Mortgage Professional America issue 7.06

REVERSE MORTGAGES TAP INTO THIS GAP IN THE BABY BOOMER MARKET

MPAMAG.COM ISSUE 7.06

HARD MONEY DEMAND FOR PRIVATELY FUNDED LOANS IS RISING GREG FROST THE COUNTRY'S FIRST BILLION DOLLAR ORIGINATOR

The movers and shakers who have made waves in the mortgage industry this year

CONTENTS

14

COVER STORY

The Hot 100 MPA’s inaugural pick of 100 of the biggest movers and shakers in the mortgage industry

NEWS

MORTGAGE INSIDERS

6 | Forum forces Comments from the MPA online forum on the big news stories

46 | Joe Caltabiano One of the country’s top 10 originators shares his secrets to success

8 | News analysis The key trends affecting originators

62 | A day in the life of...

Mat Ishbia, president, United Wholesale Mortgage and CEO, United Shore Financial

11 | The data Must-read statistics for mortgage professionals

FEATURES 38 | Reverse mortgages An in-depth look into how to tap into this growing baby boomer market

48

FEATURES

HARD MONEY Why private money lending is coming back

34

MORTGAGE INSIDERS

GREG FROST MPA speaks to the country’s first billion dollar originator

2 | DECEMBER 2013

63 | Favorite things Corey Dubnoff, president, American Financial Resources (AFR)

MORTGAGEPROFESSIONALAMERICA.COM

OCTOBER 2013 | 3

CONTENTS / EDITOR’S LETTER

SO HOT RIGHT NOW

A while back we asked you, the mortgage origination community, to pass on your suggestions for mortgage industry movers and shakers to feature in the inaugural MPA Hot 100. The response was overwhelming.

From mortgage industry bigwigs to local heroes, and everything in between, the names of influential players came flooding in, and we certainly had an excellent selection of names to choose from.

A huge vote of thanks goes to everyone who took the time to email us their suggestions. The competition was hot, and led to no end of deliberation as to who should make our list of the players who have made waves in the world of mortgage origination this year. Who made it into the inaugural Hot 100? All is revealed in this issue.

Elsewhere, we explore the opportunity the reverse mortgage market presents to originators, and how a willingness to educate as well as sell can open doors to this growing market.

We also revisit the hard money market, and explore how an increase in private money lending could create prospects for originators who are looking to add another string to their bow.

Meanwhile, if you’re looking for inspirational food for thought on how to boost your business, look no further than our interviews with superstar originators Greg Frost and Joe Caltabiano.

COPY & FEATURES MANAGING EDITOR Robin Christie JOURNALISTS Ryan Smith, Stewart Huntington PRODUCTION EDITORS Roslyn Meredith, Danielle Chenery

ART & PRODUCTION GRAPHIC DESIGNER Red Redrico

SALES & MARKETING NATIONAL SALES MANAGER Mike Avila MEDIA SALES MANAGER Chris Brezsko COMMUNICATIONS MANAGER Lisa Narroway MARKETING EXECUTIVE Anna Farah

CORPORATE CHIEF EXECUTIVE OFFICER Mike Shipley MANAGING DIRECTOR Claire Preen CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR – BUSINESS MEDIA Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil

Robin Christie, managing editor, MPA

Editorial enquiries Ryan Smith ryan.smith@keymedia.com Advertising enquiries Mike Avila Mike.Avila@keymedia.com

CONNECT

Contact the editor:

robin.christie@ keymedia.com Printed on paper produced from 100% sustainable forestry, grown and managed specifically for the paper pulp industry

4 | DECEMBER 2013

Chris Brezsko chris.brezsko@keymedia.com Subscriptions subscriptions@keymedia.com Key Media 7807 E Peakview Ave Suite 115 Centennial CO 80111 United States of America tel: +1 720 452 2600 Offices in Singapore, Auckland, Toronto, Denver mpamag.com Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as MPA magazine can accept no responsibility for loss

JUNE 2013 | 5

NEWS / FORUM FORCES

ORIGINATIONS

Comments from the MPA Online forum on the news stories that have been making waves in the originator world

Stop blaming the salesperson. We are beyond slapping loans against the wall and seeing if it sticks.

- Cheryl M

BROKERS

ARE BROKERS BETTER THAN BANKERS? I have been both a broker and a banker.

I can tell you that it is soooo much harder to close loans as a broker than as a banker.

MPA Online reader John reacts to Washington Post real estate columnist Kenneth Harney claiming consumers can get more out of a good broker than they’re ever going to get out of a retail loan officer at a big bank—a claim that prompted a fierce debate.

John probably went back into the Banking Channels for a small salary and pay because he wasn’t successful as a Mortgage Broker.

- Jim

John it goes both ways. I am a broker and depending on your choice of lender we can close in 10 and other cases 30-45.

- Kim M

I’ve yet to find a bank that can compete with me. I lick my chops when I see my potential borrower is considering his bank.

- Brian

As a broker, I spend time analyzing the absolute best program with the absolute best lender for my client! I take the challenging loans, which the banks discard.

- Nanci Brogan

Join the debate at mpamag.com/forum

Cheryl M gets the conversation started after reading Senate Banking Committee member Elizabeth Warren’s comment that the housing meltdown was primarily caused by careless investment, and that too many originators didn’t do their due diligence.

Cheryl, while the originator may have had a product to sell, was there no conscience?

- fedup

- John

6 | DECEMBER 2013

ORIGINATORS FIGHT BACK

TRENDING

• Housing finance reform • Bank of America • TARP scam

This all starts with the government guarantee and insufficient governance and control of FNMA and FHLMC, by the government.

- Eric Timco I as the salesman can NOT deny someone just because I thought they were stupid. Then I would get in trouble under the law. If they qualify for the program, they qualify for the program.

- Joe in MN FHA

COMMON SENSE COMMENTS Logic says run FHA like any insurance pool pricing for risk...The program is great and necessary, just needs to be treated more like a business!

- Kent Kelso

Kent Kelso comments on Financial Services Committee chairman Jeb Hensarling saying that the $1.7bn bailout of the FHA took place due to the agency “ignoring warnings about its solvency, failing to use its existing tools to price insurance appropriately, and failing to minimize losses.”

Kent, You make entirely too much common sense for our government to understand what you just said.

- Dave Mattull

MPAMAG.COM

DECEMBER 2013 | 7

NEWS / ANALYSIS

COMMERCIAL

COMMERCIAL ORIGINATIONS ON THE UP The year-over-year picture for the commercial/multifamily finance sector is looking positive, with total mortgage banker originations in the area increasing by almost a third in the space of a year.

According to the latest MBA figures, released in its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations report, total commercial/multifamily mortgage banker originations saw a 29% year-over-year increase for the third quarter of 2013.

When these figures were broken down into categories, the big winner was health care, which saw a 124% origination increase. Office (69%), hotel (46%) and retail (30%) also saw notable increases.

However, while the year-over-year picture looks positive for the commercial/multifamily sector, MBA vice president of commercial real estate research Jamie Woodwell pointed out the quarter-over-quarter performance was essentially flat.

“Commercial and multifamily real estate borrowing and lending continued at a moderate clip in the third quarter,” he said.

COMMERCIAL/MULTIFAMILY ORIGINATIONS

Year-over-year percentage change, Q3 2008

-53%

2009

-54%

2010

32%

2011

98%

2012

14

YEARS

The prison sentence handed down to a former Philadelphiaarea pastor for his part in a $6.4m mortgage fraud scheme

-7%

2013

29% Source: MBA/Investor Group Commercial/Multifamily Mortgage Bankers Originations Index

Q3 2013 BREAKDOWN

+3% Mutifamily Lending

+8% Industrial

+69% Office

+46% Hotel

+30%

7.9%

The percentage of after-tax income that homeowners spend on mortgage payments on average Source: Federal Reserve

Retail

+124% Health Care

Source: MBA/Investor Group Commercial/Multifamily Mortgage Bankers Originations Index

20%

More than 20% of mortgage loans originated today wouldn’t meet the ‘Qualified Mortgage’ thresholds Source: S&P/Case Shiller index

8 | DECEMBER 2013

NEWS / ANALYSIS

MBA

HUD

MBA CHIEF ANNOUNCES REFORM PLANS

HOUSING BOOST FOR HURRICAINE VICTIMS

MBA president and CEO David H. Stevens has laid out his vision for the secondary market while testifying before the U.S. Senate Committee on Banking, Housing and Urban Affairs.

During a hearing titled Housing Finance Reform: Essential Elements of a Government Guarantee for Mortgage-Backed Securities, the former assistant secretary for housing and FHA commissioner at HUD set out the MBA’s views on “how to ensure the multiple objectives of secondary market reform can be best balanced: ensuring liquidity in the secondary market, providing mortgage products borrowers want at a price that is competitive, and protecting taxpayers from risk.”

“MBA believes a successful secondary market needs to produce a more stable and competitive system that benefits lenders and borrowers,” he said, adding the transition to an improved system must retain and redeploy key aspects of the GSEs’ existing infrastructures.

“In order to prevent disruptions to day-to-day business activities of lenders and to ensure a fair, competitive and efficient mortgage market for borrowers, any new proposal must be carefully phased-in to protect the housing finance system from unnecessary disruptions.”

Homeowners whose properties were devastated by Hurricane Sandy last year have been given a boost, with HUD announcing it will allocate $5bn in additional recovery funds to the coastal communities hit by the storm.

The second round of recovery funds will be offered to the five states affected (New York, New Jersey, Connecticut, Maryland and Rhode Island) as well as New York City.

Provided through HUD’s Community Development Block Grant (CDBG) Program, these recovery funds will assist impacted communities to meet remaining housing, economic development and infrastructure needs.

“One year later, it’s clear these communities continue to be challenged by the sheer scale of this devastating storm, requiring further investment to make certain these needs are met,” said HUD secretary Shaun Donovan, who chaired President Obama’s Hurricane Sandy Rebuilding Task Force.

“These resources are making a difference helping individuals, families, and businesses to get back on their feet and come back stronger and more resilient than ever.”

The sum total of recovery funds allocated to areas affected by Hurricane Sandy now sits at more than $10.4bn.

HURRICAINE SANDY RECOVERY FUNDS

$19.2m

$3.8bn

MBA believes that the secondary market should: Ensure equitable, transparent and direct access to secondary market programs for lenders of all sizes and business models.

Preserve key GSE assets—technology, systems, data and people—by transferring them to any new entities created by GSE reform, or placing them into a public utility.

Promote liquidity and stability by connecting global capital to the U.S. mortgage market.

Provide an efficient means of hedging interest rate risk through a robust TBA market.

Provide for a consistent offering of core products, including the 30-year, fixed-rate, prepayable mortgage.

Provide certainty in mortgage transactions for qualified borrowers.

Rely on a single, highly-liquid, governmentguaranteed security delivered through a common securitization platform.

Achieving these objectives will require: An explicit government guarantee for mortgage securities backed by a well-defined class of high quality home mortgages.

Protection for taxpayers through deep credit enhancement that puts private capital in a first loss position, with no institution too big to fail.

Fair and transparent guarantee fees to create an FDIC-like federal insurance fund in the event of catastrophic losses.

10 | DECEMBER 2013

$137m

$3.1bn

$3.3bn $27.6m Legend:

2nd Sandy Allocation 1st Sandy Allocation

Total New York City

New Jersey

New York State

$1,343,000,000 $1,772,820,000 $3,115,820,000

$1,461,000,000 $1,829,520,000 $3,290,520,000

$2,097,000,000 $1,713,960,000 $3,810,960,000

Connecticut

Maryland

Rhode Island

$65,000,000 $71,820,000 $136,820,000

$19,000,000 $8,640,000 $27,640,000

$16,000,000 $3,240,000 $19,240,000

THE DATA

MPAMAG.COM

AVERAGE ANNUAL INTEREST RATES Fixed interest rates on mortgages have taken quite a ride in recent years. Looking at the data from Freddie Mac, the average 30-year and 15-year fixed rate for the year has more than halved since 1992, when rates were

10

Source: Freddie Mac Primary Mortgage Market Survey

up in the 8% range. Perhaps unsurprisingly, rates took a real dive from 2006, when the housing bubble burst and the financial crisis started to take hold.

9 8 7 6

%

5 4 3 2 3 0 yr fi xed

1 ‘92

‘93

‘ 94

‘95

‘96

‘97

‘98

‘99

‘00

‘01

‘02

‘03

‘04

‘05

‘06

MORTGAGE RATE EXPECTATIONS It looks as if the general public’s mood has changed in recent months when it comes to the prospect of mortgage interest rates going up in the foreseeable future. According to the Fannie Mae National Housing

100 90 80

1 5 yr fixed ‘07

‘08

‘09

‘ 10

‘ 11

‘ 12

Source: Fannie Mae National Housing Survey, September 2013

Survey, 63% of respondents expect rates to increase over the next 12 months. This was almost double the percentage of respondents who were expecting rates to rise when the survey was carried out a year previously.

70 60

%

50 40 30 20 10 5 0

Sep-12

Oct -1 2

Nov -1 2

Dec-1 2

Jan-1 3

Feb- 1 3

M ar - 1 3

Go up

Apr - 1 3

M ay - 1 3

Jun - 1 3

Go down

Jul - 1 3

Aug -13

Sep -13

Stay the same

DECEMBER 2013 | 11

NEWS ANALYSIS/THE DATA

DEBT BY PROPERTY TYPE

Source: Federal Reserve, June 2013. All figures in $m.

Have you ever wondered which category of property has racked up the most mortgage debt over the years? MPA has delved into the Federal Reserve archives to find out.

Looking at figures dating back to 1952, it’s clear buyers have gone in for one- to four-family residences with gusto. Back in the first quarter of 1952, the amount of mortgage debt held on this type of property sat at $53,041m. Fast-forward to the first quarter of 2008 and that figure had ramped up by more than 213 times to hit $11,308,279m - before dropping during the financial crisis years to hit $9,858,961m by the beginning of this year.

Looking at more recent trends, non-farm, nonresidential has had its peaks and troughs since the ‘80s, while multifamily has seen a slow and steady rise.

12,000,000

11,000,000

10,000,000

9,000,000

8,000,000

7,000,000

$m

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

500,000 100,000 50,000 10,000 9,000 8,000 7,000 6,000 5,000

1952

1960

1970

One- to four- family residences

12 | DECEMBER 2013

1980

Multifamily residences

1990

Non- farm , non- residentia l

2000

2010

Farm

MPAMAG.COM

FRAUD HOTSPOTS Are you operating in one of the states with the highest 14 instances of mortgage loan fraud per capita in the country? If you operate in California, Nevada or Florida, Washington then the answer to that question would appear to be yes.

According to the Financial Crimes Enforcement Network’s (FinCEN’s) recently released Mortgage Loan 2 Fraud Update, California was the state with the highest 12 number of mortgage loan fraud suspicious activity 11 Nevada reports (SARs) per capita last year, when it came to SARs Utah 1 Colorado with “relatively recent suspicious activity.”

California also took the top spot in the previous year’s California 4 19 report. Meanwhile, Nevada jumped from fourth to second, Florida held firm at third, Arizona moved from Arizona New Mexico seventh to fourth, and DC matched its previous year’s ranking of fifth.

The good news overall is mortgage loan fraud appears to be on the wane, with FinCEN reporting 15 mortgage loan fraud SAR filings dropped by 25% Hawaii nationwide last year. This was the first year since FinCEN began reporting mortgage fraud SAR statistics that the number of mortgage loan fraud reports fell.

Source: FinCEN Mortgage Loan Fraud Update, August 2013

2012 RANK

18

16 Michigan

8 Illinois

9

New York

Mass.

10 Maryland

17 5

Virginia

13

Rhode Is.

7

New Jersey

20

Delaware Washington D.C.

6 Georgia

3 Florida

SPECIAL REPORT / HOT 100

The movers and shakers who have made waves in the mortgage industry this year

14 | DECEMBER 2013

W

elcome to the inaugural MPA Hot 100.

We asked you, the mortgage origination community, to pass on your suggestions for the big names to be considered for the Hot 100.

From CEOs and presidents of the major lenders to local heroes, the names came flooding in.

While this isn’t an exhaustive list of influential players, we’ve whittled it down to the 100 people who we think merit a mention this year – whether it’s for their stellar achievements, or for hitting the news for the wrong reasons.

MPAMAG.COM

John Stumpf, CEO, Wells Fargo John G. Stumpf heads up Wells Fargo, the biggest mortgage lender in the country. The bank has fared better under Stumpf’s leadership than most of the other big banks, emerging from the recession at the top of its game. But the most notable thing Wells has done mortgage-wise this year is lay off thousands of mortgage unit employees—a tactic shared by the other big banks.

Greg Frost Sr., president, Frost Mortgage

Michael Mann, branch manager, Fairway Mortgage Michael Mann has a heart for service, raising money for disabled veterans. Through a partnership with the Boot Campaign, his firm recently gave a mortgage-free house to a Purple Heart-winning veteran. “While he is out ahead of the marketplace with his mortgage practice, he possesses a spirit of humility for what he has built,” said Brian Heckman of The Heckman Group. “Most people, in any industry, that have a winning formula have white knuckles from holding so tightly to their successes and failures. But Mike’s DNA is laced with genuine care for helping people achieve greater significance.”

According to Spencer Stott of Essex Mortgage, Mann is “very inspiring, motivating, generous, successful and [a] great example for myself and anyone in the mortgage business looking to grow and become a top producer.”

Greg Frost Sr. is the country’s first billiondollar originator. Last year, one in 16 home buyers in the Albuquerque area obtained their mortgages from Frost and his team. A soughtafter speaker, Frost conducts seminars to share the secrets of his success with his industry colleagues.

Scott Everett, president, Supreme Lending Since founding Supreme Lending in 1997, Scott Everett has grown the Texas-based company into a nationwide operation with more than 70 branches.

Everett was recognized this year as one of the most tech-savvy industry professionals in the market for his company’s implementation of software that monitors loan officer licensing requirements, and a company-wide intranet with position-specific home pages. He also took his company paperless more than a decade ago—back when most lenders were still producing reams of waste paper—and has introduced proprietary pricing and appraisal management software to boost efficiency.

Donald Layton, CEO, Freddie Mac Freddie Mac has seen record profits roll in since Donald Layton took the helm in May of last year.

Freddie announced in November that it would be sending $30.4bn to the Treasury after fourthquarter earnings of $30.5bn. With that payment, Freddie has officially sent more money to the government than it received when it was bailed out following the financial collapse of 2008. Many lawmakers are looking to bury Freddie despite the money it pumps into the Treasury.

Marc Savitt, president, NAIHP Marc Savitt heads the National Association of Independent Housing Professionals (NAIHP), which, with more than 10,000 members, is the nation’s largest trade organization representing mortgage brokers.

Savitt, a tireless advocate for regulatory reform, has testified 10 times before Congress and is currently battling the Consumer Financial Protection Bureau (CFPB) over the effect of new mortgage regulations.

“Marc balances his support for competition in the marketplace equally with the needs of consumers to access credit,” said LoanTec CEO Adam Stein. “His forthright demeanor is refreshing and appreciated by his peers and the industry he represents. Simply put, Marc Savitt is the best leader I have seen in the mortgage lending industry in many years.”

DECEMBER 2013 | 15

SPECIAL REPORT / HOT 100

MPAMAG.COM

Jamie Dimon, CEO, JPMorgan Chase

Mat Ishbia, president, United Wholesale Mortgage Before Mat joined United Wholesale Mortgage —the wholesale division of United Shore Financial—he’d already made a name for himself in the world of athletics, playing in three straight NCAA Final Fours and, with his teammates at Michigan State University, winning a national championship in 2000. When he took over, United Wholesale Mortgage was doing around $100m in mortgage generation per year. Now the CEO of both United Wholesale and United Shore, Ishbia has led the company to $6bn in residential loans in the first half of this year.

That’s more than triple the company’s total production for 2011.

United Wholesale is now the number five wholesaler in the US. 16 | DECEMBER 2013

Brian Moynihan, CEO, Bank of America Brian T. Moynihan has had a lot of trouble this year.

As head of the nation’s third most prolific mortgage originator, he has seen his bank forced to fork out millions in 2013 to settle discrimination claims and lawsuits over its sale of mortgage-backed securities.

In October, the bank was found liable for defrauding Fannie Mae and Freddie Mac through the sale of subpar mortgages.

Jamie Dimon, head of the country’s secondlargest mortgage lender, took the unprecedented step of directly negotiating with U.S. Attorney General Eric Holder to settle numerous government investigations of JPMorgan’s mortgagebond sales. Dimon may have also presided over the largest mortgage settlement in history; JPMorgan has reached a tentative agreement with the Feds to pay $13bn to settle the government’s claims.

Dimon has just presided over the largest mortgage settlement in history; JPMorgan has reached an agreement with the Feds to pay $13bn to settle the government’s claims.

Jeb Hensarling, chairman, House Finance Committee Jeb Hensarling is one of the leading proponents of killing Fannie Mae and Freddie Mac, privatizing the mortgage industry, and eliminating federal guarantees.

Industry experts have claimed that this course of action would make mortgages too expensive for many middle-class home buyers. Hensarling’s pet legislation, the PATH Act, passed the House Finance Committee, but industry groups are fighting it all the way.

Ashley J. Taylor Jr., partner, Troutman Sanders

Elizabeth Warren, member, Senate Banking Committee Elizabeth Warren is a vocal proponent of mortgage reform. She wants not only to change the role of the government but also to keep a federal guarantee so that mortgages stay within reach of middle-class borrowers. She’s also adamant that the government’s affordable housing goals were not to blame for any part of the housing meltdown, and insists that the crisis happened “one lousy loan at a time” as investors recklessly purchased and sold risky mortgages.

A partner at the Troutman Sanders law firm, Ashley L. Taylor Jr. heads up a legal team to help clients respond to enforcement actions by the CFPB. As a former deputy attorney general for Virginia, Taylor knows how to respond to enforcement actions by state attorneys general, often the CFPB’s de facto enforcement agents.

Donald Frommeyer, president, NAMB Donald Frommeyer is the president of the National Association of Mortgage Professionals (NAMB). A vocal advocate for brokers, he has continually lobbied for the CFPB to modify its mortgage regulations, and has stood in opposition to compensation restrictions.

MPAMAG.COM

DECEMBER 2013 | 17

SPECIAL REPORT / HOT 100

Janet Yellen, nominee for chair, Federal Reserve

Ben Bernanke, chairman, Federal Reserve Ben Bernanke’s words and deeds have had a massive effect on interest rates. His easy-money policies, for example, helped mortgage rates drop to nearhistoric lows this year, driving a boom in refinance activity across the country. Then his lack of substantive communication on the fate of the Fed’s quantitative easing program helped drive rates up a full percentage point over the summer, strangling the refinance boom. Then his decision, along with the rest of the Fed’s policy-making board, to leave the program in place helped drop rates again.

Cindy Laffey, branch partner, Inlanta Mortgage Since joining Inlanta Mortgage, Overland Park, in 2011, Cindy Laffey has become the highestproducing loan officer in one of Inlanta’s top branches. She has been recognized as being among the nation’s top 1% of mortgage originators, and last year was named a “Woman Who Means Business” by the Kansas City Business Journal. Laffey and her husband, Kevin, are the organizers of an annual charity golf tournament that’s raised hundreds of thousands of dollars over the last four years for deserving causes.

18 | DECEMBER 2013

Janet Yellen, the presumptive replacement for Ben Bernanke, beat out top Obama pick Larry Summers, to the relief of mortgage industry groups, who believe her dovish monetary policies will keep rates low.

Jodie Tanga, director of business development, Pacific Rim Mortgage Jodie Tanga was just 22 when she set up her own branch of a friend’s mortgage company in 2005. Since then she’s seen her business grow by leaps and bounds.

In 2012, Pacific Rim did $120m in production, and Tanga herself originated $60m.

Edward DeMarco, acting director, FHFA Edward DeMarco is not a popular guy right now.

The acting head of the Federal Housing Finance Administration (FHFA), DeMarco has broached a plan to lower Fannie and Freddie maximum loan limits, which has garnered support from… practically no one. Industry groups hate it.

Congressional representatives say DeMarco doesn’t have the authority to do it. But DeMarco is standing firm, saying a loan limit decrease is on the cards for 2014.

John Councilman, president-elect, NAMB John Councilman, the 2009 National Association of Mortgage Professionals (NAMB) mortgage broker of the year, is currently the association’s presidentelect. He’s testified before the House Financial Services Committee on the future of the Federal Housing Administration (FHA).

William Emerson, CEO, Quicken Loans William Emerson believes in an open corporate culture. He gives his personal cell phone number out to his employees—all 8,500 of them. He’s also led Quicken Loans to a stellar rise through the industry. When Quicken was founded in 2006, it was the 34th-largest originator in the nation. Now it’s originating more loans than Citigroup, US Bancorp or Bank of America, putting it comfortably among the top five mortgage originators in the nation.

MPAMAG.COM

Chad Jampedro, president, GSF Mortgage

Steve Grant, president, Credit Plus Rick and Patty Arvielo, co-founders, New American Funding When Rick and Patty Arvielo founded New American Funding in 2003, they envisioned a company focused on good pricing, fast home loan closes and excellent customer service.

Today, New American Funding boasts over 800 employees and funds more than $400m in home loans each month. The company recently landed on Inc. 5000’s list of the nation’s fastest-growing companies for the second year in a row.

The Arvielos are also active in Big Brothers Big Sisters, bringing a mentorship program to New American Funding to teach kids important life and workplace skills. In addition, Patty is deeply involved in the National Association of Hispanic Real Estate Professionals, and earlier this year spearheaded a campaign to address challenges faced by Hispanic homeowners.

When Steve Grant took the reins at Credit Plus 16 years ago, the company—founded by his father in 1928— employed just 10 people and offered just 10 products. Today, the firm has 210 employees and offers 160 products that allow mortgage professionals to make smart lending decisions.

Under Grant’s leadership, Credit Plus has doubled its market share in each of the past two years and is projecting another year of record growth ahead.

Since then, the firm has grown to employ 210 people and has expanded its product suite to 160 offerings.

Under Steve Grant’s leadership, Credit Plus has doubled its market share in each of the past two years and is projecting another year of record growth ahead.

Chad Jampedro began his career at GSF Mortgage in 2001, joining the company as a loan originator in the Illinois branch.

Jampedro worked his way through the ranks and designed and implemented the strategies that saw GSF through the financial meltdown. “Chad capitalizes on the opportunities presented to him and pushes our company forward in times of abundance and scarcity,” said GSF owner Jim Guzanick. “He has faced the worst financial crisis of the generation and has brought the company through it stronger than before. He has designed a client-focused origination strategy that secures GSF in the marketplace for years to come.” Jampedro has led the company to awards as a USDA Platinum Million Dollar Lender and one of National Mortgage News’ top tech-savvy lenders.

Josh Shein, VP, Reverse Mortgage Network, Maverick Funding Josh Shein has done great things at Maverick Funding since joining the company last year. As vice president of Maverick Funding’s Reverse Mortgage Network, Shein has shepherded the wholesaler to become one of the top reverse mortgage lenders in the country, increasing its reverse volume by 158% between 2012 and 2013.

Alessandro DiNello, president and CEO, Flagstar Bank Alessandro DiNello has been with Flagstar Bank and its predecessor, Security Savings, since 1979.

DiNello has spearheaded the strengthening of the bank’s risk management and quality control improvements, as well as leading Flagstar to become one of the country’s top wholesalers. Last year, 94% of the bank’s $53.6bn in loans was wholesale volume.

Mel Watt, nominee for director, FHFA President Obama’s pick to become director of the Federal Housing Finance Agency (FHFA), Mel Watt has the support of industry groups like the Mortgage Bankers Association but the opposition of Senate Republicans. The final outcome of his nomination is in limbo right now.

Michael Deery, president, Citywide Financial Corp Born and raised in Donegal, Ireland, Michael Deery moved to the US in 1994 to play soccer for the University of San Diego, and he’s brought that winning attitude to his work.

In 2012, Deery was recognized as one of the top mortgage originators in the nation, funding $89m in loans.

Deery is also an avid writer, contributing frequent columns to the San Diego UnionTribune’s weekend real estate section.

Timothy Mayopoulos, CEO, Fannie Mae Timothy Mayopoulos took the reins at Fannie Mae in June of 2012.

The company has seen record profits under his leadership, and is now close to paying off the $116.1bn that it received from the Federal Government after teetering on the brink of insolvency following the financial crisis. Many in Washington insist that Fannie should still be shut down.

DECEMBER 2013 | 19

SPECIAL REPORT / HOT 100

MPAMAG.COM

Adam Kessler, president, Academy Mortgage Corporation When Adam Kessler became acting president of Academy Mortgage in 2005, he decided the company wasn’t going to follow the fast and loose practices that were netting big profits for some in the industry. By focusing instead on sustainable lending, Academy grew while many mortgage companies were folding during the financial meltdown. The company now employs 1,500 people and makes 26,000 home loans a year, and Kessler was recently named one of Utah’s top young entrepreneurs of 2013.

Laura Leonhard, branch manager, Inlanta Mortgage Laura Leonhard is one of Inlanta’s top producers despite joining the company only a year and a half ago. She leads Inlanta in USDA loan production and in 2012 was among the top USDA lenders in the nation, with more than $16.5m in loan volume for USDA loans alone. Leonhard led Inlanta to a USDA Platinum Million Dollar Lender award in 2012.

Pouyan Broukhim, owner, PB Financial Group Pouyan Broukhim founded PB Financial Group in 2006 as a small brokerage, funding transactions between $100,000 and $2m. Today, he’s one of California’s top hard money lenders, funding $75m in residential and commercial loans last year.

Mark Cohen, founder, The Cohen Financial Group Mark Cohen has been California’s top mortgage originator by dollar volume for 12 of the last 17 years.

Closing more than 18,000 deals since 1999, Cohen has also been recognized as the top mortgage professional in Los Angeles. In 2012, Cohen closed more than $590m in loans.

Amy Tierce, regional VP, Fairway Independent Mortgage Amy Tierce, described by her colleagues as a “rock-star mortgage guru,” has more than 20 years’ experience in the industry. For the last seven of those years, she’s been leading one of the top branches at Fairway Independent Mortgage. Tierce’s Newton, Mass., branch is home to five of the company’s top 10 producers nationwide. Although she’s a sought-after speaker at industry events, Tierce also finds time to keep her branch active in local philanthropy, lending support to organizations that help the homeless and victims of domestic violence. In the wake of the 2012 Boston Mara-thon bombings, Tierce and her staff hosted a day of shopping on Boston’s Boylston Street, raising $50,000 for One Fund, a charity formed to assist victims and families affected by the bombings.

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Victor Ciardelli, president and CEO, Guaranteed Rate Victor Ciardelli founded Guaranteed Rate in 2000.

Within three years, he’d led the company to become the largest independent mortgage lender in Chicago.

Today, it’s the largest independent retail mortgage company in the nation, employing more than 2,700 people across the country. Guaranteed Rate has been one of Illinois’ fastest-growing companies seven years in a row, and in 2012 Ciardelli was recognized as one of the state’s top entrepreneurs.

Brett Mills, branch manager, Academy Mortgage Corporation Brett Mills has been one of the top loan officers in the country over the past few years, but he still finds time to give back. A member of Academy’s President’s Club—which includes those doing $20m in purchase business or $40m in total volume— Mills was rewarded for his hard work with a week of volunteer work in a tiny Guatemalan village. “That’s the trip to be on,” Mills told MPA. “We literally give the shirts off our backs, and it’s so rewarding.”

Shashank Shekhar, CEO, Arcus Lending Shashank Shekhar entered the mortgage industry in 2008 with just three people in his database. After less than five years in the industry, Shekhar was among the top producers for 2012 with a production volume of $68m. A blogger, speaker and author of three books, Shekhar is widely regarded as “California’s No. 1 mortgage expert,” according to Angie’s List.

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DECEMBER 2013 | 21

SPECIAL REPORT / HOT 100

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Harinder Johar, SVP and branch manager, Guaranteed Rate Harinder Johar did nearly $404m in loan volume in 2012. That’s almost 1,300 loans, more than any other originator in the US last year. Johar closed an average of 3.5 loans per day in 2012.

Scott Gordon, founder and CEO, Open Mortgage

Jon Marcoline, branch manager, FBC Mortgage Jon Marcoline didn’t need the refinance boom to bring him business.

Marcoline was one of the top originators in the country last year, closing more than $58m in loans—100% of them purchase loans.

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Scott Gordon has made technology an indispensable part of his business. A self-described “software engineer who kept starting companies on the side,” Gordon told MPA: “I can’t help pulling technology into any company I do. Technology is never an answer unto itself, but it’s a way to take a business to the next level.” Gordon has a passion for sharing his high-tech tips with other mortgage professionals, making weekly coaching videos for his loan officers and writing a book, Social Media for Loan Officers.

Daniel Milstein, founder and CEO, Gold Star Mortgage Financial Group

Gary Chase, SVP, First Mortgage

Dan Green, loan officer, Waterstone Mortgage

With more than 30 years of experience in the industry, Gary Chase is one of the top originators of FHA loans in the country. In 2012, Chase originated more than $166bn in loans—more than $133bn of which were FHA loans.

Dan Green is among the top loan officers in the country in terms of volume, but his real claim to fame is his blogging. Green founded The Mortgage Reports in 2004. Today, it’s considered the nation’s top consumer mortgage blog. Green is also in demand as a speaker, appearing at mortgage and real estate conferences across the country.

When Daniel Milstein fled the former Soviet Union as a teenager, he took along one suitcase and 17 cents in pocket change. Today, he’s one of the top originators in the country. Milstein established Gold Star Mortgage Financial Group in 2000 and has led the business ever since. Milstein has personally closed more than $3bn in loans, and Gold Star closes $1bn annually.

Paul Volpe, VP and senior loan officer, NOVA Home Loans

Raymond Bartreau, founder and CEO, Best Rate Referrals

Paul Volpe knows how to close loans; for the last several years he’s been among the top five closers in the nation. Last year, Volpe closed more than 1,200 loans for more than $254m in originations.

Raymond Bartreau was just 23 when he founded Best Rate Referrals in 2005. Today, the mortgage marketing firm is recognized as one of the top companies in Nevada, nearly tripling its revenue between 2009 and 2012, and Bartreau himself has landed on several “40 under 40” lists and has won repeated recognition as one of the top industry professionals. “We just build partnerships and relationships, and really dive into what their needs are,” Bartreau told MPA. “We spend a lot more time consulting with our partners rather than just selling them leads.”

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SPECIAL REPORT / HOT 100

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Bill Rogers, CEO, Homeowners Financial Group Bill Rogers was recognized in 2012 as Arizona’s Mortgage Banker of the Year. Under his leadership, Homeowners Financial Group has been recognized two years in a row as one of Arizona’s most admired companies and one of the state’s best places to work for the last eight years. In 2010, Rogers co-founded the Care Fund, a charity that provides mortgage, rent and housing relief to families whose children face serious illness.

Dom Iannitti, president and CEO, DocMagic Dom Iannitti founded Document Systems Inc. more than 25 years ago to package and deliver documents with same-day service. Since then, Iannitti has moved to the cutting edge of mortgage technology, pioneering the concept of electronic delivery, introducing one of the first mortgage data auditing systems and leading the way for e-signed documents.

DocMagic recently released BorrowerMobile, an app that turns any tablet or smartphone into a seamless communication tool for borrowers and lenders.

Tom Hurst, president, StreetLinks When NovaStar Financial acquired Superior Appraisal Services in 2008, the company was doing about 300 or 400 appraisals a month. Under Tom Hurst’s leadership, the company—now called StreetLinks—is averaging 50,000 appraisals a month, and their appraisal and servicing products are used by thousands of mortgage professionals nationwide.

Les Acree, executive vice president, wholesale, Freedom Mortgage Corporation Les Acree has led Freedom Mortgage’s wholesale division to become one of the most successful in the industry. Last year, Freedom Mortgage did more than $9.7bn in wholesale business—71% of their total volume.

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Corey Dubnoff, president, American Financial Resources As president of American Financial Resources (AFR), Corey Dubnoff leads one of the country’s most successful direct lenders. AFR has funded more than $2.7bn in loans in the past year, and is one of the nation’s top FHA lenders.

Jim Cutillo, founder and CEO, Stonegate Mortgage Jim Cutillo founded Stonegate Mortgage in 2005 and has shepherded the company to dizzying growth ever since. In the first six months of 2013, Stonegate originated $4bn in loans, and in October had a loanservicing portfolio worth $9bn. In November, Stonegate grew even further, announcing the acquisition of Nationstar Mortgage’s multibilliondollar wholesale lending channel.

Glenn Stearns, founder, Stearns Lending Glenn Stearns leads one of the most successful lending companies in the business today. Leveraging innovative technology to grow his firm, Stearns has grown the company into one of the top lenders in the nation, with more than $11.8bn in volume last year.

Mike Hardwick, president, Churchill Mortgage Since founding Churchill Mortgage in 1992, Mike Hardwick has grown the firm to a national company that lends in 31 states, and the company celebrated its 20th anniversary last year by originating more than $1bn in loans for the first time. Hardwick is also serious about keeping the company active in the community, sponsoring blood drives and food drives, donating to the local children’s hospital, and giving a mortgage-free home to a veteran in October.

Hardwick also takes care of his employees; the company was rated one of the top workplaces in Tennessee this year, and Hardwick recently initiated a stock ownership plan to give his employees more of a stake in the company.

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DECEMBER 2013 | 25

SPECIAL REPORT / HOT 100

Joe Caltabiano, senior VP of mortgage lending, Guaranteed Rate

Vladimir Bien-Aime, president and CEO, Global DMS As the co-founder and CEO of Global DMS, Vladimir Bien-Aime is a pioneer in web-based appraisal service. Since its founding in 1999, Bien-Aime has led Global DMS to become an industry leader in appraisal management, with more than 20,000 clients and a 100% retention rate. Bien-Aime was recently recognized as one of Philadelphia’s top minority business leaders and is the winner of numerous mortgage technology awards.

Joe Caltabiano has closed over $100m in loans every year since 2004, and in 2012 he funded more than $300m in loans. That made him the number one originator in Illinois for the second year in a row and one of the top originators in the nation.

Jim Sadler, reverse mortgage advisor, Liberty Home Equity Solutions Jim Sadler nearly quadrupled his loan volume between 2011 and 2012.

In the process Sadler became one of the most prolific originators of reverse mortgages in the country, closing more than $11m last year.

Richard B. Payne Jr., vice chairman of wholesale banking, U.S. Bank As the vice chairman of wholesale banking, Richard B. Payne Jr. has made U.S. Bank’s wholesale channel a force to be reckoned with.

U.S. Bank funded $8.1bn in mortgages through originators in the fourth quarter, displacing Provident Funding Associates as the nation’s largest player in the channel.

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Anny Havland, founder, Neighborhood Mortgage Anny Havland and her husband, Bill, have grown Neighborhood Mortgage from a kitchen-table operation to a multimillion-dollar business. But Havland is better known in the Bellingham, Wa., area as the creator and host of Talk It Up TV, a popular internet television show that spreads positive news and brings attention to worthy causes.

Havland has been recognized as one of Bellingham’s most fascinating people and one of Washington State’s women of the year, coming in ahead of Melinda Gates.

Charles Wagner, SVP, lending division, CBC National Bank When Charles Wagner joined CBC in 2007, the bank was just getting back into the mortgage business. Wagner started a small wholesale division with a plan to lend a maximum of $25m a month. That business quickly grew to more than $50m a month. Under Wagner’s guidance, the bank’s mortgage unit developed new strategies and software to maximize its business, and today does between $150m and $180m in business every month.

Rebecca Mairone, default servicing executive, Bank of America Home Loans Some people are hot for all the wrong reasons. As the only individual named as a defendant in this year’s government lawsuit against Bank of America, Rebecca Mairone was found liable, along with BOA, for bank subsidiary Countrywide Financial defrauding Fannie Mae and Freddie Mac through the sale of defective mortgages. The fraud cost Fannie and Freddie more than a billion dollars, but the Feds are only demanding $864m from BOA— and damages from former Countrywide exec Mairone “commensurate with her ability to pay.” To add insult to injury, the New York Times has called Mairone “the new face of the housing crisis.” Ouch.

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Donald Fader, EVP, SMC Home Finance Eric Schneiderman, attorney general, New York State Eric Schneiderman is the attack dog of the mortgage reform crowd. He’s one of the driving forces behind the National Mortgage Settlement, an agreement reached last year between big banks and 49 state attorneys general. He’s also the quickest to sue when he thinks banks are violating the terms of the settlement; Schneiderman is pursuing mortgagerelated lawsuits against HSBC, Bank of America and Wells Fargo.

Rodney Anderson, executive director, Supreme Lending Rodney Anderson is one of the nation’s top originators of FHA and VA loans as well as one of the best closers in the country. Last year, Anderson closed more than $163m in total loan volume. In between closing loans, Anderson still finds time to be an author, consumer advocate and prolific blogger. Anderson hosts a weekly segment on Dallas/Fort Worth television and has appeared as an expert on CNBC, MSNBC, FOX News and FOX Business.

Donald Fader started out in the mortgage business in 1985. A small-town business owner, Fader nonetheless has had a nationwide impact on the industry. A staunch advocate of independent brokers, Fader has served in numerous positions in the National Association of Mortgage Professionals, and on North Carolina’s state mortgage advisory council. Fader is also a past president of the North Carolina Association of Mortgage Professionals, and SMC Mortgage was named small business of the year in Kinston, N.C. Fader was also recognized last year as NAMB’s mortgage professional of the year.

Jacob Deegan, loan officer, Flagship Financial Group Jacob Deegan is a specialist in Veterans Administration (VA) loans, and one of the top VA loan originators in the US. Last year he closed 916 loans—all VA mortgages—for $177m in total volume.

Ben Anderson, sales manager, Mount Olympus Mortgage Company Ben Anderson is one of the top originators in the country, and his business keeps getting bigger.

Promoted to sales manager at Mount Olympus Mortgage Company in 2011, Anderson manages a team of bankers while continuing to originate himself. Last year, Anderson closed more than 550 loans for almost $216m in business—a $36m increase on his 2011 volume.

Andrew Peters, CEO, First Guaranty Mortgage Corp Andrew Peters isn’t afraid to stay on the cutting edge of technology to enhance his business. Under his leadership, First Guaranty has pumped up its wholesale channel with programs that track its third party originators, earning the company recognition as one of the most tech-savvy lenders in the business. Peters is also an advocate of ‘common-sense’ lending, urging originators to look beyond a customer’s FICO score before making a loan decision.

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SPECIAL REPORT / HOT 100

Michael Corbat, CEO, Citigroup Bob Brower, president, George Mason Mortgage

Mark Maimon, VP of residential mortgage lending, Sterling National Bank Mark Maimon started in the mortgage industry in 2002, quickly becoming one of Sterling National Bank’s top originators. He’s also been recognized as one of New York City’s top 10 originators and as one of the top originators in the country every year since 2006.

Bob Brower has led George Mason Mortgage to become one of the leading lenders in the nation, with nearly $8bn in originations in 2012.

The company was also at the head of the pack in wholesale lending, doing more than $2.5bn in total wholesale volume last year.

When Michael Corbat took over at Citigroup in October of 2012, the bank was in trouble, being one of the lenders hardest hit by the financial crisis. By the second quarter of 2013, Corbat had reversed the bank’s fortunes—profits in that quarter soared 44% to $4.2bn. But that success came at a cost: Corbat unloaded $18bn in troubled loans and announced the layoffs of 11,000 employees, including 1,000 mortgage unit employees.

Robert Dubrish, president, wholesale division, New Penn Financial Robert Dubrish has led New Penn Financial’s wholesale division to become one of the industry’s best. Last year, Dubrish’s wholesale division did more than $1.9bn in wholesale volume—41% of New Penn’s total business.

Suren Sampat, SVP, 1st Advantage Mortgage Suren Sampat started his career in the mortgage industry as an entry-level auditor. Within 12 years, he held an executive post. The top producer for 1st Advantage nine years running, Sampat’s motto is that treating customers well leads to even more customers. That motto has worked well for him; last year, Sampat did more than $187.5m in loan volume.

Risha Kilaru, loan officer, Prospect Mortgage Risha Kilaru is no stranger to hot lists, being consistently recognized as one of the country’s top originators.

Last year, Kilaru did more than $112m in total volume. She also went against the refinance trend—71% of that volume was for purchase loans.

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Randy Szabo, loan originator, Washington First Mortgage Loan Corp Randy Szabo is one of the major players in the FHA loan space. Last year, he originated nearly $70m in FHA loans—88% of his total loan volume of more than $79m. He was also in the top five originators in total dollar volume for Washington State last year, and among the top-dollar originators in the country.

Shimmy Braun, VP of mortgage lending, Guaranteed Rate Shimmy Braun, Guaranteed Rate’s top producer for four years in a row, is also perennially among the top producers in Illinois and the nation. Last year, Braun did more than $310m in total volume and had a closing ratio of 95%.

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Mary Dinkins, regional president, Cornerstone Home Lending Nearly 33 years in the business haven’t slowed Mary Dinkins down.

One of the top originators in the nation, Dinkins has achieved more than $1bn in loan production, including more than $104m in volume last year alone.

When Dinkins is not busy originating loans, she oversees offices in five states and is a sought-after speaker at industry events.

Katherine Le, president, Stearns Lending As a child, Katherine Le was captured with her family as they tried to escape the Communist regime in Vietnam. Eventually relocating to Southern California, Le earned a bachelor’s degree in business management. When she took the reins at Stearns Lending, the company had an employee base of 30. Under her leadership, the company has grown to 1,500 employees, with licensing in 49 states and the District of Columbia, and become one of the largest independent mortgage lenders in California.

Le was recently recognized by the Orange County Business Journal as one of the county’s most prominent female executives.

Michael Raimi, managing director, WCS Lending Michael Raimi was a successful attorney before entering the mortgage business in 2003. His success in the courtroom carried over to the closing table: Raimi personally closes millions of dollars in loans per year and oversees a sales team that includes some of the industry’s top producers. Raimi himself is also a top producer, with a total volume of almost $175m last year.

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SPECIAL REPORT / HOT 100

David Lyyken, owner, Mortgage Banking Solutions A 40-year industry veteran, David Lyyken shares his expertise through frequent speaking engagements at industry conferences and seminars and as an expert on FOX Business, CNBC, CBS Evening News, Bloomberg TV and Bloomberg Radio. Lyyken also hosts Lyyken on Lending, a weekly, hour-long online radio show geared towards mortgage professionals.

Jill Kinsman, president, NAPMW

Mehdi Pirzadeh, senior mortgage banker, EagleBank Born in Iran, Mehdi Pirzadeh moved to the US at a young age and grew up in Bethesda, Md. Although he began his professional life as a sales engineer for a software company, Pirzadeh quickly realized his true calling was in the mortgage industry. Pirzadeh was wise to make the move; last year, his total volume was more than $172.4m.

As president of the National Association of Professional Mortgage Women (NAPMW), Jill Kinsman leads a 3,000-member-strong organization of mortgage professionals that strives to promote equal opportunities and recognition for women in the mortgage industry. Kinsman focuses on member education, offering webinars and live classes through the association to deepen originators’ knowledge of the industry.

Eric Tishaw, COO, HomeTown Lenders Preet Bharara, U.S. attorney, Southern District of New York Preet Bharara prosecutes white-collar criminals, and he’s very, very good at it. When he’s not throwing insider traders in the slammer, Bharara is going after mortgage fraudsters. In April, he put away a multimillion-dollar FHA scammer and sued GFI Mortgage Bankers for violating fair lending laws.

He’s also found time to get several people indicted— other suspects pleaded guilty—in a massive mortgage-modification scam that swindled more than 500 homeowners across the country.

30 | DECEMBER 2013

When Eric Tishaw and his friends started HomeTown Lenders, they were “just a small group of friends who wanted to originate loans together and have fun doing it.” Since then, HomeTown Lenders has grown by leaps and bounds and Tishaw has become a recognized leader in the industry, a prolific author of articles published in major industry publications, and an in-demand speaker.

Travis Newberry, branch manager, Fairway Independent Mortgage A retired marine who lived in 10 different locations during his service, Travis Newberry knows a lot about the stress of financing a new home. That experience has led him to make the mortgage process as easy as possible for new home buyers. His effort has paid off, leading to Newberry’s recognition as one of the top mortgage professionals in Atlanta, and the addition of his name to the Registry of Business Excellence.

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Stanley Middleman, founder and CEO, Freedom Mortgage Corporation Stanley Middleman has led Freedom Mortgage to become one of the top lenders in the country. With record growth achieved in 2012, Freedom Mortgage is one of the country’s most successful wholesalers, as well as one of its biggest VA lenders, originating $5.6bn in new VA mortgages between October 2012 and June 2013.

Kevin Zhu, managing director of sales, MLD Mortgage Kevin Zhu is no stranger to success. A perennial member of the industry’s elite, Zhu has been recognized as one of the top mortgage originators in New Jersey and among the best in the nation. Zhu’s team at MLD Mortgage closed more than $370m in loan volume last year, with Zhu himself closing more than $239m.

Michael Meena, president, Augusta Financial A mortgage professional since 1990, Michael Meena has been among the top 25 originators in the country and the top 10 in the state of California for five years running, and was voted the best lender in Santa Clarita, Calif., seven years in a row. Last year, Meena closed nearly 750 loans for more than $246m in volume.

Gayle McLaughlin, mayor, Richmond, California Gayle McLaughlin brought the middling-sized city of Richmond, Calif., to sudden national prominence this year with a plan to use the power of eminent domain to seize underwater mortgages from noteholders in an effort to save struggling homeowners. The plan drew a firestorm of protest from industry groups, and lending giants including Wells Fargo and Deustche Bank even filed a lawsuit to stop it. The suit was tossed, however, and McLaughlin said she thought more cities would follow Richmond’s lead once the plan was executed.

Whether it ever will be, however, remains to be seen.

Gregory Garrabrants, president and CEO, BofI Federal Bank Gregory Garrabrants has led BofI Federal Bank since 2007. In that time, the bank has become a power player in the wholesale market, recently expanding its lending finance division for industrial and commercial lending. Under Garrabrant’s leadership, the bank has consistently ranked as one of the strongest-performing financial institutions in the country. BofI even teamed up with Costco, the warehouse department store, to offer mortgages to its customers, and was recently named the best of the store’s 10 providers. The company has proved that internet-based banking can be a success, posting record income in the third and fourth quarters of fiscal 2013.

David Stevens, president and CEO, MBA A former commissioner of the FHA, David Stevens took the reins at the Mortgage Bankers Association (MBA) in 2011. Stevens has been a vocal critic of the new mortgage regulations as well as the “endless barrage of legal actions” that he says threaten the industry and borrowers’ access to credit.

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SPECIAL REPORT / HOT 100

Tim Roach, VP, Trident Mortgage Company

Marc Demetriou, branch manager, Residential Home Funding Marc Demetriou co-hosts a weekly radio show that covers trends in real estate, the mortgage market and other financial topics. He can also close deals; last year, Demetriou closed $76m in residential mortgage loans. He’s been recognized as one of the top originators in New Jersey and among the top 1% in the nation.

Jonathan Logan, founder, Better World Mortgage When Jonathan Logan founded Better World Mortgage in 2006, his business model was a bit different than most—it was to create a “socially responsible” mortgage referral service. Brokers who register with Better World Mortgage pledge to donate 10% of their personal commissions to a charity of the borrower’s choice. With contributions going to charities as diverse as the Red Cross, the Boys and Girls Clubs and the World Wildlife Fund, Better World Mortgage provides help for deserving organizations—and a nice tax write-off for its customers.

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Since joining Trident Mortgage Company in 1993, Tim Roach has financed more than $1.5bn in loans. He’s been among the top 200 mortgage originators in the US since 1999, and the top mortgage consultant in Pennsylvania since 2009. Last year, Roach originated more than $188m in loans.

Allyson Kreycik, senior loan officer, Guaranteed Rate Allyson Kreycik is one of the top originators in the country, but she got there by sticking to oldfashioned customer service, sending postcards and handwritten notes.

Kreycik—who told MPA she “learned the business by being thrown in the fire”—nonetheless keeps her business booming, scoring $164m in originations last year.

Eduardo Perez, president, Equity Loans Since founding Equity Loans in 2008, Eduardo Perez has grown the company from one to more than 30 locations across the country, adding 17 branch locations in 2012 alone. Under Perez’s guidance, Equity Loans was recently named one of the fastest-growing American companies, achieving 655% sales growth over the last three years. Equity has also been recognized as one of the top companies in Georgia.

Peter Bell, president and CEO, NRMLA As president of the National Reverse Mortgage Lenders Association (NRMLA), Peter Bell has been a tireless advocate for the availability of reverse mortgages to seniors, and a staunch supporter of sensible improvements to the reverse mortgage system. Bell pushed Congress this year to pass the Reverse Mortgage Stabilization Act of 2013, which aimed to increase the stability of the reverse mortgage system. After the Act’s passage, the NRMLA worked with the Department of Housing and Urban Development to further refine and improve the program.

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Mitchel H. Kider, chairman and managing partner, Weiner Brodsky Kider PC As a managing partner of the Weiner Brodsky Kider law firm, Mitchel H. Kider is one of the premier attorneys in the country for housing policy matters.

He’s defended clients in more than 100 state and federal class action lawsuits, and represented clients in investigations by the CFPB, the Department of Housing and Urban Development and other regulators. A frequent speaker at industry events, Kider is also the author of six law books pertaining to residential mortgage finance.

Andrew Huszar, senior fellow, Rutgers Business School

Mary Jo White, chair, Securities and Exchange Commission Since President Obama picked Mary Jo White to head the Securities and Exchange Commission (SEC) in January, she’s been tenacious in going after big banks. Under her leadership, the SEC is currently suing Bank of America over its sale of $850m in mortgage-backed securities, and recently wrung a $153.7m settlement from the Royal Bank of Scotland in a similar case. White also wrung an unprecedented admission of wrongdoing from lending titan JPMorgan Chase over the “London Whale” scandal.

Jerry Vigorito, SVP, Atlantic Home Mortgage With more than 30 years in the mortgage industry, Jerry Vigorito is one of the driving forces behind Atlantic Residential Mortgage, consistently ranked the number one mortgage company in Connecticut.

Vigorito is also a driving force behind music and charity in the state; a gifted musician himself, he co-founded Band Together CT, an organization that stages concerts to raise money for state charities. So far, Band Together CT has raised more than $1m for charity, and Vigorito has been honored with the Red Cross Hero Award and was recently named the Fairfield (Conn.) Theatre Company’s Artist of the Year.

Brian Minkow, SVP, Prospect Home Mortgage Brian Minkow is one of the industry’s top closers, with a closing ratio of 96% in 2012. That has added up to some serious numbers in total volume: Minkow closed almost 750 loans last year for a total volume of more than $270m.

Leif Thomsen, founder, owner and CEO, Mortgage Master Leif Thomsen founded Mortgage Master in 1988.

Since then, the company has grown to become one of the largest privately owned lenders in the nation, employing more than 750 mortgage professionals and providing lending services in 22 states. In 2012, Mortgage Master funded nearly 24,000 loans for a total volume of more than $7.3bn.

A former managing director of Morgan Stanley, Andrew Huszar managed the Federal Reserve’s first foray into quantitative easing (QE), a $1.25trn mortgagebacked security purchase program in 2009—10. But Huszar has since had a Saul-onthe -Damascus-road moment, and is now one of QE’s biggest critics, calling the Fed’s current $85bn-per-month bondbuying program “the greatest backdoor Wall Street bailout of all time” in the Wall Street Journal.

Huszar argues that the Fed’s always-on money faucets are allowing Washington to avoid confronting the real crisis: a fundamentally unsound US economy.

DECEMBER 2013 | 33

PROFILE / GREG FROST

THE

BILLION DOLLAR

ORIGINATOR Greg Frost’s college career was set to take him on a completely different path, with a college scholarship and an opportunity with a pro football team laying the groundwork for a life in the sporting spotlight. It wasn’t meant to be, which, as it turns out, wasn’t such a bad thing: dubbed the first billion-dollar ‘mega originator’ in the mortgage business, Greg is ranked as the leading residential lender in New Mexico and is one of the most successful innovators in the industry today.

Sarah Megginson reports MPA: How did your career in the mortgage industry begin?

Greg Frost: I got out of college and had an opportunity to try out for a pro football team. I didn’t make the club, so I came back to Albuquerque and found a job with Savings and Loan Association, a financial institution that took in savings accounts and used that money to generate residential mortgage loans. The president knew me by association with sport and gave me a chance as a management trainee. At the time, he was the only 34 | DECEMBER 2013

male employee, and they had a huge, 75-foot flagpole out the front of the building; it was quite cumbersome and heavy and I still wonder to this day if the main reason he hired me was to pull that flag up and down!

MPA: So it was your sporting reputation and contacts that led to you getting your first job in the industry?

GF: Yes—at that time, it was not a very aggressive industry; it was actually quite passive, and I was an

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athlete. My boss wanted me to fully understand what a bad loan looked like before I began originating new loans, so I started by collecting on delinquent loans. My objective from day one was to accomplish my goal and eliminate them all, so I would come in early, make calls at 6am, then come back to the office late at night to reach people after supper. I was able to reach all of them eventually and persuade them to make up their repayments, so, within six months, I’d eliminated all of the delinquent loans in the company. I worked myself out of a job.

MPA: That’s an impressive result!

GF: Well, by repairing that situation so quickly, I caught the attention of the board. I then began working as a loan officer trainee and, within about 12 months, I was promoted to branch manager. I was in my 20s and kept being promoted, as my approach was very aggressive and stood out. I was noted as being the youngest branch manager in New Mexico, then the youngest assistant vice president and, when I was 28, I was appointed the president and CEO of the Sante Fe branch.

MPA: You went on to start your own mortgage company, where you became the first billiondollar ‘mega originator’. What do you think made you so successful so early on in your career?

GF: I just understood what was important to realtors, and they’re our primary referral source. I applied the Zig Ziglar principle: in his words, “You can have everything you want in life, if you’ll just help as many people as you can, get what they want in life.” I determined that what realtors wanted was someone to be honest and communicative with them, and to be able to meet their closing deadlines. So I managed my business with honesty. I would not take a file that I didn’t think I could close—and I’d explain to them why not, and provide a written action plan of what the client could do to improve their circumstance, in order for me to approve their loan. I went that extra step. As a result, I closed more than 10,000 loans in 15 years, and most of

“I managed my business with honesty.

I would not take a file that I didn’t think I could close —and I’d explain to them why not”

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PROFILE / GREG FROST

MPAMAG.COM

FAST FACTS GREG FROST’S TOP 3 TIPS FOR SUCCESS

1

1. Lead by example “I usually put in about 60 hours a week. I believe in leading by example, so I like my car to be one of the first in the car park in the morning and one of the last to leave.”

2. Communicate clearly, honestly and frequently “You have to understand that loan applicants are very nervous about their ability to qualify for the mortgage. The entire transaction affects several people, several families—including realtors, buyers and seller—and the outcome all depends on your ability to approve finance. That’s a lot of people depending on your professionalism. You need to communicate your process so everyone is at ease and understands what it will take to achieve a successful transaction.”

3. Never miss a closing date—ever “I’m a Catholic and I use the terminology that missing a closing date is a mortal sin.”

Greg’s ranking as a residential mortgage lender in New Mexico

28

The number of years Greg has held the number one ranking

$80m

The value of loans Greg personally wrote as his career was building in 1993

$92,000 The average loan amount he wrote that year

3.3

The average number of loans Greg closed per day to achieve that goal

10,000

The number of loans Greg closed in 10 years

36 | DECEMBER 2013

the loans that contributed to that billion-dollar total were less than $100,000.

MPA: You’ve been in the industry for many years and you’ve seen it evolve significantly. In your view, how is the mortgage market changing now, and what does it mean for brokers?

GF: Mortgages are far more stable than they have been, so I don’t see people refinancing to pull equity out. People who have refinanced over the past five years, when rates were so low, are not going to be willing to refinance their whole loan at a higher rate. So I see the emergence of a very regulated second mortgage industry that will create second mortgage papers that can be easily securitized.

MPA: What other trends do you see emerging over the next five years?

GF: By virtue of the economic collapse that has been attributed to the mortgage industry, we’ve been overregulated and hamstrung by government intervention, and it has swung too far to the conservative side. Statistical analysis is starting to show bureaucrats and politicians that the industry has righted itself so, going forward, I don’t think they will feel the need to proliferate our industry with abusive and restrictive regulations. They

think another two or three forms for the borrower to sign will make the industry better—but the reality is borrowers hardly read them. A dramatic increase of paperwork and processes is not where the problem lies; it lies in the creation of faulty mortgage instruments that undermined credit analysis. It threw credit analysis out the window for a short period, but it was done to us, not by us, in the industry. I see a leveling, and possibly the pendulum swinging towards the liberalization of that.

MPA: Finally, what is the golden rule you live by to keep your business growing and your career moving forward?

GF: Plan your work and work your plan. Time is our most valuable asset, and you need to make good use of it every day. When you make certain you’re doing the things you need to do on a consistent basis— daily, weekly, monthly, quarterly—you will enjoy a successful year.

The beauty of this is you don’t need to be the smartest or the best communicator, or the best looking, or in the best market—all you need to do is consistently work your plan, every single day. If you can make as many minutes as you have in the day count as possible, you will overcome any personal shortcomings you have with your effort.

FEATURE / REVERSE MORTGAGES

101

Reverse mortgages

Reverse mortgages are a widely misunderstood product. But, armed with the right approach and a willingness to educate as well as sell, originators have a lot to gain from tapping into this gap in the baby boomer market 38 | DECEMBER 2013

With housing prices on the rise, interest rates at attractive levels and millions of baby boomers reaching retirement age, the potential market for reverse mortgages is growing—as are opportunities for originators considering entering this unique market segment.

To succeed in the business, however, originators first must understand seniors and their financial needs, and be prepared to educate both seniors and their families regarding complex financial products that are widely misunderstood and much maligned.

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From left to right: NRMLA president and CEO Peter Bell; HUD secretary Shaun Donovan; President Barack Obama.

Education is key, agrees Peter Bell, president and CEO of the National Reverse Mortgage Lenders Association (NRMLA), a Washington, D.C.-based industry group.

“It’s a consultative sell,” Bell says. “You’re not just selling a rate. You have to get to know the person and where a reverse mortgage might fit into their needs.”

THE PRODUCT AND THE MARKET More than 95% of the reverse mortgage loans issued in the United States today are FHA-insured home equity conversion mortgage (HECM) loans.

Homeowners aged 62 or older who have paid off their mortgage, or paid down a substantial amount and are currently living in the home, may participate in the HECM program. Qualified borrowers can withdraw some of the equity in the home and choose how they will receive the funds—in fixed monthly amounts, through a line of credit or a combination of both. HECM proceeds can be used to buy a primary residence if the borrower can use cash on hand to cover the difference between the HECM proceeds and the sales price, plus closing costs for the property being purchased.

When borrowers opt for the line of credit, they typically pay a variable interest rate on the loan.

For those who elect to take a lump sum, a fixed

rate is typical. Most borrowers pay a loan origination fee equal to 2% of the first $200,000 of the home’s value and 1% of the remaining balance—with the total capped at $6,000. They also pay a fee equal to 2% of the home’s value in order to cover initial mortgage insurance premiums. After the loan is issued, borrowers continue to pay taxes and insurance on the

NOT READY, NOT SET, BUT APPROACHING RETIREMENT A recent survey by the Employee Benefit Research Institute found that among US workers aged 55 and older:

60%

43%

36%

have less than $100,000 in retirement savings

have saved less than $25,000

36% have saved less than $10,000

The EBRI figures do not reflect the equity in the survey respondents’ homes.

DECEMBER 2013 | 39

FEATURE / REVERSE MORTGAGES

BABY BOOMERS BY THE NUMBERS Baby boomers comprise 26.1% of the US population. In 2006, the US Census Bureau estimated there were 78 million baby boomers in the United States. That’s more than one-fourth of the population.

Most baby boomers are homeowners. A 2012 study by the National Association of Realtors indicated nearly 80% of Baby Boomers own their own homes, and one out of four owns more than one property.

California is the nation’s number-one home to boomers. Nearly nine million boomers live in California.

The other top five states are Texas (5.6 million); New York (5.1 million); Florida (4.6 million); and Pennsylvania (3.4 million).

Most baby boomers provide financial support to their adult children. The National Center for Policy Analysis found, in 2012, 59% of boomer parents were providing their adult children with financial support.

Sources: U.S. Census Bureau; 55places.com; National Association of Realtors

“When some of the banks left, that created

opportunities” Beth Paterson

property and can remain in the home as long as they want. The loan is repaid when they die or the home is sold.

Applications for HECM loans peaked at 115,000 in 2009 and began declining thereafter as US home values plunged. Last year, the industry made approximately 55,000 reverse mortgage loans, less than half the number made at the peak. The total this year is expected to reach 60,000.

Applications are expected to slow somewhat through early 2014 as the industry adjusts to newly adopted FHA regulations governing HECM loans, but growth will accelerate later in 2014, says Bell.

Factors that support increased demand include rising home values; continued low interest rates, which make borrowing against the equity in one’s home an attractive option; and, perhaps most importantly, the aging of baby boomers.

Not only are millions of baby boomers now reaching retirement age—some 10,000 reach 65 years of age each day—but many are ill-prepared for the costs of retirement.

“The statistics are startling,” says Bell, noting

some 65 million boomers are nearing retirement age, and many have no savings beyond the equity in their homes. That makes the reverse mortgage a particularly compelling product, he believes.

GETTING STARTED Reverse mortgages have little in common with traditional, or ‘forward’, mortgages, but many originators who specialize in reverse mortgages entered the business after working with forward mortgages for several years.

Richard Fitzpatrick, a senior loan officer with American Financial Network in La Quinta, Calif., worked in the home mortgage business for 15 years before making the shift. He then earned a designation as a certified senior adviser in order to gain a better understanding of senior issues.

“Even though I specialize in reverse mortgages, I offer my help in directing clients who may need help on other issues,” he says.

Fitzpatrick choses to focus on reverse mortgages because they are a “great product for seniors who have an opportunity to tap into their nest egg—their home,” he says. “Many people are

TIMELINE: REVERSE MORTGAGES IN THE UNITED STATES 1961

1989

1998

2009

2011

2013

The first known reverse mortgage in the United States is written by Deering Savings & Loan of Portland, Me.

James B. Nutter & Co. of Kansas City issues the first FHA-insured home equity conversion mortgage (HECM) loan.

The HECM program, originally restricted to 50 lenders, is opened to all qualified lenders in the United States.

1988

1995

2008

Annual HECM loan applications peak at 115,000. Regulatory changes allow borrowers to use HECM loan proceeds to buy a primary residence.

Wells Fargo, Bank of America, MetLife and Financial Freedom withdraw from the reverse mortgage market.

The FHA imposes new regulations on HECM loans, seeking to rebuild the fund that insures the loans. Additional regulations go into effect in early 2014.

President Ronald Reagan signs the FHA Reverse Mortgage bill into law.

HUD reports 300 to 400 HECM loans are closing monthly.

US housing market collapses.

40 | DECEMBER 2013

2012 Annual HECM loan numbers decline to approximately 55,000.

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President Barack Obama signs the Reverse Mortgage Stability Act. Attendees, from left to right, include: Assistant Secretary of Housing/FHA Commissioner Carol Galante; Congressman Michael Fitzpatrick; Congressman Denny Heck; President Barack Obama; NRMLA president and CEO Peter Bell; HUD secretary Shaun Donovan.

outliving their retirement savings. The reverse mortgage gives them an option.”

Beth Paterson, a reverse mortgage broker in St. Paul, Minn., entered the business after working for several years with seniors in the life settlement area. “Everybody I talked to said, ‘You should be doing reverse mortgages,’” she says. “Since, it has become a mission and a passion.”

For originators new to the business, Paterson recommends connecting with local groups that focus on senior’s issues and learning about retirement-related financial concerns as well as Alzheimer’s disease, dementia, home care, adult day care, exploitation of the elderly, and other pertinent issues.

Bell recommends originators who want to offer reverse mortgages “specialize in this area, or at least develop a knowledge base about retirement and related financial issues.”

FINDING CLIENTS To identify prospective clients, many brokers rely on lead-generation services, says Morrie Shoob, a

reverse mortgage broker in Dublin, Calif. “It can cost you from $80 to $150 for a lead, last I looked,” he says. “The thing people don’t understand is how many leads you need to purchase in order to get to an actual deal. You can wind up spending $700 per loan.”

Fitzpatrick prefers a “mixed-bag” approach, he says. In addition to staging informational sessions at senior centers and getting acquainted with people at local agencies that serve seniors, originators should get in touch with local accountants and financial planners and educate them on these products and let them know you are the expert in that field.

“You need to work with Realtors and go to their functions,” he explains, adding many realtors are unaware reverse mortgages can be used to obtain cash for the purchase of a primary residence.

George Downey, founder of Braintree, Mass.based Harbor Mortgage Solutions, has been offering reverse mortgages for 12 years. “All of our business over the years has been referred to us by financial professionals, accountants, attorneys,

“This is a product that is much maligned and little understood” George Downey, Harbor Mortgage Solutions

DECEMBER 2013 | 41

FEATURES / REVERSE MORTGAGES

42 | DECEMBER 2013

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IN FOCUS: OPEN MORTGAGE THE OLDEST BOOMERS FINDINGS FROM AN IN-DEPTH STUDY OF US RESIDENTS BORN IN 1946, THE OLDEST BABY BOOMERS, INCLUDE:

Homeownership: Nine out of 10 of the oldest boomers are homeowners, with an average home value of $254,000. Eight per cent are ‘upside down’, owing more than the current value of the home.

Retired: 52% of the earliest boomers are fully retired, up from 19% in 2007.

Deferring retirement: 30% expect to retire later than they had planned.

Working: 21% are working full time.

Working part time: 12% are retired but working part-time or seasonally.

Source: “The MetLife Report on The Oldest Boomers,” May 2013.

private bankers, wealth managers, people like that,” he said. “We are mortgage consultants to these folks.”

Downey typically meets with clients one-onone, assesses their financial situation and, if appropriate, provides educational information about reverse mortgages.

“The only recommendation we really make is not that they should do it or not nor do it, but that they should learn what this product is about and how it may fit into and enhance their longerterm financial projections and their security,” he says.

Fitzpatrick also meets one-on-one with clients.

If the borrower is elderly, he says, it is essential that the person’s beneficiaries be involved in the discussions.

COMPLEX PRODUCT Education is critical because “this is a product that is much maligned and little understood,” Downey says. “There is considerably more misinformation and disinformation about reverses than there is understanding.”

Part of the problem is reverse mortgages are highly complex.

“The underlying concept of an amount of money that is a percentage of the value of the home being advanced, and then the interest accruing, and the remaining balance [of ] the value being reserved to cover [the] interest that will

When Scott Gordon, a self-described “software engineer who kept starting companies on the side,” founded Open Mortgage 10 years ago, he knew cutting-edge technology would play a key role in the business.

“I can’t help pulling technology into any company I do,” Gordon says. “Technology is never an answer unto itself, but it’s a way to take a business to the next level. Over the history of the company, we’ve developed a software platform we essentially use to run our entire business.”

But even as an advocate of technology—he authored a book titled Social Media for Loan Officers—Gordon also believes in old-fashioned feet-on-the-street marketing.

“I’m a big proponent of social media, and I want (loan officers) to do it, but you can’t just sit at your desk at home and post stuff on the web and loans will come to you,” he says. “You still, ultimately, have to have a hybrid.”

That’s where Diane Creasy, Open Mortgage’s vice president of marketing, comes in. Creasy and her team created the company’s “marketing specials”— inducements like a $500 lender credit for first-time home buyers and a recent Veterans Day special that offered a similar credit for active-duty or retired members of the military—or their surviving spouses—on Veterans Administration loans.

“What we offer is specific specials we’ve picked to work [as] ‘relationship marketing’,” Creasy says. “We like helping people, and it engages the community and gives us something to talk about with the customers. Scott calls it ‘supercharged old-school networking.’ You’re engaging in the old-school networking, but you’re super-charging it when you talk about it on your social media platforms.”

Open Mortgage also uses that combination of high technology and old-school business sense to help the 150 loan officers at its 90 branches weather changes in the industry. Relentless training and the introduction of new marketing tools meant Open Mortgage’s loan officers were ready for both the fizzling of the refinance boom and changes in the reverse mortgage space.

“We started about a year ago working really hard to work all of our LOs in our branches off the refi model, because we knew rates were going to rise,” Creasy says. “We started teaching our loan officers how to hunt for new business. They had to totally change their business model, and we helped teach them how to hunt with these specials. In the reverse world, the same thing kind of happened.

The reverse programs all changed in October. We were super-proactive in that too. We held seminars, we educated our people, we changed all of our product collateral and, when October hit, we were ready.”

The strategy worked, leading Open Mortgage to become the ninth-largest reverse lender in the country.

“Partly we’ve grown, and partly other parts of the industry have crumbled who were relying on purchased leads and not getting out there to network,” Gordon says. “We’ve seen growth where a lot of other reverse mortgage companies have fallen.”

But Gordon isn’t resting on his laurels—he’s striving to continue improving the company. And a big part of that improvement means giving loan officers better tools to do business. Gordon does that by personally hosting weekly video coaching sessions for Open Mortgage employees.

“He gets on these videos, and he really takes some challenging subjects and gives them a play-by-play coaching session,” Creasy says. “He does it every week—and it has worked.”

“That’s another thing that’s kind of the core of the personality of our company,” Gordon says. “I try to echo that message a lot—continuous improvement. You can’t reinvent yourself overnight, but if you’re always reinventing yourself a little, you can keep getting better.”

DECEMBER 2013 | 43

FEATURE / REVERSE MORTGAGES

accrue is a difficult concept,” says Bell. “Because we give a percentage of value, people think the lender is shortchanging.”

He cited the case of a hypothetical 80-year-old borrower whose home is worth $300,000. Under current rules, the borrower might obtain 60% of the value, or $180,000, through a HECM loan.

“People who don’t understand the concept say, ‘I’m getting only $180,000 and my house is worth $300,000.’ What they don’t understand is the lender is extending credit not just for the $180,000 but also for the interest that will accrue on it over the life of the loan.”

“You’re not just selling a rate. You have to get to know the person and where a reverse mortgage might fit into their needs” Peter Bell, NRMLA

COMPENSATION New FHA rules have reduced the compensation reverse-mortgage originators typically receive but, over the long term, growing demand for loans is likely to drive increased volumes and, with them, increased incomes.

Brokers typically are paid based on the origination fees, capped at $6,000. In many cases, they receive additional compensation from lenders and/or the secondary market.

For loan officers, compensation is similar to that paid for forward mortgages, says Fitzpatrick, noting every lender has its own compensation structure.

As federal regulations governing HECM loans change, however, compensation is changing.

“It’s up in the air how brokers will be paid in 2014,” says Bell. “My guess is, initially there may be some diminished premiums paid by the secondary market until they get comfortable with the changes taking place. Once the secondary market gets more familiar with the changes, the premiums will return.”

44 | DECEMBER 2013

BROKERS FILLING THE VACUUM In 2011, with housing values declining and the regulatory climate changing, Wells Fargo, Bank of America, and Financial Freedom pulled out of the reverse mortgage business. Combined, the three lenders had accounted for nearly half of all reverse mortgage originations in the United States.

Financial Freedom’s loans were made largely through the wholesale channel, but most Wells Fargo and Bank of America originations were done through the retail channel.

“When some of the banks left, that created opportunities,” says Beth Paterson, a broker based in St. Paul, Minn. “People went looking for others who offer reverse mortgages, and that opened up opportunities for brokers.”

Paterson’s firm had a good year in 2012 and has fared even better in 2013, she says. “I’m optimistic about 2014.”

CHANGING PERCEPTIONS Paterson, Downey, Fitzpatrick and Bell are feeling upbeat about the future of the HECM program.

One reason is perceptions of reverse mortgages are changing, Paterson says. Historically, they were viewed as a “loan of last resort for people who were cash poor and house rich,” she says.

But that is changing. A research report recently published in the Journal of Financial Planning recommended seniors use a reverse mortgage line of credit to cover financial needs during a major market decline rather than selling stocks.

“That opens up a whole different marketplace than has been there before,” says Downey. “I think the future is bright.”

It is critical originators help aging baby boomers understand a HECM loan should be viewed as part of an overall financial plan and not as a loan of last resort, says Bell.

“That’s the challenge with the retiring boomers—getting them to take a forward-thinking approach and to develop a plan that recognizes that type of thinking.”

To promote better understanding, members of NRMLA are planning to launch a nationwide education campaign.

“The overall goal is to move us from the 60,000 loans a year to 300,000 loans by 2016,” says Bell.

He’s optimistic about reaching that goal.

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TOP 10 BABY BOOMER CITIES R Rank

Number of Boomers

% of city population

Portland, ME

10

Rochester, NY Youngstown, PA

3

8

2 Canton-Massillon, Ohio

Santa Rosa, CA

7

5

9 6

1

Pittsburgh, PA York-Hanover, PA

Charleston, WV

Kingsport-Bristol, TN

4 Palm Bay, FL

Portland, ME

1

6

154,375

29%

Santa Rosa, CA

2

138,980

29.4%

Youngstown, PA

3

163,965

29.1%

Palm Bay, FL

4

155,219

28.9%

Charleston, WV

Kingsport-Bristol, TN

Canton-Massillon, OH

York-Hanover, PA

87,978

87,395

117,453

122,714

28.9%

7

28.9%

8

28.8%

9

28.6%

Pittsburgh, PA

5

681,248

28.9% Rochester, NY

10

294,196

28.4%

DECEMBER 2013 | 45

PROFILE / JOE CALTABIANO

CHARGING

AHEAD

Ever since a chance meeting at a basketball game led him to the mortgage business, leukemia survivor Joe Caltabiano has pushed himself to excel. Now one of the country’s top 10 originators, he attributes his success to a love of the work, a network of great contacts, and old-fashioned elbow grease. Ryan Smith reports

Joe Caltabiano, senior vice president of mortgage lending at Guaranteed Rate, entered the mortgage industry in May 2001 and joined the Guaranteed Rate team in 2003. Caltabiano has closed over $100m in loans every year since 2004, and in 2012 funded more than $300m in loans. That placed him among the top 10 originators in the country and landed him the number one spot in Illinois for the second year in a row.

MPA: What’s your background?

Joe Caltabiano: I grew up in Syracuse, New York, went to college in Tampa at the University of South Florida, then moved out to Chicago in 2000—worked at the Mercantile Exchange for a little while.

MPA: What led you to enter the mortgage industry?

JC: I met some guys at a basketball game that kind of recruited me into it. I was a suite attendant at the basketball game, and they just kept telling me how great the business was. It was a bunch of young guys in the suite, and they kind of sold me on it. So I went and checked it out, and it was just awesome.

I came from a trading background … and it was kind of the new trading floor; it had a boiler-room kind of feel.

MPA: How does it feel to be at the top of the game in your industry?

JC: I live for it. I’m not number one [in the nation] yet, so there’s still more to do and more to grow.

It’s a cyclical business, so we’re obviously relatively 46 | DECEMBER 2013

MPAMAG.COM

refinance heavy, but my passion has always been big developments. It’s good to see the real estate industry growing, because that motivates me to refocus on the new business.

MPA: How important are relationships in this industry?

JC: Certainly with real estate agents, developers, it’s of paramount importance. There’s nothing more important than being able to build those relationships and grow with those relationships.

When someone refers you, they’re putting their name on the line, so you want to live up to that.

Without a referral network, it just doesn’t work. It’s much more fun running your business by referrals rather than reinventing yourself every season through marketing. It’s very hard to drum up the same business that one past client can do for you.

MPA: How do you maintain those relationships?

JC: First is working with people you like, so making a call to them isn’t a business call – it’s checking up on a buddy. Making sure you’re working with the right people is really important to me. I’ve been really fortunate to work with a lot of friends that I didn’t have before. I went out of my way to find people I would like working with, and it seems to have worked for me. Next is networking with people you like. If you find someone you like, ask them if they know anyone of like mind.

MPA: What is it about the mortgage industry that keeps you interested?

JC: It’s always changing. Obviously we’ve had an incredible reinvention in the business as far as different loan products that have come and gone and the introduction of more fact-checking. The business is very cyclical – to watch the boom-bustreboom of the industry is something that definitely drives me. And I like being able to provide a service for a client. It sounds so clichéd, but I really like being able to put someone in a new home. It’s a great feeling, especially if it’s a first-time home buyer.

MPA: What do you do with your off time?

JC: I’m a pretty avid tennis player. I have a boat in Lake Michigan. I have a wife and two young kids, so that’s a lot of fun. And I ski in the winter.

I’m also really involved with some charities.

I do a lot of stuff with St. Jude [Children’s Research Hospital] and the Leukemia and Lymphoma Society.

SECRETS TO SUCCESS 1. Be passionate and love what you do.

2. Thirst for knowledge in the industry.

3. Work with like-minded partners in referral areas such as real estate.

4. Deliver the service you would expect others to deliver to you.

5. Don’t leave any stone unturned, and always ask for business.

I’m actually a leukemia survivor from when I was seven, so I’m very passionate about that. And I’m also the co-chair of the Guaranteed Rate Foundation, which is an internal foundation to help employees who are going through tough times.

MPA: What advice would you give to originators who want to rack up your kind of numbers?

JC: You can’t be afraid of working hard. That’s number one: hard work. I’m the last guy to leave the office most nights. So if you genuinely want that, it does come with dedication.

The other thing is be consistent. Price loans consistently – don’t try to make more off the less educated. The little old lady off the street always gets the same price the high-powered attorney got.

And try to provide a service for people and mean it.

It’s not about a paycheck; the paycheck will come.

Also, know your business inside and out. I know as much as most underwriters in this business, and that helps me close deals, because when someone asks a question I’m not scrambling for the answer.

“When someone refers you, they’re putting their name on the line, so you want to live up to that”

MPA: What’s the biggest challenge you think faces the industry today?

JC: We’ve had a lot of low-hanging fruit with refinances, where everyone could save money. Now it’s kind of a matter of putting your sales hat back on and going out and building relationships. And it’s going to be hard for some people. Some people are going to see their business cut by 50%.

The cream will rise to the top and it’s going to be good for the best of the best, but you’re going to have to work hard.

DECEMBER 2013 | 47

FEATURE / HARD MONEY LENDING

HARD MO

LENDIN

IS BACK

The demand for privately funded loans is rising, and the supply of capital is on the up. What does this mean for originators?

Glen Weinberg drove a total of 40,000 miles last year, traveling throughout Colorado to evaluate potential deals for Fairview Lending, a private money lender based in the foothills west of Denver. Weinberg has been driving hard this year as well, meeting with borrowers and brokers and looking at investment properties from the high country to the Plains.

“Business is good,” he says. “We are going to have a good year this year, and I think 2014 looks to be promising as well. There are a lot of factors working in our favor.”

After sustaining major losses in the recession, hard money lenders are back. They are seeing increased demand for loans, largely because heightened federal regulatory oversight is making it difficult for commercial banks to approve many of the real estate loans the market needs. Private lenders are filling the gap. In addition, the supply of capital available to private lenders is on the rise.

48 | DECEMBER 2013

“I see the next five years as probably being the biggest boom years our industry has seen,” says Leonard ‘Pitbull’ Rosen, who stages conferences for the private lending industry and operates a consulting business in San Diego. He estimates private lending in the United States rose 12-14% in both 2010 and 2011, before stabilizing at $500bn a year in 2012.

SIGNS OF RECOVERY During the recession and the immediate aftermath, hard money lenders across the United States sustained heavy losses.

“A lot of private lenders got hammered like everybody else did during the market meltdown, because they were lending against assets that suddenly declined in value,” says Larry Muck, chairman of the Association of American Private Lenders (AAPL). “They had to work through that just as the banking industry did, but they had no

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ONEY

NG

governmental support to do it. Since, we have seen a lot of recovery in this space.”

One sign of the recovery is that commercial banks, which two or three years ago weren’t providing financing to private lenders, are now doing so. “There are multiple banks interested in doing that today,” Muck says.

Perhaps the most important driver of the recovery has been the wave of foreclosed properties coming onto the market since the recession. When banks sell such properties to investors, private money lenders often provide the necessary financing.

The borrower typically buys the property—in some cases, an entire neighborhood of foreclosed properties— on a short-term note and then rehabilitates the property before selling at a profit. Most private money lenders expect to be repaid within a year. Interest rates and origination fees vary from state to state, as the industry is regulated at the state, not the federal, level.

“Anecdotally, what I hear is that in California the market is 10% plus two points,” says Muck.

“I’ve been told by a lender in Minneapolis the market there is 18% and 10 points. I’m in Kansas City, where it’s around 12% and four points. But it depends on the deal, who is doing the origination and why.”

Although interest rates are comparatively high, private lenders don’t require the same DECEMBER 2013 | 49

FEATURE / HARD MONEY LENDING

“We are going to have a good year this year, and I think 2014 looks to be promising as well” Glen Weinberg, Fairview Lending

degree of documentation commercial lenders require. Turnaround times are faster as well, says Rosen.

“For all practical purposes, the banks are out of the game, and private lending is now the go-to product—not for everyone, but for a large portion of the real estate economy,” he says. His company, Pitbull Conference, has done studies on real estate financing nationwide and has determined that private lenders accounted for approximately $500bn in real-estate financing in 2012 in the United States.

Rosen estimates private lending will again total $500bn this year and likely remain at that level in 2014. “I would say the dollar amount will stay the same, but the volume will increase,” he says, explaining that reflects increased lending for so-called rehabs versus small-balance commercial transactions.

EXPANDING RENTAL POOL Although the wave of foreclosures and rehabs has played a critical role in the recovery of private lending, Muck says the growth of the rental market also has been important. Younger people, many of whom are saddled with student loan debt, increasingly opt to rent rather than buy homes.

“As the rental pool expands, we see more opportunities for people to buy investor-owned properties—single-family residences, duplexes and apartments,” says Muck.

FIVE TIPS: CLOSE MORE HARD MONEY DEALS Have you wondered why some brokers close more deals than others? Over the years, Glen Weinberg, chief operating officer of Colorado-based Fairview Lending, has worked with a number of brokers who close unusually large volumes of transactions.

Weinberg has studied what sets these stars apart and has developed five tips that can help you close more deals as well.

“Working with lenders is like the dating game,” he says. “First impressions count, and there are a number of steps brokers can take in order to make themselves better partners.”

1. Get organized: Before picking up the phone, make sure you understand the transaction fully and can explain it in simple terms, covering the property type, how much the borrower needs, and the objective of the financing. As in the dating game, this is the first impression. If the lender is turned off by the broker’s lack of knowledge, the date will end quickly.

Professionalism is key in the courtship phase of the relationship.

2. Know the details inside and out: If the lender’s interest is piqued, you’ll be asked for more detailed information. Make sure you’re ready to provide it immediately and in a clear format, demonstrating you’re in control of the transaction and the borrower is serious. The initial items most private lenders will ask for include:

50 | DECEMBER 2013

Hard money lending tends to be concentrated in population centers along the Eastern Seaboard and in California, Texas, Arizona and Nevada.

“There is not a lot of private lending going on in smaller markets or the Midwest,” says Rosen, explaining it is more prevalent in states that have a transient population.

Address and property description Current debt on the property Objective of the loan (rate and term, cash out, etc.)

Credit Current leases on the property Other pertinent information On commercial properties, you’ll need to provide rent rolls, operating statements, environmental reports and more.

3. Provide full disclosure: Lenders hate surprises. Be upfront and honest about all aspects of the transaction. Sooner or later, the lender will find out if important information has been withheld; for example, information about a tax lien on the property or the borrower, or about a dispute with a tenant. Err on the side of caution and let the lender know of any possible issues. If items are disclosed upfront, they probably can be taken care of prior to or at closing.

4. Do not shop the deal all over: Weinberg frequently is copied on emails that have been sent to 20 other lenders as well. These emails go straight to the trash bin.

5. Execute: Lenders need your help in ensuring transactions close smoothly. Originators are the interface with the borrower and need to ensure items are taken care of promptly by the borrower.

MPAMAG.COM

IN FOCUS: PB FINANCIAL GROUP POUYAN BROUKHIM FOUNDED PB FINANCIAL GROUP IN 2006 AS A SMALL BROKERAGE. TODAY, HE’S ONE OF CALIFORNIA’S TOP HARD MONEY LENDERS, FUNDING $75,000,000 IN RESIDENTIAL AND COMMERCIAL LOANS LAST YEAR.

Q: What’s your company’s background?

We opened in 2006. We’ve been a strict hard money lender. We lend on residential, commercial, multi-unit apartment and mixed use property throughout the state of California.

Q. Who do you loan to? Do you have what you would call a typical borrower?

Our typical borrowers are investors, purchasers and rehabbers. We do some owner-occupier financing. We lend to a lot of people who don’t do conventional financing who want to better themselves. A lot of people were hit hard by the slowdown of 2008-2009, and they’re starting out again. We help a lot of those people out. And they proceed, and try to rebuild their lives, taking advantage of the improved market.

Q. What’s your typical loan size?

We can accommodate all sorts of loan transactions.

We’re comfortable going up to about $2 million, but we’ve done bigger loans, depending on the various factors in the transaction. And that’s on residential, commercial—all sorts of types of property.

Also contributing to growth are the flexibility and speed with which private lenders operate, says Weinberg.

“A bank takes an average of four to eight weeks to close a transaction,” he says. “They are really looking for A-paper transactions that fit a vanilla box. If a transaction doesn’t fit their model, they can’t close it. They can’t think outside the box and they don’t have flexibility for a lot of reasons.

“We can accommodate various situations that a bank cannot, whether it’s someone who has credit impairment, hasn’t filed taxes, hasn’t disclosed all

Q. What kind of properties do you lend on? Any particular favorites?

Our focus is on residential apartment buildings and income-producing properties in first and second position.

Q. What’s your relationship with the brokers you partner with?

We protect mortgage brokers. They’re our lifeline.

Their experience and client base is very valuable to us.

We want to make them look good to the client so they can use us for future transactions—when they need a quick closing or they have other scenarios that fit our programs.

Q. What do you see as the biggest challenge facing the industry right now?

In the industry, there’s a lot of pretenders—a lot of people trying to get into the business of private money and bridge loans. They’re random brokers that come along. There are very few lenders that have been there a long time and have a reputation. There are a lot of bait-and-switchers, and it can be very difficult to tell who’s legitimate. Our whole thing is to work honestly with all our borrowers and brokers.

When we can do a loan, we give a commitment usually within four to 24 hours. When we can’t do a transaction, we’re honest with our borrowers and brokers. We don’t want to waste their time or anybody else’s time.

Q. Where do you see the industry headed over the next year? Are you worried about the new regulatory structure?

We’ve already made those accommodations. We don’t do primary residences, which were very affected (by the upcoming regulations). The only thing in the market that affects us is the increased values—we’ve been doing a lot more refinances over the past six months to a year than before.

their income, or needs some cash out. Not only can we close those deals, but typically we can close them in under a week.”

Fairview Lending currently is working with a client in Georgia who owns $3m in property—free and clear—and wants to borrow $500,000 in order to close a transaction involving some single-family homes. But the borrower can’t produce current financial statements, which has led commercial lenders to reject the loan request. “That’s crazy,” says Weinberg. “We’re going to close that [loan].”

Weinberg’s company lends not only on rehabs,

“I see the next five years as probably being the biggest boom years our industry has seen” Leonard ‘Pitbull’ Rosen, Pitbull Conference DECEMBER 2013 | 51

FEATURE / HARD MONEY LENDING

SELF-FUNDED IRAS: A GROWING SOURCE OF PRIVATE FUNDING

Glen Weinberg, who drove 40,000 miles last year to evaluate potential deals for Fairview Lending

but on a wide range of real estate deals, he says, adding in many markets, the wave of foreclosures has died down.

“If you are focused on one sector—for example, just on rehab loans—I think next year will be tough for you,” he says. “Diversification has always been important to us.”

OPPORTUNITIES FOR ORIGINATORS As opportunities for hard-money lenders grow, so do opportunities for originators.

“A lot of private lenders got hammered like everybody else did during the market meltdown” Larry Muck, AAPL “The origination points are higher,” says Rosen.

“The demand is there. The lenders are willing to invest and deploy capital. I think the biggest thing is educating yourself in terms of how the private lending business is functioning in your community.

Is it functioning there at all? If there is no private lending going on in your community, perhaps there is an opportunity to serve a market that is not being served fully.”

Weinberg also says originators can make a good living through privately-funded transactions, but 52 | DECEMBER 2013

The growth of self-directed individual retirement accounts (IRAs) is contributing to the increased supply of capital available to private lenders, says Larry Muck, chairman of the American Association of Private Lenders (AAPL).

“There is substantial money in self-directed IRAs in this country, and investors are all looking for ways to develop a more balanced portfolio,” says Muck. Many are now engaging in private money lending, also referred to as hard money lending, to accomplish that goal.

US investors held some $4.7trn in IRAs in 2011, according to the Investment Company Institute, and approximately 2% of that, or $94bn, was invested in self-directed IRAs. A self-directed IRA is held by a trustee or custodian who allows investment in a wider range of assets than is allowed by custodians of traditional IRAs. Most custodians are banks or broker-dealers that, for traditional IRAs, allow investment in approved stocks, bonds, mutual funds and CDs. For self-directed IRAs, custodians may allow investment in other kinds of assets, including real estate.

he added it’s “very tough for a mortgage broker to make a consistent income focusing only on hard money.

“I recommend brokers have a private-lending tool in their toolkit, but they have to have other tools as well. You have to be able to provide a whole suite of services. You need to be able to do a hard money loan if the transaction goes this way, an SBA loan if it goes that way, or a conventional mortgage if it goes another way.

You have to diversify.”

Focusing solely on origination fees as a source of income is a mistake as well, says Rosen. “If you are going into the business with the idea of making only origination fees, you are basically hustling business and not building a business,” he says.

“At the end of the month or year, if you are just going from deal to deal, you haven’t built a business. But if you participate in the back end of the loan—the management fees, service fees and the arbitrage spread—you are essentially creating an annuity for yourself.”

Originators who can amass the capital to create their own real estate funds can build a business and accomplish those objectives, he says.

HARD MONEY / LENDER DIRECTORY

COMPANY

Minimum loan

Maximum loan

Interest rate

Origination fees

Web Address

Telephone Number

$750k

varies depending on transaction

varies depending on transaction

www.fairviewlending.com

866-634-1270

$20k

$5m

9.99%

transaction

www.floridahardmoney411.com

813-516-5210

$50k

$750k

www.texas-hardmoney.com

210-979-6683

www.wnfunding.com

1-877-752-5601

www.1stbridge.com

201-794-0018

States Served

Maximum LTV

CO, GA, IL, TN

60%

AHL Hard Money

FL

50%

GCMAC

TX

50%

Wooden Nickel Funding

Most states

50%

$30k

$3m

1st Bridge

NJ, NY

50%

$50k

$500k

Adams Financial Services

CA

50%

From 16%

www.adamsfinancial.net

Singer Financial Corp

PA, NJ, DE

50%

MassPrivateLending.com

MA, NH, RI

50%

$75k

12-16%

MMG Capital

Nationwide

50%

$250k

$5m

www.mmgcap.com

310-295-1121

LFS Home Loans

NC

50%

$100k

$1.5m

www.lfshomeloans.com

919-462-8810

Oregon Land Mortgage

OR

50%

First Mount Vernon

Most states

50%

$100k

$1.5m

Metro Mortgage Investments LLC

MI

50%

JG Funding

NJ, NY

55%

$100k

$1m+

Logan Investments

CA

55%

$3m

12-18%

2-6%

www.singerfinancial.com

215-893-9722

www.massprivatelending.com

617-857-7050

www.oregonlandmortgage.com 18%

4% www.metro-mi.com

10.95%

3%

800-922-4422 703-823-6800 248-547-3006

www.jgfunding.com

718-502-6012

www.loganinvestments.com

818-755-0880

Colorado Hard Money

CO

60%

$750k

www.cohardmoney.com

303-459-6061

Urban Coyote Funding

TX

60%

$25K

No max

www.texasrehabloan.com

866-489-5363

Good Funds Lending Inc.

CO

60%

$80k

$1.5m

1.25%

www.goodfundslending.com

303-500-3288

PB Financial Group Corp.

CA

60%

$50k

$2m

9.5-12%

www.pbfinancialgrp.com

323-935-5555

All California Lending

CA

60%

9-12.5%

www.loansforcaliforniahomes.com

877-462-3422

Private Mortgage Financing Partners

50

60%

Revita Lending

MD, VA, WA

60%

AFC Hard Money

FL

60%

Allcity Finance

Most states

60%

Creative Finance and Investments

Most states

60%

Pinnacle Hard Money

Most states

60%

$100k

$10m

8-14% 9.5-13%

$100k

$25K

$2m

1%

9-16%

$1m

14.99%

$10m

19-28%

0%

10-14% 6-12%

Rockland Hard Money

CA

60%

$100k

$10m

Union Commercial Loans

CA, HI, NV

60%

$20k

$3m

Greenview Lending Corporation

CA

60%

$20k

$1m

12%.

Lone Oak Fund LLC

CA

60%

$250k

$18m

7.9–9.9%

1-2.5%

Better Loans & Realty

CA

60%

$50k

$50m

8.5-12.%

2-4%

Performance Capital

AR

60%

$25K

$1m

11–13%

Great Central Mortgage Acceptance Co., LTD

TX

60%

$40k

$750k

Island View Private Loan Fund

Most states

60%

BuyNowHardMoney

MA, NH

60%

$1m

13-18% 11-15%

Oligin Limited Partnership

Most states

60%

Porter Bridge Loan Company

Most states

60%

$150k

$1.5m

Worth Capital Funding

Most states

60%

$200k

The Norris Group

CA

62%

$200k

Avatar Financial Group

Most states

65%

$1m

$20m

A & A Funding Corp

CA, FL

65%

Bluewater Funding

DC, MD, VA

65%

$250k

$25m

Rehab Financial Group LP

Most states

65%

$75k

$500k

13.9–15.9%

Seattle Funding Group

CA

65%

$6m

7.99-9.99%

MDN Capital Consulting LLC

TX

65%

Secured Investment Lending

FL

65%

Peachstone Capital

GA

65%

$30k

Christiansen Capital

CA

65%

$40k

Stonecrest Financial

CA

65%

Windvest Corporation

CA

65%

54 | DECEMBER 2013

2-4%

www.pmfpartners.com

832-577-8838

www.revitalending.com

202-595-5472

www.afchardmoney.com

866-444-4944

www.allcityservices.com

781-233-4850

www.creative-finance.com

406-721-1444

www.pinnaclehardmoney.com

208-918-0838

www.rocklandhardmoney.com

800-572-4080

www.unioncommercialloans.com

800-400-0011

www.greenviewlending.com

562-789-1000

www.loneoakfund.com

310-826-2888 ex 16

www.performancecap.com

602-489-5080

www.texas-hardmoney.com

210-979-0989

818-952-2750

www.ivplfund.com

253-468-3569

www.buynowhardmoney.com

800-418-0081

www.oliginlp.com

954-815-1104

www.porterbridgeloan.com

205-397-4068

$1m

www.worthcf.com

770-881-8300

$1m

www.thenorrisgroup.com

951-780-5856

www.avatarfinancial.com

206-728-5900

11.875 -14%

www.aafundcorp.com

602-494-8980

14%

www.bluewaterfundingllc.com

301-656-0609

www.rehabfinancial.com

877-643-9066

13-15%

9.99–12.99%

3-5%

29%

3-6%

15%

5%

www.sfgfunds.com

425-455-1733

www.mdncap.com

214-563-7879

www.securedinvestmentlending.com

352-678-7464

www.peachstonecapital.com

404-421-5578

$10m

www.christiansencapital.com

800-760-8680

$100k

$5m

www.stonecrestfinancial.net

408-557-0700

$75k

$500k

www.windvestcorp.com

877-285-0777 ex 204

MPAMAG.COM

COMPANY

States Served

Maximum LTV

Minimum loan

Maximum loan

Interest rate

Origination fees

Web Address

$20k

$3m

14-16%

5-8%

www.pacesfunding.com

404-814-1644

www.glmiinc.com

800-455-6058 770-354-1899

Telephone Number

Paces Funding

GA

65%

GLM & Investments

CA

65%

Atlanta Private Lending

GA

65%

15%

www.rehabatl.com

Hard Money Atlanta

GA

65%

13-15%

www.hardmoneyatlanta.com

777-354-1988

Delta 8 Capital

OK, TX

65%

$100k

www.delta8capital.com

469-233-0450

www.galaresources.com

212-302-8840

$2.5m

14-17%

3-5%

13%

3%

Gala Resources

Most states

65%

$100k

Coastline Capital & Investments, Inc

CA

65%

$50k

$5m

11-12%

www.1stcalhardmoney.com

619-318-0710

Olympia Financial

CA, NV, OR

65%

$100k

$15m

9–14%

www.olympiafin.com

818-885-8585

Thor Financial

CA

65%

$50k

$1m

9%+

2–4%

www.thorfinancial.com

Capital Assets Financial Services

UT

65%

$40k

$10m

12-16%

3-6%

www.capitalassetsfinancial.net

801-269-9988

Kennedy Funding

CA

65%.

$1m

$50m

9%

www.kennedyfunding.com

800-342-8500

Cushman Rexrode Capital Corp

CA

65%

$100k

$4m

10.5-12%

www.cushrex.com

510-463-0200

Greenpoint Equity

CA

65%

$50k

www.greenpointequity.com

818-384-9072

Trustar Funding

OH

65%

Funding Edge

TX

65%

$50k

$2m

2-5%

10-12% 15%

6%

www.trustarfunding.com

216-531-5310

www.fundingedge.com

830-816-5558

www.nofico.net

949-297-4180

Lakeside Financial

CA

65%

$30k

$150k

Avant Capital Partners

CA, CT, FL, NY, TX

65%

$1m

$30m

8-14%

www.avant-capital.com

212-219-9419

Carolina Private Lending

NC

65%

$50k

$500k

14%

www.carolinaprivatelending.com

704-935-2710

CCM Lending

CA, NV

65%

$100k

$3m+

From 9.5%

www.ccmlending.com

858-367-9803

DJ Mortgage

GA

65%

$25K

$3m

14-17%

Equity Max

FL

65%

$2m

12-16%

Equity Wave Lending

CA

65%

$2m+

7.99-11.99%

Fairmont Capital

Most states

65%

Great Oak Capital

Most states

65%

$100k

$1m

www.greatoakcapital.com

610-765-1151

Hard Money Resource Group LLC

KS, MI, MO, OH, TN

65%

$50k

$10m

www.hardmoneyrg.com

801-878-7655

Lima One Capital

GA, NC, SC

65%

4%

www.limaonecapital.com

800-390-4212

Maggio Capital

CA

65%

$25K

$3m

3%

www.maggiocapital.com

855-517-4219

National Commercial Property Loans

Nationwide

65%

$500k

$10m

www.nationalcommercialpropertyloans.com

877-837-6489

Paradigm Capital Group

Most states

65%

$1m

$20m

Puget Sound Investors

WA

65%

Showcase Investments Inc

CA

65%

$30k

$750k

Sovereign Capital

Most states

65%

$500k

$100m

West Forest Capital

NY, NJ, & CT

65%

Hilton Mortgage Corporation

HI, UT

The Madison Group

All states

Head Money Bankers

MD, SC, VA, WA

65%

JMAC Funding

CA

North Shore Funding Co New Hampshire Private Lending

$50k

12-14%

13%

2-6%

2-4%

4%

www.djmortgage.net

404-814-1644

www.equitymax.com

954-267-9103

www.equitywavelending.com

949-252-0025

www.fairmontcap.com

212-710-4000

www.paradigmcf.com

212-661-0858

12%

www.pugetsoundinvestors.com

360-424-3323

10-15.99%

www.showcaseinvest.com

818-952-8600

www.sovereigncap.com

800-320-7138

$50k

http://westforestcapital.com

646-481-2155

65%

$10k

www.hiltonloans.com

602-375-8951

65%

$500k

$50m

www.madisongroupfunding.com

435-785-8350

65%

$30k

$1m

11-16%

Most states

65%

$150k

$15m

11-15%

NH

65%

$35k

$200k

12%.

$500k

$20m

Miner Capital Funding

IL

65%

Ready Mortgage Corp

TX

65%

Cal-Pac Capital Advisors

CA

65%

Direct Money Lenders

Most states

Taylor Made Lending LLC

FL

13.88%

www.hmlender.com

301-570-7961

www.thehardmoneypros.com

619-846-1550

www.northshorefunding.com

516-921-9000

2%

www.privatelendingnh.com

603-384-3046

4-5%

www.minercapitalfunding.com

702-466-8952

4%

www.readymort.com

972-421-1990

www.calpacfunds.com

949-499-7800

$100k

$2m

9.99%

65%

$150k

$20m

8.99-14.99%

www.directmoneylenders.com

317-663-3153

65%

$100k

$10m

10-15%

www.taylormadelendingllc.com

954-561-5061

15% + 1pt

www.hardmoneypgh.com

412-638-9980

www.failla.com

917-294-1506 310-930-1256

2-6%

CCC Holdings

PA

65%

Failla Funding

Most states

65%

$100k

$40m

Hard Money Guys

Most states

65%

$100k

$2m

8.99-12%

www.hard-money-guy.com

Hard Money Loans Lenders

CA

65%

$100k

$100m

3.875-12%

www.hardmoneyloanslenders.com

765-351-5363

Manhattan Bridge Capital

NY

65%

$50k

$1.1m

www.manhattanbridgecapital.com

516-444-3400

Advance America Property and Finance LLC

MD, VA

65%

www.advanceamericallc.com

410-661-8300

AHL Hard Money Lending

Most states

65%

All California Lending

CA

65%

Bronx Hard Money

CT, NY

65%

Oro Financial of California

CA

65%

1.25-1.50%

4-7%

www.hardmoneyloans.com $100k

$100m

www.aboutcaliforniahomeloans.com 14-16%

$5m

13%

4-6%

925-209-5254

www.bronxhardmoney.com

718-514-6365

www.orofinancial.net

800-795-3011

DECEMBER 2013 | 55

HARD MONEY / LENDER DIRECTORY

Minimum loan

Maximum loan

Interest rate

65%

$50k

$500k

14–16%

65%

$200k

$10m

Most states

65%

$80k

$5m

CA

65%

$50k

$2m

Montegra Capital Resources

CO

68%

$200k

$3m

DHLC Investments

CO, TX

70%

$50k

$350k

Pacific Private Money Loans

CA

70%

$50k

$3m

Mountain States Home

CO

70%

$30k $200k

COMPANY

States Served

Maximum LTV

Piedmont Capital Lending LLC

GA

Ruby Gold Funding

Most states

Sterling Investor Capital Herzer Financial Services Inc

CT Capital

FL, OH

70%

Pine Financial Group

CO

70%

Blackburne & Sons

Most states

70%

Wadot Capital

ID, OR, WA

70%.

$100k

Origination fees

8.5-11%

13-14%

12-14%

2-5%

$3m

$2.5m

Telephone Number

www.piedmontcapitallending.com

678-292-1578

www.rubygoldfunding.com

631-845-7200

www.besthardmoneyloans.com

713-784-7676

www.herzer.com

650-363-8003

www.montegra.com

303-377-4181

www.dhlc.net

972-467-6547

www.pacificprivatemoney.com

415-883-2150

www.mountainstateshome.com

303-880-7077

www.ctcapitallending.com

877-335-4438

15%

www.pinefinancialgroup.com

303-835-4445

8.9-10.9%

www.blackburneandsons.com

574-360-2486

10.5-12.9%

www.wadotcapital.com

206-362-4444

Dial Financial

DC, MD, VA

70%.

15%

0%

www.dialfinancial.com

301-770-9478 (fax)

Funding Partners

TX

70%

14%

3%

www.fundingpartners.com

972-840-0600

Red Door Funding

TX

70%

14%

3-5%

www.reddoorfunding.com

832-539-1099

Anchor Loans

CA

70%

9.99-12.99%

www.anchorloans.com

888-412-6246

www.source-capital.com

858-705-6144

www.marquislending.com

915-920-7223

Source Capital

CA

70%

Marquis Lending

TX

70%

Endeavor Capital

MA

70%

$250k

Web Address

$20k

$100k

$2m

8.99-11.99%

$10m

www.endeavor.com

Private Capital Northwest

WA, OR, ID

70%

$50k

$2m

www.privatecapitalnw.com

Commonwealth Equity Funding

Most states

70%

$25K

$25m

www.commonwealthequityfunding.com

617-908-9135

Dalin Financial

PA, NJ, MA

70%

$100k

www.dalinfinancial.com

215-238-9496

Hard Money King

Most states

70%

$30k

$50m

www.hardmoneyking.net

949-235-6860

Mercury Capital

Most states

70%

$500k

$5m

www.mercurycapital.com

212-661-8700

New Frontier Capital

AR, CA, NV

70%

$1m

$30m

10-14%

www.nfcfunding.com

323-272-2143

Noble Mortgage

TX

70%

$50k

$750k

12-15%

www.noblemoney.com

713-680-8100 713-680-1900

12-16% 10-14%

206-512-8400

Seal Funding

TX

70%

$350k

www.sealhomeloans.com

Washington Capital Partners

DC, MD, VA

70%

$25K

$600k

www.washingtoncapitalpartners.com

703-975-7374

White Glass Lending

Most states

70%

$50k

$50m

www.whiteglasslending.com

866-686-5646

California Hard Money Direct

CA

70%

$50k

$5m

www.californiahardmoneydirect.net

800-571-0887

Raymond C. Green Inc.

MA, NH

70%

$100k

$5m

Allied Commercial Funding

CA

70%

$200k

$20m

8-13% 15%

9.75-12%

2.5-4%

3-6%

www.raygreen.com

617-947-8070

www.alliedcommercialfunding.com

800-247-8212

www.hardmoneyusa.com

678-685-1899

www.restorationcapital.com

703-375-9937

Hard Money USA

Nationwide

70%

$15k

No max

Restoration Capital

VA

70%

$25K

$1m

Marquee Funding Group

CA

70%

10-14%

www.marqueefunding.com

818-222-5222

Clear Funds

AZ

70%

18%

www.clearaz.com

480-777-1230

Eastland Mortgage

Nationwide

70%

Austin Private Funding

TX

70%

$200k

$20m

10-15%

www.eastlandmortgage.com

516-364-1500

12-15%

www.austinprivatefunding.com

512-609-8019

Dominion Mortgage Corporation

Most states

70%

$250k

$25m

Capstone Capital Partners

TX

70%

$100k

$3m

8-13%

www.dominfin.com

310-477-3041 ex 134

10-14%

www.capstonemoney.com

W.A.D Capital

All States

70%

$500k

$100m

12-18%

512-751-7717

www.wadcapital.com

212-244-1066

Redwood Mortgage

CA

70%

$100k

$3m

Red Tower Capital Inc.

CA

70%

$50,000

$3m

9-14% 11-14%

CML Lending

CO, TX

70%

$75,000

$500k

Stallion Funding, LLC

TX

70%

$100,000

$5m

Milestone Financial LLC

CA, MT, OR, WA

70%

$30k

$1m

10.25%

DJ Jordan Properties

TX, CA

70%

Approved Financial Corporation

FL

70%

$50k

$500k

Liberty Lending Group

Most states

70%

$500k

$1m

10-18%

McLain Financial

CO

70%

$300k

13.9%

Medici Financial

GA

70%

Red Dirt Lending

CO, MN, OK

70%

Westar Funding Inc

WA, OR, ID

70%

Owens Financial Group

Most states

75%.

56 | DECEMBER 2013

2-4%

11.99%

$40k

3.5%

$250k 14.5%

$250k

$7.5m

11.99-14.99%

$3m

7%

2%

www.redwoodmortgage.com

650-365-5341

www.redtowercapital.com

415-889-6930

www.cmllending.com

303-520-1782

www.stallionfunding.com

512-219-5558

www.milestonelender.com

800-391-0596 ex 1

www.kmaloans.com

855-799-2453

www.approvedfinancial.com

954-384-4557

www.liberty-lending.net

800-587-1502

www.mclainfinancial.com

303-243-2977

www.hardmoneytoday.com

404-622-1120

www.reddirtlending.com

405-512-8626

www.westarfunds.com

425-778-7222

www.owensfinancial.com

925-280-5390

MPAMAG.COM

COMPANY

States Served

Maximum LTV

Minimum loan

Maximum loan

Security National Capital

Most states

75%.

$500k

$5m

W Financial

Most states

Jet Lending, LLC

Interest rate

Origination fees

Web Address

Telephone Number

www.sncloans.com

800-760-3384

75%

8%

1–3%

www.w-financial.com

212-684-2283

TX

75%

16.9%

3-5%

www.jetinvestorlending.com

281-872-7800 970-430-5533

Mikes Hard Money

CO

75%

Hard Money Loans New York

Nationwide

75%

$100k $100m

AESG Capital

NY

75%

$5m

14%

3-4%

www.mikeshardmoney.net

From 11%

2-6%

www.hardmoneyloannyc.com

718-313-0833

1-2%

www.aesgcapital.com

646-820-3142

www.isbcapital.com

281-482-2700

3-10%

www.comresinvestments.com

813-333-2051

www.popularcommercial.com

801-984-8221 949-252-8021 ex 11

ISB Capital

TX

75%

$50k

$2m

ComRes Investments

Most states

75%

$150k

$3m

11% + pts

Popular Commercial Lending Group

Nationwide

75%

$1m

$20m

From 9%

Val-Chris Investments

CA

75%

$50k

$1.5m

www.val-chris.com

75%

$50k

$25m

www.betterthanloans.com

801-260-2062

TX

75%

$10k

$5m

12-18%

www.dohardmoney.com

800-284-0076

Better Than Loans Do Hard Money Blackhawk Funding

NY

75%

$300k

$10m

9-17%

Madison Realty Capital

Most states

75%

$3m

$50m

9%

Presidential Mortgage

Most states

75%

Knighthead Funding, LLC

Most states

75%

$1m

$20m

Specialty Lending Group

MD,DC,VA

75%

$100k

$7.5m

G4 Capital Partners

Most states

75%

$1m

$100m

Saldino Group

NJ, NY,PA

75%

$50k

$5m

Atlantic Financial Services

Most states

75%

$250k

$20m

12%

www.atlanticequity.net

800-313-2410

U.S Funding Solutions

NC

75%

$500k

$15m+

8-14%

www.us-funding-solutions.com

877-655-5625

Wallace Capital

CT, MA, NH, RI

75%

$100k

$20m

12-18%

www.wallace-capital.com

617-423-2003

DFI Funding

CA

75%

$250k

$2.5m

10.5–12.5%

www.dfifunding.com

510-420-8698

Vantex Capital Group

CA

75%

www.vantexmortgage.com

800-926-8002 ex 102

FMC Lending

CA

75%

8.99-11.99%

www.fundmortgagecapital.com

888-297-4440

Alternative Capital Funding

MD, VA, WA

75%

$250k

$25m

5.99%

www.alternativecapitalfund.com

410-863-4707

Dandrew Partners

Most states

75%

$2m

$50m

11-13%

2–3%

www.dandrewpartners.com

646-403-9965

Equity Secured Capital

TX

75%

$100k

$3m

11%

www.equitysecured.com

512-732-8338

Met Mortgage

Most states

75%

$250k

$15m

7.75-16%

www.metmtge.com

201-866-4800

Prescient Capital Management

Most states

75%

$500k

$50m

8-15%

www.pcm-funding.com

888-593-4440

Sterling Pacific

CA

75%

www.sterlpac.com

866-896-3605

$40m 8%

www.hardmoneyfunding.com

888-690-5667

1-3%

www.madisonrealtycapital.com

646-442-4807

1%

www.presmortgage.com

603-436-0037

1-3%

www.silo-financial.com

203-327-3327

www.speclendgroup.com

240-965-2060

12–14%

Negotiable

Negotiable

www.g4capitalpartners.com

516-931-0095

www.saldinogroup.com

973-767-2850

Stonehedge Funding LLC

PA

75%

$10k

$350k

NLDS Corp

Most states

80%

$75k

$25m

www.stonehedgefunding.com www.hardmoneyman.com

516-526-8445

Lending Associates

CA, NV, OR, TX, WA

80%

$100k

$15m

www.lendingassociates.net

858-487-3001

Grace Capital Group

Most states

80%

$2m

$75m

10-13%

www.gracecapitalgroup.com

949-788-0999

Blue Funding

NY

80%

$250m

$5m

11-15%

www.hardmoneyloancommercial.com

646-449-7888

Prime Commercial Lending

All States

80%

$1m

$100m

9-14%

1-4%

www.primecommerciallending.com

866-708-4755

Aries Capital

Most states

80%

$1m

$250m

1%

ariescapital.com

312-640-7423

LNB Commercial Capital

Most states

80%

$100k

$200m

www.lnbcapital.com

856-667-7775

Rushmore Commercial Capital

All states

80%

$1m

$100m

9-14%

1-4%

www.rushmorecommercial.com

605-670-3001

Texas Funding Corporation

TX

80%

$50k

$1m

14-15%

0-4%

www.texasfunding.com

713-932-6600

Zinc Financial

CA, NV

85%

$50k

$450k

www.zincfinancial.net

559-326-2509

North Coast Funding

Nationwide

85%

$400k

$10m

10-14%

www.northcoastfunding.com

516-466-0200

Hard Money Bankers

Most states

90%

$500k

$100m

14.9-18.9%

www.hardmoneybankers.com

800-883-8290

Benchmark Commercial Lending

MO

90%

$500k

$50m

Capital Direct Funding

TX

90%

$250k

$1bn

Hard Equity Financing

Most states

90%

$50k

$50m

$50k

$3.5m

Security National Life

All states

90%

Richmond Mortgage Inc.

VA

90%

4%

281-274-8706

0%

www.hardequityfinancing.com

888-759-3828

www.snlhardmoney.com

801-287-8375

3.5–5%

www.richmondmortgageinc.com

804-240-9314 480-889-7569

10-18% 14%

314-808-6800 www.capitalfundinghardmoney.com

Merchants Mortgage & Trust Corp

AR, CO, NM, UT

90%

10%

www.merchantsmtg.com

Pro Active Commercial Lending Group LLC

TX

90%

11.9-18%

www.proactivelendinggroup.com

210-568-3803

TVM Funding Group

Most states

90%

www.tvmfunding.com

877-442-9839

Parapet Capital Partners, LLC

NY, NT, CT

100%

$100k

Magnolia Financial Consultants

Most states

100%

$100k

$500m

13-15%

3-5%

www.parapetcapital.com

646-845-9292

2%

2-8%

www.hardmoneymortgages.com

601-428-1005

DECEMBER 2013 | 57

HARD MONEY / LENDER DIRECTORY

COMPANY

States Served

Maximum LTV

Minimum loan

Blazevic Funding Group

Most states

100%

Northwest Money Source

OR, WA

100%

LoanSum

MO

100%

Alford Marsh & Associates

Most states

$150k

Gateway Capital Partners

Most states

$1m

Maximum loan

Interest rate

Origination fees

$300k

$25K

$500k

15-18%

$25m

Web Address

Telephone Number

www.blazevicfunding.com

602-476-1854

www.northwestmoneysource.com

503-224-5747

www.loansumstl.com

314-569-5003

www.alfordmarsh.com

803-865-4010

www.gatewaycp.com

801-746-0800

Direct Investors

NV

$25K

$2m

10-12%

wwww.nevadaprivatemoney.com

702-228-0015

Capella Mortgage Corp

NV

$10k

$10m

10.5%

www.hardmoneylasvegas.com

702-214-4700

Financial One Capital

TX

$10k

$20m

8.95-20%

www.dallashardmoneyequityloans.com

214-490-7570

Investors Choice Funding

CO, KS, MO, TX

www.investorschoicefunding.com

303-500-7088 ex 20 808-782-2104

Island Capital Funding

HI

11-15%

www.islandcf.com

Longhorn III Investments

TX, MO, KS, OK

14%

www.longhorninvestments.com

214-420-7330

Peak Financial Partners

CA, NV

$70k

www.peakfp.com

877-450-7325

Regent Park Capital

TX

$100k

$1m

14-16%

www.regentparkcapital.com

512-476-5691

WCLD, LLC

VA, WA

$100k

$750k

12-18%

www.wcldllc.com

703-350-4339

Hard Money Brooklyn

NY

$100k

www.hardmoneybrooklyn.com

718-593-4527

Socotra Capital

CA

$30k

$6m

Dominion Financial Services LLC

GA, ID, MD, VA

$40k

$1m

Investmark Mortgage

TX

Frias Financial

Nationwide

$500k

$150m

11-13%

RMAC Lending LLC

TX, OK, IL

$50k

$300k

13-15%

Streamline Funding

TX

$100k

Hard Money LLC

MN

$50k

Capital Lending Group

MN

Performance Home Loans

CA

Georgia Capital

GA

CMG Capital

FL, CO

Visio Financial Services

Most states

$10m

www.socotracapital.com 12%

5-8%

www.dominionprivatelending.com

410-727-0908

14%

3-4%

www.investmarkmortgage.com

512-699-3649

www.friasfinancial.com

516-279-6129

www.rmaclending.com

405-418-5800

$3m

www.streamlinefunding.com

877-250-8787

$3m

www.hardmoney-llc.com

612-926-1111

9.99-15.99%

www.capitallendinggroup.net

952-926-8880

www.phlwholesale.com

877-999-0799

13-16%

www.georgiacapital.com

404-256-3006

$1m

$10m

$20k

$100k

$75k

$4m

12.5%

$1m

15%

3-5%

20%

310 Equity Lenders

CA

Allison Mortgage

FL, GA

American Savings Life Insurance

NM

Atlanta Capital Funding

GA

Athas Capital Group

Most states

$25K

$5m

Fairfield Financial

Most states

$50k

No max

Rapid Funding

Most states

$1m

BFC Baltimore Financial, LLC

CA

$2m

Capital Benefit Inc.

CA

$25K

CCFG Investments

Most states

$100k

Evoque Lending

CA

Marketplace Capital Group

CA

Bloomfield Capital

Most states

$1m

$15m

JMN Capital

Most states

$50k

$50m

www.cmgcapital.com

305-455-1800

visio.econohomes.com

888-208-9302

www.310equitylenders.com

323-863-6698

www.allisonmortgage.com

11% 5%

www.americansavingslife.com

800-880-2112

www.atlantacapitalfunding.com

404-794-5322

www.athascapital.com

877-877-1477 ex 555

www.privatemoneysource.com

503-476-2909

$30m

www.rapidfunding.com

303-721-1000

$90m

www.baltimore-financial.com

415-883-1593

www.capitalbenefit.com

949-566-9040

www.ccfginvestments.com

858-456-2423

10-15%

9.5-12% $5m

8.99%

$9m

9.99%.

2%

www.evoquelending.com

800-505-821

8.9%

www.mcgwow.com

310-321-6750

www.bloomfieldcapital.com

248-745-1700

16-24%

www.rehardmoneyloans.com

208-918-0838

www.weapproveloans.com

877-353-2233

ACC Mortgage

Most states

Brookview Financial

Most states

$2m

$20m

www.brookviewfinancial.com

877-734-2211

Dirt Lenders

Most states

$100k

$10m

www.dirtlenders.com

801-200-2935

Premier Capital Bancorp

Most states

$50k

$25m

Superior Home Loans

CA

$50k

$1m

www.superiorhomelending.com

510-889-1900

Underwriters Funding Group

Most states

$1m

$10m

www.ufgloans.com

858-442-2137

877-777-1284 9.99–14%

3-5%

Search our whole hard money database online at www.mpamag.com

58 | DECEMBER 2013

SOCIAL / MBA CONVENTION

Mortgage lenders, loan originators and vendors of all stripes gathered in Washington, D.C., in October for the Mortgage Bankers Association’s annual convention. They were also on hand to celebrate the organization’s 100th birthday. MPA was there and captured these folks on camera.

Robert Robinson, EVP and Maureen Davis , EVP, CMA

Mike Bridges, president, Paperclip

60 | DECEMBER 2013

Narayan Bharadwaj, business head, Wipro Gallagher Solutions

Sharon Weatherholt, VP, Freedom Mortgage

Left to right: Jim Orth, EVP and John Cottrell, VP, Retreat Capital. Mikhail Cook, senior director, Core IP

MPAMAG.COM

Randy Schmidt, president, Data-Vision

Joseph Stanganelli, principal, Merchants Capital Management

From left to right: Amit Kothiyal, CEO and Paul Imura, CMO, ISGN

LaTicia White, director of business development, Real Integrated Technology

Nafi Gerber, national sales manager, Training Pro

Sue Keil, MD, McClean Group

Megan Townsend and Steven Schipper, founder & CEO, Lendtrade

Roger Gudobba, chief strategy officer, CSi

DECEMBER 2013 | 61

MPAMAG.COM

LIFESTYLE / DAY IN THE LIFE

Day in the life of...

Mat Ishbia, president, United Wholesale Mortgage and CEO, United Shore Financial 6:30-8:30am: I go into the office at about 6:30.

I don’t schedule any meetings until 8:30, so the first two hours of my day is responding to emails, reports that I get on a nightly basis … understanding what’s going on with the business, along with any management reports that have been presented to me.

8:30am: I try to keep most of my meetings to 30 minutes so I can meet a lot of people. Between 8:30 and 9:30 I’m usually meeting with my directors.

on the situation, I meet with my compliance officer about compliance things, along with any quality control issues that are going on, any issues they see from underwriting, closing or any other group I need to be aware of—then I usually take about a half hour to check in with the people who are actually doing the job to see if they’re seeing the same thing.

I try to check in with as many groups as possible.

10am: I try to make sure I meet with different employees in each department. We call it ‘managing by walking around,’ so a lot of my next couple of hours is walking into the underwriting suite. I find my most productive time as president of United Wholesale is walking around and talking to the people who do the jobs. I’m usually solving problems at that point. I’m meeting one-on-one with the employees. I’m going to talk to management, but also—more importantly—the actual underwrites, the closers, the people who are doing the jobs and communicating with clients.

3:45pm: I usually get back up to my office

12pm: Usually from 12 to 12:30 or 12:45, I’ll have

5:15pm: When I’m walking the floor, there are

lunch. But we have a great cafeteria in our office, so at least three days a week I go down to the cafeteria.

I just pick a person I haven’t talked to in awhile and we talk over lunch.

usually at least two things that come up as potential issues for the day. So from 5:15 to about 6:00 is when I’m either calling or having managers come to my office to discuss it. Change management for us is a very big thing, and we don’t wait long. When we have a problem, we want to solve it that day, not worry about it for six months.

12:45-1:30pm: I’m back checking emails, returning phone messages, finding out what I missed while I was out walking the floor.

for at least a half-hour, checking to see if any issues have come up.

Mat Ishbia

4:15pm: The floor I usually get to at the end of the day is the fourth floor—my secondary marketing and underwriting support. I walk through and talk to them. About 4 o’clock is when we get enough data to see where we are price-wise for that day and get a good indication of pricing, get a good indication of competitive position for the day.

6:00-6:30pm: Seeing if there are any urgent calls 1:30pm: Usually around 1:30 to 2:00, I’m meeting with the head of sales to see how the morning is going, what their projections are for the day. I find out if there’s anything I can do to help them, if I can solve any problems.

2:30pm: Right around midafternoon, I usually make my way to the second floor and, depending 62 | DECEMBER 2013

I’ve got to reply to, or any emails I’ve gotten throughout the day. I try to get out of there around 6:30 or 7:00.

7:00pm: I have a two-and-a-half year old boy and an 11-month-old girl at home, so I try to get home by seven. When I get home [my son] comes right up to me, and that’s the best part of my day.

“I try to make sure I meet with different employees in each department”

LIFESTYLE / FAVORITES

MPAMAG.COM

Favorite things

Corey Dubnoff, president, American Financial Resources (AFR)

Corey Dubnoff, joined the AFR team in 1997. Although he lives and works in Parsippany, N.J., he likes to hit the slopes in Park City, Utah, whenever he can, and his kids can always convince him to make an ice cream run.

Vacation spot: I would have to say that, more recently, my favorite is probably Park City, Utah. My son and I are able to just quickly get away and have a nice little ‘guys weekend’ ski trip up there. Powder’s always great, people are always great, and that’s why we go, just to get away for a couple of days.

Corey Dubnoff

Place to be: My favorite place to be is probably home. Dinner and a fire­—home with my family is my favorite place to be.

Sport: Lacrosse is my favorite sport. I love to watch it, love to play it, love to coach it.

Food: It’s got to be ice cream—all different kinds, too.

I do normally eat health food—I’m fairly healthy—but when my kids say, ‘Hey let’s go out for ice cream,’ it’s, ‘All right, let’s do it.’

Celebrity: Howard Stern is my favorite celebrity.

Drink: I’m going to have to say a really good glass of wine is my favorite drink. A good California cab wins, almost always.

Movie: Probably Braveheart. I love Braveheart. I think the action is great, the storyline is great – it’s somebody that just never gives up on anything for what he truly believes in. That kind of rings a special bell in my body.

Music: My favorite band of all time is Pink Floyd.

Something about the music just grabs my attention every time. I’ve loved it for years.

I find him to be extremely intelligent, and he’s just a great interviewer. He allows people to speak their minds and say things they can’t say on regular media outlets, and I find that refreshing.

Working in the mortgage industry: All the families that we help. On an hourly basis, on a daily basis, on a monthly basis, we help a lot of families into a better situation—whether that’s financial situations or housing situations.

That’s absolutely the best part of this business.

The industry and the regulators lose sight of that every once in a while, but we try not to.

DECEMBER 2013 | 63

SUNNY SIDE / MBA CONVENTION

MPAMAG.COM

THE SUNNY SIDE

What do outhouses, broccoli and houses on wheels have in common?

They’re all part of the lighter side of the mortgage industry.

News flash: Business can get a little dry sometimes. OK. That’s not really news so to try to break up the monotony a bit, Stewart Huntington asked mortgage pros if they had any funny, offbeat or quirky stories to share.

SHOW ME THE MONEY

CLOSING ON WHEELS Just as all of the parties were sitting down at a closing, one loan originator told MPA, an assistant rushed in and said “you’d better come quick.”

When they made it out to the house site they saw the structure had been jacked up on a trailer and was about to be hauled off.

“That would have been pretty complicated if they’d signed all the documents before they found out the house was gone,” she said.

A GREEN APPRAISAL An appraiser in Detroit went out to look at a home that was subject of a pending transaction. When he got there he found the entire lawn in front of the house was planted with broccoli. He checked, but there were no comps (hard to believe) so he didn’t know if he should hike up the valuation or take it down a notch because of the unique landscaping (he marked it down.)

“Nothing is funny in Detroit”

Howard Eisenshtadt, SVP national sales for Title Source quips with MPA (with a wink) 64 | DECEMBER 2013

Consultant Jonathan Jose was taken on a wild ride when closing a deal. “A few days before the closing the client calls and says, ‘Come with us,’ ” he said. “We went for a ride from one side of the county to the other,” stopping at restaurants “collecting money from friends” of the client.

“This was a no doc transaction, which you could do in those days and, when we went to the closing, the attorney had to give all the money to the paralegal in the other room to count,” he said.

“I thought, Oh my God. I’ve never seen this kind of cash transaction before.”

ONLY GETS BETTER David Stroop, Regional VP for Mortgage Information Services, told MPA about his very first time out in the field checking the boundaries on a property.

The parcel hadn’t sold in more than 75 years and some of the reference points were, well, pretty casual.

“There was no pin,” Stroop said. “The calls were to a rock in the creek, an old oak tree and an outhouse.”

When he took a look, sure enough the rock in the creek was gone. The old oak tree? Gone, too. The only thing that had stood the test of time was the outhouse (and no, it wasn’t made of brick—we asked.)

The worst part, said Stroop, was they had “to go and put a pin as close to the outhouse as possible.” I guess your day can only get better from there.

“I don’t know about funny stories. It’s usually heartbreak and tragedy.

You know: Last minute this-isn’tgoing-towork stuff” Nathan Kimes, sales director, Advanced Data