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Issue 024 June 2009 CoverAdEntitleD


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Visit or call us today at 1-877-936-8485. Reasons 10 Four Agents Fail What type of agent are you?

16 Crisis ... What Crisis? Six steps to weathering the storm.

VA 23 Adding Streamline to

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Issue 024

June 2009

Crisis ... What Crisis? Todd duncan Six steps to weathering the storm.


pg 35


pg 36


pg 37


pg 37


pg 39


pg 40


pg 41



Four Reasons Agents Fail


David K. Lal President The national real estate council What type of agent are you?


Adding VA Streamline to Your Repertoire


Center Stage with Applied Business Software The Niche Report AJ Poulin, National Sales Manager for Applied Business Software.

up the 46 Bringing REAR: Ben Bernake Martin Andelman Is the Federal Reserve Chairman lacking in intellect or integrity?

David A. Wind Principal and President Guaranteed home mortgage company Draw the battleline on the homefront.



How to Succeed in Challenging Markets Tom Ninness vice president cherry creek mortgage Being the best in our industry.


June 2009

09 28 34 43


COPY EDITOR Stewart Mednick ACCOUNTING MANAGER Shawna Ingram sales manager Mark Moulton Production Manager Henry Suchman Production Assistant Dawn Exner ADVISORY BOARD Aaron Krowne President and CEO, IEHI, Inc. COLUMNISTS Martin Andelman Stewart Mednick CONTRIBUTING AUTHORS Todd Duncan David K. Lal Tom Ninness David A. Wind

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Published monthly by BODA Publishing, LLC PO Box 494, Bentonville, AR 72712 Phone: 866.964.2695 Fax: 703.991.2362 Email:

SUBSCRIPTIONS Anthony F. Geraci is a leading expert in the creation of mortgage pools and fractional loan securities offerings. Geraci Law Firm has created over $10 Billion in debt and equity financing. Order your FREE DVD, titled “Mortgage Pools & Funds: How to Profit in a Liquidity Crunch.”

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This publication is intended for real estate finance professionals. If you are a mortgage broker, lender, loan officer and you do not currently receive The Niche Report, please send your name, company name, and address to Send address change requests to Remember to include the old address. To opt-out of receiving The Niche Report, please send your request, including name, company name, and address to

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I have this theory that our industry is the “canary in the coal mine” for the overall economy. Back before proper ventilation was prevalent in early coal mines, miners would bring with them caged canaries to help detect dangerous gas build-up down inside the mine shafts. They knew the air supply was safe to breathe as long as the canaries kept singing – hence the expression for a warning - “Canary in a Coal Mine”. Back in 2007, when lenders were dying off by the hundreds (the canary stopped singing), it took the economy another year and half to really feel the effects of recession. Now, while the economy is bottoming out, our industry (residential lending) is seeing a boom in activity. This will ultimately spill over into the overall economy. Given this analogy, there is no better topic for our feature article this month than the one Todd Duncan (Yes, THE Todd Duncan) writes about titled “Crisis…What Crisis?” Read about his six steps to “weathering the storm”. This issue is also host to Martin Andelman’s very first TNR column called “Bringing up the Rear”. And as the name suggests, it will be located on the page opposite the inside back cover every month. In this issue, stop by and read what he has to say about Ben Bernanke and the Federal Reserve. Find out why nearly 85% of hard money lenders use The Mortgage Office™ from Applied Business Software. We sat down with AJ Poulin, National Sales Manager for Applied Business Software, and talked about how they are adapting to this current market. This is our twenty fourth published issue of TNR. The Niche Report is truly finding stride as a national mortgage industry trade publication. No other magazine brings you informative, entertaining and controversial content like we do. And to have industry legends such as Stewart Mednick, Martin Andelman, Karen Deis, Leslie Petersen, Tom Ninness, Todd Duncan, Mark Hanson, George Marentis and many, many others, contributing to TNR is a humbling honor. However, this is just the beginning, and as our industry evolves, so do we. Look for very positive and exciting changes (both in our website and magazine) in the near future. Keep up the fight,

Robert Pegg

Letter to the Editor I have been reading the Niche Report for quite a while. I also own a reputable mortgage modification business in the Tampa Bay area. You supply great articles and your columnist Martin Andelman is outstanding. He is someone who is not afraid of speaking the truth. I had to laugh because his article “Pigs, Puppets and People in Peril" reflects our daily adventures with lenders and yes, he really nailed it. As a company that has high moral standards and integrity it is nice to know that there are people in America who give us some credit for what we are doing. Thank you for your support! You guys are great. Victoria Rahming Owner, 1st Mortgage Modification Solutions, Inc Thank You Victoria – Martin is a gifted writer and goes to great lengths to point out the obvious. And now that he has accepted the role as columnist for TNR you will see much more of him in the future. Check out his first editorial “Bringing up the Rear” on page 46



Upcoming Key Dates & Events: june & July June 2009 S M T











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14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 july 2009 S M T












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June 19 CAMB – OC-CAMB Tradeshow, Orange County, 11:00 am - 4:00 pm Mike Timoschuk ( Please join the Orange County Chapter of CAMB for our Annual Mortgage Industry Trade Show! The trade show is scheduled from 11:00 a.m.-4:00 p.m.; Education Courses will commence at 9:00 a.m., Contact Jack Williams at (714) 606-7039 or Darla Lucido at (909) 349-0606 for more information. Anaheim Convention Center 800 W Katella Ave, Anaheim, CA 92802 (714) 765-8888

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 June 13 CAMB - CAMB SD BOD Planning Retreat San Diego, 9:00 am - 10:00 am Karen Satterwhite ( June 18 MBA - FHA Underwriting & Operations Workshop -Albuquerque, NM 4100 Pan American Freeway, Albuquerque, NM E2901620C Register Info: Call CampusMBA at (800) 348-8653 Sponsor Info: Call Andy Stack at (202) 557-2912 June 19 MBA - Understanding Reverse Mortgages Workshop - Albuquerque, NM 4100 Pan American Freeway, Albuquerque, NM E2901624B Register Info: CampusMBA at (800) 348-8653 Sponsor Info: Andy Stack at (202) 557-2912


June 2009

June 26 CAMB - CAMB LAM, BOD Meeting 8:30 am - 10:00 am, Los Angeles Metro GB Mortgage Solutions, 407 S. La Brea Ave Inglewood, CA 90301, 310-590-1235

July 8 CAMB – SV BOD Meeting, Silicon Valley, 9:00 am - 11:00 am ttp:// Silicon Valley Chapter Board meetings are held every second Wednesday of the month at SCCAOR, 1651 No. First St., San Jose, 95112. Visitors are welcome. Please rsvp to Chapter President, Cathy Warshawsky at 408-371-2172 or cathy@ SCCAOR,1651 No. First St., San Jose, CA 95112, 408-445-8500, x5087

July 8 CAMB – SD BOD Meeting, San Diego 5:00 pm - 7:00 pm Karen Satterwhite Stewart Title of California 7676 Hazard Center Road, 14th Floor San Diego, CA 92108

July 8 NJAMB – 11th Annual “Let’s Make A Deal” Tri-State Wholesale Lending Fair 11:30 a.m. - 4:30 p.m. Trump Taj Mahal, Atlantic City, NJ

July 15 FAMB Annual Trade Show & Convention Wed., July 15, 2009 - Sat., July 18, 2009 Orlando Marriott World Center Resort & Spa, Orlando, FL

July 24 CAMB - CAMB LAM, BOD Meeting, Los Angeles Metro 8:30 am - 10:00 am GB Mortgage Solutions, 407 S. La Brea Ave Inglewood, CA 90301, 310-590-1235

June 24 MBA - FHA Fundamentals Workshop Chesapeake, VA VMLA Headquarters Chesapeake, VA E2901749F Register Info: Call CampusMBA at (800) 793-6222 Sponsor Info: Call Andy Stack at (202) 557-2912

July 29-Aug 1 CAMB Annual Convention, CAMB Mark Your Calendars! San Diego Marriott Hotel & San Diego Convention Center More details to come. For exhibitor and/or sponsorship information, please contact Carol Hamilton at (916) 448-8236 or San Diego Marriott Hotel Address: 333 West Harbor Drive San Diego, CA

FOUR REASONS AGENTS FAIL What type are you? BY David k. lal


nderstanding some of the obvious causes of failure for agents will allow you to detect and address these causes. Successful agents follow a particular path. The unsuccessful quickly fall on a track doomed to fail. I have categorized four of the major characteristics that lead a new agent down a path to ruin.

The first of these I call the Scientist. The Scientist agent will spend the majority of time trying to re-invent the process. Granted, there is always a better way to do something. Success in real estate is no different. However, you are best served to follow the blue print of success that has been followed by the most successful in the business rather than charting your own course at this early stage of your career. If you copy the game plan of the most successful in the business, your results will be the same. Many people come into the business with ideas and techniques that have been applied in their previous career. There is nothing wrong with applying them in real estate, however that is a risk. It may or may not work. Follow the tried and true. Become successful and live your dreams. There will be plenty of time to build on your success by experimenting with new strategies and concepts. Save the experimenting until you have gained your initial success. There will be plenty of time. Succeed by copying the success of others in your field, before reinventing the process. The second flawed characteristic I call the Bumble Bee. A Bumble Bee spends all day buzzing from flower to flower. The Bumble Bee agent spends his or her career going from company to company or strategy to strategy, never focusing on anything. I have seen so many agents

who spend a significant amount of time everyday surfing the web for job listings for greener pastures. These agents never lay the foundations for a solid career. They never fully grasp the fact that real estate, more than most careers, is based on relationships. You can never develop a long-term relationship with a client (the client will never develop a relationship with you) if you cannot be stable enough in your business. Bumble Bee agents spend their entire career going from broker to lender to broker to bank, again and again, success eluding them every time. If a Bumble Bee spent more time creating a better home where they are, their business would grow as a result of it. Find a good home and commit to your growth.

My favorite is the Wedding Planner. A good wedding planner has every detail figured out, including the position and color of the flowers, the music, the food, the servers, etc. Planning a good wedding takes time and effort, and planning and research. The wedding planner agent will spend an enormous amount of time planning, researching and anticipating every question. This agent wants to be prepared for any possible question or circumstance. They often tell me that they want to “understand it� before they approach a client. This is truly laudable. It is important to understand what you are doing, but you have to find a balance. You are learning a new profession, which takes years to master. Most agents do not have years or even months to learn, they need to make money now. You have to learn and master through practicing as many steps as you can. At first, it may only be the initial steps of attracting clients. Focus only on attracting clients to you, and keep doing just that. Working with mentors will allow you to seek the guidance and support to go to the next step. So often I see the wedding planners fail because,


like most people, they do not have the ability to spend an inordinate amount of time learning without earning. Going a few months without any prospect of earning an income makes any other job look desirable. With bills to pay and a life to lead, you cannot spend months trying to cover every base. Learn the first steps, and do it! Everything beyond that will work itself out, particularly if you have made the right choice with a company that will provide you with quality mentoring. There is no point in learning step 47 if you can’t master step 1.

The last of the four characteristics, I call the Social Worker. The social worker gets involved in every aspect of the client’s personal life without regard for the ultimate goal. The social worker is unable to lead the client to a buying decision for the product or service at hand. Instead they begin to solve other problems that do not require a buying decision from the client for the agent’s service. For example, your client wants to buy a home, but there is a blemish on the credit report. This blemish may be of concern to the

client but has no consequence for the loan or purchase. A social worker begins to assist the client with fixing problems that really are not significant instead of focusing on the true issue at hand. It is your responsibility to keep your clients focused on the goal and not let them get derailed by side issues. The social worker wants to help. It is easier to provide help that is unrelated to your business because you are not selling your service and therefore there is no risk of failure. The social worker will justify the work by believing that once this unrelated problem is solved, the client will then be able to move forward. Unfortunately, new problems always crop up and the client is quickly “sold” by another agent. Solve the problems that actually stand in the way of the deal. Not every problem. David K. Lal is the president of the educational nonprofit The National Real Estate Council. He is a licensed CA real estate broker with over 20 years of practical experience. He can be reached at or by calling 888820-6038 ext. 1

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Crisis ... What Crisis? Six steps to weathering the storm By todd duncan


he characters in the Chinese language that together spell crisis, when separated spell danger and opportunity. I think this illustrates the climate of today’s mortgage market. Refinances have breathed temporary life back into the business. Credit is still a problem. The economy is still a mess. Yet, some companies and loan originators are in trouble. Others are thriving. How are you doing? Are you on your way up, down, or just getting by? That’s the question you must answer if you are going to weather the storm. I closed my first loan in November of 1979. And, 1980 presented challenges unheard of anytime previous in the industry. Prime was 20percent. Unemployment was at record levels. My piggyback loans averaged about 18percent and FHA and VA loans were at 17percent and 4-5 points. There is no doubt that during any tough market, attitude is the driving force behind all action. I have three key memories from that market that helped me through it. The first is from my childhood pastor, Robert Schuller. One Sunday at church he said, ”Tough times never last, but tough people do.” I also remembered what Tom Hopkins used to say…”When you come across someone who is negative, don’t walk away from them, run!” And finally, Brian Tracy suggested that, “everything is cause and effect. If you don’t like your results, change your actions.” Attitude and action – I had a button made up and wore it for the whole year and it said, “Rumor has it we’re in recession. I’m not participating.” That opened the door for a positive attitude and it endeared me to dozens of potential realtors, builders and other referral

sources that needed to follow someone and something positive. I had a great year, and you can this year too! Now, I’m the first to tell you that having and maintaining a positive attitude is a tall order. But really, what are your options? Wake up mad, depressed and frustrated. I don’t know a lot of successful people who are mad, depressed and frustrated. But I do know a lot of successful people who are positive, happy and engaged. And here’s a key – positive people do positive things. The industry has changed for sure. In August of 2007, The Duncan Group had a $150,000 check bounce from a major lender. Within a few weeks, another major account was also in trouble. You never would have thought at the start of 2008 that companies like Merrill Lynch and Lehman Brothers would be in trouble or gone. You never could have predicted that the mortgage broker community would be so affected and that “wholesale” would take on a whole new meaning. You probably would have never guessed that we would see product menus for loans like I had in 1980, instead of the limitless amount of products available over the last 8 years. You need documentation. What? People have to qualify. Are you serious? And regulation; it’s gotten to be big business and will become more so in the next several years. Since we don’t know when the “crisis” will end, it’s decision time – danger or opportunity – positive attitude or negative attitude – it’s your choice, and the actions you take will follow the predominant thoughts you hold.

Six Steps to Weathering the Storm. Step #1: Evaluate your purpose. So, what do you do? If you’re not having the kind of success you would like, what is your first step? In my book, High Trust Selling, I talk about the 14 Laws that govern sales success. The first law in the book is The Law of the Iceberg. This law states that the truest measure of your success is invisible to your clients. Basically, when you see an iceberg, you only see the top 10 percent of the mass. The bottom 90 percent is “invisible” but is what gives the iceberg its strength. Success is always an inside attitude before it ever becomes an outside action. A commitment to succeed is an absolute to success. You must analyze why you are a mortgage professional. And you must ask and answer, does it still bring me joy and stir my soul, and do I wake up excited about the opportunity? If it doesn’t, time to reevaluate. What’s your motive? What’s your mantra? In 1980 I survived because my motive was to make a difference and my mantra was to make someone’s dream come true. It got me through. Answer the question, “Why am I doing this?” If you have the right answer then proceed to the next

step – otherwise ponder this and get insight from others about your gifts and your skills – where do they see you? Those who know you best can help you in tough times. DO THIS – Watch the first 10 minutes of the movie Jerry McGuire. Step #2: Evaluate your fiscal and market knowledge. J. Paul Getty gave some great advice when he said, "To succeed in business, to reach the top, an individual must know all it is possible to know about that business." That’s especially true of the origination business today, given the unprecedented economic times we’re living in. It is vitally important that you spend at least one hour a day gaining knowledge about everything happening in the markets and in the mortgage industry. Find one or two economists you understand and read them regularly so you gain a consistent impression about what is happening. Step #3: Evaluate your plan. Every sales industry on the planet evaluates sales success by the plan, and the daily calls, conversions, and orders the sales person gets…except the mortgage industry. The lack of personal and managerial accountability in this area is mindboggling. Every person reading this who is good with Steps 1 and 2 should have their “Next 12 Months Plan”. It may look like this:

In the next 12 months… • How much money do you want to make? • What will be your average loan amount? • How many loans do you need to close? • Based on your percentage of loans that close, how many do you need to bring in? • What’s that number per day? • What’s your conversion rate of borrowers to applications” • How many consultations or “pre-quals” do you need? • How many is that a month? • How many do you want from each referral partner per month? • How many partners do you need – GO TO STEP 4. Step #4: Evaluate your prospecting. Zig Ziglar once said, “Prospecting is like taking a bath. If you don’t do it every day, pretty soon you stink.” So, how do you prospect successfully? Time-wise, spend one hour prospecting every day until you have a solid 10-20 referral partners, and then prospect weekly or monthly. Create unique value propositions and approach campaigns that will get you noticed. For instance, you can send materials via Federal Express versus regular mail, or include a business book prospects may benefit from as a gift. And as you are working to schedule appointments, make sure you follow up with a phone call 48 hours after you have mailed your package. When you do get appointments, your focus must be on securing the relationship, rather than securing the deal: This is the key to long-term success! That’s why a typical High Trust Interview with a strategic partner prospect lasts between 45 minutes to one hour. And

make sure each of your campaigns includes follow up! Be willing to add value to potential partners for at least two years at a pace of three to four value-adding ideas a month as you are attempting to secure the relationship! Convert More Borrowers: The High Trust Borrower Interview has five core steps and typically takes between 30-60 minutes: 1. The Introduction: A strong High Impact Opening statement. 2. The Core Values Interview: A series of questions designed to establish the borrower’s central values. 3. The Highest Value Needs Interview and Mortgage Planning Analysis: A series of questions to learn the borrower’s needs and the benefits the borrower wants to receive as well as their long and short-term personal and financial goals. 4. The Presentation: Here you share your solutions to the borrower’s needs in order of importance as well as product and mortgage management solutions. 5. Asking for the Business: You conclude by getting a commitment from the borrower to move forward. Step #5: Evaluate your partners and your partner planning. Are you making yourself emotionally and intellectually attractive to your partners? The most successful originators today in the “crisis” have solid partnerships. The only way to have partners for life is to work strategically with them during their life. This is the follow-up plan that 99% of loan originators ignore. Here’s a plan for making partnership planning work for you. For the first 3 months of a relationship, meet weekly for 15-20 minutes on the phone. The next 3 months, meet face-toface, for 30-45 minutes. After that, meet face-to-face once a month for one hour. Examples of questions you should discuss with your partners include: • How can we be more efficient? • How can we produce more business? • What needs do we have and how do they need to be met? Never forget: Ignored partners lead to broken partnerships. Don’t make that mistake with your partners! DO THIS NOW: Call everyone you think will make a great partner and sit down with them and ask these questions. Step #6: Evaluate your actions and your resolve. In the area of action, this passage by my friend Og Mandino says

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it all: I will act now. I will act now. I will act now. Henceforth, I will repeat these words each hour, each day, every day, until the words become as much a habit as my breathing, and the action, which follows, becomes as instinctive as the blinking of my eyelids. With these words I can condition my mind to perform every action necessary for my success. I will act now. I will repeat these words again and again and again. I will walk where failures fear to walk. I will work when failures seek rest. I will act now for now is all I have. Tomorrow is the day reserved for the labor of the lazy. I am not lazy. Tomorrow is the day when the failure will succeed. I am not a failure. I will act now. Success will not wait. If I delay, success will become wed to another and lost to me forever. This is the time. This is the place. I am the person. Action produces results. Right actions produce right results. Wrong actions produce wrong results. Become a student of the game. Model the best practices of industry leaders. Get on a plane and go see one of them for a day.

Develop deep resolve and a ferocious commitment to raise your standards and reject “just making it”. Jim Rohn, undoubtedly America’s greatest business philosopher said this: “Resolve says, “I will.” The man says, “I will climb this mountain. They told me it is too high, too far, too steep, too rocky and too difficult. But it’s my mountain. I will climb it. You will soon see me waving from the top, or dead on the side from trying. Disgust and resolve are two of the greatest emotions that lead to change. Danger….Opportunity… It’s your choice! I personally think this is the greatest market opportunity you might ever see. How about you?

Todd Duncan has been teaching mortgage professionals to sell well and live significantly for the last 20 years. He’s the author of 11 books including New York Times best-sellers, High Trust Selling and Time Traps.

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Sponsored by: The New Jersey Association of Mortgage Brokers/The Mortgage Bankers Association of New Jersey, The New York Association of Mortgage Brokers, and The Pennsylvania Association of Mortgage Brokers

“Let’s Make A Deal”

Tri-State Wholesale Lending Fair

Wholesale Exhibit Booths, combined with lunch, enables Brokers in attendance to make their deals during a five-hour period devoted solely to networking and making deals!

Wednesday, July 8, 2009 ONLY n! r perso $10 pe c s Lun h Include ar & Semin

9:00 a.m. - 12:00 p.m. - Special Program: How to Do Business Under The New Residential Mortgage Lending Act in New Jersey and What is Expected of the Mortgage Loan Originator 11:30 a.m. - 4:30 p.m. - Wholesale Lending Fair Trump Taj Mahal Casino Resort, Atlantic City, NJ

Please complete and send this page with your check made payable to the New Jersey Association of Mortgage Brokers, 385 Morris Avenue, Springfield, NJ 07081 or Fax Visa or Mastercard Information to 973-379-5152. A $30 fee will be charged for returned checks. If you have any questions, please call 973-379-7447 or visit us on the web at Please be sure to complete the contact information form below.

C ONTACT I NFORMATION Contact _________________________________________________________________________________________________ Company _______________________________________________________________________________________________ Address _________________________________________________________________________________________________ City ____________________________________________________________________ State __________ Zip _____________ Phone ____________________________________________________Fax ____________________________________________ E-mail ___________________________________________________________________________________________________







# of Attendees @ $10 each _________

‰My check for $ ___________ is enclosed

1. 2. 3. 4. 5. 6.

Pick up your badge for the Wholesale Lending Fair on Wednesday, July 8, 2009 starting at 8:30 a.m. at the Trump Taj Mahal, Atlantic City, New Jersey. (No written confirmation will be sent.) Total Amount Enclosed $ _______________ CREDIT CARD:




Name on card:________________________________Signature:_________________________ Card Number:_______________________________Exp:_______/________V-code__________ WE DO NOT ACCEPT AMERICAN EXPRESS OR DISCOVER CHARGE CARDS.


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• PRBC Reports with FICO Expansion Score – an alternative

credit report that meets GSE and FHA standards, based on monthly payment data for items such as rent and utilities.


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Adding VA Streamline to Your Repertoire Draw the battleline on the homefront by david a. wind


he residential mortgage business is awash in acronyms. Most professionals can identify what each means, but in today’s market, that is no longer sufficient. Survival requires familiarity; professionalism mandates understanding; but success demands execution. Add two more acronyms to your repertoire, VA and IRRL. Simply put, the VA, or Veterans Affairs Home Loan program, was designed specifically to let former and current active duty personnel purchase and retain a home in recognition of their service. The Interest Rate Reduction Loan (IRRL), or VA Streamline, provides simple refinancing of a VA loan without any out-of-pocket expense. The loans are processed like a FHA Streamline transaction, without any appraisal, credit, or income and job qualification. Applicants can even skip up to two monthly payments. As an added benefit, a cash-out feature for energy-efficient improvements to the property is also available. Originally conceived in 1944 during the Second World War, the loans represent a strategy by the Veterans Affairs Department to buffer the cruel emotional and financial aftermath of war and the readjustment of millions of men and woman serving in the Armed Forces. Additionally, the VA loan was seen as a less expensive alternative to cash bonuses, better suited to the immediate need for new housing, and a bonanza to the construction industry and American economy. Since its inception through 2006 , the VA has guaranteed over 18 million home loans to veterans and transformed the conventional mortgage market both in product offerings and in terms and conditions. To be eligible for an IRRL, veterans or active-duty personnel must own a home with an existing VA loan. Interestingly, the loan is also available to Native Americans living on reservations. Eligibility can be verified easily by

lenders through a system called ACE (automated certificate of eligibility). This Internet-based application provides an online Certificate of Eligibility in a matter of seconds. The program includes single-family residences, condominiums and manufactured homes. A refinance of the VA loan can lower the interest rate or obtain cash-out for up to $6,000 to make a home more energy efficient. The maximum loan amount for the VA Streamline is $417,000 without any restriction for property values since no appraisal is required. An IRRL resembles an FHA Streamline because it can be processed much easier than a conventional loan. Since income, employment, or asset documentation has been waived, documentation requirements are virtually nonexistent, and, more importantly, credit and appraisal are unnecessary. Recent revisions to the legislation also help spouses of eligible veterans establish occupancy and, in certain circumstances, make allowances for non-occupants as well. For compliance purposes, a VA refinance is covered under the auspices of the Real Estate Settlement Procedures Act. An IRRL may be executed with "no money out of pocket" by including all costs in the new loan or by providing it at an interest rate sufficient for the lender to pay the costs. The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage. From the lender’s perspective, the VA Streamline is like a gift from heaven. It provides an additional product offering to the loan sales staff, complementing existing agency offerings, as all VA loans are guaranteed by the Federal government, the risk of a repurchase is limited only by fraud and catastrophic market devaluation. In


fact, while FHA loans are insured by the government, the level of post-closing repercussions from a non-performing transaction can still be damaging. And because the VA loan program is designed to reward those protecting our country, the community’s perception of the lending institution is immeasurably improved. For the loan officer, the IRRL provides a valuable tool to widen the applicant pool and supplement available loan products. In a market dominated by originators offering the plain vanilla standard agency products -- FNMA, Freddie, and GNMA -- VA Streamline and the IRRL provide both an under-utilized mechanism to fast track a transaction, and to differentiate originators interested in carving out a niche. In addition, the IRRL has become an effective work-out tool because the VA has shown an awesome flexibility in working with veterans to restructure their loans if they are unable to keep up with the payments. Finally, forbearance is regularly extended to VA homeowners experiencing temporary financial difficulty. Extraordinarily, a recent amendment enacted last year, the Veterans’ Benefits Improvement Act, lets veterans with non-VA loans refinance out of high interest rates into a VA loan. Any veteran without an existing mortgage default is


May 2009

eligible as long as the new loan does not exceed the value of the home (as determined by an appraisal). The VA Streamline represents a powerful tool for originators because it offers a virtually document-free rapid transaction with a reasonable commission. The ongoing wars in Iraq and Afghanistan have added hundreds of thousands of veterans into the pool of eligible applicants, and made the VA streamline more influential in the mortgage field than ever before. And the new capability of refinancing into a VA loan from non VA transactions greatly expands the pool of qualified IRRL candidates. VA Streamline and IRRL reward our country’s service men and woman, improve a lender’s image in the community, and offer a distinctive and simple way to earn a reasonable commission. David A. Wind, an Attorney, is Principal and President of Guaranteed Home Mortgage Company, Inc. Founded in 1992, Guaranteed Home Mortgage Company (Guaranteed), is a licensed mortgage investment and banking firm comprised of over 500 mortgage professionals lending in 30 states. For more information, please call 914-696-3400, email, visit www. or write Guaranteed Home Mortgage Company, Inc., Two Gannett Drive, #110, White Plains, NY 10604.

how to succeed in challenging markets Being the best of the best in our industry by tom ninness


hallenge” is an understatement regarding the markets today. Credit is tight, Wall Street flops up and down like a fish out of water and the mortgage industry is still reeling from recent regulations and changes. Difficult? Yes. Challenging? Definitely. Impossible? No Way! Wall Street, the mortgage industry and all business runs in cycles. Sometimes the cycles will run simultaneously, as now, and more often each segment will run independently of other business cycles. What ever the cycle, the time is now to take stock of your business, analyze where you are, and determine what you must do to keep pace with the changing business world. Who’s in charge of your business? Top originators look at themselves as the CEO of their company, no matter who writes their check, who they work for or what the economic environment offers. They continue to be resourceful; always looking to improve their systems, skills, tools, techniques, and strategies. Success demands responsibility; take responsibility for your business to ensure success. Be a student of learning. Spend time learning about market changes and how economic factors influence interest rates. Keep abreast of underwriting and program changes. Study how others around you do business… what systems work, how do they connect with co-workers and clients. Talk to the top producers in your company as they are the best when it comes to knowledge in the industry. Above all, take time to READ. Read books from the library, read industry reports, read magazines, read newspapers. Read everything you can get your hands on to know what is happening in your local area and around the nation. You never can have too much information. Information is knowledge and knowledge

will keep you ahead of your competitors. Believe in yourself. Study ways to create new business, observe the current conditions and how they may lead to a new niche. Repackage old marketing ideas and create new ones with a different twist. If you wait at your desk for the phone to ring, or business to walk in the door you will be the last one to close the deal. They say that there are three types of people: those that ask what’s happening, those who talk about what just happened and those who say I’m going to make it happen! Top producers live in the present and work towards the future. They don’t regress backwards and think about the “good ole days”. They know the past is gone and look at the current mortgage market as a time to create new frontiers and opportunities to create new relationships. Realizing that there are many “orphaned realtors and clients” out in the market place, top producers will prospect to find the great ones. Top loan originators work hard year around. Fall is the time when many of their competitors are taking off the last quarter of the year. By the time vacations, holidays, and year end sneaks up, there seems to be little incentive to keep pushing the envelope in a slow housing market. The last 90 days of the year is the best time to accelerate your opportunities, cement your salesmanship and guarantee a successful end of year as well as an incredible start for the New Year. Develop relationship selling. Relationship selling means partnering with complimentary professionals that may be used as referral sources. Look for a professional referral partner that you know well, that you truly like and can trust that they will handle your clients (and referrals) with the same integrity and professionalism that you do. When it comes to clients, both you and the


referral partner should believe in the golden rule; treating customers in a way that they would want to be treated by providing accurate information, communicating regularly and returning calls promptly. Top producers create loyalty with their clients after closing. A study by the Mortgage Bankers Association reflected some interesting statistics. Only sixteen percent of clients who purchased their current home or refinanced last year went back to their original lender. Eighty nine percent responded that if the loan officer would have stayed in touch with them, they most likely would have used them the next time they had mortgage needs. Top originators understand the importance of staying in touch with their clients after closing. They have systems in place that touch the client regularly through mail, email, and phone calls. Top originators have created opportunities to see their clients face to face on a regular basis. They’ve earned the right to receive referrals by creating raving fans with those that they’ve done business with in the past. Are you a top producer or a struggling loan officer? In this kind of market, the top producer thrives and in many cases will have the best year ever in their career. Business cycles will continue to flow, but will not deter a successful top producer. Take a close, hard look at your business performance, close the gaps and you too will join the ranks of being the best of the best in our industry. Tom Ninness is Vice President/Regional Production Manager for Cherry Creek Mortgage in Denver, CO. Ninness is also the President of Summit Champions, Inc. and creator of the “The 90 Day Journey to Your Sales Success”, a powerful 90 day action plan for the sales professional. To learn more about The 90 Day Journey and Summit Champions, visit, or contact Tom at Office: 720-221-4396.

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Rules & Regulation Headlines With all the rule and regulation changes that occur in our industry, it’s critical that you keep up to date--not only to insure that your pre-approvals don’t get rejected when your client’s find a home, but more importantly, how to structure transactions so they don’t get denied in underwriting. Not all of the rule changes are mentioned in this article. We have chosen the ones issued in the last 30 days that affect loan originators, processors, underwriters and owners/managers.

USDA Increases Income Limits for Single Family Guaranteed Loan Program – Before you tell clients that “FHA is the way to go”, new income limits could make USDA the first option you recommend. Sure, property location is important but you would be surprised what areas qualify! • HVCC does not apply here. • 100 percent financing. No MI but 2 percent added to loan amount. • Home cannot have a swimming pool. • Qualifies for FTHB Tax Credit. Contact your State’s USDA office—they will train you and your staff on how to use this unique niche loan. Fannie Updates Guide for NonTraditional Credit Underwriting – Can you say FHA? This hurts the person who lived with mom and dad, saved the down payment and paid cash for everything. Underwriting non-traditional credit requires: • 4 to 6 credit sources (one MUST be housing related); • Owner Occupied, one unit only • Purchase or limited cash out refi • No self-employed income. My Community Mortgage has more liberal exceptions. Did we forget to mention the LLPA add ons? Fannie Mae DU Refi Plus Rules Has More Options – It’s been enhanced from 30 days ago to include: • More types of properties, • No project approvals • No minimum credit scores. LO’s automatically assume that if the loan has MI, 28

June 2009

they cannot refi the client unless the LO works for the current servicer. That’s not necessarily true. You may find that you are able to refinance, using the existing percentage of MI coverage. You might be able to switch MI companies and still keep a like-amount premium. Genworth appears to be an MI company able to modify an exiting certificate for a new lender. Freddie Enhances Relief Refi’s - This program forces clients to go to the servicer to refi, but if you are an LO who works for a company that has sold to Freddie Mac, these changes make it a little easier to use this program. • $2500 can be added to loan amount • $250 cash back • Term can be longer than the term of original mortgage • Second homes qualify • Investment property that is NOW owner-occupied by borrower These changes make sense and no last minute, principal reductions at closing. FHA Updates Home Purchase Guidelines for Reverse Mortgages - Everything has changed from Mortgagee Letter 2008-33. Some highlights: • Only one principal residence • Verify income/assets to maintain home (i.e. taxes, insurance repairs) • Down payment required • FHA minimum property standards • NO “sweat equity”, “trade equity”, “rent credits” “seller contributions” allowed • MIP = 2 percent paid 15 days after closing If you do HECM’s, print ML 2009-11. This is the


ONLY guideline reference now available. FHA Consolidates Handbooks Into 2 Main Resources – Halleluiah—it’s about time. It’s online and incorporates mortgagee letters and revisions. You can access online at However, this comes with a word of warning: As of May 2009, it only includes changes made up until December 2008. It has NOT been updated to reflect changes for 2009. We assume that eventually it will be updated—but you still need to double check. VA Speeds Up COE’s for Paid In Full Loans - When a veteran had a previous VA loan still showing up on his/her COE after it’s been paid, it was a pain to get it updated. VA says they have updated VALERI to speed up the process of getting full eligibility restored on a timely basis. Let’s keep our fingers crossed that this new system works as stated! More detailed updates can be found at – Interpreting the rules and regulation changes for loan officers, processors, underwriters, and owners/managers. Mortgage Talking Points®, charts and checklists included.

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CENTER STAGE WITH Applied Business Software The Niche Report talks with AJ Poulin, National Sales Manager for Applied Business Software. brought to you BY THE NICHE REPORT

Give us a description of service(s) that Applied Business Software offers. We are the developer of The Mortgage Office™, the leading loan servicing software solution for the lending industry. The Mortgage Office™ is a complete AJ Poulin suite of products designed from the ground up to specifically address the needs of those who originate and service loans and mortgage pools. Its modular design includes complete solutions to fully automate loan servicing, loan origination, mortgage pools, trust accounting, default services tracking, and escrow administration. Tell us about the origin and background of Applied Business Software. We’ve been developing time-saving products for the lending industry for over three decades. In 1978, when ABS was founded, our software filled a void. Computer programs (not called software then) were hard to find, and there was nothing in the market that was made specifically for private lenders. Back then lenders were doing a lot of fractionalized deals, meaning that they had more than one investor on each loan. These lenders wanted a way for the program to automatically and accurately pay investors their monies as payments came in. Keep in mind this is long before personal computers were commonplace. When someone wanted to buy it we delivered a stack of 8 inch floppy disks, which they 30

June 2009

installed one at a time. And if you think that is funny, keep in mind that back then hard drives didn’t even exist! Word of mouth quickly spread and our product became the de facto hard money software. By 1995, ABS had amassed a large customer base in California. This is when Microsoft rolled out Windows 95, and that changed everything. Understanding the magnitude of this rollout, ABS rewrote the entire DOS program to be compatible with Microsoft Widows. We released the first Windows version in 1996 and the product revolutionized the industry. Drop down menus and right clicking replaced tab-tab-shift-alt-F5. While it may seem like a no-brainer now that the decision to go to Windows was obvious, there are still companies that sell DOS programs, or didn’t convert to Windows until recently – 13 years after the rollout of Windows. One of things that ABS facilitated was the ability to charge servicing fees to investors. In the 1980’s, people managed their investors’ loans as a courtesy, not for profit; the rationale was that the profit was made at closing. We advocated and envisioned that our customers could generate revenue on both sides, and to also split the other fees (NSF, late fees, etc.) associated with servicing. Many customers said they would never, under any circumstances, charge their investors to service. It was a revolutionary idea, and eventually they all agreed. Our customers’ profits went through the roof, as did our sales. The other big turning point in ABS’ history was the advent of the Internet. Prior to that, demos were done on site. If the drive was more than a couple of hours away, we would make sure the client could afford the software

CENTER STAGE before hitting the road. On a good week, our company would do 1 or 2 demos per week. Currently, our company does 25-30 web-based demos per week, or 5-6 per day. As the number of demos increased, and the number of sales increased, we grew our tech support, sales, and programming departments proportionally. Tell us about the company culture. Our company is an extremely efficient and streamlined operation. Our professional tech support people are experts in our software and also in the mortgage industry. They aren’t temps, and they aren’t overseas. They work closely with our programming and sales teams. When a new customer comes on board, the tech department already has an intimate knowledge of their deal structure, and how they pay investors. This handson approach makes going live with the software extremely fast. Some customers have gone live within 24 hours. ABS continually programs and tests new features. Because of this, our software is incredibly powerful, flexible, and popular. Our company is also very stable, with very little turnover. Some of our customers have been using the software since the early 1980’s. We have thousands of users in almost every state, and in 13 countries. The fascinating thing is that hours will go by without one incoming tech support call. It’s a testament to our product, which comes with built-in help, on demand training videos, online FAQs, and customer maintained user groups. Who are your main competitors? And what are your plans to gain market share or retain market share? We like to kid that we don’t have any competition, but it’s essentially true. Some software companies may have a couple of nice features, but our software has thousands. By our latest research, we know of over 70 companies that make loan servicing software. This doesn’t intimidate us at all. A survey done last year by Fidelity Information Services found that of the known hard money lenders in the U.S., 83 percent use our software. We had known that our software was popular, but we didn’t know it was that popular! Another survey that was done last year by a nonprofit housing organization found that of the 12 most popular servicing programs, our software ranked first for tech support, was the easiest to use, and had the highest customer satisfaction. We feel these two surveys reflect our core business

philosophy: make the best product on the market, and we’ll lead the market. Our software is lightning fast, very powerful, and by far the best value for the money. How will Applied Business Software stay ahead of both the rapidly changing technology and mortgage environments that are inherent to your business model? That’s an easy one. We always try to be 5-10 years ahead of everyone else. As an example, we came out with Web Publishing over a decade ago. This allows borrowers and investors to go online 24/7 and check out their accounts. Investors can even go online to see investment offerings. At the time this was something only the big banks could do, and the Internet wasn’t a household word. The same with ACH; this allows our customers to debit a borrower’s monthly payment directly from their bank account, and to also post funds directly into their investors’ bank accounts. Most software companies still don’t do this. Another example is managing impounds, in compliance with RESPA. Several years ago we created a module that can run an Escrow Analysis Disclosure Statement in seconds. It’s been a big hit, and it’ll be an even bigger hit next year – Federal law will require everyone servicing loans to implement this. While other software companies are reading through the hundreds of pages of regulation, in a mad scramble to modify software to do this, ours is already in use across the country. These are a couple of examples of how our company has anticipated changes in the market. We have a great team of researchers and analysts, and they report their findings on a continual basis. What can we expect to see from Applied Business Software in the near future? That’s top secret. We don’t sell vaporware, so we never

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talk about a product until its ready for prime time. That said, the sales department is anxious, ready and trained to promote our new (top secret) products. Where do you see Applied Business Software five or ten years from now? ABS will expand into a wider variety of markets and continue to gain market share. One thing that continues to set us apart is the number of products we offer (17) and the wide array of industries that we support. Our non-hard money client list includes cities (Miami, Boise) counties (Oakland County, Michigan) states (California) nonprofits (Habitat for Humanity) institutions (Baltimore Life Insurance) and even schools (Pepperdine University). As our customer base grows, our core philosophy remains the same; if we build the best product, and have the best programmers, support people, sales people, marketers and researchers, our software will continue to make our customers profitable. Profitable customers are happy customers, and that positive word of mouth will continue to be the majority of our sales.

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TIP OF THE MONTH The Mortgage Grand Prix Continued: Durability BY STEWART MEDNICK


urability is the ability to endure. Endure as in endurance, the ability to go the distance. The principal of durability has many components. It speaks of strength and the ability to withstand erosion, corrosion, weathering and other attacks on its structural integrity. When I talk about withstanding erosion and corrosion, these are figurative words referring to the mortgage market and customer traffic. Erosion is the whisking away of the plethora of customers we all once remembered five years ago. Corrosion is the slow degradation of the infrastructure we have experienced in the mortgage industry over the last three years. It also contains the concepts of adaptability to a wide range of changing market conditions, environmental issues, political whims, consumer preferences, war and peace. We have all been around long enough to see this mortgage industry change many times through the influence of economic and world political events. The invasion of Iraq had a profound influence on the economic status of this country. The race is long and the lead might change many times. A steady pace and composure are required to maintain a constancy of purpose required to go the distance. I have said many times that this is a marathon, not a sprint. This is the element of endurance of time. Business models built upon a strong foundation are the essence of a durable beginning. Ongoing durability is born of testing and retesting the original premise of the business model to allow for durability over the course of time. In the column last month, efficiency was touted

as a process of setting a standard through incremental improvements and resetting the standard with these improvements. A base foundation can be gotten from replicating what works for the ones already successful in the business. Pick a business model and go with it, then change it to fit your needs and incrementally reset the standard. What must the buggy whip manufacturer thought with the invention of the automobile? Did he ignore this emerging mode of transportation by blindly continuing his production of buggy whips? Or did he seek out ways to adapt his manufacturing capacity and expertise to seek out ways to deliver parts to the automobile industry? When the Pay Option Arm is no longer an option, what do you do to satisfy the ‘pay option’ customers? At its root, durability is the ability to not break under stress; economic and mental. To embark upon continual process improvements, thereby strengthening the durability on a daily basis. One does not know where the next assault on your business model is to come from. As Sun Tzu (The Art of War) once said, "One does not rely upon the enemy not attacking, but instead relies upon the fact that he himself is unassailable." There you have it. An enemy deems it foolish to attack an opponent that has superior strength. Is not then durability an important source of continued business success? This topic is extensive and can be developed at book length. The take aways, however, are simple: •

Durability is the ability to endure time, change, and the shift of power within the industry, economy, and competition.



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Durability is thwarting corrosion and erosion of the market and the customer base. Durability is testing and retesting what works and what does not. Durability is to NOT break under stress.

Remember Wayne Rainey’s definition: last longer. My dad would always ask a question of me whenever I felt overwhelmed or unable to achieve my goal that seemed so long to achieve, “How do you eat a whale?” he would ask. I would reply, “one bit at a time.” That is the essence of durability.

Stewart Mednick is a seasoned mortgage banker and published author. His writing focuses on relationship development, personal empowerment, customer satisfaction, marketing and sales techniques. Stewart is available for marketing consulting, personal coaching and training sessions. If you have a comment or a question for Stewart, contact him at 651-895-5122 or

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Security Mortgage Funding


ICON Residential Capital



(Fannie/Freddie only)

(Fannie/Freddie only)

Security National Mortgage

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.



Agency & FHA Lender Listings continued… Senderra Funding


Trust One Mortgage

949-450-1888 x 1284

Sierra Pacific


U.S. Bank Consumer Finance


SouthPoint Financial (Fannie/Freddie only) 800-433-1467



United Residential Lending


SunTrust Wholesale


Taylor, Bean & Whitaker


The Jumbo Lender


Titan Wholesale

775-852-6888 x 225

United Wholesale Mortgage (FHA only) 800-981-8898

Village Capital and Investment (FHA only) 800-496-7136

Virgin Money USA


Wells Fargo


portfolio & ALT–A Premium Listings

All Credit Considered Mortgage


Private Money

Tim 240-314-0399 ext.19 Private portfolio lender specializing in foreclosure and bankruptcy bailout loans. No credit score requirement, No pre-payment penalty. Up to 70% LTV. No seasoning requirements. Lates ok. Lending territory: AZ, CA, CO, ID, NV & OR

Gregory Funding LLC 888-324-3578

Manaseh, Epharim and Associates 770-840-0112

Asset lending specialists. Your source for international and domestic funding

portfolio & ALT-A Lender Listings Powered by Amtrust Bank


Hayhurst Wholesale




Home Savings of America


Banker West


ING Mortgage


Capital Alliance


Liberty Savings Bank


CNB National Lending


Eastern Savings Bank


LuxMac, Covino, and Company

800-762-2274 x 312

Emigrant Mortgage

800-Emigrant x mid atlantic

Luxury Mortgage


Residential Lending Network

800-749-5363 x 5276

Global Lending Group


United Midwest Savings Bank


GSF Funding


US Bank


Washington Federal


West One Mortgage Corp


ADVERTISE YOUR NICHES HERE WITHIN Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


June 2009


REVERSE Premium Listings


Guaranteed Home Mortgage Co., Inc.

Specialized Retail Platform for Experienced Loan Officers


Reverse It! A division of Urban Financial Group, Inc

Reverse Mortgages, fastest turn times in the industry. Training and lead support available.

888.777.3311 REVERSE MORTGAGES Lender Listings Powered by American BancShares


MetLife Home Loans

Arlington Capital Mortgage Corp


NetMore America


Circle Mortgage Corporation (Fl only)


Pacific Banc Mortgage


Continental Home Loans

631-393-3800 x 114

Quality Life Reverse Mortgage


Essex Mortgage


Quik Fund Inc.


Financial Freedom


Silvergate Bank (cml)


Financial Heritage


SouthPoint Financial Services


Generation Mortgage





Wells Fargo Reverse Mortgage


Liberty Reverse Mortgage


World Alliance Financial Corp.


HARD MONEY & NON-PRIME Premium Listings


All Credit Considered Mortgage 240-314-0399 X 19

AFG LLC (Asset Funding Group) 720-889-1175

AgriCap Financial Corporation 213-542-5232

Ambit Funding 800-823-7101

Private money Direct lender - up to 70% LTV: Bridge loans, purchase & rehab, construction financing, raw land, no minimum credit score requirments. Nationwide lending from $300k to $3 million, 24 hour commitment as fast as 5 days to close. HARD MONEY- MADE EASY Agriculture including facilities and part-time farms, commercial, special purpose properties Short-term commercial bridge lenders; Most property types including RAW LAND; All 50 states, and Canada; Max LTV 70%, 50% on Land

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.



HARD MONEY & NON-PRIME premium niches continued…

BRT Realty Trust 516-466-3100 or 800-450-5816

Fairview Commercial Lending 866-634-1270

Financial Resources Mortgage 800-950-6913 or


First Capital Commercial Finance 713-267-4040

First Mount Vernon (866) 908-FMV1 (3681)

First Mount Vernon (866) 908-FMV1 (3681)


KENNEDY FUNDING, INC. 800-342-8500

Manaseh, Epharim & Associates 770-840-0112

Metro Funding Corp 866-302-6360

Miner Capital Funding, LLC 702-466-8952

Stonecrest Financial 888.884.6518

TrustCapital Investments LLC 301-503-2231

A Public Mortgage REIT Traded on the NYSE (NYSE: BRT) Fast response on loans from $2 million to $50 million on income producing commercial properties nationwide. No prepayment penalties, lock out or exit fees No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours Real Estate based private money lender. Commercial & Residential Investment. Refi cash out allowed. Retail,office,multi-family, raw land, development & modular construction are our specialties. Common sense underwriting. No upfront fees! Email or call today. Land, land acquisition & development plus construction loans for clients needing fast, interim financing. No seasoning requirements, No upfront commitment or processing fees, Minimum credit score 400 - DE, MD, VA, DC, NC, SC, GA, FL Minimal documentation required, Combined Loan-to-Values to 105% - DE, MD, VA, DC, NC, SC, GA, FL Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land. Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment. Direct Lender with fast closings. Your source for international and domestic funding. Direct lender specializing in short term bridge financing. Interest only. No prepayment penalty. No points upfront. Commitments within 24 hours. Brokers welcomed and protected. Specializing in collateral-based real estate loans nationwide. We get deals done!! As fast as 4 days! Loan amounts 1 million to 20 million We are a direct lender specializing in churches, mixed-use, apartments & commercial lines of credit Local direct lender (DC, MD and VA) specializing in bridge, construction, rehab and business loans. Loans are based on “subject to value”, 50% LTV, minimal documentation, EQUITY DRIVEN not FICO sensitive. Brokers are protected.

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


June 2009


HARD MONEY & NON-PRIME Lender Listings Powered by Advantage Capital Equity Solutions


Hawkins Capital


AFC Hardmoney

813-387-3800 x 311

Investor Funding


AgriCap Financial Corporation


J & J Financial


All California Home Loans 877-462-3422

Lakeside Financial Inc.


Alliance Financial, Inc.

Lib Properties, LTD.


LNB Commercial Capital



Ameribank Mortgage


American Acceptance (cml)


Assurity Financial


601-428-1005 800-901-9301

Overland Financial


Avant Capital Partners, LLC. (cml)


Axiom Commercial Funding

866-637-3014 x 10

Pacific Mortgage Funding Corporation (cml) 562-864-4006


PB Financial Group Corp.



Bay Equity

Magnolia Financial Consultants Meridian Group

BFS Capital, LLC. (cml)


Piedmont Capital Lending, LLC.

BlueWater Funding, LLC


Porter Bridge Loan Company (cml)


Brookview Financial

877-734-2211 x 316

Portfolio Mortgage Company


California Equity Lenders


PFA Capital, LLC


Capital Alliance


Quik Fund Inc.


CFA Capital Partners (cml)


Rehab Funding

610-645-9939 x 310

Crawford Park Financial


Remington Financial Group


Cushman Rexrode Capital Corporation (cml) 925-988-7200

Right Start Mortgage


Diamond Bay Investments, Inc.


Eastern Savings Bank (cml)


SBB Financial


Emerald Financial


SDI Funding

864-233-3337 x 3220

Emigrant Mortgage

800-Emigrant x mid atlantic

SmartServ Solutions


Swift Funding


Exeter Holding Ltd.


TCRM Commercial Corp. (cml)


The Loan Doctors, Inc. (cml)


The Money Source, LLC. (cml)



First Credit Commercial Capital Corp. (cml) 407-843-6262 First Mount Vernon Industrial Loan Assn. 703-823-6800

First Select Capital


Titan Hard Money

Global Lending Group


Trust Deed Investments, Inc




GMC Mortgage Capital


West One Mortgage Corporation




Jumbo Premium Listings


Guaranteed Home Mortgage Co., Inc.

Specialized Retail Platform for Experienced Loan Officers


Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.



Jumbo Lender Listings Powered by American Southwest Mortgage American Home Equity Direct Mortgage Wholesale Emigrant Mortgage EverBank Wholesale Lending Fifth Third Mortgage Flagstar Bank Florida Capital Bank Mtg Franklin American Gateway Funding Greystone Financial Home Savings of America

888-593-1003 714-661-5836 801-924-2300 800-Emigrant x mid atlantic 415-595-3968 866-492-0072 800-897-7222 866-295-0014 606-519-4165 800-355-5626 602-574-0100 972-235-7366

ICON Residential Capital Liberty Mortgage MBS Mortgage Company Presidents First Reunion Mortgage Inc. Security National Mortgage Sierra Pacific Taylor, Bean & Whitaker US Bank Home Mortgage Walker Jackson Mortgage Wells Fargo WestAmerica Mortgage Co.

888-639-5641 800-986-2499 866-799-3696 877-773-7178 559.476.0937 801-264-1060 800-447-3386 888-678-8547 702-630-0770 703-653-8183 310-283-8411 303-771-2800


Financial Resources Mortgage, Inc. 800-950-6913 or


Real Estate based private money lender. Commercial & Residential Investment. Refi-Cash Out allowed. Retail, office, multi-family, raw land, development & modular construction are our specialties. Common sense underwriting. No upfront fees! Email or call today.


Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land. Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment.

Manaseh, Epharim & Associates

New construction and rehab loans for all types of commercial properties. Your source for international and domestic funding.

Kennedy Funding, Inc.


Direct lender specializing in short term bridge financing. Interest only. No prepayment penalty. No points upfront. Commitments within 24 hours. Brokers welcomed and protected.

Metro Funding Corp 866-302-6360

CONSTRUCTION / REHAB Lender Listings Powered by Ameribank Mortgage


Hawkins Capital


Assurity Financial


Kennedy Funding


Axiom Commercial Funding

866-637-3014 x 10

M&T Bank Mortgage


Broker Capital Funding


Mango Bay Mortgage




Mission Oaks National Bank


Excelsion Mortgage

888-578-5441 x 1

Portfolio Mortgage Company


Federal Trust Mortgage

407-323-1833 x 153

United Midwest Savings Bank


First Mutual Bank


Unity Bank


First National Bank of Nassau


West One Mortgage Corporation


Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


June 2009


COMMERCIAL Premium Listings


All Credit Considered Mortgage 240-314-0399 X 19

AgriCap Financial Corporation 213-542-5232

Fairview Commercial Lending 866-634-1270

Financial Resources Mortgage, Inc. 800-950-6913 or


First Capital Commercial Finance 713-267-4040

Gregory Funding 888-324-3578


Private Money

KENNEDY FUNDING, INC. 800-342-8500

Manaseh, Epharim & Associates 770-840-0112

Metro Funding Corp 866-302-6360

Trilogy Commercial Lending 888-875-5055

Agriculture -- Farms, Ranches, Facilities. Agricultural Operating/Crop Input Loans.

No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours Real Estate based private money lender. Commercial & Residential Investment. Refi-Cash Out allowed. Retail, office, multi-family, raw land, development & modular construction are our specialties. Common sense underwriting. No upfront fees! Email or call today. Hard money, bridge loans and permanent mortgages with a focus on properties in Texas, the Southwest and the Mountain West. Private portfolio lender funding small balance commerical loans up to $1MM. No credit score requirement. No pre-payment penalty. Up to 70% LTV. Foreclosure ok. Bankruptcy ok. Lending territory: AZ, CA, CO, ID, NV, OR Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land. Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment. Acquisition, Refi’s, and Development Commercial Loans. Your source for international and domestic funding. Direct lender specializing in short term bridge financing. Interest only. No prepayment penalty. No points upfront. Commitments within 24 hours. Brokers welcomed and protected. Specializing in Full Doc small balance Commercial loans up to $5 M. Our unique Commercial Automated Underwriting System allows for instant approvals, including pricing options. No Upfront Fees! Experience ease of execution - call today!

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.



COMMERCIAL Lender Listings Powered by Affinity Bank

877- 862-7245

Lighthouse Commercial


AgriCap Financial Corporation


LNB Commercial Capital


American Acceptance


Magnolia Financial Consultants


Arlington Richfield


Mango Bay Mortgage


Apartment Lending


Met-West Commercial


Avant Capital Partners, LLC.


Midwest Financial Capital


Axiom Commercial Funding

866-637-3014 x 10

Minvest Financial


Berkshire Capital Financial, Ltd.


Mission Oaks National Bank


BFS Wholesale


MiStar Financial


Blue Sky Commercial Funding


MJM Capital Group


Brownstone Mortgage Capital


Multicorp Financial

925-275-8111 x 222

Capital Alliance


Nationwide Commercial Lenders

800-830-5940 x 1

CapitalSource Finance


New World Commercial Lender


CFA Capital Partners


Overland Financial


Ciena Capital


Pacific Mortgage Funding Corporation 562-864-4006

CIT Small Business Lending Corp.


Pacific National Bank


Coast Investors Capital


PFA Capital, LLC.


Commercial Bridge Loan Funding




Commercial Capital Funding Corp


Presidential Bank


Commercial Funding Corp




Commercial Hard Capital, LLC


Prudential Mortgage Capital Co.


Commercial Lending Capital


Quik Fund Inc.


Commercial Loan Capital


Reliant Funding

412-942-1010 x 18

Commercial Mortgage City


REM Capital


Commercial Mortgages 101


SF Partners Mortgage


Community Commerce Bank


Small Business Loan Source, LLC.


St. Cloud Mortgage

877- 653-3276

Cushman Rexrode Capital Corporation 925-988-7200 Eastern Savings Bank


STA Capital Group & Advisors


Equity One Commercial


Strongtower Financial


Excelsion Mortgage


TCRM Commercial Corp.


Griffin Capital Funding


Terrace Capital


Hawkins Capital


The Money Source, LLC.


HMC Funding

800-273-7001 x 327

Trilogy Commercial Lending, LLC.


Integrity Financial Group


Union Bank of California


Interbay Funding, LLC


West One Mortgage Corporation


Kennedy Funding



Lib Properties, LTD.


World Capital Bancorp, Inc.


ADVERTISE YOUR NICHES HERE WITHIN Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


June 2009


All Credit Considered Mortgage Contact: Tim Boord Phone: 240-314-0399 X 19 Email:

AFG LLC (Asset Funding Group) Contact: Jaye Kuchman Phone: 720-889-1175 Email:

AgriCap Financial Corporation Contact: Business Development Phone: 213-542-5232 Email:

a la mode, inc.

Ambit Funding Contact: Chris Bednar Phone: (570)-829-2101 (800)-823-7101 Email: Phone: 800-262-APEX

Applied Business Software Contact: A.J. Poulin Phone: 800-833-3343 Email:

ATTENTION LENDERS!! Buyers of Distressed Debt Email:

Best Rate Referrals Phone: 800-811-1402

BRT Realty Trust Contact: Mitch Gould Phone: 516.773.2712 Email:

CityLights Financial Express, Inc 800-530-2489 ext 301

DocMagic Phone: 800.649.1362

EnTitle Direct Insurance Phone: 877-936-8485

Fairview Commercial Lending Phone: 866-634-1270 Fax: 404-634-0319

Financial Resources Mortgage, Inc. Contact: David Dexter Phone: 800-950-6913 Email:

First Capital Commercial Finance Contact: Mark Anthony McCray or Lauren Fritsch Phone: 713-267-4040 or 832-566-2001 Email:

Credit Plus Inc. Phone: 800.258.3488 Fax: 800.258.3287 Email:



First Mount Vernon I.L.A. Phone: 703-823-6800 Fax: 703-997-2499

Cogent Road Inc. Phone: 800-848-3162

Geraci Law Firm (949) 379-2600

Gregory Funding LLC Phone: 888.324.3578 Email:

Guaranteed Home Mortgage Company, Inc. and Contact: Louis Tesoriero Phone: 914-696-3400 Email:


June 2009

KENNEDY FUNDING, INC. Contact: Jonathan Weiner, Chief Loan Officer Phone: 1-800-342-8500 Email:

The Loan Post Phone: (877) 812-4327 Email:

Loansifter Phone: 920-687-1222 Email:

Manaseh, Epharim & Associates Contact: R.D. Walker Email: Phone: 770-840-0112

Metro Funding Corp Contact: Jennifer Bernabeo Email: Phone: 866-302-6360

miner Capital Funding, LLC Phone: 702-466-8952 Fax: 314-667-3092

New Jersey Association of Mortgage Brokers/MBA of New Jersey 973.379.7447

Precision Loan Processing Phone: 703.743.9739 Email:

RateLink Phone: 800-938-5193 Contact: Tom Champion Email:

Stonecrest Financial Contact: Bill Phone: 888.884.6518 Email:

Trilogy Commercial Lending Phone: 888-875-5055 Email:

TrustCapital Investments LLC Contact: Craig Severson Phone: 301-503-2231 Email:

Continue to receive The Niche Report monthly

- continued from page 46

going to have to check my math, but I think the difference could be four times worse than previously expected… I mean guessed at. Whatever happens by year’s end is anyone’s guess, but there’s going to be some serious averaging going on to hit any of those numbers because GDP shrunk by 6% in the first quarter of 2009 alone, and I can’t imagine that Q2 could look much better. The Fed also lowered its guesses for 2010 and 2011, but I can’t even write about stuff like that without laughing so hard I can’t hit the keys on my keyboard. Here’s how CNN/Money reported the Fed’s statements about GDP: Fed members did indicate they expected GDP to increase slightly in the second half of this year. However, it would not be enough to overcome the anticipated declines in the first half. Policymakers added that they were not convinced the economy was out of the woods yet.

In an effort to maintain a healthy circulation we will be deleting many aged subscribers. If you haven’t already gone to our website and subscribed, do it now!

e! e r f It’s

Oh come on… do we have to keep being nice to these guys? What up with that? I seriously don’t understand why we don’t all start laughing hysterically whenever Chief Green Shoots steps to the microphone. And then, I’m sure in an effort to send me running into the street to lie down in traffic, the minutes of the Fed’s April meeting also showed that the policy committee said they’d be okay with “increasing purchases of Treasury notes and mortgage backed securities in order to stimulate lending.” So, obviously a memo to the Fed is in order: ONE: You wouldn’t be stimulating lending, you’d be starting lending, morons. And TWO: If you have any moves you even think might start lending up, and you’re just sitting around talking about them… well… you should be forced to play circus music during all of your meetings until you prove yourselves to no longer be clowns. It makes me dream of living in Pakistan where they hit their government officials with sticks. The Fed’s new unemployment guess, 9.2% - 9.6%, is horsepucky. It’s likely to have already topped 9.2% as you’re reading this. So, something is clearly deficient when it comes to Mr. Bernanke: Is it his intellect or his integrity? Either way, this month’s REAR is without question, Fed Chairman Ben ”Green Shoots” Bernanke. Martin Andelman is a staff writer for The Niche Report, and a feature writer for, where you’ll find his almostdaily column, Mandelman Matters. Questions or comments? Send them to:


BRINGING UP THE REAR: BEN BERNANKE Is the Federal Reserve Chairman lacking in intellect or integrity? BY MARTIN ANDELMAN


’m starting to get dizzy. One day we’re heading into a tailspin, next we’ve bounced off the bottom and are headed back to prosperity. One day, the banks are in need of trillions, lest we soon experience the end of the world as we know it. The next day the banks have beaten all earnings expectations and normal lending is right around the corner. In March, Fed Chairman Ben Bernanke told 60 Minutes that he had detected "green shoots" of economic recovery. Maybe he was thinking that if you spread enough manure around, something would be destined to grow? (sorry, just thinking out loud over here) In March, we lost 663,000 jobs, and 290,000 people received foreclosure notices. Ben, however was seeing shoots of green. Then in April we only lost 593,000 jobs, but then foreclosures jumped to 342,000. Now it’s the end of May, and Gentle Ben’s looking a little green around the gills himself. Back in January the Central Bank forecasted unemployment reaching 8.5% 8.8% by year-end. But then in April, unemployment hit 8.9%, so that made guessing less fun right there. Now, Green Shoots and his Board of Merry Governors have thought better of their earlier forecasts. Now, they’re guessing that unemployment will hit 9.2% 9.6% this calendar year. If history is any help, they might be safe with that guess until July, which is a big relief as far as I’m concerned. We’re planning on taking a vacation this summer and I’d appreciate just leaving the guessing alone for a bit. I don’t mind them worsening things again in September, but I don’t think it’s unreasonable to want the summer off from guessing. What good could possibly come of it? All downside, as far as I’m concerned. And when I use the word “guessing,” I mean “guessing.” It may be “forecasting” for a while, but if


June 2009

you’re wildly wrong every single time, I think it becomes obvious that you’re “guessing.” The Labor Department has worn me out this past year by guessing wrong a record number of times, so here’s that department’s recent guessing record: Month/Year Initial Guess August ‘08 84,000 September ‘08 159,000 October ‘08 240,000 November ‘08 533,000 December ‘08 524,000 January ‘09 598,000 February ‘09 651,000 March ‘09 663,000

Later Revised 175,000 321,000 380,000 597,000 681,000 655,000 681,000 699,000 - Bureau of Labor Statistics

Personally, I would’ve stopped by November. No way I’m making a holiday guess with a fall record like that. I would have called Treasury and said: “Hey, it’s your turn to throw down a guess. I already done my turn on the guessin’-go-round. The only thing I’m guessing at this month is what Santa’s leaving me under my tree. Happy Chalidays! I’m taking my sick days, betches!” Of course, 8.9% unemployment is just a nonsensical number anyway, revised or not. If you add in the people who want a job but gave up, all the folks working parttime that wish for full-time, and all those that dropped off the unemployment rolls because their benefits ran out… oh, well then you’d peg unemployment at just a smidgeon over 15.6%! The Fed also lowered its expectations related to gross domestic product from a drop of 0.5% - 1.3%, which was its January guess, to a drop of 1.3% - 2%. Someone’s - continued on page 45


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June 2009  

The Niche Report - June 2009

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