job titles. But then I had an interaction where I couldn’t justify what was happening anymore.

BAD ASSUMPTIONS We got a booth visitor, who I greeted when he entered, and was subsequently ignored. Not a problem, probably just a pop-in to the booth. However, it turned out this particular visitor was looking to speak with someone in our marketing department, and not just anyone. They were looking for the head of marketing. Now the only reason I found this out was because they directly messaged, you guessed it, one of my male colleagues at the booth, asking who they should contact. Even after my male colleague directed this

visitor to me, when he reached out, his direct message to me inquired who was really in charge of RCN’s marketing. Needless to say, I, the director of marketing, wasn’t interested in what he had to sell. Of all of the potential challenges of participating in a virtual conference, I did not think my biggest obstacle would be sexism. Especially now when it is already challenging enough to try to garner business without live events. At the end of the day, I’m just as qualified as my male counterparts and I am attending these events to achieve the same goal, to bring more business in the door. I’d like to say I had an easy and immediate solution to spark change, but this is a deeply rooted problem that exists in all facets of our industry. All I can do now is encourage others to call attention to situations like this and demand better, as I will continue to do.

Erica LaCentra is director of marketing for RCN Capital.





ATR-IN-FULL • Qualify with enough liquid assets to cover the loan balance • Borrower does not have to pay to be currently employed • Owner Occupied or Investment Property


• Qualify with 100% on personal account deposits and 50% on business deposits (12 consecutive months) • Self-Employed and 1099 Borrowers • No reserves required at 65% or less LTV


• No income verification with loan amounts up to $2M

• Max LTV 80%

• Qualify on DSCR

• Non-Owner Occupied only

• 5yr / 7yr ARM & 30-year Fixed

• Minimum DSCR 0.8:1.0



• 85% Max LTV

• Valid U.S. Government issued ID

• O/O qualify off first principal and interest payment

• Full Doc or DSCR

• N/O/O DSCR qualify off I/O payment

• 80% Max LTV Purchase / 75% Max LTV Refinance


CALL US TODAY! (949) 900-6630 | sales@citadelservicing.com | citadelservicing.com Citadel Servicing Corporation NMLS ID# 144549, Licensed under Division of Business Oversight 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. CSC 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, OH, RI, SD, and WV.




Leadership, Female Style


n an industry that often runs on swagger and braggadocio, there are times it’s reassuring to step back and pay attention to those in the mortgage world whose work serves as an inspiration to all of us. And given the additional hurdles that women in the workplace have to deal with, we’re especially proud of this year’s selection of National Mortgage Professional’s Inspirational Mortgage Women. To be inspirational doesn’t mean that someone has achieved all their goals yet. It doesn’t mean, necessarily, that they have achieved the pinnacle of their career. It simply means that when we look at this person’s accomplishments, their philosophies, the way they support those around them, that we can find in them a spark that makes us want to be better ourselves. Can we do more for clients? Can we be better mentors to our colleagues? Can we set goals for ourselves to achieve what others have shown is possible? The women on these pages each has a personal story of their success, and in those stories each of us can connect to something that can inspire us to be better in some way. And in that inspiration, we can also find its sibling, admiration. Because while we strive to do as well as these honorees, we also realize that they’ve already done it. So please join with us at NMP as recognize the 2020 class of Inspirational Mortgage Women.

Photo credit: iStockphoto / izusek




Kimberly Bigham

EVP, Chief Marketing Officer United Wholesale Mortgage

How did you get into this field? What keeps you motivated to stay? My career started in the banking industry. I had the wonderful opportunity to work for a small community bank where I was able to get my hands involved in everything. When I left the bank, I started working for a small sub-servicer that also allowed me the opportunity to learn all aspects of servicing. Mortgage servicing is an ever-changing business that has new rules and challenges, but it is still built on a foundation of core knowledge. I stay motivated as I believe my knowledge is needed to teach new staff how to understand that foundation and successfully manage the ever-changing environment. This industry fuels my need for change and keeps me coming back for more.

How did you get into this field? What keeps you motivated to stay? I was fortunate enough to have the opportunity to take a decade’s worth of experience at various advertising agencies and leverage it to support the growth and success of United Wholesale Mortgage. What has motivated me to stay is a combination of things -- The pace, the daily challenge, and the opportunity to help entrepreneurs succeed while fulfilling hundreds of thousands of dreams of home ownership.

What do you consider your greatest success? I consider my biggest career success to be the development of my analytical skills that always has me questioning why and how. Those questions are first and foremost in my every day. This skill has led me to growing with every position that I’ve had the privilege of holding. I’m always looking to improve myself, my team and my company.

Have you had any great female mentors? What is the importance of mentoring and is this something that you focus on? I’ve had the privilege of having several influential and amazing female mentors throughout my career. Each has shaped and guided me in different ways and at different times. Surrounding yourself with people who can give you a different perspective allows them to leave impactful breadcrumbs at every level of your career that help to shape you. What is your favorite TV show? Why? It’s difficult to pick a favorite, but currently my husband and I are watching “Yellowstone.” It’s not the type of show I would traditionally gravitate to, but I am hooked!

Sarah Gonzalez

Sarah Engstrom Loan Originator Priority Mortgage Corp. Here’s what Sarah Engstrom’s nominator had to say: Sarah Engstrom is not only an accomplished loan originator, she is a natural leader within our company and community. Her dedication to professionalism is admired by colleagues throughout the mortgage industry. She commits time and donations to local animal shelters through a program she established called Lend4Good, in which a donation is made on behalf of each of her clients to a local animal rescue organization. Over $30,000 in donations have been made to date. Sarah is involved with industry events that benefit groups such as Real World Real Money at local high schools and the Columbus Boys and Girl Clubs. She has been a mentor to many within our company. She serves her customers and referral partners with the highest level of customer service possible within our industry as evidenced by her recognition by Social Survey as a Top 100 Loan Officer Nationally in 2019 for customer satisfaction.


Sarah DeCiantis

President Fay Servicing LLC


Chief Operating Officer First Guaranty Mortgage Corporation How did you get into this field? What keeps you motivated to stay? I got into this field by accident. I wanted to pursue a degree in teaching, but along the way I started taking processing jobs. I ended up finding my niche in the mortgage industry and never looked back. I have come full circle on my original dream of being a teacher because now I am able to teach others valuable skills through mentorship and help others advance. This industry has also given me the opportunity to get involved with causes that are personal to me such as our corporate non-profit, Court Appointed Special Advocates (CASA), and advocating for gender equality. Have you had any great female mentors? What is the importance of mentoring and is this something that you focus on? Two that stand out are my mother and Kathleen Vaughan. My mother demonstrates what true strength is, which has inspired me. Her ability to rise up in the face of adversity is something that I have adopted in my own life and I am so thankful for her. I met Kathleen when I worked at Stearns and I immediately admired her character. Her mentorship allowed me to change my mindset from trying to reach certain goals, to establishing a legacy within the industry.

Catherine Haddad Mortgage Sales Manager Atlantic Home Loans How did you get into this field? I was around 19 and I had just started a new job as a receptionist for a home improvement company. One of my co-workers suggested that I give mortgage sales a try. That was the moment that changed my life forever. After taking this advice, I never looked back. What is your favorite book? One of my favorite audible books is “Think Big, Act Small” by Jason Jennings. I was intrigued by the title as it describes me in one sentence. It was based on research to identify a few companies that were able to be profitable by applying non-traditional strategies. There is no cookie cutter when it relates to sales. It’s the creativity and consistency that will aid with success. Another reason I loved this book was it conveyed the importance of remaining humble throughout the pass of success. What do you consider your greatest success? My greatest success is to be able to identify the positive in any situation and applying consistency to all targeted goals in life. If you remain humble, genuine and consistent, you are able to reach any goal you set your mind to.

Beth Keckley

Anna Kara Karapetian CEO Anna Kara Loans Inc. How did you get into this field? What keeps you motivated to stay? I got out of law school due to changes in circumstances in my family. I had to make ends meet and I got hired at a mortgage and real estate company as a receptionist and it all began from there. At the time my motivation was driven due to providing for my family but very fast it grew into helping and making a difference in people’s lives. Have you had any great female mentors? Yes - my grandmother and mother. Loving, kind and compassionate, yet strong and determined individuals who taught me to never give up on my dreams and live life to the fullest and, most importantly, always remember to give back. What is your favorite book? Why? “Act Like Lamb: Sell Like A Lion,” by Tom Haskins. It is the first and ONLY sales book that didn’t teach me how to sell but taught me how to understand people. What do you consider your greatest success? My family, my kids and my ability to always stay Humble.

Tawn Kelley

Chief Mortgage Officer CrossCountry Mortgage

President Taylor Morrison Home Funding

Have you had any great female mentors? What is the importance of mentoring and is this something that you focus on? In my professional life, I’ve been fortunate to have three strong female mentors. Each has been a source of encouragement, put me in my place when I needed it, and challenged me to be better than the day before. There is plenty of opportunity in the world to lift up people around you. They did it for me and I strive to be that person for others.

How did you get into this field? What keeps you motivated to stay? Like many in our industry, I never planned a career in mortgage lending. I grew up practicing every day to be a ballerina. When the harsh reality of a dancer’s life hit as a young adult, I unexpectedly found myself in the mortgage industry. Starting from the bottom and growing through advancement opportunities earned through the drive to learn new things; I found my passion. The trust families place in us to secure their financial future and guide them to make the best financial decisions to take care of their loved ones is what makes this such a rewarding industry.

What is your favorite TV show? I have to go with “Schitt’s Creek.” It was a much-needed laugh-out-loud type of show this spring with an uplifting message of perseverance, resourcefulness and redemption. What do you consider your greatest success? My greatest success was when I had first became a manager. I inherited a team member who was on a performance improvement plan. We worked together to outline a plan for improving her performance, delivering high customer service levels and thinking strategically on behalf of our customers. I needed to be blunt, to challenge her and document everything. And I was brand new to this. Within three months, we had a complete turnaround.

What do you consider your greatest success? I started a company called Mortgage Funding Direct in January 2001 with my own savings and passion. With three employees, the company grew to one of the largest joint venture mortgage companies for production home builders and in 2009, I made a decision to sell to Taylor Morrison. Today we are the 5th largest production homebuilder in the US and mortgage has grown alongside the builder to be the respected company it is today.




Sarah Middleton President of Sales Development and Recruiting / CEO Fairway Independent Mortgage Corporation / Fairway Ignite Here’s what Sarah Middleton’s nominator had to say: Sarah Middleton is a true force of nature in the mortgage industry. For the last 33 years, she has worked at all levels, serving as an originator, branch manager, regional manager, senior vice president, executive vide president and president. For 23 years of her career, she’s held a spot as one of the top 100 producing loan officers in the country ($100 million+ production per year for 20-yrs straight). She has deeply impacted the lives of thousands of MLOs over the years by helping them achieve their dreams in the mortgage business by sharing, coaching, and teaching everything she has learned to help others succeed. In her current role as president of sales development and recruiting at Fairway Independent Mortgage Corporation, a position she’s held for the past 7 years, Sarah has spearheaded sales and recruiting team strategy. She also serves as the CEO of Fairway Ignite, an internal and legendary coaching group that leverages insights and strategies from power users and adopters to level-up their game in serving customers, the company, and the community.

Tonette Pipkins Branch Manager NRL Mortgage


Alishea Pipkin Retail Branch Manager Planet Home Lending How did you get into this field? What keeps you motivated to stay? I started in retail banking at a credit union in Germany. After my third child was born, I wanted more flexibility. I took a job as a processor, moved up to mortgage loan originator, and am now a retail sales manager. What keeps me motivated is the joy and financial security my clients experience from homeownership. When I’m grocery shopping and someone I helped get into a house gives me a big hug and shows me pictures of updates they’ve done, it makes me happy. Every time I get a 5-star review, I know I did my small part in making the world a better place. Have you had any great female mentors? What is the importance of mentoring and is this something that you focus on? I’ve learned a lot from women who’ve mentored me. Now, I pay it back by encouraging women to become homeowners and encouraging women to get into the mortgage industry. What do you consider your greatest success? I love the satisfaction of seeing the pride people have when they’re the first in their family to achieve homeownership.

Crystal Raines Chief Compliance Officer NewDay USA

Have you had any great female mentors? What is the importance of mentoring and is this something that you focus on? Yes, two actually. One helped me get my foot in the door at the company I am at today. She helped set the standard of what I could expect in the mortgage industry. She explained how I could position myself for greatness and introduced me to this wonderful yet tough accountability coaching program called The CORE.

How did you get into this field? What keeps you motivated to stay? Growing up, my mother worked in the mortgage industry. She would frequently bring me into the office. As soon as I could, I applied for a part-time position in the post closing department. I am motivated to stay for two reasons. Helping someone achieve and maintain their dream of homeownership is rewarding. Second, this industry is forever changing and every day is different. It motivates me to continue learning.

The other young lady was more motivation. She shifted my mindset forever. It was the first company I worked for (having no mortgage experience is was tough landing a position fresh off from passing the test). She explained by me being Black and a female I wouldn’t thrive and it would be best if I worked as a real estate agent. She said Asians would only work with Asians, Blacks would never work with their own kind, Hispanic works with Asians, and whites would think I’m less than and never give me an opportunity. Roughly five years later I’m a branch manager staffed with a wonderful team. My clientele base is extremely diverse and the majority of my business is referral based.

Have you had any great female mentors? I have been blessed to have great female mentors. Of course, it started with my mom. At NewDay USA, May Khieu our chief administrative officer, has been a mentor to me from day one. She provided support to me in credit and compliance where I worked my way through various positions to become the chief credit officer and currently, the chief compliance officer. The mentorship that I have received is invaluable.


What is your favorite TV show? “Jeopardy” is one of my absolute favorites. I have always believed that knowledge is power. There is not one night when we watch that I do not learn something new.

Chrissi Rhea Co-Founder/President Mortgage Investors Group Here’s what Chrissi Rhea’s nominator had to say: When Christine “Chrissi” Rhea cofounded Mortgage Investors Group 30 years ago, she set out to create the kind of customer-focused, loan officer-empowered company she wished existed. Her vision was forward-thinking, but her investment in loan officers and the borrowers and communities they serve allowed MIG to evolve and become an industry leader others. Chrissi’s hands-on approach and her genuine desire to do right by everyone she encounters has long made her a powerful woman in the mortgage industry. Chrissi’s ability to quickly adapt to economic and market fluctuations, evolving industry regulations and rapidly changing technologies has also stood the test of time. But her strengths as a leader have never been as tested as they have in the face of the COVID-19 outbreak. In addition to swiftly implementing a work-from-home program for more than 300 employees across multiple states, she has regularly communicated positive messages of hope, solidarity, compassion and concern to all staff and borrowers to encourage them during this uncertain time. Chrissi also has a genuine desire to lift up the communities served by MIG. She prioritizes putting MIG’s support behind the causes important to its employees.

Leora A. Ruzin, CMB Director of Real Estate Lending Valley First Credit Union How did you get into this field? What keeps you motivated to stay? I got into this field by accident. I started my career nearly 14 years ago, after I was hired by a small independent mortgage bank in Colorado to handle payroll and accounting. During my five years there, I was given the opportunity to learn more about the mortgage industry. I became the proverbial mortgage sponge. By the time I left, I successfully developed closing, post-closing and funding departments, while helping the company grow by over 300%. My desire to advocate for those less fortunate is the fuel in my fire. An Army veteran, I have an affinity for my fellow servicemembers and their families. This has been the driver of my advocacy work with the MBA, ACUMA and other organizations. What is your favorite book? Right now, my favorite book is “The Diabetic Code,” as I was recently diagnosed with Type 2 diabetes. I plan to kick this disease into remission and need to be equipped with every tool possible to be successful, which is how I arm myself any time I am presented with a challenge.

Cynthia Rock Producing Branch Manager NRL Mortgage How did you get into this field? What keeps you motivated to stay? I went to work for my father’s mortgage company after college. He gave me the opportunity to try out the different career paths within the field. I enjoyed originating so I kept working as a loan officer after my father retired and sold his company. Have you had any great female mentors? Unfortunately, I never had a female mentor. Although I have built a strong career and learned from a number of great male co-workers, I felt the absence of a female leader who may have helped me learn and grow earlier and more easily. I often struggled with the balance of work and family life – particularly heightened by the 24/7 nature of a 100% commission job. I would have appreciated the insight of an older female colleague to help me navigate the challenges of building a business while raising a young family. Later, I longed for a female mentor to help me develop an effective management style. I felt pressured to incorporate “traditionally male” traits such as decisiveness, competitiveness and raw sales bravado without sacrificing the empathy and polite demeanor that came more naturally.

Nancy Sapper Broker Owner Rising Star Home Loans How did you get into this field? What keeps you motivated to stay? I had a career in biotech that I loved but left to raise my three children. Once they were mostly autonomous, I knew I wanted to go back to work. One of my best friends has been a processor for several decades. She was achieving what I was setting out to do and so she convinced me to give the industry a try. I love what I do. I liken it to shopping at Nordstrom. Would I like to go in and buy anything I want at full price? Sure! Do I feel so much better when I find a screaming good deal on the clearance rack? ABSOLUTELY! I want my clients to feel like they received the Nordstrom experience with clearance rack pricing! Have you had any great female mentors? Rather than saying I had great female mentors, I have had many females that taught me how I do not want to be. I have taken these experiences and created an office full of women who support one another. We do not find it necessary to cast a bigger shadow on anyone else.




Kristen Sieffert President Finance of America Reverse How did you get into this field? What keeps you motivated to stay? After graduating college, a friend told me about this great opportunity with a reverse mortgage company. I had no idea what a reverse mortgage was, but I was intrigued by the prospect of working with a good friend and seeing what could come of it. That was 16 years ago! Since then, there have been several pivotal moments when I almost left. Each time I entered into a new rewarding growth phase. Now at FAR, I have found a sense of purpose in my work that I couldn’t have anticipated early on. Have you had any great female mentors? What is the importance of mentoring? I’ve never had a formal mentor, female or male, but I’ve had a number of “accidental mentors”—people I’ve worked for or with—who took the time to invest in me and help me grow, and played a pivotal part in my success. Now that I’ve served as a mentor—mostly to women I’ve met outside of our industry—I’m finding how transformative and rewarding of an experience it can be for the mentor as well as the mentee.

Valentina Wilber VP Washington DC Metro Region / Sr Loan Officer Homespire Mortgage How did you get into this field? What keeps you motivated to stay? I was in the right place at the right time! Back in 2012 I was a relationship banker where my boss now happened to be a client. He approached me with a job opportunity at his mortgage company that I originally politely declined. After reconsidering I decided to try to conquer a fear of the unknown and give it a shot. My motivation to stay revolves largely on the direct impact that I am privileged to have in my clients’ lives. Have you had any great female mentors? What is the importance of mentoring and is this something that you focus on? Since the mortgage industry is very male dominated, I focused on connecting with female Realtors early in my career. I would pick their brains to help me develop the confidence that I was lacking professionally. By helping me grow it instilled in me I would do the same for other women. I used to think that being a woman within the mortgage industry was a disadvantage but now I think of it as a strength!



Cristen M. Talbert Director, National Underwriting and Credit Risk Gold Star Financial How did you get into this field? What keeps you motivated to stay? After leaving the Air Force, the Department of Veterans Affairs placed me in a position working for the SBA. I processed disaster home loans for borrowers in need of relocation due to the Flood of 1993 in Southern Illinois, and soon found my passion in helping people retain and secure homeownership. When the Disaster Field Office closed, I looked for a local mortgage company in order to continue my work in the field. Aside from believing that what my company does truly makes a difference in our customers’ lives, I’m also energized by the hectic pace and ever-changing landscape of mortgage lending. Have you had any great female mentors? What is the importance of mentoring and is this something that you focus on? My Mother has always been my strongest mentor. She is a retired USAF Colonel and was presented numerous awards during her military career. Her drive to make a mark as a female officer when it was largely unpopular had a dramatic effect on my own work ethic and my determination to never be limited by my gender.

Sue Woodard Chief Customer Officer Total Expert How did you get into this field? What keeps you motivated to stay? Weirdly enough – fear for my life. The credit union branch I was working in was robbed at gunpoint, and my roommate and good friend was the head teller. I decided to seek a job in another branch – and the only job open was mortgage processor – so the rest is history. What keeps me motivated to stay? The love I have for what the mortgage industry does. It helps people get into homes; provides guidance on the largest financial transaction of most people’s lives; and advises during what is a major life event. Have you had any great female mentors? What is the importance of mentoring and is this something that you focus on? Many, including my first manager in financial services 30 years ago Sharon Bolster, who is a dear friend to this day. Mentoring is so important. And not only to be mentored, but to BE a mentor – always important to be thinking of not only whose help you may need, but who can YOU help. Like Maya Angelou said, “Prepare yourself to be a rainbow in someone else’s cloud.”

California’s Premier Direct Private Money Lender

Providing Equity-Based Lending For Real Estate Properties Investors | rehabbers | CorporatIons | probate estates | brIdge FInanCIng Stated Business Purpose Loans on Resident Properties (SFR, condo, PUD, 1-4 units) • Stated on O/O, N/O/O & Invest. • Refinances up to 60% LTV, $50K to $5 million • Purchases up to 60-65% LTV, min loan amount $50k to $5 million • Loan terms from 6 months to 10 years, fixed or amortized options available • Rates from 7.99% and up • 2nd position loans on O/O and N/O/O properties up to 50-55% CLTV • 5-7 day closing available • No appraisal options available

Stated Apartments and Units (5+ residential units) • Up to 60-65% LTV on refinance and purchases • Loan limits $50K to $5 million • Stated & No Doc options available • Loan terms: 1 year, 3 year, 5 year, 7 year and 10 year, fixed IO or fully amortized • 2nd position loan available for commercial products up to 50-60% CLTV • 5-7 day closing available • No appraisal programs available

Commercial (industrial, retail, warehouse, mix-use, gas station, auto related, manufacturing and etc) • Up to 50% LTV on refinances • Up to 50-60% LTV on purchases • Terms from 1 to 5 years, fixed or amortized

Land Loan (max ltv 25-35% refinance, 50% purchase) CALL FOR DETAILS

866-318-4471 Direct Fax • www.CalHardMoney.com • info@CalHardMoney.com PB Financial Group Corp NMLS #357614 / PB Financial Group Corp DRE # 01522495 Disclosures: **Per FDIC Regulations Section 6500, Part 226, Subpart C, 226.24. The amount of each payment that will apply over the term of the loan is based on simple annual interest applied to the unpaid balance. Loans range from 1 day to 60 months, are interest only and include a balloon payment due at term. Finance charges apply. Payments do not include amounts for property taxes or insurance premiums. This is not a commitment to lend. Rates and points are subject to change without notice.

Your One-Stop Shop For Mortgage Training and Superior Marketing Content Download FREE The 2019 Book of Home Finance at www.originationpro.com 200+ pages packed with the information needed to succeed in this industry.

www.OriginationPro.com l success@hershmangroup.com





SimpleNexus enhanced its mobile integration with MobilityRE. These enhancements include push notifications for loan officers and real estate agents whenever a homebuyer requests a home showing or loan quote and an updated filter to the home search experience.

CardTapp tapped Top of Mind Networks to enhance its virtual client engagement platform by adding app-sharing and contact-tagging features to help mortgage loan originators work more efficiently.

Bee Mortgage App launched its minimum viable product, a debt-to-income calculator designed to help buyers identify their ideal sales price and monthly payment.

FormFree combined its AccountChek automated asset verification service with Blue Sage’s cloudbased digital mortgage lending platform. With this integration, borrowers are able to verify their assets with AccountChek, through the Blue Sage Borrower portal.

Xome Holdings launched Inspex, a do-it-yourself home inspection and valuation process mobile application. Inspex allows lenders to provide borrowers with contactless options that reduce wait times on appraisals and other valuation products. New To Market column: E-mail: editorial@ambizmedia.com 34


Fintech Saved the Mortgage Industry BY SHAKRIA HALL Here we are, a few months away from 2021 and the pandemic is still going strong. Who would’ve guessed we’d still be in this situation back in March? As many of us look toward 2021 as a welcome reprieve from the chaos, it’s also an opportunity to reflect on how the industry adjusted to the curveball that has been 2020. At this point, in some ways, there has been a collective sigh of relief. Pleasant Surprise Thanks to historically low rates and renters seeking more space for less money, new mortgage applications hit a level not seen since 2008. To be specific, purchase applications are up nearly 20 percent from a year ago and refinances up more than 120 percent. Lenders have struggled to keep up with the demand due to COVID related staffing issues and the need to accommodate a contact-free purchase model. Gone are the days when we nervously asked ourselves, “could we be facing another real estate crash?” In addition to tighter borrower standards, no-documentation loans are non-existent, and borrower credit profiles are stronger. We now understand that what happened in 2008 and what’s happening as a result of COVID is an apples to oranges comparison. Technology Saved the Day The industry’s ability to adapt to this new normal by incorporating technology, empowered originators. Whether you’ve embraced technology at the front end with a robust point-of-sale (POS) or your lender has decided to adjust their rules and offer virtual or hybrid closings, the message has been clear; you may be driving the car but technology is the engine. Nothing moves without it. Elements of a Contact Free Mortgage Initiating the relationship with the POS sets the stage for the high-tech origination experience being offered. Consider this, the application is completed when and where the borrower is most comfortable. Via the POS, they've given you permission to pull credit and they've even used Verification of Assets to automatically upload their bank statement data. Thereby eliminating the need to track down paper copies of financials. Borrowers have come to expect a process without physical contact. For instance, safety concerns have caused a 200 percent spike in remote online notarizations. A demand that has been particularly high in Texas and Florida. These new processes have answered buyers' and sellers' calls for a shorter, less stressful, and less costly sales process. Currently, 37 states approved remote online notarization, and the remaining 13 offer hybrid options. Updated guidelines have been implemented to ensure contactless appraisals are possible as well. They've implemented a combination of techniques like desktop appraisals, virtual appraisals, or for the more tech-savvy, borrower/ appraiser webcam sessions via Skype, FaceTime, Zoom, or other tool. Another collaborative approach is asking the homeowner to take photos of the home and send digital copies to the appraiser. Most of the technology mentioned have existed for years; it was just largely ignored. With all the heartache that 2020 brought us, it just may have given the industry the technological kick in the pants it needed. Shakria Hall is brand marketing manager at Calyx, an established provider of compliant mortgage software solutions used by banks, credit unions, mortgage lenders and brokerages nationwide. She may be reached by e-mail at Shakria_Hall@CalyxSoftware.com. SPONSORED EDITORIAL

We Have The Best Non-QM Solution for your

No Income Verified Asset (NIVA) Clients!

Use seasoned assets instead of income to qualify!

A Different Way Home www.fnba.com/mortgage-brokers




Refis Roar While Purchase Loans Pull Back


ccording to ATTOM Data Solutions’ Q2 2020 U.S. Residential Property Mortgage Origination Report, there were 1.69 million refinance mortgages secured by residential properties (1 to 4 units) in Q2 2020. That number is up almost 50% from Q1 2020 and more than 100% from Q2 2019, to the highest level in seven years. ATTOM’s most recent residential mortgage origination analysis reported that with interest rates hovering at historic lows of around 3% for a 30-year fixed-rate loan, refinance mortgages originated Q2 2020 represented an estimated $513 billion in total dollar volume. That number was up 130% Q2 2019, to the highest point in almost 17 years. The report noted that refinance loans helped drive the total number of home loans in Q2 2020 up to 2.72 million, an 11-year high. Homeowners rolling over old mortgages into new ones accounted for 62% of all lending activity in Q2 2020, up from 54.5% of loans in Q1 2020 and from 39.6% in Q2 2019.

WIDESPREAD GROWTH The analysis also revealed that residential refinance mortgage originations increased from Q2 2019 to Q2 2020 in all but one of the 211 metro areas that had a population greater than 200,000 and at least 1,000 total loans. The number at least doubled in 158, or 74.9%, of those metro

areas, led by Madison, Wisconsin (up 403.7%); Hilton Head, South Carolina (up 358.7%); Charleston, South Carolina (up 322.4%); Greenville, South Carolina (up 321.8%) and Lincoln, Nebraska (up 269.2%). The Q2 2020 analysis noted that metro areas with at least 1 million people that saw refinance activity at least doubled, year over year, in Q2 2020 included Washington, D.C. (up 219.9%); Milwaukee, Wisconsin (up 213.1%); Austin, Texas (up 211.9%); Raleigh, North Carolina (up 205.3%) and Birmingham, Alabama (up 198.4%). The report stated that Pittsburgh, Pennsylvania was the only metro area where refinance mortgages decreased in Q2, measured year over year (down 5.7%), while those with the smallest annual increases were Lexington, Kentucky (up 7.5%); Myrtle Beach, South Carolina (up 8.6%); Syracuse, New York (up 22%) and Gulfport, Mississippi (up 25.4%). The top 10 refinance mortgage lenders in the second quarter of 2020 include: Quicken Loans (138,790 loans refinanced); Freedom Mortgage (56,413 loans refinanced); United Wholesale Mortgage (39,024 loans refinanced); Wells Fargo Bank (37,877 loans refinanced); LoanDepot (32,110 loans refinanced); JP Morgan Chase (26,423 loans refinanced); Bank of America (23,389 loans refinanced); Caliber Home Loans (22,371 loans refinanced); Mr Cooper (22,305 loans refinanced); and US Bank (20,847 loans refinanced).




Why Choose MBS Highway? MBS Highway will turn you into a true advisor who coverts more opportunities. The Daily coaching videos and rate lock alerts will make you sharper than your competition and someone who cannot be replaced by Fintech.

Proprietary Data Within seconds, you can create a branded real estate report card for any county or zip code and share the levels of forecasted appreciation, job growth, affordability, and inventory so you can help customers see the ďŹ nancial opportunity in purchasing a home.

Debt Consolidation Show customers how they can tap into equity in their home, pay off debt, and how they can apply the savings to pay down their mortgage and reduce their loan term and generate wealth.

Calculators and Tools Easily compare different loan options on a purchase or reďŹ nance and show your customer which option is best depending on how long they plan on staying in the home.

Shareable Content Be famous in your local market with daily shareable content and Social Studio, which will turn your computer into a teleprompter, provide you with scripts, and allow you to easily generate engaging videos. 38


Buyers Bulking Up


he familiar drumbeat of high buyer demand and rising prices kept its rhythm into September as buyers scooped houses off the market at record rates, according to Zillow. Although total housing inventory continues to tighten, sellers are feeling more comfortable listing their homes, with more new listings coming on the market than at any point since the beginning of the pandemic. Optimism is rising in both the housing market and in the economy as buyers, sellers and economists gain confidence, new data show.

HOUSES STILL GOING UNDER CONTRACT QUICKLY · Newly pending sales are up 25.5% compared to the same week last year: the highest year-over-year increase in the weekly Zillow database reaching back through 2019. It’s more evidence that demand for houses is still strong and that the buying season has been pushed back after a delayed start in the spring. · Typical days-to-pending for houses on the market remained a lightning-fast 13 days for the fifth week in a row. This is 14 days faster than last year and the shortest time on market going back through 2019.

In today’s mortgage banking industry, you have a choice: you can play “follow the leader” or you can be a leader ...

Lykken on Lending

With a 43-year career in mortgage lending, David Lykken is one of the most respected business leaders in the industry. He created Lykken on Lending in 2009 to offer his mortgage industry professionals an insider’s view of the trends, issues and personalities that impact mortgage banking and the wider economy. Created by a mortgage professional for mortgage professionals, Lykken on veteran Lending is a weekly 60-minute radio program hosted by mortgage veteran, David Lykken. Joining the program each week is Joe Farr with a MARKET UPDATE, Alice Alvey providing a LEGISLATIVE UPDATE and Andy Schell (a/k/a "The Profit Doctor") providing tips on FINANCIAL MANAGEMENT along with other regulars and featured guests. Lykken on Lending brings forth the major players in mortgage banking for provocative and insightful conversation. This is the only mortgage banking indust leaders speak directly without being edited or media outlet where industry filtered by agenda-driven third parties.

Covering Topics from Main Street to Wall Street and Capitol Hill

Listen LIVE Coast to Coast Mondays at 1:00pm Eastern/10:00am Pacific, or dial in and listen at (646) 716-4972 or (877) 666-9318

NEW SELLERS JOIN THE MARKETPLACE AMIDST STRONG SALES · Total for-sale inventory continues a long run of tightening, down 29% compared to 2019. Total inventory is down 3% since August and has fallen week-over-week for the last 14 weeks. · New for-sale inventory, on the other hand, is up 16.2% month over month, though it is still down 3.5% year over year. New for-sale inventory is at its highest level since March 22, following yearly trends of increasing new listings to start September and suggesting that more homeowners are deciding that now is a good time to sell.

ROBUST DEMAND DRIVES PRICES HIGHER · The median sale price from the week ending July 25 was $281,844, which is 7.8% higher than last year and the highest yearly rise in prices going back through January 2019. It’s up 4.5% month over month. · Median list price is $345,824, up 9.3% year over year – the highest year-over-year increase going back through January 2019. However, median list prices are up only 0.2% month over month. · The share of listings with a price cut is 4.2%, down 1.3 percentage points from last year and 0.1 percentage points from August. The median price cut is 2.5%.

OPTIMISM RISES IN THE HOUSING MARKET AND ECONOMY · The Fannie Mae Home Purchase Sentiment Index increased 3.3 points in August, recovering from a slight dip in July. Five of the six components of the index rose month over month, showing rising optimism among buyers and sellers. The national survey of consumers showed that 59% of respondents said they thought August was a good time to buy a house, up from 53% in July and a yearly low of 48% in April.

Download the Podcasts of Previous episodes any time at David Lykken


Our fees are less than the big national firms that don’t call you back. Program includes all Manuals including QC, MLO Policies and Comp Plans, AML, GLB, Social Media and Web audits, on-line training sessions, governance documents, and our audit protection plan. Available in all 50 states. We have hands-on experience with regulators and audits. No theories here; we were Bankers. If you find yourself in federal court, we can handle that as well.

Contact Nelson Locke at

(800) 656-4584 Or you may e-mail us at


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.



Correspondent • Wholesale • Warehouse • Subservicing

For 30 years, we’ve delivered in challenging markets.

We’ll deliver in this one. You want the right mortgage banking solution, right when you need it. Especially now. Flagstar Bank is built to deliver. We’ve been committed to the mortgage space for over 30 years, weathering all kinds of market conditions and building tech-forward solutions with our clients’ integrity always top of mind. That’s the power of the Human Interest Rate.™ • 6th largest bank mortgage originator1 • Vast product offering on our mortgage and warehouse lines • 5x Fannie Mae STAR™ Performer Servicing Award Recipient

Learn more at flagstar.com/why

Equal Housing Lender | Member FDIC

Inside Mortgage Finance, 12M 2019. Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change. The information provided herein is for dissemination to and for real estate and financial business entities only and is not an advertisement for the extension of credit to consumers.


heard on

National Mortgage Professional hosts a regular Mortgage Leadership Outlook series live on Facebook and YouTube. The industry’s best share their views. Here are some of their observations from the past few weeks, as well as quotables from NationalMortgageProfessional.com. To see these full interviews and more, just go to to www.nmptv.com.

“There’s only so much communication you can do as a loan officer during the process and after the process. So, we’ve automated a great deal of it. For us, it’s just about staying in front of your borrower and staying in touch.” —Shah Tehrany, Madison Mortgage Services president and CEO

“[The adverse reaction fee was] the most stunning and ill-considered move I can imagine. You have the combination of an almost immediate effective date, in the midst of the fullest pipelines, probably in our lifetimes, and precious little explanation for why this was happening.” —Robert Broeksmit, president and CEO Mortgage Bankers Association

“I believe that everybody should have at least one coach, one mentor, somebody along those lines.” —Jonathan Fowler, corporate development manager NRL Mortgage

“The large share of millennials receiving down payment help highlights the importance of intergenerational wealth transfers. Much of the down payment assistance comes from accumulated equity from homes owned by older generations.” —Tendayi Kapfidze, LendingTree chief economist

“With the flurry of refinance activity reported over the past several months, demand may be slowing as remaining borrowers in the market potentially wait for another sizeable drop in rates.” —Joel Kan, Mortgage Bankers Association AVP of economic and industry forecasting.

“Although the housing market is showing remarkable strength amid the economic and health crisis, potential longer-term downside risks remain, including labor market weakness, low inventory, and home price uncertainty.” —Doug Duncan, Fannie Mae SVP and chief economist

“Refi loans are commodity products that usually come down to who has the best rates and loan terms. Servicers should have a built-in advantage. But in order to increase retention levels, it’s critical that servicers … establish a relationship with their borrowers - beyond … a monthly billing statement.” —Rick Sharga, executive vice president of RealtyTrac

“Home flipping was a study in contrasts in the second quarter of 2020, as the flipping rate went one way and profits went the other.” —Todd Teta, chief product officer ATTOM Data Solutions.

Austin Niemiec

Shah Tehrany Robert Broeksmit

Rick Sharga Tendayi Kapfidze




The House Is Up For Trump, Biden take wildly divergent approaches to housing policy. BY LEW SICHELMAN | NATIONAL MORTGAGE PROFESSIONAL CONTRIBUTING WRITER


ext month’s presidential elections likely will swing on any number of issues – the virus, abortion, immigration, race relations, law and order, just to name a few. But how the candidates stack up on housing probably isn’t one of them. Still, since housing is how you make your living, either as a lender or in one of the many ancillary disciplines that feed upon the buying and selling of property, it should be of at least some import as to where the incumbent and the challenger stand. Unfortunately, while Joe Biden’s plans for housing is pages long and covers practically the entire


waterfront, Donald Trump’s plank is all but bereft. In fact, the Republicans have no platform this year. But no matter, the topic hardly drew a mention from the GOP in 2016. However, the Administration showed its contempt for fair housing this summer when it swept back an Obama-era rule that required municipalities to show they were taking steps to eliminate barriers to fair housing in order to receive federal funds. After the initial furor over the rollback died down, the President and his Housing and Urban Development Secretary, Ben Carson, penned an op-ed in the Wall Street Journal in


which they touted the move, accusing Democrats of planning to “remake the suburbs in their image so they resemble the dysfunctional cities they now govern.” “We won’t let them export their failures to America’s suburbs,” they wrote. “We will save our cities, from which these terrible policies have come, and we will save our suburbs.”

WOOING HOUSEWIVES But prior to that editorial, Trump, perhaps showing his true colors, tweeted this: “The ‘suburban housewife’ will be voting for me. They want safety & are thrilled that I ended the long running program where low-

Grabs income housing would invade their neighborhoods. Biden would reinstall it, in a bigger form, with Corey Booker in charge!” Need it be said that Senator Booker, who lost in his bid for the Democratic nomination, is Black? The White House did not say whether Trump believes that lowincome housing causes crime. But in a statement, spokesman Judd Deere, said the repeal offered “long-overdue regulatory relief and cost savings to communities” and “eliminates D.C. control and strengthens local control on housing and development so communities can decide for themselves how to meet the unique housing needs of each community.”

NEW OPPORTUNITIES The White House does deserve some props for what Trump’s Council of Economic Advisors says is the success of Opportunity Zones, which are

Photo credit: iStockphoto / Pgiam

economically distressed communities, many of which have lacked any meaningful investment for years. In its latest progress report, the council estimates the country’s 8,764 zones have attracted $75 billion in capital investments and generated some 500,000 jobs in the two years since they were created in the Tax Cuts and Jobs Act of 2017. Opportunity Zones offer tax benefits to business or individual investors who can elect to temporarily defer tax on capital gains if they timely invest those gain amounts in a Qualified Opportunity Fund. Investors can defer tax on the invested gain until the date they sell or exchange the QOF investment, or Dec. 31, 2026, whichever is earlier. “This tremendous progress report shows the American people, especially the families who have felt forgotten for years, President Trump’s Great American Comeback is in fact

underway,” Secretary Carson said in a press release. The report, added Acting Domestic Policy Council Director Brooke Rollins in the same release, proves the focus on job growth, rewarding employment and removing bureaucratic middlemen is lifting millions out of poverty and revitalizing communities that haven’t seen investment in decades.”

A DECLINING HUD At the same time, though, the Center for Economic and Policy Research, a D.C.-based group which promotes debate on economic and social issues, points out that Trump’s first three budgets have “generally recommended substantial reductions” in HUD’s overall budget, favoring instead to ask state and local governments to shoulder affordable housing activities. The center pretty much gives the Administration low marks on rental housing and fair housing.



On the latter, it points out that the current White House has proposed regulations to make it more difficult for people who believe they have been discriminated against to sue under the Fair Housing Act. And on the former, Trump’s previous budgets have called for cuts in the Section 8 rental assistance voucher program.

inherently biased against low-income families, therefore becoming a barrier to ownership for many. Also worth a mention is Trump’s executive order supposedly extending the eviction moratorium during the pandemic. But it did nothing of the sort. The headlines might have said so, but a reading of the fine print shows

in resilience, energy efficiency and accessibility of houses. And he wants to pursue a comprehensive approach to ending homelessness. To accomplish all this, the Biden camp figures it will cost some $640 billion over a 10-year spread. But the candidate would pay for it by raising taxes on corporations and large financial institutions. About $300 billion of that amount is devoted to new construction as part of Biden’s $1.3 trillion infrastructure plan. The rest is paid for by instituting a financial fee on certain liabilities of firms with over $50 billion in assets. Of particular interest to the lending community, the challenger wants to protect homeowners and renters from abusive lenders and landlords by enacting a Homeowner and Renter Bill of Rights modeled after California’s Homeowner Bill of Rights.

Biden wants to protect homeowners and renters from abusive lenders and landlords by enacting a Homeowner and Renter Bill of Rights modeled after California’s Homeowner Bill of Rights. KICK IN THE FANNIE In September 2019, the administration announced its plan to reform the housing finance system and privatize the government-backed mortgage entities, Fannie Mae and Freddie Mac. The Treasury Housing Reform Plan has three focal points: limit Uncle Sam’s role within the mortgage market, protect taxpayers from future bailouts and promote market competition in the housing finance system. Proponents of the plan maintain it encourages sustainable home ownership and staves off a severe housing crisis like the one in 2008 that saw housing prices plummet nationally by, on average, almost 20%. But critics argue that a mortgage industry regulated by the free market is


that the President only instructed the Department of Health and Human Services and the Centers for Disease Control to study whether doing so is necessary.

BIDEN BULKS UP Meanwhile, the challenger, former Vice President and U.S. Sen. Joe Biden, has a host of ideas when it comes to housing, including ending discriminatory and unfair practices, providing down-payment assistance through a refundable and advanceable tax credit and fully funding federal rental assistance. He would also increase the supply, lower the cost and improve the quality of housing by, among other steps, investing


GETTING TOUGHER The proposed legislation is aimed at stopping mortgage brokers from leading borrowers into loans that cost more than appropriate, preventing servicers from moving forward with foreclosure when an owner is in the process of receiving a loan modification and requiring servicers to give borrowers timely status reports on their modification. Also, borrowers would have a private right

GIVE US THE BILL of action to seek financial redress if these protections are violated, give borrowers the right to a timely notification on the status of their loan modifications, and to be able to appeal modification denials. Biden’s Bill of Rights would expand protections for renters by prohibiting landlords from discriminating against tenants receiving federal housing benefits. And Biden promises to back legislation which would help tenants facing eviction gain access to legal assistance. Such bills have been introduced in the House and Senate by House Majority Whip James E. Clyburn, D-S.C., and U.S. Sen. Michael Bennet, D-Col. Furthermore, a Biden Administration would reverse Trump’s attempts to “gut” the disparate impact standard, put into place during Barack Obama’s presidency, that holds that lending practices that have a discriminatory effect can be challenged even if discrimination was not explicit. Thus, financial institutions would once again be held accountable for serving all customers. The Democratic standard bearer would also roll back policies that have gutted fair lending and fair housing protections for home buyers by requiring communities receiving certain federal funding to proactively examine housing patterns and identify and address policies that have a discriminatory effect. The Trump Administration suspended this Affirmatively Furthering Fair Housing rule in 2018. Biden will ensure effective and rigorous enforcement of the Fair Housing Act and the Home Mortgage Disclosure Act. And he will reinstate the federal risk-sharing program which has helped secure financing for thousands of affordable rental housing units in partnership with housing finance agencies. Because of space limitations, you’ll have to visit The Biden Plan for Investing in Our Communities Through Housing (https://joebiden.com/ Housing/#) to see what else he has in mind. There’s plenty there.

What policy goals are your trade associations supporting on your behalf? Here’s a look at the top priorities of the four major trade groups for the next president and Congress: NATIONAL ASSOCIATION OF MORTGAGE BROKERS • Change Home Mortgage Disclosure Act forms to eliminate questions concerning ethnicity and make other corrections, including removing any references to skin color. • Stop the practice of “trigger leads” in which credit bureaus sell information about persons applying for mortgages with one broker to other brokers and lenders without the applicants’ knowledge or approval. • Remove the 3% Qualified Mortgage cap on mortgage broker company compensation that creates a disparate impact on low and moderate-income borrowers, placing them in higher rate loans than they could otherwise qualify. • Support the bi-partisan American Dream Downpayment Act introduced in the Senate to create tax-advantaged accounts so people can save up to $12,000 annually for a down payment on a house. MORTGAGE BANKERS ASSOCIATION • Eleven years after Fannie Mae and Freddie Mac were made wards of the state, the MBA is still working to lock in reforms to America’s housing finance system, including granting equal access to the agencies to all players in the market. MBA advocates for policies that encourage a robust secondary market with many competing executions across both government-supported and private channels. It has asked the Federal Housing Finance Agency to restructure the capital framework for the GSEs, moving from past business models to a market utility approach that enables them to meet all of their obligations. • Regulatory clarity. While supportive of necessary regulations, the MBA believes both legislators and regulators at all levels need to take a had look at the true impact their decisions have on housing finance. • Taxes as they relate to all facets of real estate finance -- residential, commercial and multi-family. NATIONAL ASSOCIATION OF REALTORS At 1.4 million members, the nation’s largest trade group has sent Congressional leadership nearly 75 letters this year weighing in on policy issues that could affect the real estate industry. Its’ main priorities are: • Support for first-time and minority buyers through down-payment tax credit legislation at both the federal and state levels as well as any kind of tax credit

incentive for home ownership. • Addressing housing affordability, accessibility and inventory constraints while providing support for underserved buyer populations. In particular, the NAR fears the proposed capital standards for Fannie and Freddie could hinder their ability to execute their mission. NAR continues to promote its proposed utility model, which highlights competition and remedies the failures of the pre-crisis system. Had the GSEs been private entities when COVID-19 forced business closures and mass layoffs, NAR says, it is likely the nation’s housing market would have been devastated as the purely private GSEs pulled back, pushing our economy deeper into recession. • Support of commercial real estate, including Opportunity Zones and Sec. 1031 like kind exchanges, community development and infrastructure reform. NATIONAL ASSOCIATION OF HOME BUILDERS Housing finance reform also is a key legislative goal, but it takes a back seat to: • Affordability, specifically comprehensive strategies at the federal, state and local levels to reduce building costs, boost supply and empower home buyers with a mix of housing choices. “Americans are struggling to afford one of the most basic human needs – shelter. The only way to solve this crisis is to build more homes,” the builders’ group says. “But local governments often stand in the way with excessive regulations and restrictive zoning policies. Housing isn’t one-size-fitsall; home builders need the flexibility to build what the market demands.” • Workforce development. Eighty-five percent of builders say the availability and cost of workers is the most significant challenge they face, causing delays and higher prices to home buyers. • The rising cost of building materials, caused by trade wars on softwood lumber, steel, aluminum and other imported supplies and equipment. Counterproductive trade policies also drive up the cost of housing and push ownership out of reach of hard-working American families, says the NAHB, which wants Congress to demand an end to tariffs on the numerous goods imported to build American houses.

—Lew Sichelman



Trusted Mortgage School

Nationwide NMLS Education 2020 CE Season has Arrived! Engaging and Interactive Formats Industry Best Pricing

Live Webinar!

Weekly CE Webinars Flexible Online CE Looking to add a new state? New Pre-license Specials!

"David made the class very interactive so we felt more like we were actually together in the same room. I enjoyed the virtual class just as much as the regular in-person class!

I highly recommend MEC." - Yolonda

David Luna

President, Mortgage Educators & Compliance 46


+1 (877) 403-1428 www.MortgageEducators.com


The Irreplaceable Value of a Loan Officer



hen it comes to predicting the future of mortgage banking, we have to face the elephant in the room: Will technology eventually replace the Loan Officer? The answer is no—with a caveat. Loan Officers must continue to add value to the home financing experience and embrace, not dismiss, the latest advancements in mortgage technology and use them to their advantage. Value Add #1: Trusted Advisor A Loan Officer’s intrinsic value lies in people’s need for human interaction. Homebuyers rely on a Loan Officer for their knowledge, expertise, and compassion—all human elements that cannot be replicated with artificial intelligence. Contrary to online mortgage programs which place homebuyers into pre-defined categories, the vast majority of borrowers don’t fit into a particular mold. Each person has their own unique financial circumstances, needs, and goals. For these reasons, Loan Officers need to keep their people skills sharp! Building and maintaining relationships is critically important to succeeding in this business. With the abundance of technology at our fingertips, it can be easy to miss an opportunity to connect by texting or emailing a lead or client versus making a phone call. Direct communication, whether talking on the phone or meeting face-to-face (Zoom and Facetime count, too!), goes a long way in establishing a Loan Officer as a trusted advisor. When a Loan Officer interacts with and gets to know their clients and referral partners on a personal level, trust is built, confidence grows, and lasting relationships are made. Value Add #2: Problem Solver No matter how you look at it, the mortgage process is complex. Working with a Loan Officer who can explain and guide homebuyers from application to approval with little to no stress is the most important factor in the overall mortgage process. Despite a loan team’s best efforts, a problem(s) inevitably comes up that requires the knowledge, flexibility, and creativity of an experienced Loan Officer to solve. No two mortgages are the same. There is not a one-size-fits-all loan solution that can be calculated by a computer algorithm. Loan Officers must rely on their experience and expertise to look at a loan from multiple angles and then advise

on next steps; for example, locking in a low interest rate, counseling on how to lower a debt-to-income ratio, choosing an optimal loan program, etc. A technology-based lender is limited to a homebuyer’s stats, using credit scores, DTI ratios, down payment amounts, etc., to match a client with a loan that seems like the best fit on paper but may not be so in reality. If they have questions, a homebuyer may be able to reach someone in an online lender’s call center; however, the experience level of this person is an unknown. Homebuyers have the advantage of choosing a Loan Officer and lender to partner with for funding their home investment. In our competitive business, it’s important for Loan Officers to keep up with their training and education to stand out as a reliable expert on ever-changing mortgage regulations, a wide variety of loan programs, and how and when to use technology to streamline the process. There is never a substitute for a human expert in the field. Value Add #3: Technology Expert There’s no question that consumers— homebuyers included—love the convenience of online shopping. But when it comes to a home purchase—the largest purchase they may ever make in their lives—it’s unlikely that a homebuyer would be looking for a purely digital experience. An advertised low rate on a website may draw a homebuyer in, but it’s the Loan Officer that creates a memorable experience. Make no mistake, technology plays a huge role in enhancing today’s home financing experience. Lenders and Loan Officers should harness the power of digital lending tools to improve their performance and increase their productivity. At Academy Mortgage, innovative mobile apps and AI bot technology are enabling Loan Officers to focus on what they do best: delivering the dream

of homeownership. These technology solutions automate tasks and processes that have historically bogged down Loan Officers and slowed the loan approval process, ultimately freeing up time for Loan Officers to deliver meaningful experiences. Another reason why consumers turn to online shopping is speed. The latest advancements in mortgage technology are producing this desired result for our business: instant pre-approvals, automated disclosures, digital closings, etc. But only the Loan Officer can provide the crucial human element homebuyers seek. Value Add #4: Advocate Homebuyers will always need a person who they can consult on their homebuying journey. They will always need a person to look out for their best interest and long-term financial security. They will always need a person who shares in their excitement and pride in achieving this major life milestone. Who fills these roles? The Loan Officer—our industry’s most important asset and the future of mortgage banking.

Patrick Welberg is the executive vice president of production at Academy Mortgage, a leading independent lender that offers originators career growth, unique benefits, and access to leadership. Patrick leads the company’s sales leadership team, which oversees all sales, recruiting, market expansion, and business development. He is an industry veteran, with more than 23 years of experience in the mortgage business. Patrick may be reached at patrick. welberg@academymortgage.com. Visit join. academymortgage.com for more information.



Mortgages In Forbearance Drop Below 7%, But Ginnie Mae Is Up



he Mortgage Bankers Association’s forbearance numbers reveal an increasingly healthy housing market. There might be some clouds on the horizon.

decline in the GSE share in forbearance,” said Mike Fratantoni, MBA’s chief economist. “However, not only did the share of Ginnie Mae loans in forbearance increase, new requests for forbearance for these loans have increased for two

improvement. The forbearance share for portfolio loans and private-label securities (PLS) decreased by 19 basis points to 10.52%. The percentage of loans in forbearance for depository servicers decreased 7 basis points to 7.26%, and the percentage of

By mid-September, mortgages in forbearance dipped to 6.93%, the lowest number since the pandemic struck in full force in March. According to MBA’s estimate, 3.5 million homeowners are in forbearance plans. Ginnie Mae continues to be the exception to the rule among the various mortgage sectors. Ginnie Mae loans in forbearance increased slightly by 3 basis points to 9.15%. It’s the second week for increases. “The share of loans in forbearance has dropped to its lowest level in five months, driven by a consistent

consecutive weeks. While housing market data continue to show a quite strong recovery, the job market recovery appears to have slowed, and we are seeing the impact of this slowdown on FHA and VA borrowers in the Ginnie Mae portfolio.” The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 15th week in a row to 4.55% – a 10-basis-point

loans in forbearance for independent mortgage bank (IMB) servicers decreased 3 basis points to 7.18%. Key findings of MBA's Forbearance Survey • Total loans in forbearance decreased by 8 basis points relative to the prior week: from 7.01% to 6.93%. 1. By investor type, the share of

“The share of loans in forbearance has dropped to its lowest level in five months, driven by a consistent decline in the GSE share in forbearance”


We Have Mortgage Jobs.

Photo credit: iStockphoto / adamkaz

• Branch Manager • Business Development Manager • Client Relationship Manager • Client Relationship Specialist • Collateral Asset Manager • Commercial Loan Officer • Credit Analyst • Licensing Assistant • Loan Officer • Loan Mitigation • Post Closing QC Expert • Loan Administration Manager • Processor • Regional Vice President • REO Closer • Retail Branch Manager • Reverse Mortgage Specialist • Sales Manager • Underwriter • Wholesale Account Exec • And MORE! Resposes are from highly-qualified candidates. Your ad can also be [osted on Indeed and SimplyHired as a FEATURED JOB, on Craigslist in most cities, Googlebase, Oodle, Juju, CareerMetaSearch, TopUSAJobs, Jobalot and MORE! Pay-per-use RESUME BANK.

Ginnie Mae loans in forbearance increased relative to the prior week: from 9.12% to 9.15%. 2. The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior week: from 4.65% to 4.55%. 3. The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior week: from 10.71% to 10.52%. • By stage, 31.65% of total loans in forbearance are in the initial forbearance plan stage, while 67.01% are in a forbearance extension. The remaining 1.34% are forbearance re-entries. • Total weekly forbearance requests as a percent of servicing portfolio volume (#) decreased relative to the prior week: from 0.11% to 0.10%. • Loans in forbearance as a share of servicing portfolio volume (#) as of Sept. 13, 2020: 1. Total: 6.93% (previous week: 7.01%) 2. IMBs: 7.26% (previous week: 7.33%) 3. Depositories: 7.18% (previous week: 7.21%) To subscribe to the full report, go to www. mba.org/fbsurvey. If you are a mortgage servicer interested in participating in the survey, email fbsurvey@mba.org.


Give your customers assurance of your professionalism and integrity. Become a Certified Reverse Mortgage Professional The National Reverse Mortgage Lenders Association developed this rigorous certification for industry professionals who want to give customers the confidence to know they are working with thoroughly knowledgeable and devoted individuals. Earning the CRMP* designation requires validating your experience, continuing your education annually, participating in our ethics workshop and passing an exam.

For for more information, visit nrmlaonline.org *The CRMP designation is available to members and non-members of NRMLA.



NDILC’s Ten Women Leadership Principles NAWRB's Diversity & Inclusion Leadership Council (NDILC) Ten Women Leadership Principles, help women in the workforce become more effective leaders at any stage of their careers, and empower other women to reach their full potential. This is a universal guide for all levels of leadership, and any woman can benefit from applying them to her everyday life.

Acknowledge Trailblazers: Know and learn from the women who came before you. We are all standing on the shoulders of giants.

Keep Achieving: Effective leaders always keep learning. There is always something to learn and improve upon.

Believe: Whatever the mind can conceive, it can achieve.

Pass the Torch: Give opportunities to future generations of women. Your legacy will be the people you help along the journey.

Know Yourself: Be authentic and lead in a way that is true to you. Own your unique talents and strengths, and empower those around you.

Speak Out: Unconscious bias is present, but ignoring it only perpetuates it. Take a stand and speak out.

Listen: Never assume anything about anyone. Everyone has their own story that makes them who they are.

Be Present: Sharing your time is one of the most valuable gifts you can give. Do it with intention by truly being present.

Prepare for the Future: Women with advanced skills today will be ready for tomorrow’s challenges.

Lead by Example: Inclusion isn't enough. Press for parity & strive for excellence in everything.

www.NAWRB.com/NDILC/ 50



Deal Buys New Home, A Car And Saves Single Mom $600 Monthly Name: Kimberly Kissane | Job Title: Mortgage Advisor/ Owner Business: Premier Choice Mortgage, Albuquerque, New Mexico How much was your best deal for?

ending for my client. I also earned a lifelong connection with this client.

My best deal was priceless. I received a call from another broker asking if I could reach out to a client that was working with another large VA bank that just denied her a week before closing. Little did I know when I called this client, I would spend the rest of my Friday afternoon talking through her situation and trying to fix an issue that should have been identified day one with the other bank.

What else?

My client was a single mother who just lost her fiancé a few months earlier and would be homeless in the next few weeks. My heart was broken for her and her children. I was able to identify a solution to approve this client and get her and her children their forever home.

What made it your best deal?

The other lender was charging so much in closing costs fees that the purchase contract had a large contribution to cover the client’s closing fees. Our fees for this veteran were so low that we were able to use the seller’s concession to pay off her car loan and save her over $600 per month. This client not only got the home of her dreams but a large monthly savings that any single mother could use.

This deal resonates with me on so many levels. One I was emotionally attached from the first, crying phone call to tears of joy at the closing table. I was able to take bad uneducated news and turn it into a positive

WIN a $100 Amazon gift card

Have a great story about your best deal? We’re not talking about your biggest deal. We want to hear about your best deal – the one that resonates with you personally, the one that became the story you’ve told again and again about why you’re in this business. Head over to bit.ly/MyBestDeal and tell us the details. You can win a $100 Amazon gift card if your story is selected for publication.






Calendar of Events


Thursday, Oct. 1 2020 Colorado Mortgage Summit Embassy Suites by Hilton Denver Tech Center North 7525 East Hampden Ave. Denver, Colorado COMortgageSummit.com Wednesday, Oct. 21 2020 Suncoast Mortgage Expo Embassy Suites Tampa—USF 3705 Spectrum Blvd. Tampa, Florida SuncoastMortgageExpo.com


Thursday, Nov. 5 2020 Utah Mortgage Expo & Show Sheraton Park City 1895 Sidewinder Drive Park City, Utah UtahMortgageShow.com Wednesday, Nov. 11 2020 New York Mortgage Expo Crowne Plaza Suffern 63 Executive Blvd. Suffern, New York NYMortgageExpo.com


Tuesday, Dec. 8 2020 Great Northwest Mortgage Expo—Portland Edition Holiday Inn Portland South 25425 SW 95th Ave. Wilsonville, Oregon GreatNorthwestExpo.com Monday-Friday, Dec. 7-11 Mid Atlantic Conference of Mortgage Bankers and Brokers Virtual MBANJ.com

Sunday-Thursday, April 11-15 2021 Regional Conference of Mortgage Banker Associations Hard Rock Hotel Casino 1000 Boardwalk Atlantic City, New Jersey mbanj.com Thursday, April 15 2020 Carolinas Connect Mortgage Expo Embassy Suites Hilton Charlotte 4800 South Tryon St. Charlotte, North Carolina CarolinasConnectMortgage.com Tuesday, April 20 Texas Mortgage Roundup – San Antonio Wyndham San Antonio Riverwalk, 111 E Pecan St San Antonio, TX txmortgageroundup.com Tuesday-Thursday, April 27-29 2021 Mid-Atlantic Regional Conference MBA/MW + MMBBA MGM National Harbor 101 MGM National Ave. Oxon Hill, Maryland MARCMBA.org

MAY 2021

Tuesday, May 11 2021 Motor City Mortgage Expo DoubleTree by Hilton Detroit— Dearborn 5801 Southfield Expressway Dearborn, Michigan MotorCityMortgageExpo.com

JUNE 2021

Thursday, June 3 2021 California Mortgage Expo— Irvine Hilton Irvine/Orange County Airport 18800 MacArthur Blvd. Irvine, California CAMortgageExpo.com Thursday-Friday, June. 10-11 2021 New England Mortgage Expo Mohegan Sun Resort & Casino 1 Mohegan Sun Blvd. Uncasville, Connecticut NEMortgageExpo.com Tuesday, June 22 2021 Chicago Mortgage Originators Expo Holiday Inn Chicago SW 6201 Jollet Road Countryside, Illinois ChicagoOriginators.com

JULY 2021

Tuesday, July 6 2021 Ultimate Mortgage Expo Hotel Monteleone 214 Royal St New Orleans, LA 70130 originatorconnectnetwork.com/ events/

APRIL 2021

Tuesday April 6 2021 California Mortgage Expo— San Diego Hyatt Regency La Jolla 3777 La Jolla Village Dr. San Diego, California CAMortgageExpo.com

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 editorial@ambizmedia.com. All events are as of September 1, 2020 and are subject to change. NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |




Tell Me When The Dewarsmobile Shows Up


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:

Quarantine Lesson #75: When celebrating with someone via an elbow-tap instead of a high-five or fist-bump, it is best to coordinate with them or warn them first. I got a little excited when I found my favorite wine at BevMo last night and the poor lady next to me didn’t even see it coming.

Quarantine Lesson #74: My home office gets pretty busy sometimes. My daughter tells me I need to get a Do Not Disturb sign. I think what I really need is a sign that says, Already Disturbed, Proceed With Caution! There should be a whiskey truck that drives around blasting bagpipe music in the evening, and we run out with our money. Like an ice cream truck, but, you know …. with whiskey.

Quarantine Lesson #73: My bucket list included the desire to be a part of a pub brawl in Ireland. One that breaks out over an argument about football and ends up with everyone drinking and laughing. Last night my daughter thought it would be funny to chuck a pillow at me as I entered the room. I quickly dodged the pillow with a Matrix worthy move. However, in the process, I pulled

something in my lower back causing pain to shoot through me dropping me to my knees. As I grabbed the door to pull myself back up, knees popping and painfully creaking, it became painfully clear to me I should probably scratch the Pub Brawl off of my bucket list.

Quarantine Lesson #72: My daughter professed loudly today that her cookies were better than any “Grandmas cookies” on the planet. I jokingly told her I was going to tell both of her grandmothers that she said so. She turned and looked at me with the most serious face and said, “Snitches get stitches” (as she pulled her index finger across her throat). I really need to be more careful about the movies I let her watch. There’s just one legitimate synonym for Friday: “Boom Shakalaka.”

Quarantine Lesson #71: To my Uber driver Jimmy. While I am thankful you got me to the airport on time to make my flight, it is important to note the masks your passengers wear will not cover the smell of your gaseous emissions. The animal style burger from In-N-Out Burger was clearly a bad choice for you. Oh, and you probably should see a doctor.

Quarantine Lesson #70: Don’t wear noise cancelling headphones while vacuuming. I finished the whole house and realized the vacuum wasn’t plugged in.

Quarantine Lesson #69: I got yelled at today for not following the arrows on the floor while shopping at Walmart. Of course, I get the one Walmart employee smart enough to not buy my “it’s Opposite Day” excuse. Although, I do believe I smelled some hair burning as she paused a moment to process my argument.

Quarantine Lesson #68: My neighbor across the street either needs new window coverings or a longer bathrobe. On that note, I will not be ordering Moons Over My Hammy at Denny’s ever again.

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

Photo credit: iStockphoto / Nerthuz







© 2020 Paramount Residential Mortgage Group, Inc. NMLS ID # 75243; 1265 Corona Pointe Court, Corona, CA 92879; All Rights Reserved. Licensed by the California Department of Business Oversight, Finance Lenders Law License #603D903; the Residential Mortgage Lending Act, License #4131268; California Bureau of Real Estate License #1478294; AZ Mortgage Banker License #910387; Georgia Residential Mortgage Licensee #32087; IL Residential Mortgage License # MB.6760962; KS-Licensed Mortgage Company, #MC.0025196; Massachusetts Mortgage Lender License, #ML75243; MS Department of Bank and Consumer Finance; NV Mortgage Broker License #3693; NH Banking Department 17393-MB; Dept. of Banking in the Common Wealth of PA, #37894; RI Licensed Lender, #20112799LL; and is also approved to lend in the following states: AL, AK, AR, CO, CT, DE, DC, FL, HI, ID, IA, KY, LA, ME, MD, MI, MN, MO, MT, NJ, NM, NC, ND, OH, OK, OR, SC, SD, TN, TX, UT, VT, WA, WV, WI.

Articles inside

Tell Me When The Dewarsmobile Shows Up

page 56

My Best Deal

page 53

Mortgages In Forbearance Drop Below 7%, But Ginnie Mae Is Up

pages 50-51

The Irreplaceable Value of a Loan Officer

page 49

Buyers Bulking Up

page 41

Refis Roar While Purchase Loans Pull Back

page 39

Fintech Saved the Mortgage Industry

page 36

Leadership, Female Style

pages 29-34

Virtually, Still A Boys Club

pages 26-27

Getting Fired … Up

pages 24-25

Superproducers Build Teams To Succeed

pages 22-23

Don’t Get Too Comfortable

pages 20-21


page 47

The House Is Up For Grabs

pages 44-47

Helping Minorities Succeed Against All Business Odds

pages 18-19

Train To Be Flexible And Accept Change

pages 14-15

Four Positive Reasons To Help Clients Through Challenges

page 12

Planning For The Future

page 10

Seller Financing May Be Gold Mine For Private Capital

pages 8-9

Women Leading The Way

page 6
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.