Mortgage Professional America issue 9.02

BRANCH DIRECTORY MPA’S ALL-INCLUSIVE LIST OF BRANCH NETWORKS MPAMAG.COM ISSUE 9.02

$100 MILLION CLUB A LOOK AT SOME OF AMERICA'S MOST PROLIFIC ORIGINATORS

INDUSTRY ICON HOW ONE OF THE NATION’S LARGEST INDEPENDENT MORTGAGE BANKERS WAS BUILT

BRANCH NETWORKS Why joining a branch network might be right for you — and how to pick the right one

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APRIL/MAY 2O15

CONNECT WITH US

CONTENTS 42

Got a story, suggestion or just want to find out some more information? twitter.com/MortgageProUSA www.facebook.com/ MortgageProfessionalAmerica

UPFRONT 06 Statistics

How much money are your customers putting down – and are they in the best areas for first-time buyers?

08 Head to head

FEATURE

THE $100 MILLION CLUB

COVER STORY

26

MPA spotlights some of the nation’s most prolific originators

10 UPFRONT

The Integrated Disclosure rule is on the way. Say hello to longer closings

A WINNING TEAM

Husband-and-wife team Rick and Patty Arvielo made New American Funding one of the nation’s largest independent mortgage bankers – and became advocates for change

22 2

The latest corporate moves and appointments in the mortgage industry

14 Technology update

Google brings its mortgage comparison tool to the U.S.

16 Commercial lending update

18 Branch network update

NEWS ANALYSIS INDUSTRY ICON

12 Industry intelligence

Competitive markets are pushing lenders further out onto the risk curve

BRANCH OPPORTUNITIES

Going it alone can be tough. The advantages offered by joining a branch network might help ease the pain

What’s the biggest challenge facing the industry this year?

Should loan officers be exempt from wage and hour laws?

20 Reverse mortgage update

Borrowers are still confused about reverse mortgages, according to the CFPB

PEOPLE 47 Career path

After starting out in politics, John Noldan got sidetracked by the mortgage industry – and found his calling

48 Favorite things

Michael Gonzales, Open Mortgage

MPAMAG.COM CHECK IT OUT ONLINE

www.mpamag.com

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MPA.indd

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UPFRONT

EDITORIAL

Originators can’t miss this train

I

n this issue of MPA, you’ll read about Rick and Patty Arvielo, the founders of New American Funding. In addition to running one of the nation’s largest independent mortgage bankers, Patty Arvielo has become a leading advocate for Hispanic home ownership – and that’s a train everyone in the industry should be on board.

The Hispanic population represents a huge potential customer base for the mortgage industry. Latinos are currently the fastest-growing group in the U.S. home buying market, according to Freddie Mac. The Hispanic population in the U.S. is currently at 53 million, and that number is expected to shoot up by 126% over the next few decades, reaching a projected 120 million by 2050. And home ownership among Hispanics is rising much faster than total home ownership across all demographics.

“Originators should be making a concerted effort to reach out to Hispanic buyers” In fact, since 2010, Hispanics have accounted for 56% of the total net growth of owner households in the United States. The Hispanic community is also upwardly mobile, with Hispanic women launching new businesses at a rate six times the national average, according to NAHREP. And Hispanics account for 20% of millennials, the next generation of home buyers.

All this means that mortgage originators should be making a concerted effort to reach out to Hispanic buyers in their communities. But so far – in many cases, at least – that’s not happening. Although TD Bank’s 2013 Mortgage Service Index survey showed that Hispanics were more likely to buy a home within the next year than the general population, the same survey showed that Hispanics had a far less satisfying experience when buying their last home. And a Zillow survey recently found that 18% of Hispanics spent three months or more pursuing a home loan, compared to just 12% of non-Hispanic Whites.

Those numbers aren’t acceptable. The mortgage industry needs to do a better job reaching out to Hispanic homebuyers and making the lending process as streamlined as possible.

And there are many ways to do that. The FDIC notes that banks and brokerages have seen success marketing to Hispanics when they’ve partnered with community organizations to provide home ownership education. Hiring bilingual staff members can help bring in customers whose first language isn’t English. And Freddie Mac offers free customizable Spanish-language marketing materials.

Originators who take the time to reach out to the Hispanic community using any of those strategies are going to see financial rewards – and, more importantly, they’re going to help even more customers realize the dream of home ownership.

Those who don’t reach out to this growing customer base – well, they’re going to miss the train.

Ryan Smith, editor

4

www.mpamag.com

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www.mpamag.com APRIL/MAY 2O15 EDITORIAL Editor Ryan Smith Writers Rachel Norvell Justin Darosa Copy Editor Clare Alexander

CONTRIBUTORS Allison Landa Kim Goldstone Geoff Anderson

ART & PRODUCTION Design Manager Daniel Williams Designer Loiza Caguiat

SALES & MARKETING Vice President Cathy Masek National Sales Manager Chris Anderson Marketing and Communications Manager Lisa Narroway

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

Production Manager Alicia Salvati Traffic Manager Kay Valdez

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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 IB magazine can accept no responsibility for loss

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7/29/14 5:06 1/04/2015 9:15:37 AMPM

UPFRONT

STATISTICS

MONEY DOWN Down payments can vary widely depending on location. What are your customers putting down – and are they in the best areas for first-time buyers?

Marin County

$864,500 27.81%

AVERAGE DOWN PAYMENT REMAINS STEADY The weighted average down payment has remained relatively steady over the last decade, hovering between 13 and 16%. It hit an 11-year low in 2009 at 12.9%, but rose steadily to an 11-year high of 15.6% in 2013.

San Francisco

Average down payment (weighted)

$1.09 million 30.01%

20%

CA

19%

% of sales price

18%

Average down payment (weighted)

17% 16%

San Mateo

$825,000 28.46%

15% 14% 13% 12% 11% 10%

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 Source: RealtyTrac

LOW DOWN PAYMENTS BECOMING RARER Low down payments are getting rarer, according to information compiled by RealtyTrac. Last year, 25% of conventional or FHA loans put 3% or less down when purchasing a home – the lowest proportion in more than a decade.

The share of home buyers making low down payments hovered around the low- to mid-30% range in the years leading up to the financial crisis before spiking to 46% in 2009. Since then, it’s fallen every year.

Low down payments typically equated to lower purchase prices as well. In 2014, the average home purchased with a 3% down payment or less cost about $190,000.

Percent of home purchases with down payment of 3% or less

Average sale price

50%

$600,000

40%

$500,000 $400,000

30%

$300,000 20%

$200,000

10% 0%

$100,000 2004 2005 2006 2007 2008 2009 2010

2011

2012

2013

2014

0

0%

<3%

3-5% 5-10% 10-15% 15-20% 20-30% 30-40% 40-50% >50% Source: RealtyTrac

6

www.mpamag.com

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HIGHS AND LOWS Home buyers put a weighted average of 15.6% down on purchases of single-family homes last year, but down payments can swing wildly depending on location. According to a study

by RealtyTrac, down payments in the country’s highest-priced markets averaged 24%, while those in the lowest-priced markets averaged half that.

That translates to big differences in dollars.

Home buyers in Bibb County, Georgia, for instance, put just $4,462 down on average in 2014. Meanwhile, those buying a home in New York City had to come up with an average of $347,614.

New York

Flint

$935,000 37.18%

$70,000 8.98%

NY

Muskegon

$75,039 9.53%

MI Kings County

$580,000 28.20%

OH

Springfield

$74,400 9.56% Ashtabula

$72,500 9.68%

Highest down payments GA

Macon

$45,000 9.92%

Lowest down payments Median home price Down payment as % of sales price Source: RealtyTrac

BEST MARKETS FOR FIRST-TIME HOME BUYERS So where’s the best place to be if you’re marketing to first-time home buyers? It’s not just a matter of low down payments; it also depends on how many millennials are in the area. After all, they’re the next big market for housing.

In a recent study, RealtyTrac determined the top markets for first-time home buyers — areas where the average down payment was lower than the national average and where millennial populations increased by 20% or more following the Great Recession.

Percent increase in millennials Average down payment

Clarksville, TN-KY Nashville-Davidson-MurfreesboroFranklin, TN Durham, NC Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Des Moines-West Des Moines, IA Washington-Arlington-Alexandria, DC-VA-MD-WV Columbus, OH Fayetteville, NC Little Rock-North Little Rock-Conway, AR Augusta-Richmond County, GA-SC 0%

10%

20%

30%

40%

50% Source: RealtyTrac

www.mpamag.com

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UPFRONT

HEAD TO HEAD

Q:

GOT AN OPINION THAT COUNTS? Email mpa@keymedia.com or join the discussion at www.mpamag/forum

What’s the biggest challenge the industry will face over the next 12 months?

From new regulations to interest-rate fluctuations, our industry will face many changes and challenges over the next 12 months. Here, three mortgage pros identify which they think will have the greatest impact

Nelson Haws

8

President and CEO RESMAC

Don Currie

President HIGHTECHLENDING

Raymond Brousseau

“There’s no question that the regulatory oversight is substantial. However, I would agree that many of the changes that have been implemented have had a huge positive effect on the industry. But there’s still quite a few sharp edges on the regulatory side. If the regulators really want to see the industry and the economy improve, there’s more work to be done to make it less precarious for a lender to be extending credit in this environment. That’s one of our biggest concerns – we don’t dot an I or cross a T, and we have loans coming back to us.“

“Right now the both the purchase market and refinance market are booming and, with new products like the non-QM entering the market and the jumbo loans coming back, seeing spikes in production. So the challenge is going to be maintaining proper staffing levels.

Whenever interest rates are pushed artificially low and people staff for those rates, we have to be cognizant of the fact that rates will go up.

I do feel that we are living with a fuse already lit in the refi market, and we need to make sure to build business plans that can convert from the refi market to the purchase market.”

“I think it’ll be the TILA-RESPA changes that are coming in August. I think they’re fairly expansive, and it’ll be a challenge for a good number of our clients, as well as our competition. The implications and ramifications are everything from the systemic programming of operating systems to changes in workflow that are going to be required because of the re-disclosure requirements. For those of us who have wholesale channels, it’ll be education of brokers to comply with those changes. It’s a number of things. The new law does significantly change the timing requirements of when you can fund a loan.”

EVP of Mortgage Lending CARRINGTON MORTGAGE SERVICES

www.mpamag.com

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UPFRONT

NEWS ANALYSIS

Countdown to TRID: Hello longer closings D-Day is coming and is completely changing how you communicate loan terms to borrowers. Are you ready?

MORE THAN a year and half ago, the Consumer Financial Protection Bureau (CFPB) issued the TILA-RESPA Integrated Disclosure (TRID) rule and asked the mortgage industry to prepare to use new forms and alter the way closings have traditionally been conducted.

Since that time, the implementation of the new Loan Estimate (LE) and Closing Disclosure (CD) forms seemed far enough off on the horizon for people to breathe easy.

However, the Aug. 1, 2015, deadline is less than four months away and some experts are worried the industry won’t be ready. “The reality is that this is going to be expensive and cumbersome, and it’s going to be difficult, but in the end, the biggest challenge is how you are going to cope with it,” Stanley Middleman, president and CEO of Freedom Mortgage, said.

“Companies need to dedicate tens of thousands of man hours to prepare for this, because as an industry, I’m still not certain we are prepared.”

To start, mortgage professionals need to have an understanding of TRID’s changes and a system ready to accept the new documents is crucial to staying compliant.

“As far back as we can remember, the loan process and the relationship around the consumer have centered around the TILA and GFE [Good Faith Estimate] forms and have

10

served as a main vehicle to communicate the loan terms to the borrowers,” Gavin Ales, chief compliance officer at DocMagic, said. “Now, that is all about to change.”

As the regulation comes to fruition, mortgage originators need to ensure they are keeping good, consistent records, Ales added.

They also need to make sure that their company’s systems are capable and ready for the new forms, along with keeping up communication between their lenders and document providers.

The TRID rule seeks to streamline the use and language of TILA and RESPA forms that lenders have provided to consumers applying for mortgage loans for more than 30 years by integrating the Good Faith Estimate (GFE) and initial TILA disclosure into one form, the Loan Estimate, which must be delivered three days after receiving a consumer’s application.

The rule also combines the HUD-1 and final

TILA disclosure into another form, the Closing Disclosure, which must be provided to consumers at least three business days before the consummation of the loan.

Getting TRID fit DocMagic worked with Richard Horn, former senior counsel and special advisor for the CFPB’s Office of Regulations, on its new TRID software. Horn led the final rule-making for TRID and the CFPB’s design, as well as qualitative and quantitative consumer testing of the TILA-RESPA integrated disclosures, according to Ales.

The document preparation software vendor has also wrapped up beta testing on its

“The reality is that this is going to be expensive and cumbersome” Stanley Middleman, president and CEO of Freedom Mortgage

www.mpamag.com

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MANY CLOSING AGENTS ARE UNAWARE OF TRID’S KEY CHANGES The new integrated disclosure rule is set to take effect August 1 and is something the mortgage industry has been warned about again and again.

However, while many are aware of the rule, they are unaware of one of its key changes, according to a recent poll of 1,743 settlement agents nationwide.

36%

Only of closing agents are familiar with the new closing disclosure form

92%

of the respondents are familiar with the new rules

33%

of those surveyed had been contacted by their lender clients to review the new closing form

61%

of closing agents said they had taken steps to prepare for TRID

“We received a lot of feedback from clients about what to change and what to keep” Gavin Ales, chief compliance officer at DocMagic software. “We received a lot of feedback from clients about what to change and what to keep,” Ales added.

DocMagic announced in February that its entire solution set now adheres to version 3.3 of the Mortgage Industry Standards Maintenance Organization reference model.

MISMO establishes a common dataset that is essentially a prerequisite for lenders to use the CFPB’s new integrated disclosures and share the information about the disclosures with their industry partners.

Ales said the new TRID rule places 100% of the responsibility on lenders and once it is in effect, lenders will need to automatically and seamlessly exchange the data from this

disclosure with its settlement agents and other partners, which is why DocMagic is launching a centralized platform between creditor’s and closing agent’s systems.

The secure portal will allow creditors, closing agents and consumers to access, edit, approve and validate data electronically, even supplying a log of events and actions like compliance audits and approvals.

Three-day closings Gone are the days of making last minute changes to loans, which is something that may be the most difficult thing for real estate and mortgage professionals to swallow. According to Peter Norden, CEO of HomeBridge Financial Services,

40%

Less than of the respondents thought the new closing form was a positive Survey conducted by mortgage data firm Secure Settlements Inc.

the industry isn’t use to having full disclosures wrapped up within three days of closing.

“It’s no longer where you can change a closing number or a settlement number the day before the loan closes,” Norden added.

“That is a major game changer for every realtor, every mortgage broker, and every closer.”

Also, mortgage brokers and originators can’t just move loans from one lender to another; something Norden said is a pretty common practice. “They would have to start from scratch.”

The form is typically prepared by an attorney, settlement or title professional in collaboration with a mortgage lender. Accuracy and completeness are critical as failure to properly prepare the forms will result in delays to a closing of a loan.

www.mpamag.com

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1/04/2015 9:19:04 AM

UPFRONT

INTELLIGENCE CORPORATE

PRODUCTS

Acquirer

Target

Comments

New Residential Investment Corp.

Home Loan Servicing Solutions

The REIT agreed to acquire the Ocwen Financial spinoff for $1.3 billion.

J.G. Wentworth Co.

WestStar Mortgage

The purchaser of structured settlement payments, annuity payments, lottery payments and other receivables signed a stock purchase agreement to acquire WestStar for $54 million.

Springleaf Holdings Inc.

OneMain Financial

Citigroup's subprime lending company OneMain Financial was sold for about $4.25 billion in cash.

Pan American Bank

Finance and Thrift Co.

Stifel Financial Corp.

Sterne Agee Group Inc.

SunPac Financial

Security First Bank

Security First signed an agreement for the merger of its bank into Los Angeles-based SunPac Financial.

ViewPoint Bank

LegacyTexas Bank

The newly formed entity has a financial position in excess of $6 billion.

Sunshine Bank

Community Southern Bank

Florida-based Sunshine Bank will acquire the bank for about $31 million in cash.

Wilshire Bank

Bank of Manhattan (mortgage lending division)

California bank Wilshire Bank will acquire certain assets and operations of the mortgage lending division of Bank of Manhattan.

Both entities are community development financial institutions serving low- to moderateincome consumers and businesses.

Sterne Agee bolsters Stifel's Global Wealth Management segment with the addition of approximately 730 financial advisors and independent representatives nationwide.

Mortgage REIT to acquire Ocwen spinoff for $1.3 billion Mortgage Real Estate Investment Trust (REIT) New Residential Investment Corp. has agreed to purchase Ocwen Financial spinoff Home Loan Servicing Solutions (HLSS) for $1.3 billion, just weeks after HLSS was urged to cut ties with Ocwen. New Residential will pay $18.25 a share for HLSS as the REIT works to expand its relationships with servicers such as Nationstar Mortgage and Ocwen Financial. HLSS was formed by former Ocwen chairman William Erbey to acquire the servicing rights and other income streams from servicing mortgages. In February, Mangrove Partners Master Fund Ltd. had urged HLSS to cut ties with troubled mortgage-servicing firm Ocwen, threatening to launch a campaign to replace the HLSS board at its annual meeting.

12

>> MOUNTAIN WEST FINANCIAL has made enhancements to their CalPATH and PATH home loan programs.

The mortgage programs are specifically designed and offered to teachers and public employees. The changes include the enactment of FHA Streamline Refinance and the availability of 20- and 25-year terms for standard conventional products. Moreover, the enhancements will now also allow public employees from Arizona and Oregon to participate in the PATH Program. Mountain West said its programs provide lower rates and fees to borrowers who serve local communities. >>PRIVLO, an online alternative mortgage lender that serves small business owners, entrepreneurs and self-employed individuals, is targeting self-employed borrowers with its new mortgage program. The company’s product provides non-QM mortgages to creditworthy homebuyers who don’t fit today’s narrow lending requirements because their careers and finances are considered too complicated to prove to traditional lenders. Where banks may shy away from strong applicants who can’t prove financial ability with simple tax returns or W2s, Privlo works with them. Borrowers include small business owners, entrepreneurs, self-employed individuals and commissioned workers. >>AFR WHOLESALE is now offering the FHA StreamlineFast Track program. The lender says it can now close FHA

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PEOPLE Name

Streamline loans in as little as 15 days. That’s if all documents are received in the initial submission; the submission is received by the 15th of the month and the underwriting submission checklist is completed and included in the submission. Borrowers are not required to go through the credit underwriting process a second time, but they do have to meet FHA Streamline refinance credit requirements. >>CASHCALL INC. has launched a non-QM purchase and refinance mortgage program. The NQM (non-qualified mortgage) products are aimed at borrowers who can’t qualify for the Fannie Mae and Freddie Mac guaranteed mortgages for various reasons such as being self-employed, investors owning several homes, or the need for jumbo loan amounts up to $1 million. Under the program, CashCall will require a good credit score of at least 680, but will be flexible in other measures to determine ability to repay the loan. >>FLAGSTAR BANK has rolled out a Freddie Mac Super Conforming ARM. The product includes 5/1 and 7/1 ARMs, 7/1 qualifies at note rate (5/1 qualifies at note rate + 2%) , loan-to-value (LTV) up to 90% on owner-occupied properties with a 660 FICO score, LTV up to 80% on non-owner occupied properties and one-unit purchases with a 680 FICO score. Flagstar also increased the max pricing cap on its Government Fixed rate products to 106 and Government ARMs to 105.

Leaving

Joining

New Position

Steven Plaisance

N/A

Arvest Bank

CEO

Grant Spurrell

HomeBridge Funding

The StoneHill Group

Business Development Manager

Rick Najera

N/A

National Association of Hispanic Real Estate Professionals

Director of New Media and Entertainment

Jon Cohn

Acxiom Corp.

RealtyTrac

Senior Vice President of Data Products

Mark Lyons

N/A

Valuation Partners

Senior Vice President

William Shuey

Accenture

Opus Capital Markets Consultants

Director of Securitization

Andrew Pettola

Total Mortgage Services LLC

Envoy Mortgage

Regional Vice President of the Northeast Region

Robert Brockerman

N/A

GSF Mortgage

Loan Officer

Steve Resch

Financial Freedom Senior Funding

Urban Financial of America

Account Executive

Erin Cornwell

RBS Citizens Bank

Mortgage Network Inc.

Director of Strategic Implementation and Process Improvement

STONEHILL GROUP HIRES NORTHEAST BUSINESS DEVELOPMENT MANAGER Grant Spurrell has joined The StoneHill Group as business development manager. Spurrell will manage sales and client accounts in the Northeast U.S., including Washington, D.C., Maryland, Delaware, New Jersey, Pennsylvania, New York, Connecticut, New Hampshire, Vermont, Massachusetts, Maine and Rhode Island. Most recently, Spurrell built correspondent lending relationships from the ground up at both HomeBridge Funding and IMPAC Lending.

NAHREP TAPS HOLLYWOOD’S RICK NAJERA AS NEW MEDIA DIRECTOR The National Association of Hispanic Real Estate Professionals has tapped writer, director, actor and author Rick Najera to the newly created position of director of new media and entertainment for the association. Najera will work on assisting the organization to develop a national touring division that will include live performances of the association’s highly acclaimed theatrical keynote, “53 Million & One,” and his own live production, “Almost White.”

www.mpamag.com

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UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS in Lending (TIL) disclosures for most residential mortgage loans starting August 1.

CFPB complaint portal is a good idea in theory, but needs work Investors see future in online mortgage origination Online mortgage marketplace Sindeo has raised another $5 million in funding through a Series A funding round, which the company said will increase its growth in the mortgage industry. The startup, which says it can close loans for customers in as few as 15 days, is out to create a one-stop shop for people who are looking to research, shop, qualify and close their loan all at once. Ultimately, Sindeo is a mortgage originator. The company submits loan applications to lenders, which pay Sindeo up to 1.25% of the value of mortgages they approve. The latest raise brings Sindeo’s total funding to date to $6.5 million, and adds two new members to the company’s board of directors — Liu and Arkadi Kuhlmann, founder and CEO of ZenBanx, who’s also an investor.

DocMagic launches new TRID software DocMagic has announced that its entire solution set now adheres to version 3.3 of the Mortgage Industry Standards Maintenance Organization (MISMO) reference model.

Version 3.3 of MISMO establishes a common dataset that is essentially a prerequisite for lenders to use the CFPB’s new integrated disclosures and share the information about the disclosures with their industry partners.

DocMagic said it is the first document preparation software vendor to implement MISMO version 3.3. The CFPB’s Integrated Disclosures will replace the current Good Faith Estimate (GFE), HUD-1 Settlement Statement and Truth

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The American Land Title Association (ALTA) has submitted a letter to the Consumer Financial Protection Bureau (CFPB) encouraging the bureau to modify the type of information that will be collected from companies for its consumer complaint database. Michelle Korsmo, ALTA’s CEO, said while the association believes the portal may help businesses respond more quickly to complaints, it requests a large amount of information from companies, which makes it difficult to join the portal.

Bradford Technologies integrates ClickFORMS appraisal technology Bradford Technologies, a computer-aided appraising technology firm, has integrated its ClickFORMS appraisal technology with Platinum Data Solutions’ FreeAppraisalReview.com.

Now, every appraisal prepared with ClickFORMS will be automatically reviewed by FreeAppraisalReview.com. Bradford Technologies claims it only takes the website seconds to screen appraisals for the most common causes of returned appraisals, including Collateral Underwriter’s “hard stops” and warnings, and to report its findings in simple, actionable language. In January, Fannie Mae began using Collateral Underwriter to evaluate appraisals. Many appraisers have expressed concern about how its use will impact them.

Google mortgage tool coming stateside?

IN LATE 2012, Google launched its mortgage comparison tool via Compare in the UK and now, it appears the search giant is bringing it stateside. Compare is aims to help users find deals on mortgages, credit cards, auto insurance and travel.

Google is currently looking to hire mortgage specialists in the California Bay Area and Seattle. The job ad says the search giant is looking for candidates who have worked at least three years as licensed loan originators.

The competition for borrowers just got a whole lot more interesting A completed Nationwide Mortgage Licensing System (NMLS) exam is also encouraged, and candidates are advised that they “may not also be acting as the licensed individual for any other mortgage entity while working with Google Compare.”

Currently, the US version of Compare only helps users with finding deals on credit cards.

When a user visits the UK version of Google Compare, they are greeted with the following under the mortgage section: “Looking for cheap mortgage deals? Compare the latest mortgage rates across the UK Apply directly to the lender or speak to an adviser.”

After selecting a “mortgage purpose” from choices including purchase, remortgage and first-time buyer, and entering a mortgage amount, a user sees a screen that allows them to enter a property value.

The UK tool also provides a repayment

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For more technology news as it happens, visit www.mpamag.com

period, property location and other information. After entering other pertinent information, the user is given a myriad of mortgage options from a list of 81 lenders including Barclays, HSBC, Royal Bank of Scotland, Santander, Virgin Money and more.

So why is Google doing all of this?

Compare is essentially an ad product at its core, meaning that Google earns money every time a consumer takes an action based on its recommendations, according to Gigaom technology expert Janko Roettgers. “The more money at stake, the higher is Google’s potential cut, which is why mortgages are especially interesting.”

In early February on the heels of the Consumer Financial Protection Bureau’s release of its borrower education tool, Google launched a mortgage calculator. The calculator’s goal is also to help educate potential borrowers about mortgage costs.

The built-in mortgage calculator will appear when a user searches for terms like “mortgage calculator,” “loan interest calculator,” and “interest calculator.”

Now, it seems Google is preparing to give mortgage lenders the opportunity to advertise their mortgage rates and the competition for borrowers just got a whole lot more interesting.

GOOGLE SEARCH INTEREST IN MORTGAGES DURING THE LAST YEAR Google search interest popularity for mortgage loans was its highest in early January, shortly after US President Barack Obama announced FHA premium cuts.

Search interest in mortgages was at its lowest during the last week of December.

Google users from Maryland, Utah, Delaware and Colorado searched for information about mortgages the most during the last year.

Internet users from Oregon searched for mortgages the least during the last year, followed by Kansas, Virginia, West Virginia and Mississippi.

Data was compiled from Google Trends. Numbers do not represent absolute search volume numbers, because the data is normalized and presented on a scale from 0-100.

Q&A: Meeting disclosure challenges CHRIS KNOWLTON vice president, Inlanta

Chris Knowlton, Inlanta’s vice president of marketing and technology, talks about challenges posed by the new integrated disclosure rule, and the increasing role of technology in the industry MPA: With an effective date for the new disclosure rules coming up in August, has it been challenging to get the compliance solutions Inlanta uses prepared for the change?

Chris Knowlton: I don’t know that I’d say it was very challenging. It’s very nerve-wracking in terms of getting all the systems up and running by then.

Being a mid-sized company, we don’t write our own software. We don’t have our own customized system. So we’re relying on the vendors to make sure that they’re ready. So it’s a matter of compliance and doing due diligence with our vendors to make sure they have all the forms and the screens up and running by then.

MPA: And I imagine you’ll want to have everything up and running with plenty of time to spare in order to train your own employees on the changes.

CK: The idea is that we’ve got that date out there in August. Let’s back out how far back we’re going to be able to see how those new pieces of software are going to handle the regulation. If we can get it by April, we’ll have plenty of time to test it and train people on it. It all depends on the vendors getting things done early and not the week before. It saves our people a lot of headaches. Solving those problems now is much better than mid-July.

MPA: The role of technology has become increasingly important as more stringent regulations have taken hold. Do you see that increase in importance continuing, or has it reached a plateau?

CK: I think it’s going to keep increasing in importance. With the complexity of the compliance rules you have to run a loan through, it’s not possible for a person to pick out all the alerts you need to fix in order to process a loan. With the different layers that keep getting added to our industry, the tools have to be sharp in order to catch that stuff. Maybe we’re close to a plateau, but it depends on what new regulations come out – or if they change existing regulations – and I don’t know that we’re out of the woods on that yet.

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UPFRONT

COMMERCIAL UPDATE

Competitive markets push lenders into valueadd opportunities

STRONG DEAL flow, coupled with aggressive lending and competitive debt structures, are supporting core pricing appreciation, and pushing lenders further out on the risk curve into value-add and opportunistic plays, according to Steve Collins, president of capital markets at Jones Lang LaSalle (JLL).

In particular, the trend is picking up steam in secondary markets. As real estate debt continues to provide relative value to corporate bonds, insurance companies are similarly in a disciplined growth mode.

For CMBS lenders, new issuance continues to expand, closing 2014 at $94.1 billion, and while below expectations, a 9% annualized increase paralleled by relatively stable spreads.

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“We expect real estate debt markets to remain favorable in 2015 with overall underwriting disciplined and loan-to-value requirements conservative,” Collins added.

At the end of 2014, strong fourth quarter commercial activity drove a 21.3% increase in investment sale volumes, bringing 2014 deal flow to $353.1 billion and demonstrating the current strength of the U.S. markets. Growth was seen across asset types with noteworthy growth in the retail and office sectors, which saw growth of 37.1% and 21.3%, respectively, last year, according to data from JLL. Continued strength in the industrial leasing markets has paralleled increased foreign investor appetite for product and capital value

MetLife wins $500M commercial lending deal MetLife Real Estate Investors (MREI) said it has won a $500-million mandate from a reinsurance company to invest in U.S. commercial real estate loans, marking the largest investment for the company’s third-party asset-management real estate group since 2013. MetLife, the biggest U.S. life insurer, will originate and service variable- and fixed-rate loans. Loans will generally be for at least $20 million, and could cover offices, multifamily dwellings and retail properties, according to a MetLife spokesperson.

appreciation, evidenced by cap rate compression to levels below prior peak levels.

Multifamily investment additionally saw a record-setting year. With $110.1 billion of deal flow at year-end, the sector hit a new historic high, exceeding 2007 peak volumes by 10.6%.

“Investment liquidity is expanding across and within primary and secondary markets with deal flow increasing across CBD [central business districts] and suburban markets as well as building classes,” Collins said. “As a result, select primary and secondary markets are hitting high pricing watermarks and record low cap rates across asset types.”

After the January 28th close of the two-day Federal Open Market Committee meeting, the

“Real estate debt continues to provide relative value to corporate bonds” Fed remained upbeat on the U.S. economy despite global softening. In addition, policymakers held views that energy-led weakness in inflation will dissipate, and patience remains the stance in regards to raising key borrowing rates from the near-zero level.

While overall economic conditions improve, the 10-year Treasury yield remains below 2%, a level last seen in May 2013. The result is an approximate 400-basis-point spread on the average between cap rates and Treasury yields.

Freddie Mac predicts strong year for multifamily The multifamily market is set for a strong year of growth, according to the latest Freddie Mac economic outlook. The report predicts that supply will increase this year and next as building starts and completions rise.

Vacancy rates in metropolitan areas are expected to rise. Freddie Mac expects that vacancy rates will revert to historical averages in Baltimore, Fort Lauderdale, Los Angeles, Philadelphia, Salt Lake City, Jacksonville, Norfolk, and Washington, D.C. Meanwhile the rates in New York, Boston and San Francisco will continue to be among the lowest.

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Q&A: Finding a new niche in the commercial space Mark Mohl, account executive with B2R Finance, talks about his company’s focus on an underserved segment of the commercial space MARK MOHL Account executive, B2R Finance

MPA: Your approach to the commercial space is a bit unusual. What does B2R focus on?

Mark Mohl: We do a commercial underwrite on residential rental property borrowers. It’s a niche. We were created by investors for investors. If you have someone who’s an investor with a rental property, we kind of pick up where Fannie and Freddie leave off. The investor that’s got more than five or 10 properties, depending on what the overlays are, we can finance those properties to help the borrowers either uncork the equity that’s in those properties, or restructure debt at better terms. We’re like a hybrid. We underwrite them commercially – more CMBS-like execution – but it’s on more residential rental property.

MPA: Is there a certain segment of the rental property market you cater to?

MM: The guy who’s got five to 10 rental properties can go to a local bank and get financed. The guy who’s got 300 – well, he’s got scale. He can probably get some money at more favorable rates. But the guy who’s in the middle, the guy who’s trying to grow the portfolio, he’s got nowhere to go. So we’re trying to fill that space to help refinance property, to take equity out or to grow and buy more properties.

MPA: You say you’re sort of a residentialcommercial hybrid. What does that mean in Denver named top commercial market of 2015 Denver’s a Mile High in one more way, according to the latest report from Coldwell Banker.

The firm’s commercial market comparison report recently ranked the city the top commercial real estate market in the country.

The report examined more than 80 U.S. markets based on the percent change in vacancy and rental rates for the office, retail and multifamily sectors from the third quarter of 2013 through the third quarter of 2014, as well as population and unemployment changes over the same time period.

Denver ranked in the top-10 last year.

terms of qualifying borrowers?

MM: Most investors are going to do everything in their power to write off everything that they can. We don’t punish them for that; we look at their properties on a cash-flow basis, and not their income. We look basically like you would at an apartment building. We’re going to look at how that apartment cash flows and make our decision on that. The hybrid part is that because it’s residential, we do our due diligence and a background check, and we pull credit. But we’re not looking at how much money they make. We’re looking at, are they a good borrower, are they a good risk, and how do they operate their properties based on cash flow?

MPA: Is there a specific part of the rental market you’re after, like vacation rentals?

MM: It’s really geared toward the long-term investor. This is for a six- to 12-month lease. So vacation rentals, short-term rentals and things like that, are probably not going to work. We’re here to partner up with the landlord to grow his business – or we’re the take-out money for a hard lender. So if you’ve got a guy who’s a fix-and-flipper and does the work and stabilizes it and thinks, “Heck, I’m not going to flip this,” he may have hard money at 12%.

We’re going to come out with a rate anywhere between 5.5% to 6 .5% and give him a term loan. All we do is residential rental property. That’s all we do, and we do it well. Our goal is to partner up with the investor to help them grow their business.

Builders still confident in multifamily developments Builders are continuing to feel confident in the market for apartments and condos. The February figures from the National Association of Homebuilders’ Multifamily Production Index held above the 50 mark, which denotes positive sentiment in the sector. The index has been above 50 in every quarter for three straight years.

Chairman of the association’s multifamily leadership board W. Dean Henry is optimistic: “Because of strong job growth, we expect to be able to keep building for the foreseeable future.”

Commercial loan delinquencies hit 20-month low The delinquency rate on U.S. commercial mortgage-backed securities (CMBS) loans dipped to 5.66% in January—its lowest point in 20 months, according to Trepp, a New York-based research firm. The delinquency rate peaked at 7.25% in January 2014. In January, $1.2 billion in previously delinquent CMBS loans paid off either at par or with a loss, and over $500 million in loans were cured. This combination helped push delinquencies lower by 32 basis points, while almost $1.5 billion in newly delinquent loans put upward pressure on the rate.

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UPFRONT

BRANCH NETWORK UPDATE NEWS BRIEFS

Loan officer amongst the happiest careers in the U.S. Sure, mortgage pros have had a rough few years, but those woes aren’t bringing them down. According to online jobs site Career Bliss, loan officers have one of the most satisfying professions in America. The survey results led to loan officers reaching the No. 3 spot. Although they tend to work long hours, loan officers reported feeling an overwhelming satisfaction for helping people realize their dreams. Whether it is purchasing a home or starting a business, loan officers play a critical role and spend a lot of time working face-to-face with clients.

Covina-based Simplicity Bancorp completes merger with HomeStreet HomeStreet Inc. has completed its merger with Covina-based Simplicity Bancorp. The combined company will operate as HomeStreet Inc. and conduct banking operations as HomeStreet Bank. HomeStreet said it expects to have approximately $4.4 billion in assets, $2.8 billion in loans and $3.1 billion in deposits and a network of 99 deposit branches and lending centers. “Our two companies complement each other well in products, service standards, culture and commitment to our communities,” said HomeStreet president and CEO Mark Mason.

Wells Fargo to slash 1,000 mortgage jobs Wells Fargo & Co. announced it will cut 1,000 jobs and close its home-lending servicing

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office in Milwaukee. As the U.S. economy has improved over the last two years, the bank said it has received fewer delinquent payments and fewer customers have required assistance staying in their homes. Wells Fargo, which will close the office in late July, will inform employees of other job opportunities within the company, the bank said.

More mortgage staff layoffs at Bank of America Bank of America Corp. announced plans recently to cut an additional 116 mortgagerelated jobs in the Dallas area, bringing the layoff total to 177 lost jobs. Earlier in February, the Charlotte-based bank announced it would be laying off more than 200 employees from its legacy mortgage servicing operations in its Norkfolk, Virginia office and 53 mortgageservicing employees will also lose their jobs in the Nassau County, N.Y. office. It was also reported that 250 mortgage-servicing jobs would be lost in Charlotte.

Should loan officers be exempt from wage and hour laws?

THE U.S. SUPREME COURT ruled in March that mortgage loan officers now qualify for a 40-hour work week and overtime pay.

The decisions of the cases Perez v. Mortgage Bankers Association (MBA) and Nickols v.

Mortgage Bankers Association follow a 2010 decision by the U.S. Labor Department to begin applying overtime and minimum wage rules to mortgage loan officers.

That 2010 ruling reversed a 2004 finding made during the administration of President George W. Bush that had concluded mortgage loan officers were exempt from the regulations.

That prompted the MBA to file its case, and in July 2013, the Court of Appeals for the Washington, D.C., Circuit vacated the 2010 decision declaring that mortgage loan officers did not qualify under the “administrative exemption” to overtime pay.

In the final ruling, the Supreme Court said the Department of Labor was well within their rights to make the change to the loan

Norcom Mortgage opens new branch in Monroe, Conn.

SOUND OFF ON MPAMAG.COM:

Norcom Mortgage has opened a new branch located in Monroe, Connecticut, with Audra Santos as the branch manager. Santos has been in the mortgage industry for the past 17 years and was previously a branch manager at another mortgage company. “Opening the Monroe branch under Norcom means a great deal to me,” she said. “Having the opportunity to align my team with the top independent purchase lender in Connecticut will allow us to take our business to the next level.”

“The amount of overtime required just to do the job right cannot be accurately measured, but be assured many people are working a lot more hours for free than ever before. And it is happening due to all the new regulations dumped on the banks. You can’t do in 40 hours what you could do prior. So unless a lot of these regulations can be rolled back, it’s only going to continue to get worse.

Then your mortgage officer will be originator, processor, and part underwriter: Every mortgage will take much longer to do.” -Drago

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officer rule.

The MBA said they were “disappointed” by the decision, but said they were ready to work within the confines of the ruling.

“MBA hoped that the court would uphold the lower court decision in our favor, so obviously we are disappointed with the final outcome,” an MBA spokesman said in a statement to Mortgage Professional America.

“We will now work with our members to develop approaches to this issue that hopefully do not unduly increase borrower costs or compromise customer service.”

Quicken Loans said the Supreme Court’s ruling will have limited impact on the company because it already offers overtime to its loan officers.

However, from 2004 to 2010, mortgage bankers couldn’t get overtime pay despite the fact that loan officers often work over the typical 40-hour work week.

In 2004, more than 300 former employees who worked as loan consultants for Quicken Loans filed a lawsuit against the company in the U.S. District Court in Detroit. At the time, the group argued that as salespeople, they should have been paid time-and-a-half for overtime hours. Quicken employees are expected to work at least 55 hours per week.

Quicken disagreed. The employees’ base salary was between $25,000 and $30,000, and Dan Gilbert previously told the Cleveland Scene, commission wages for those mortgage officers were between $60,000 to $70,000 more. The case lasted for a few years and in 2011, a federal jury ruled in favor of Quicken Loans.

M: “A congressman/senator must call for a hearing on “unfairness in mortgage regulation.”

The hearing will bring in experts who demonstrate by actual case examples what happens in the field. Two or more of the pols decide to write and promote legislation correcting this and create a level playing field. It must go to several committees before being voted upon. Within two or three years a vote may be taken.

But this is America. In order to get this done someone must come up with several million dollars so those who vote on the issue can be re-elected. -Gordon Schlicke

Q&A: Growing smart KEITH FRACHISEUR vice president of production and retail, Envoy Mortgage

Keith Frachiseur, Envoy Mortgage’s executive vice president for its production and retail division, chats with MPA about expansion and growth in an uncertain regulatory environment.

MPA: Envoy Mortgage is expanding aggressively right now.

What’s the niche you’re trying to fill with this growth?

Keith Frachiseur: We see a lot of opportunity as banks continue to retract from the mortgage space, and independents are kind of retooling.

We’ve seen some of the smaller ones struggling to meet capital requirements. We just see a tremendous opportunity as the market continues to improve, the economy slowly picks up and housing recovers.

We think we’re teed up for a nice run. I also think that during the down times a lot of companies weren’t investing in technology and innovation, and we’ve continued to invest there. You see that in the customer experience.

MPA: Does that confluence of events – the downturn, big players backing off from the space – give branch networks an opportunity to provide things the big banks can’t?

KF: Absolutely. I think the bigger banks have to plan strategically far in advance. They’re not very nimble, and it’s difficult for them to provide the service levels that the larger independents do. Theoretically we should never be able to compete with the big banks, but in the purchase space we do. We’re going through a little refi spurt, but we’re definitely purchase-driven – and that’s where we outperform them consistently.

(Banks) have a great place in the overall mortgage space, but independents can continually outperform in service levels.

MPA: What kind of challenges do you face when you’re expanding at the same time that regulations are making the mortgage space a tougher place to be?

KF: There are serious challenges. That’s making mistakes in either the markets you’re growing in or the people you’re growing with. We have a pretty rigorous vetting process. For instance, we’re opening in the (San Francisco) Bay Area. There’s a lot of jumbo business there. We won’t be able to achieve the same margins there as we do in some of the outlying areas, but the dollars per loan will be significant. So we’ve got to reflect that in our compensation package and our pricing to the consumer.

We’ve got to be nimble and make sure that our business plan works in the market we’re in.

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UPFRONT

REVERSE MORTGAGE UPDATE

Borrowers still confused about reverse mortgages

WHILE REVERSE mortgages are only available to a select group of consumers (homeowners aged 62 years and older), the product still makes up a large portion of complaints received by the Consumer Financial Protection Bureau (CFPB).

According to a recent report from the agency, consumers are still confused about their loan terms and filed approximately 1,200 reverse mortgage complaints to the CFPB between December 2011 and December 2014.

“Consumer complaints tell us that the complex terms of reverse mortgages continue to be misunderstood,” said CFPB Director Richard Cordray. “As more baby boomers choose

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reverse mortgages to tap into their home equity, they need to understand the unique terms and features of this product.”

The reverse mortgage market is about 1% of the size of the traditional mortgage market, with 628,000 outstanding loans, according to the CFPB. Most reverse mortgages today are federally insured through the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM) program, which means they must comply with the related regulations.

The most frequent complaint in the 15-page report involves consumers who are confused about the requirements and terms of

HUD budget shows HECM program is regaining momentum President Barack Obama’s proposed budget for the Federal Housing Administration (FHA) in 2016 revealed that the administration is starting to see reverse mortgages as viable again. The administration is projecting the HECM portion of FHA’s Mutual Mortgage Insurance Fund will generate positive cash flow in the coming fiscal year; up slightly from a negative subsidy rate of -0.4% projected for fiscal year 2015. Other changes include limiting upfront draws, mortgage insurance premium structure changes to encourage lower initial draws,

reverse mortgages. Many are frustrated when they are unable to refinance their loans because of insufficient remaining equity.

The CFPB reported these complaints suggest that some homeowners may not understand that the loan proceeds as well as the accrued interest on the loan over time will substantially decrease the amount of available equity.

The baby boomer generation is predicted to account for nearly one in every four dollars spent on housing in the next five years, according to a recent report by The Demand Institute.

Adding to that is the estimated 10,000 seniors a day who turn 65, a trend that points to potential growth for the reverse mortgage industry.

“Consumer complaints tell us that the complex terms of reverse mortgages continue to be misunderstood” Reverse mortgages have gained a bad reputation over the years and have developed a misconception of being a last resort for struggling seniors. However, recent regulation changes have transformed the product into a viable financial planning tool.

“I can’t emphasize how important the FHA structure changes are to the long-term stability of the industry,” said Joe DeMarkey, leader of product development at Bloomfield, New York-based Reverse Mortgage.

Reverse lenders falsely implied government approval The Consumer Financial Protection Bureau (CFPB) recently announced that it is taking action against three mortgage companies for misleading consumers. The agency is taking action against the companies for misleading consumers with advertisements implying U.S. government approval of their products. The CFPB is suing reverse lender All Financial Services, and is ordering Flagship Financial Group and American Preferred Lending to end what it alleges is false advertising.

The agency alleges that mailings by the three companies imitated U.S. government notices.

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Q&A: Preparing for the financial assessment rule Sherry Apanay, chief sales officer for Urban Financial of America, chats with MPA about HUD’s new financial assessment rule SHERRY APANAY chief sales officer, Urban FInancial of America

MPA: What’s the biggest challenge facing the reverse space over the next 12 months?

MPA: So you can earmark some of the loan proceeds in those cases to pay the taxes and insurance?

Sherry Apanay: I think the biggest challenge undoubtedly will be implementing the financial assessment rule. It’ll be the first time that we’ve really had to look at credit for senior borrowers.

HUD’s really looking at their willingness and capacity for paying their taxes and insurance. It will definitely be a learning curve for the industry as a whole.

SA: Yes. There are calculations for either a partial or long-term set-aside. Depending on various underwriting parameters, if it looks like they don’t meet either the willingness or the capacity test in the financial assessment, we’d either set aside a partial amount or enough to pay those taxes and insurance for a lifetime.

Paying your taxes and insurance isn’t just a reverse mortgage thing – it’s a home ownership thing. The last thing you want to do is foreclose, so you want to make sure that they’re as prepared as possible long-term when they get this product.

MPA: Do you consider the financial assessment rule a good thing or a bad thing?

SA: I really do think that long-term, it’s a good thing. The HUD changes have made the program safer for borrowers – helping them use their equity wisely. Over the years, I think that as younger borrowers became interested in reverse mortgages, it’s important that they think about how to use the asset. I think the changes HUD have put in place with limiting the amount up-front for the first year, are important. And I think financial assessment is the natural next step. The only thing required of the borrower other than living in the home is to pay their taxes and insurance.

What we found over time is that a certain percentage of borrowers aren’t able to do that long-term.

What the new financial assessment is really designed to do is identify whether the borrower is able to do that long term. If they can’t, we can set aside the money to help them do that in the future.

FHA reschedules reverse mortgage financial assessment The Federal Housing Administration (FHA) is moving its scheduled new financial assessment for reverse mortgages to a later date due to technical issues. The delay in system enhancements has forced the FHA to find a new date. The aim of the new requirement is to make lenders identify seniors qualified for a government-insured reverse mortgage using different guidelines. The FHA said the new date could fall within 30 to 60 days of the original March 2 effective date.

MPA: Do you think these financial assessment rules will ultimately help expand the industry?

SA: I do think for 2015, it’s going to be kind of flat – not only because of the financial assessment, but just digging out of the issues we’ve had in the mortgage industry as a whole. But in the next 18 to 24 months, I do think we’ll see more growth. Once everyone’s really used to it and we get past that learning curve, I think more banks will feel comfortable getting back into the space.

HUD’s delayed (the rule) a couple of times, and April is really the drop-dead date. We’re getting software updated, getting documents updated and training. I think the industry is as prepared as it can be. It’s just going through those first few loans, getting underwriters used to the new processes. But once we get those first few loans under our belts, I think we’ll be fine.

Boomer housing trends: what makes them buy, sell A fast-approaching shift in the housing market may be closer than speculated, as more than 30% of baby boomers — nearly 24 million people — have recently purchased a home, while 43% — roughly 33 million — have recently become home sellers. And, despite some research suggesting otherwise, the demographic does show an inclination to downsize to smaller homes, which could be a positive sign for the reverse mortgage industry, whose home equity conversion mortgage (HECM) for purchase product could make it easier for boomers to do so.

MPA survey reveals many pros still struggle with reverse stigma A recent survey was sent to over 40,000 mortgage professionals, and 72.34% revealed the stigma surrounding the product was the most difficult thing to overcome when offering reverse mortgages. Other answers included: the long sales cycle (12.77%); not knowing enough about the product (10.64%); and keeping up with changing regulations (4.26%).

On the flip side, the best thing about offering the product was the considerable growth potential with the aging baby boomer population (55.1%).

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PEOPLE

INDUSTRY ICON

A WINNING TEAM Husband-and-wife team Rick and Patty Arvielo transformed New American Funding into one of the nation’s largest independent mortgage bankers – and became advocates for change along the way

WHEN RICK and Patty Arvielo joined a small California broker shop in 2001, not many people could have predicted that they would later form one of the country’s largest independent mortgage bankers. But then, both the Arvielos have always had an aptitude for seizing opportunities.

Patty got her start in the business early, taking a job with TransUnion Credit when she was 16.

“That was my first job in the industry,” she says. “When I found out the people ordering the credit reports were making more money than me, I decided to get into the mortgage side of it instead of the credit reporting side.

By the time I was 18, I had a job at a mortgage company in a receptionist-type position.”

Over the next several years, Patty climbed the ranks of the mortgage world, holding pretty much every position possible in both sales and operations. Along the way, she acquired what Rick calls “a vast knowledge” of every facet of the industry.

“I’m more or less the newbie,” Rick admits.

“I started a company in high school that I sold in the 90s. I didn’t work for a couple of years, then Patty suggested that I think about trying mortgages. I joined what was then a very small broker shop in California, probably five or six loan agents.”

Taking control In 2003, after deciding to walk away from New American Financial they formed New American Funding, with Patty as president and Rick as CEO. “We’ve been growing steadily since 2003,” Rick says. “So here we are 12 years later. We’re an independent mortgage banker – the 14th

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largest in the United States, according to Mortgage Executive Magazine – and we have about 1,600 employees.”

It’s not just a matter of having a lot of people on their payroll. In 12 years, the Arvielos have grown New American Funding into an independent mortgage banker with retail, wholesale and builder divisions, 76 branches and licensure in 41 states. The company currently boasts about 700 loan officers – 600 outside originators working in New American Funding’s branch network, and about 100 inside loan officers.

us to run this growing organization has allowed Patty and I to branch out in more of an advocacy manner,” Rick says. “I sit on the residential board of governors for the Mortgage Bankers Association, and Patty is Latina, and very passionate about helping procure borrowing for that underserved market.”

Patty sits on several advisory boards for Fannie Mae, Freddie Mac and the MBA, as well as co-chairing the corporate board of governors for the National Association of Hispanic Real Estate Professionals (NAHREP). She uses those positions to help lower barriers to homeownership

“The fact that we’ve now grown to our current size has allowed Patty and I to branch out in more of an advocacy manner” “And our number one outside retail agent is one of the original five or six agents from the beginning of it all,” Patty says. “I was the loan processor here for New American for many, many years, and I still originate every month myself. I placed 22nd for outside volume in January … while running the company, being Rick’s wife and being a mom to our 10-year-old.”

Advocating for change Success in business has given the Arvielos a chance to pursue another passion – improving lives. Both Rick and Patty are involved in charity work, as well as trying to break down barriers to success for groups that may find the odds stacked against them.

“The fact that we’ve now grown to our current size and have some very capable people helping

for the Hispanic community.

“I’m a daughter of a Mexican immigrant mother, and culturally very in tune with the Hispanic market,” she says. “I started my Hispanic lending efforts in the 90s when I worked with Countrywide. It became one of the largest recognizable non-bank lenders in the Hispanic community. Once I left there and started with New American Funding, Rick and I focused more on the operational side of building the business. But after 30 years in this business, you have to do things that get you up in the morning and inspire you, so I decided to get back into my efforts to serve the underserved.”

Patty aligned herself with NAHREP, which spearheads efforts to create sustainable home ownership for Hispanics.

“My mission is to identify and address the

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â&#x20AC;&#x153;After 30 years in this business, you have to do things that get you up in the morning and inspire youâ&#x20AC;?

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PEOPLE

INDUSTRY ICON NEW AMERICAN FUNDING AT A GLANCE

GROUND-UP GROWTH: Starting with a small independent broker shop, Rick and Patty Arvielo have grown New American Funding into one of the nation’s largest independent mortgage bankers, with retail, wholesale and builder divisions.

NATIONWIDE REACH: New American Funding currently has 76 branches spread across the nation and is licensed in 41 states.

PUSHING FOR CHANGE: An advocate for home ownership in the Hispanic community, Patty Arvielo works with Fannie, Freddie, and other organizations to help make home buying more attainable for Latinos.

TOP OF THE GAME: Today, New American Funding has more than 1,600 employees, funds more than $800 million per month, and has a servicing portfolio of over $ 8 billion.

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challenges for Hispanics while they go through the lending process,” she says. “I started that four years ago, and now have probably one of the largest Hispanic lending teams in America.”

And lowering the barriers to home ownership for Hispanics also makes good business sense, Rick points out.

“When you really start to contemplate the growing bubble of lending opportunity that exists within the Latino community, it’s staggering,” he says. “So from a business opportunity standpoint, we couldn’t be better positioned; I happen to be

mortgage bonds directly and not have to worry about going through a big-box bank or an aggregator to provide loans. We’re currently retaining the servicing on virtually all of our production. The last thing we did is bring our servicing in-house. We market the loans, originate them, underwrite them, fund them, sell the mortgage-backed securities, and then you make your payments to New American Funding throughout the life of the loan.

“Our goal now is on good, sustained, profitable growth, now that we possess the tools to do this

“I’m still learning every day, and every day I’m becoming a better person” married to and partnered with someone who’s so passionate about providing home ownership to that growing group. A lot of people don’t realize that in a lot of states, more than 50% of millennial home buyers between now and 2020 are going to be Hispanic.”

The Arvielos are also passionate about workplace diversity – particularly, Patty says, about pushing for more women in the boardroom.

“We have a lot of women running things at New American Funding, which is pretty big in the mortgage industry, considering it’s still very male-dominated,” she says. “I’m out there speaking to women in the industry about how we need to stand up and let everyone know we’re operationally minded, that we can grow companies too.”

Looking to the future The Arvielos have built a firm that weathered the financial crisis and became one of the country’s largest independent mortgage bankers.

They’ve pushed for easier entry to home ownership for underserved communities, and Patty has become a leading advocate for Hispanic home buyers and women in leadership positions within the industry. So what’s next?

“We’ve been focused on controlling our destiny from A to Z,” Rick says. “That process has taken several years, and we’ve just put the final touches on our vision of being in control of every aspect of the customer experience. It started out with getting our Fannie direct, Freddie direct and Ginnie direct status endorsed so we could do what we wanted with overlays … and sell the

business from A to Z.” Patty says that even after more than 30 years in the mortgage industry, her job still excites her.

“I think for me, every day is a new day – even with originating. It’s like building a story, and every story is different,” she says. “That’s still exciting for me. And the fact that we’re helping real people make the biggest purchase of their lives is still very rewarding to me.”

As for Rick, he continues to be fascinated by the potential for technology to change the industry. “I’m the street girl; he’s the automation guy,” Patty jokes.

“My focus is on marketing and technology,” Rick says. “Most of what we run this company on is proprietary technology that we’ve been developing over the last 12 years. I think it’s one of the things that set us apart. We just rolled out our originator mobile app a couple of months ago. We’re now focusing on developing apps for both referral partners and end users. That’s exciting for me. I like to think that we’re several steps ahead of our competitors in terms of rolling out technology that makes originators’ jobs easier and makes the borrowers’ perception of lending more enjoyable.”

For both the Arvielos, the mortgage industry means continued opportunities to keep expanding their horizons.

“I turned 50 this year, and I’m still learning every day, and every day I’m becoming a better person,” Patty says. “Even two years ago, I couldn’t get up and speak publicly. Now I’m speaking in front of hundreds of women. I still feel like I’m living and growing.”

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ww

®

Believe in Better

For more than 20 years, Inlanta Mortgage has been helping mortgage professionals achieve the best work of their lives.

Call Pete Salamone at 262-439-4242 or email petesalamone@inlanta.com to learn more.

Let’s Start a Conversation.

www.inlantapartners.com 22-25_Industry Icon.indd 25

Illinois – An Illinois Residential Mortgage Licensee #MB.0006190 Inlanta Mortgage is regulated by the State of Illinois Department of Financial and Professional Regulation, Kansas Licensed Mortgage Company # MC. 0025045, New Hampshire License # 17396-MB, Licensed by the New Hampshire Banking Department Division of Banking. WI Mortgage Banker #43262. Corporate NMLS#: 1016. Approved to do business in: CO, FL, IA, IL, IN, KS, KY, MA, ME, MI, MN, MO, NH, RI, VT and WI.

1/04/2015 9:33:44 AM

FEATURES

COVER STORY: BRANCH NETWORKS

BRANCH OPPORTUNITIES

Going it alone in the mortgage world can be a challenge – especially with an ever-changing regulatory environment. Joining a branch network and making the most of all the corporate support that comes with it is one way to ease the pain

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WITH NEW regulatory hurdles being thrown up all the time, it’s getting tougher for originators to go it alone. Independent originators have to worry about much more than just writing loans; they have to develop marketing strategies, fulfill continuing education requirements, and somehow remain compliant in an industry where that’s getting more and more complicated.

Facing all of those challenges, many independent mortgage professionals find the idea of joining a branch network increasingly seductive. And while being a lone wolf is appealing, branch network membership has its advantages.

The support of a major corporate entity can mitigate a lot of the everyday headaches an originator would otherwise have to deal with and free him to do what he does best: make loans. And whether you’re coming from a tiny brokerage or a giant bank, joining a branch network can be just what the doctor ordered, says Paul Anastos, president of Mortgage Master.

“It’s a really compelling argument whether you’re coming from a small broker or a large bank – we can offer the best of both worlds,” he says. “People coming from small brokers often find they can’t be very price competitive.

They also have challenges like keeping up with compliance and marketing. Whatever it is that they need, they generally lack because they don’t have the scale or the size to avail

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“It’s a really compelling argument whether you’re coming from a small broker or a large bank – we can offer the best of every world.”

Paul Anastos, president, Mortgage Master

themselves of what’s out there. You have a different problem at these large banks, where you almost get swallowed up by the system.

We provide that perfect middle ground. It really meets the demands of a wide area. To me it’s not a question of who fits. It’s really a question of who doesn’t fit.”

MPA recently asked originators to rate branch networks’ most important selling points on a scale of one to 10. Most originators thought underwriting support and quick turnaround times were the most important advantages a branch network could offer, while autonomy and technology solutions also rated high on the list.

UNDERWRITING, PROCESSING SUPPORT AND TURNAROUND TIME Getting loans turned around quickly is good for originators and their customers, which is why it’s not surprising that most originators felt underwriting, processing support and turnaround time were far and away the most important advantages offered by branch networks.

“That’s the whole reason you work with a lender like Academy: to have a clear communication process and some control over your underwriting process,” says Tim Duvall, district manager for Academy Mortgage. “Our process internally is so much more smooth, efficient and quick that I’m not even willing to deal with a brokered loan anymore.”

Duvall says that smoother underwriting and faster turn times are a hallmark of being part of a branch network.

“To me, that’s invaluable,” he says. “I worked in the broker world for several years, and I can’t imagine, with today’s regulatory

environment, wanting to be on that side of the industry anymore.”

“It’s absolutely critical,” Anastos agrees.

“It’s great to have the best product and price – but if you can’t get the loans out the door, what good is it? I see our competitors struggle with the execution sometimes, and that just can’t be tolerated.”

AUTONOMY WITH SUPPORT The originators who responded to our survey said that retaining a sense of autonomy was vital to them. But does joining a branch network destroy that sense of independence?

The short answer, Anastos says, is no. In fact, crushing that sense of autonomy is the last thing a good branch network should want to do.

“You want to foster that entrepreneurial spirit. When you deal with top-producing sales people, they’re used to having some level of autonomy and control,” he says. “So you want them to have that flexibility, but also know they’re part of something greater. We want to share with them what we’re doing from a corporate perspective, how we’re doing it and how it’s going to help them, but at the same time we want to step back and let them do what they’re doing.”

“I believe I have the best of both worlds,” Duvall says. “I have a dedicated IT team if a computer breaks or if I want to get a $10,000 printer and want help deciding which one I should buy. I have help with managing our inventory of furniture and electronics and all that. If I have a question on a Fannie Mae guideline or something like that, I have whole teams whose whole job it is to do nothing but that. For all intents and purposes I get to act

BRANCH NETWORKS: 6 REASONS TO JOIN MPA recently surveyed originators to find out how highly they rated six key selling points of branch networks. We asked survey respondents to rate the importance of each selling point on a scale of 1-10.

Here’s how the numbers shook out:

9.32 Underwriting/processing support and turnaround time

8.5 Technology, software and CRM support

8.18 Autonomy with support

7.68 Compliance support

7.29 Marketing and brand awareness

7.25 Training and education

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FEATURES

COVER STORY: BRANCH NETWORKS IN HIS OWN WORDS: KEVIN LAFFEY, BRANCH MANAGER, INLANTA MPA: What made you decide to join a branch network?

Kevin Laffey: I spent 25 years with the bigs – Bank of America and Wells Fargo – in a variety of roles. And if I knew what I know now about our branch network, I would have made the switch long ago and never looked back.

The ability to serve your customers the way you think is best, the ability to get things done quickly – that’s huge. And from what I’ve heard talking to brokers who used to work at big banks, you get caught up in the day-to-day problems of human resources and accounting.

You lose time on the sales side. The reason we love the organization is the ability to move forward, make a decision and get stuff done.

When I was working for the big organizations, I was running close to a billion dollars through my region, but if I wanted to buy a new computer, it was a month of filling out paperwork.

MPA: What advice would you give an originator who’s thinking about joining a branch network?

KL: I would tell you, having been on both sides, that the people are the most important part. We all have the same challenges, and the product offerings are generally the same. But the culture of the company – from the person who greets you when you walk in the door to the person who turns the lights off when you leave – is so powerful. Our company is like a family. Knowing what I know, that would be the first thing I look at – the culture of the company.

The phone number of every Inlanta employee is online. So if you’re thinking of joining our company, call up some of the people who work for us. That’s a huge risk for some companies, because a lot of people hate where they work – but I challenge you to find someone who doesn’t love it here.

“The culture of the company — from the person who greets you when you walk in the door to the person who turns off the lights when you leave — is so powerful”

MPA: A lot of independent brokers are worried about a loss of autonomy. Does Inlanta give its branch partners a sense of ownership?

KL: Absolutely. We’re a little unique in that we run with an advisory board made up of officials elected by the sales staff, and a lot of the decisions are made by that board.

MPA: Continuing education is another big issue in the mortgage world. Does Inlanta help facilitate required training for its originators?

KL: We have an annual meeting that’s open to all employees. There are a variety of training sessions you can attend – and an opportunity to knock out your continuing education. About 90% of our people take advantage of that.

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like a small-business owner, but with all that back-end support.”

TECHNOLOGY, SOFTWARE AND CRM SUPPORT One of the greatest advantages of joining a branch network is gaining access to the kind of cutting-edge technology – and technological know-how – that may be beyond the reach of an independent originator.

“Academy is cutting edge with their technology, whether it’s on the marketing side, the loan operating software or the CRM,” Duvall says. “We’ve invested at a large level in several great in-house projects or thirdparty vendors who’ve customized things for our platform.”

Anastos says that providing originators with the latest technology is a critical part of helping them succeed. The last thing a branch network wants, he says, is to fall behind – particularly in a rapidly changing industry.

“You have to think about how the business is changing,” he says. “We know what our salespeople are strong at. We’ve got an unbelievable team, but we didn’t bring them in to be technology experts. So we try to surround them with all the tools that they need – and constantly update those tools. The last thing you want to be is Blockbuster Video, where you have a great concept but the world changes around you and you’re not prepared for it.”

COMPLIANCE SUPPORT With new regulations popping up seemingly every day, compliance has emerged as one of the biggest challenges to mortgage brokers in the last few years. And relieving some of that burden is one of the most important things a branch network can do.

“It’s become so daunting to stay on top of regulatory changes, not only from the CFPB but from individual states,” Anastos says.

“There’s such a laundry list of items that you have to pay attention to that it becomes almost impossible to do any selling. We take all of that off their plate so they can concentrate on their business.”

Compliance support isn’t just a time-saver,

HOW ARE BRANCH NETWORKS PERFORMING? MPA wanted to know how well branch networks were performing in six key areas, so we asked originators to rate them on a scale 1-10. Here’s what they said: Underwriting/processing support and turnaround time Compliance support Autonomy with support Technology, software and CRM support Marketing and brand awareness Training and education 0

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5

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BROKERS’ MARKET SHARE DROPPING Many originators are moving into the branch network simply because it’s becoming harder and harder to be an independent broker. In 2005, brokers accounted for more than 30% of total loan originations.

By 2013, it was around 10%.

Market share 35% 30% 25% 20% 15% 10% 5% 0%

2005

2008

2010

2013 Source: Inside Mortgage Finance

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FEATURES

COVER STORY: BRANCH NETWORKS IN HIS OWN WORDS: DAN HULTQUIST, BRANCH MANAGER, OPEN MORTGAGE MPA: What made you decide to work for Open Mortgage?

Dan Hultquist: I wanted to work for a national firm, and Open Mortgage has a good reputation.

I’m a reverse mortgage specialist, and what appealed to me about Open Mortgage was its commitment to the reverse industry.

MPA: Do you find that you have enough autonomy at your branch? And do they combine that with a high level of back-end support?

DH: I definitely get a lot of support from the company. They provide a nice mix of flexibility and support if I need it. I have no interest in going it alone and being out there on my own. I love being able to call my compliance office with questions. I love being able to have my ads reviewed. Our underwriting team is easily accessible with one phone call. I definitely wouldn’t want to be out there alone in today’s regulatory environment – especially for someone like myself, who specializes in reverse; they’ve segmented that so I have reverse underwriters to contact. It’s the perfect mix of corporate support and flexibility, and I don’t have to worry about a lot of compliance issues that a broker would have to.

MPA: What advice would you give to an originator looking to join a branch network?

DH: If you’re looking at a niche like the reverse industry, you’re going to want to find a company that’s committed to that industry. A lot of companies come and go, but Open Mortgage is committed.

Because I’m a reverse specialist, I wouldn’t go to a

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firm that won’t be around for a long time. If you’re coming to a mid-sized company, you definitely want to know that they’re committed to their niche.

You also want support. I wrote a book called Understanding Reverse. I did look at other firms when I left my previous employer. Some of them had a problem with me writing a book and using it to promote my business. Open Mortgage actually encouraged it. So that’s a difference between them and some of the larger firms.

“I definitely wouldn’t want to be out there alone in today’s regulatory environment”

Duvall says – it’s also a safety net for originators.

“One thing I love about Academy in particular is that we have a fully automated compliance department with multiple safeguards and safety nets to keep us out of trouble,” he says. “It’s virtually impossible for me to improperly disclose a loan, either upfront or in the re-disclosure process. That’s a huge peace of mind. We do a three-timeper-week pipeline review. My branch closes about 80 units a month, and we don’t even look at the compliance piece. It’s not a metric we even track, because we don’t need to. And that’s huge.”

MARKETING AND BRAND AWARENESS Marketing strategy isn’t second nature to everyone. But if customers don’t know you exist, you can sell the best product in the world and still fail spectacularly. But coming up with a comprehensive marketing strategy takes time and resources – time and resources that could be spent closing loans. That’s why access to a branch network’s professional marketing team can revolutionize an originator’s business.

Different branch networks will take different approaches to marketing. At Mortgage Master, they combine the efforts of a top marketing team with strategies drawn from the experiences of veteran originators.

“You hit it from so many directions,” he says. “It starts with having a deep marketing staff. And then when you have some of the best loan officers in the country, you just have so much you can draw from.”

Duvall says his association with Academy makes marketing a breeze. “There are probably 500 PDF fliers, already compliant and approved, that are fully customizable for each (branch office),” he says. “If I need to create a listing flier for one of our realtors because they’re doing a listing tomorrow, it takes me about two minutes, because the PDF is already there. It already has my photo, contact info and NMLS number. I literally just plug in the data I need so I can print out color copies here at the office.”

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W fi t a r i

C n e

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1/04/2015 10:44:25 AM

We’ve got the vision.

All we need is you.

We’re ditech. We seek experienced mortgage financing professionals who are sales-centric, tech-savvy, have an entrepreneurial spirit, and are relentless in making home ownership a reality for their clients. We’re taking the industry in a new direction. Come join us.

Call a ditech Talent Specialist now at 1-800-395-1957 or email us at retailoppty@ditech.com Learn more at ditech.com/careers.html

Why ditech?

• Unmatched commitment to the retail network • National brand awareness via multimedia advertising and sponsorships • Hybrid origination model – national leads distributed back to your local market • Exceptional pricing energizes your robust compensation plan • Outstanding customer service, products, technology, marketing, and in-house support • Comprehensive benefits for you and your family “I loved ditech so much, I brought my whole team with me.”

- Al Pereida 15-year mortgage veteran

Ditech Mortgage Corp, a subsidiary of Walter Investment Management Corp., does not discriminate in hiring or employment on the basis of race, color, religion, gender, sexual orientation, gender identity or expression, national origin, age, disability, genetic information, veteran’s status or any other characteristic protected by any applicable federal, state or local law.

Ditech Mortgage Corp, 1100 Virginia Drive, Suite 100, Fort Washington, PA 19034, 215-734-8230. NMLS Unique Identifier # 98161. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act and Finance Lenders Law; Massachusetts Mortgage Lender and Broker License No. MC98161; Ohio Mortgage Broker Act Mortgage Banker Exemption # MBMB.850013.000; Oregon Mortgage Lending License # ML-4537; Rhode Island Licensed Lender. ©2015 Ditech Mortgage Corp

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GUILD CONTINUES TO GROW

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Guild Mortgage was founded in San Diego in 1960 and has grown to become one of the top independent mortgage banking companies in the United States because of its entrepreneurial culture, quality people and commitment to customer service.The company produced more than $7 billion in loans in 2014 and serviced another $17 billion with an innovative production system and proprietary processes for originating, selling and servicing consumer loans.

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The growth exceeded industry trends in 2014. While national mortgage originations were off 40 percent in 2014 from 2013, Guild volume in its existing branches was up approximately 5 percent, before acquisitions or new branches.

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In 2014, Guild made two major acquisitions and expanded a correspondent banking relationship. As of December 2014, Guild had more than 250 fullservice branch offices and satellite offices in 25 states. The company continues to expand into new markets by opening its own new offices and through acquisition, adding branches in new and existing markets and preserving its customer service culture with experienced, talented loan officers with established relationships.

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Our success over the past half-century was constructed on a foundation of core principles: unparalleled customer service, industry leading technology and an entrepreneurial culture that values creativity and energy. Guild is looking for new partners who share our values to continue our momentum.

Guild Mortgage Company is an Equal Housing Lender; Company NMLS ID 3274. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. OR ML-176; Georgia Residential Mortgage Licensee; GA #6268; NV Banker #1076/NV Broker #1141; AZ BK #0018883; Regulated by the CO Division of Real Estate. Licensed by the Mississippi Department of Banking and Consumer Finance. Illinois Residential Mortgage Licensee. Kansas Licensed Mortgage Company. Licensed by the New Hampshire Banking Department. All loans subject to underwriter approval. Terms and conditions apply. Guild Mortgage Company is an Equal Opportunity Employer

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1/04/2015 9:39:37 AM

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INVESTING IN

YOUR SUCCESS Advantages • Aggressive compensation for loan officers and branch managers.

• Guild University with sales coaching from one of the top producers in the nation.

• Financial Strength and Stability. Guild has been successfully closing loans for 55 years.

Product Information • Broad product mix Including Portfolio Jumbo programs up to 95% loan to value, Construction to Perm financing and conventional financing with 97% loan to value.

Controlled Growth • Increased retail team with over 160 new loan officers and over 50 new licensed locations.

• Increased our overall production by $300 million, while other leading lenders dropped in volume in 2014.

• Increased our servicing portfolio by $3 billion.

Guild Mortgage also grew by acquiring Comstock Mortgage and Northwest Mortgage Group, and strengthened our relationship with Mutual of Omaha Bank.

contact us

Shadele Sciutto

National Recruiting Manager 858.627.2266 | ssciutto@guildmortgage.net

follow us Guild Mortgage Company

Guild Mortgage

@guildmortgageco

LEARN MORE AT SWITCHTOGUILD.COM 26-35_Coverstory Branch Network2.indd 33

Guild Mortgage is an Equal Housing Lender; Company NMLS ID 3274. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. OR ML-176; Georgia Residential Mortgage Licensee; GA #6268; NV Banker #1076/NV Broker #1141; AZ BK #0018883; Regulated by the CO Division of Real Estate. Licensed by the Mississippi Department of Banking and Consumer Finance. Illinois Residential Mortgage Licensee. Kansas Licensed Mortgage Company. Licensed by the New Hampshire Banking Department.

All loans subject to underwriter approval. Terms and conditions apply. Guild Mortgage Company is an Equal Opportunity Employer

1/04/2015 9:39:45 AM

FEATURES

COVER STORY: BRANCH NETWORKS MAKE YOURSELF BRANCH FIT So you want to join a branch network. The first question to ask is: How do you make yourself an attractive prospect? After all, a branch network can offer all the advantages in the world, but it won’t make a difference if the company doesn’t want you. MPA sat down with Ray Brousseau, executive vice president of mortgage lending for Carrington Mortgage Services, to ask how originators could make themselves a good fit for branch networks.

SHOW SOME LOYALTY “It is a deep concern to me – the lack of loyalty there is when it comes to mortgage banking,” Brousseau says. “Folks move from one lender to the next lender to the next lender. As we set out to build our branch organization, the one thing we think about when we’re talking to prospects is, do they buy into what we’re trying to do? Are they committed to Carrington?”

SHARE THE COMPANY’S GOALS “We want to see that they fit our DNA,” Brousseau says.

“We’re not a lender that strives to meet everyone’s needs. We’re a bit of a niche lender – we serve the underserved market. We’re looking for prospects that fit that model.

Instead of striving for more and more, they need to accept that niche and fit that niche.

We need to feel comfortable that they can sell our products. A good number of our folks that are very successful have been in the subprime space previously, and recognize the value of being able to serve borrowers who aren’t served effectively. We certainly look for some level of experience in that arena – or

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“At the end of the day, no matter how productive you are, no matter how successful you are, you’re not more important than the firm” folks that are fairly new to the industry looking for a way to establish themselves, carve out a niche for themselves and build a business. It’s those that are in the middle – who’ve done traditional lending for a long time without a subprime background – who we find are difficult to move toward what we’re trying to do.

They’ve been in the business a long time, they’re set in their ways, and they’re hard to convince to change.

EMBRACE THE COMPANY CULTURE “At the end of the day, no matter how productive you are, no matter how successful you are, you’re not more important than the firm. The firm is the platform that everybody’s success is built on. There’s no amount of production that’s worth putting up with somebody who’s not bought into where you’re going. Being successful is about building a team that’s bought into where you’re going.

We spend a really good amount of time putting people into positions who we believe fit our culture.”

TRAINING AND EDUCATION Continuing education simply isn’t an option in this business – it’s a requirement. Having access to a branch network’s training and education programs can help originators keep current with state licensing requirements, as well as provide them tools to expand their businesses.

“Coaching is a huge resource,” Duvall says.

“It’s the kind of thing most independents aren’t willing or able to invest in. It’s hard to spend two or three hundred bucks an hour when you’re just a one-man shop or a threeman shop. I genuinely feel like I’m a better person today than I was when I started here because of all that’s been invested in helping me to learn and grow – both in the business and figuring out what’s important to me personally.”

CHOOSING A BRANCH NETWORK While branch networks offer many benefits, not every network is for every originator. So, if you decide to go the branch route, how do you choose the right network for you?

“Everybody’s pain point is going to be different,” Anastos says. “A lot of what it comes down to is understanding what they need – what they’re missing. What about their business would they not want to change, and what about their business is not working?”

Duvall says originators should do their homework before choosing a branch network.

“The temptation is to focus on compensation, and I think that’s a mistake,” Duvall says. “I’m just reaching back to four and a half years ago when I had this journey.

We were smart enough not just to look at comp. I’m looking for value: What amount of support do I have? What’s the operational system I’m looking at? I’m looking at marketing: What’s covered for me? Some organizations will pay you a high compensation, but then charge you 10 cents a copy for marketing material and charge you for every marketing project.

“The other piece of the value puzzle that’s huge is, are my rates competitive? What Academy does very well is find that sweet spot between aggressive compensation and low

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interest rates. I did an analysis of the top 10 competitors here in our market. I compared interest rates and comp, and there was only one other in the top 10 that even came close to having the same setup of great compensation with low interest rates.”

But you shouldn’t just look at what a branch network can do for you right now, Duvall says; you should also consider how the network will shepherd your career in the future.

“I started as a loan officer here,” he says.

“I’d been in the business for seven years when I came to Academy. They literally came to me six months in and said, ‘Hey, we think you’ve got the right stuff. Would you think about becoming a manager?’ They’ve set forth a very clear path to continue to support me and my growth – whatever I want that to be.

“For all intents and purposes I get to act like a small-business owner, but with all that back-end support” Tim Duvall, district manager, Academy Mortgage “If I’m a broker, I want somewhere I can still be entrepreneurial and be rewarded for that, somewhere that’s going to give me that great value of good comp with good interest rates, great support, great marketing, and somewhere that’s going to let me grow – where I’ll look back five years from now and say, ‘I’m where I want to be.’”

www.mpamag.com

26-35_Coverstory Branch Network2.indd 35

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1/04/2015 11:53:36 AM

RESOURCES

BRANCH NETWORK DIRECTORY

The mortgage industry’s most comprehensive

Academy Mortgage Corp.

Advisors Mortgage Group Allied First Bank

Ben Green

www.academymortgage.com/ careers

801-233-7267 X X

Luke McCann

www.advisorsmortgage.com

877-507-1800

X

Jeff Hutchison

www.alliedfirst-mortgage.com/netproduction-office-branch

800-910-3357

X

X

X X X X

X

X

X

X

X

X

X X

COMMERCIAL

MANUFACTURED HOMES

REVERSE

203K

JUMBO

VA

FHA

USDA

IN-HOUSE PRICING ENGINE

CRM

LEAD GEN

IT

HR

IN-HOUSE UNDERWRITING

ACCOUNTING

PHONE

MARKETING

WEBSITE

LICENSING

CONTACT

COMPLIANCE

NAME

BENEFITS

Please contact Ryan Smith at ryan.smith@keymedia.com to be added to our online database

X X X X X X X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

All Western Mortgage

Karl Holt

www.awmnow.com

888-296-0300

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Alpine Mortgage Planning

Jeff Stode

www.alpinemc.com/careers

503-718-9850

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

AmCap Mortgage

Brandon Armstrong

www.joinamcap.com

800-590-4314

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

American Financial Network

Bailey Holmes

www.afnbranch.com

888-996-0037

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

American Pacific Mortgage

Mike Haden

www.growwithapm.com

866-625-9352

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Amerifirst Home Mortgage

Rick Koenig

www.amerifirst.com

800-466-5626 x2001

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Axia Home Loans

Rich Johnson

www.axiahomeloans.com

208-333-0010

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

www.bayeq.com

800.229.3703

X

X

X

X

X

www.carringtonhomeloans.com

949-517-6064

X

X

X

X

X

X

www.catalystlending.net

602-770-6080

X

www.cmgfi.com/sg

925-884-2790

X

X

X

X

X

X

www.mbfinancial.com

248-889-6504

X

X

X

X

X

X

Bay Equity Carrington Mortgage Services

Tom Shaw

Catalyst Lending CMG Financial

Human Resources

Cole Taylor Mortgage

Mark Janssen

X X

X

X

X X

X

X

X

X

X

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X

BUILDING YOUR BRANCH TEAM? ASK ABOUT OUR AND RECRUIT BRANCH PACKAGES

REACH 88,000 MORTGAGE PROFESSIONALS

THROUGH

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36

CATHY MASEK 720-316-0151 cathy.masek@keymedia.com

4/09/2014 8:51:41 AM

www.mpamag.com

36-41_Branch Directory.indd 36

1/04/2015 9:46:35 AM

g

ve

Fully searchable database available at www.mpamag.com

guide to branch networks

AK AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WVWY X

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?

1:41 AM

www.mpamag.com

36-41_Branch Directory.indd 37

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1/04/2015 9:46:44 AM

RESOURCES

Envoy Mortgage

TL Huynh

First Alliance Home Mortgage

Sam Khalil

First Mortgage Corporation

www.ditech.com/careers

X

X

X

X

X

X

800-395-1957 X X X X X X X X X

www.envoymortgage.com/find-branch

877-232-2461

www.fahmloans.com

201-410-5728

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X X X

X

X

www.firstmortgage.com

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X

X

X

X

X

Flagship Financial Group

Mark Ballantyne

www.flagshipfinancialgroup.com

877-569-3328

X

X

X

X

X

X

X

X

X

X

FMC Lending

David Goldberg

www.fmcfund.com

888-297-4440

X

X

X

X

X

X

X

X

X

X

Gateway Funding

Steven Reich

www.joingatewaynow.com

877-317-2045

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Gateway Mortgage Group

Dane Basham

www.gatewayloan.com

888-317-1974

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Gold Star Mortgage Financial Group

Tina Jablonski

www.goldstarfinancial.com

248-470-3834

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Golden Empire Mortgage

Joe Ewens

www.gembranchinfo.com

800-320-1758

X

X

X

X

X

X

X

X

GSF Mortgage Corp.

Chad Jampedro

www.gogsfbranch.com

262-901-1444

X

X

X

X

X

X

X

X

X

Guaranteed Rate

Tom Gamache

www.joingrnow.com

773-969-5696

X

X

X

X

X

X

X

X

Guild Mortgage Company

Shadele Sciutto

www.guildmortgage.com www.homebridge.com

732-546-8882

X

X

X

X

X

Hometown Lenders

Shawn Miller

www.hometownbranch.com

888-606-8066

X

X

X

X

X

www.ikonlends.com

843-270-8898

X

X

X

X

www.inlanta.com

262-797-7111

X X X X X X X X

www.joiniffg.com

866-606-4334

X

Integrity First Financial Group

Integrity Mortgage Group iServe Residential Lending Jet Direct Mortgage

Pete Salamone Alex Barnett

William Wolfe Rick Trew Peter Pescatore

Keystone Financial Services Land Home Financial Services

Sean Stafholm

Liberty Home Equity Solutions

www.integritymtgs.com

X

X

X

X

X

X

X

X

X

X X X

X

X

X

X

X

X

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X

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X X X

877-772-3350 X X X X X X X X

X

X

X X X X X

X

X

X

X X X

X X X X

X

X

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X

X

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X

X

X

X

www.joiniserve.com

615-869-0408

X

X

X

X

X

X

X

X

www.jetdirectmortgage.com

631-574-1306 x622

X

X

X

X

X

X

X

X

X

X

X

X

www.usekeystone.com

480-899-9445

X

X

X

X

X

X

www.lhfinancial.com

888-415-2000

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

www.libertyhomeequity.com

866-751-6112 866-467-3157

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

www.loansimple.com

Maverick Funding Corp.

Ericka Adams

www.maverickfunding.com

973-585-1175

X

X

X

X

X

X

The Money Store

Jeff Moore

www.tmsbranch.com

973-805-2016

X

X

X

X

X

www.joinmcabranch.com

800-974-4434 x290

X

X

X

X

X

38

X

X

Scott Hardin

Jason Kravitz

X X

X

X

Loan Simple

Mortgage Capital Associates

X X

X

X X X X X X X

Kevin Krueger

Inlanta Mortgage

X X

800-283-8823 X

HomeBridge Financial Services

IKON Financial Group

COMMERCIAL

X

MANUFACTURED HOMES

X

JUMBO

IN-HOUSE PRICING ENGINE

CRM

LEAD GEN

IT X

VA

X

HR

X

IN-HOUSE UNDERWRITING

844-226-8326

ACCOUNTING

www.myccmortgage.com

MARKETING

X

REVERSE

Talent Specialist

800.965.0437

203K

Ditech

Bo Tarpof

www.chlmortgage.com

FHA

CrossCountry Mortgage

PHONE

USDA

Continental Home Loans

WEBSITE

LICENSING

CONTACT

COMPLIANCE

NAME

BENEFITS

BRANCH NETWORK DIRECTORY

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www.mpamag.com

36-41_Branch Directory.indd 38

1/04/2015 11:55:20 AM

Fully searchable database available at www.mpamag.com

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36-41_Branch Directory.indd 39

X

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39

1/04/2015 10:41:19 AM

RESOURCES

Movement Mortgage

Recruiting

www.movementmortgage.com

980-202-0090

Nations Lending Corporation

Jeremy Sopko

www.nlcloans.com

New America Financial Group

Todd Sheinin

www.newamericafinancial.com www.newpennfinancial.com

New Penn Financial NFM Lending

Greg Sher

Norcom Mortgage

James Morin

X

X

X

X

X

X

X

X

866-447-0266

X

X

X

X

X

X

301-956-2902

X

X

X

X

X

X

888-852-4151

X

X

X

X

X

X

X

866-765-1907

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

520-202-5231

X

X

www.openmortgage.com

512-492-3330

X

X

Paramount Residential Mortgage Group

Chris Sorensen

www.prmg.net/ourvision.asp

866-776-4937

X

X

X

X

X

X

X

X

X

X

X

X

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Matt Mathosian

www.goprime.com

919-249-4139

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www.psmwwyh.com

405-753-1900

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401-519-2387

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Sean Browning

www.sierrapacificmortgage.com

800-447-3386

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Sovereign Lending Group

Joe Archuletta

www.slgmortgage.com

949-800-2012

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Stearns Home Loans

Jeremy DeRosa

www.stearnsretail.com

877-850-8292

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Sun West Mortgage Company

Mark Jaime

www.swmc.com

253-830-2507

www.supremebranch.com

214-888-7057

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www.unionbank.com

619-230-4196

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www.unitedmortgage.com

917-531-2836

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800-800-2023

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888-482-6395

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Waterstone Mortgage

Talent Acquisition

www.waterstonemortgagecareers.com

855-225-0455

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WEI Mortgage Corp.

Christine Wang

www.weicorp.com

800-934-5600 x502

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WesLend Financial Corp.

Adrian Twombley

www.weslend.com

800-608-8707

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Joe Dishinger

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VanDyk Mortgage Corp.

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Eric Nerses

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United Northern Mortgage Bankers

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United Mortgage Corp.

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800-255-2792

Michael Pavon

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415-771-3700

972-764-6897

Bill Harp

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949-292-5507

www.primelending.com

Supreme Lending

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www.gorperl.com

www.branchpartner.com

Union Bank

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www.parksidelending.com

Steve Thompson

Semper Home Loans

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Craig Steel

Frank Kuri

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PrimeLending

Residential Home Funding Corp.

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Primary Residential Mortgage

PrimeSource Mortgage

LEAD GEN

IT

HR

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860-899-3807

www.novahomeloans.com

PNC Mortgage

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www.nfmlending.com

Lance Dickson

PMAC Lending Services, Inc.

X

www.norcombranch.com

Peter Kallodaychsak

John Perez

IN-HOUSE UNDERWRITING

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Open Mortgage

PERL Mortgage

X X X

NOVA Home Loans

Parkside Lending

REVERSE

888-793-6470

203K

www.mwfinc.com

JUMBO

877-899-3614

John Cady

VA

www.msfhome.com

Mountain West Financial

ACCOUNTING

888-263-1435

MARKETING

www.mortgagemaster.com

FHA

Mortgage Solutions Financial

PHONE

USDA

Mortgage Master

WEBSITE

LICENSING

CONTACT

COMPLIANCE

NAME

BENEFITS

BRANCH NETWORK DIRECTORY

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41

1/04/2015 10:39:51 AM

FEATURES

$100 MILLION CLUB

THE

$100

MILLION CLUB MPA spotlights some of the nation’s most prolific originators WELCOME TO the inaugural edition of MPA’s $100 Million Club. We asked you to nominate top originators – those who had produced at least $100 million in volume during 2014. Nominations came pouring in, but we’ve narrowed it down to the top 15, people who closed hundreds – or even thousands – of sales last year.

These 10 run the gamut, from industry veterans to ambitious young originators who’re already making their mark. But they all have one thing in common: They’re sales giants.

COMPANY

42

VOLUME

UNITS

www.mpamag.com

42-46_100m Club.indd 42

1/04/2015 9:54:27 AM

INDY JOHAR

SAM SHARP

GUARANTEED RATE $142,900,000 397 Indy Johar is consistently one of the top mortgage originators in the country. In 2012, he closed almost 1,300 loans — more than any other residential originator in the U.S. In 2013, Johar was responsible for $222 million in loan volume, placing him in the nation’s top five originators. Last year, he closed 397 loans for $142,900,000 million in volume.

PAUL VOLPE NOVA HOME LOANS $135,939,757 729 After graduating from the University of Arizona in 2001, Paul Volpe joined NOVA Home Loans and was mentored by his brother Jon, NOVA’s CEO who had been named the country’s number-one originator five times. Paul soon made his own mark, thinking outside the box and putting together difficult loans that other originators wouldn’t touch. That outside-thebox thinking has paid off; last year, Volpe closed 729 units for a total volume of $135,939,757.

GUARANTEED RATE $106,800,000 338 Sam Sharp owned his own mortgage brokerage for five years before coming to Guaranteed Rate, and he brought the customer-centric sensibility he gained there with him. Sharp’s insistence on the personal touch has served him well; he racked up more than $106 million in volume last year.

BEN COHEN GUARANTEED RATE $151,800,000 312 Ben Cohen is one of Guaranteed Rate’s top producers, and among the top mortgage originators in the nation. Cohen thrives on helping his clients achieve the dream of home ownership, and to that end he’s made customer service and communication his top priorities.

And it’s paid off; Cohen closed on 312 units last year for a total sales volume of more than $151 million.

MATT ANDRE FBC MORTGAGE $159,467,086 647 Matt Andre has been the top producer at FBC Mortgage since 2006. “His work ethic and dedication to his clients and partners” are the keys to his success, according to Stephanie Simmons, marketing director for FBC Mortgage. “In today’s ever-changing mortgage market, Matt’s focus is working with his partners, clients and the communities he serves to provide the right mortgage in the most convenient manner possible.”

www.mpamag.com

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1/04/2015 9:54:34 AM

FEATURES

$100 MILLION CLUB SHAYA SONNENSCHEIN EASTERN UNION FUNDING $377,664,000 1,090

ELI BREINER EASTERN UNION FUNDING $296,220,000 1,953 Eli Breiner joined Eastern Union Funding in 2008 — the year of the financial meltdown.

Undeterred, Breiner took the opportunity to establish a reputation as a problem solver. Deals like a complex, $36 million loan to help a hospital facing bankruptcy soon made Breiner one of the most sought-after mortgage consultants in the New York area. And he’s still putting together complex, multi-million-dollar deals; Breiner was responsible for more than $296 million in sales volume last year.

Shaya Sonnenschein spent the first several years of his career as a real estate professional, and has even dabbled in marketing. When he became a mortgage broker, he used those connections to good effect; relationships with more than 50 lenders mean Sonnenschein has the contacts to put together big deals. In 2014 alone, Sonnenschein was responsible for more than $377 million in sales volume.

MICHAEL DEERY CITYWIDE FINANCIAL $101,450,310 254 Michael Deery is consistently ranked as one of the country’s top originators. Born and raised in Donegal, Ireland, Deery moved to the United States in 1994 to play soccer at the University of San Diego, and he’s brought that winning attitude to his work. Last year, Deery racked up more than $101.4 million in sales volume. When he’s not closing loans, Deery, an avid writer, pens a column for the San Diego Union-Tribune’s real estate section.

LOUIS BARDIS FJM PRIVATE MORTGAGE FUND $140,000,000 370 Louis Bardis began his career in 2005 with Benchmark Lending Group. In 2010, Bardis moved to a small private lending firm in Marin County, Calif., where he selected and underwrote loans for high-net-worth clients. In 2012, he partnered with FJM Investments to form Northern California Mortgage Fund II, III, IV, V and VI, LLC. In the same year, he created Theta Real Estate to further various real estate investment activities in the single-family market.

Last year, Bardis originated 370 loans for a total of $140 million in volume. Bardis holds a master’s degree in finance from the University of San Francisco.

44

NATE HYMAN AND DAVID METZGER EASTERN UNION FUNDING $499,745,599 8,759 Nate Hyman and David Metzger make a formidable team. Hyman has formed close relationships with leading investors, institutions and capital sources, and has cultivated an enviable expertise in every aspect of the business. Metzger is an acknowledged expert in lending in the New York Tri-State area, with vast experience in structuring complex deals. Working together, they closed nearly half a billion dollars in sales volume in 2014.

www.mpamag.com

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*C th d lo a

© W 0 a B M D q M

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1/04/2015 11:51:31 AM

FEATURES

$100 MILLION CLUB

JOE CALTABIANO

HOUTAN HORMOZIAN

GUARANTEED RATE $200,326,080 538 Joe Caltabiano is one of the top mortgage originators in the country, posting more than $200 million in sales volume each year for the last five years, and more than $2 billion over the course of his career. His drive has made him the No. 1 originator in Illinois three years running, and among the top five in the nation. But even with that staggering production, Caltabiano finds time to give back to the community, serving on the board of the Leukemia and Lymphoma Society and serving as a director for the Guaranteed Rate Foundation, which provides assistance to families in times of need.

SHANT BANOSIAN GUARANTEED RATE $179,000,000 5,32 One of the top-10 mortgage originators in the nation, Shant Banosian was responsible for $179 million in sales volume in 2014. The Massachussetts-based Banosian, a member of Guaranteed Rate’s President’s Club for top producers, is a recognized industry expert, frequently sought out for his insight by the national media.

46

CRESTICO $138,000,000 126 With more than a decade of experience in industries as diverse as electronics, automotive, real estate and finance, Houtan Hormozian brings a broad range of expertise and an outside-the-box attitude to the mortgage world. Hormozian combines real-world experience with online resources to push the envelope of the traditional mortgage business. He’s currently the treasurer of the Los Angeles Metro chapter of the California Association of Mortgage Professionals and the PR/web chair of the Orange County chapter of CAMP.

BRIAN BLONDER CAPITAL BANK $171,755,086 647 Brian Blonder has been ranked as one of the nation’s top producers six years running, having closed more than 3,000 loans worth more than $1 billion between 2009 and 2014. With 16 years of industry experience, Blonder has expertise both deep and wide in areas ranging from conventional and VA loans to loans on investment and vacation properties.

SHIMMY BRAUN GUARANTEED RATE $107,500,000 361 With more than $107 million in loan production last year, Shimmy Braun is one of the top originators in the nation. A two-time MPA Hot 100 alumnus, Braun has also been one of the top originators in Chicago several years running, and is responsible for more than $1.5 billion in loan volume over the course of his career.

www.mpamag.com

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1/04/2015 10:31:35 PM

PEOPLE

CAREER PATH

HITTING NEW HEIGHTS When he got out of college, political science major John Noldan jumped right into running a gubernatorial campaign. Along the way, he got sidetracked into the mortgage industry – and found his calling BEYOND

2010

HITTING HIGH GEAR In 2010, Bank Group merged with Guaranteed Rate – and Noldan’s career hit a whole new level.

“My highest volume I’d been doing at the time was around $30 million. When we merged with Guaranteed Rate, they showed us all the tools we could use, and that’s when things started moving. In 2011, I did around $33,785,000 at Guaranteed Rate.

And then in 2012, the very next year, I did $62,955,000.”

Noldan says he’s found a home at Guaranteed Rate. And after such success in the mortgage industry, it doesn’t look like he’ll be going back to running political campaigns anytime soon.

“I love the opportunity to help people out, from first-time home buyers to people who’ve been in their homes for awhile. It’s nice to give them a service, if they haven’t worked with me before that they’re not used to in this industry. The team that I’ve got around me supports me immensely. We make it very streamlined. And the competitive nature of this business – I love it. That’s what gets me up in the morning – constantly looking at those numbers and driving myself to do better and better every year.”

2013-2015

PUSHING THE LIMITS Noldan has continued to thrive at Guaranteed Rate, pushing for higher numbers every year.

2003

MAKING A CHANGE Noldan went to work at GMAC Mortgage Corporation as a loan officer and while GMAC helped him learn the ropes, he quickly discovered that something was missing.

“I got excellent training there. They made you get certified underwriter training before you could even originate a loan. You’d be surprised how many people in this business can’t determine income based on income tax and pay stubs. I was there for about six months, but I realized I was kind of handcuffed to their rates and products, and I needed to make a move. I decided to go to First Suburban Mortgage. That institution was a broker and a banker, and they had more products available, as well as better rates and better service.”

“I was a political science major out of college. My uncle was, at the time, the attorney general. He was running for governor, and I was running that campaign along with my family. When he lost, I was looking for something else.”

2007

“In 2013, I did $96,662,000. My purchase production in 2014 went up even further. The refis weren’t as big, but I still closed about $87 million.

The tools Guaranteed Rate gives you are huge in getting those production numbers up. They let you go out there and do what you do best.”

After a few years, Noldan left First Suburban for another mortgage corporation.

“Bank Group Mortgage Corporation was one of the better companies I’ve worked for.”

2002

ENTERING THE INDUSTRY

2002 POLITICAL

ASPIRATIONS

After his uncle’s unsuccessful campaign for governor, Noldan was looking for a new career. Several acquaintances told him he’d be a good fit in the mortgage industry.

“I had a lot of different referral sources in real estate in my community, and they said I should probably try the business. So that’s when I decided to jump in and give it a shot.”

www.mpamag.com

47_Career Path.indd 47

47

1/04/2015 10:33:00 AM

PEOPLE

FAVORITE THINGS

MICHAEL GONZALES Branch manager, Open Mortgage

Rocking out to Coldplay on a run or relaxing on the beaches of Cozumel. These are Michael Gonzales’ favorite things

Favorite celebrity: I guess Michael Jordan.

He was a childhood idol.

People my age all grew up watching Michael Jordan playing for the Chicago Bulls. I was one of those kids who wanted to be like him and thought I was going to play in the NBA.

Favorite music: I guess Coldplay. I use my wife’s Pandora when I run, and I guess it’s because I don’t like her other stuff on there.

48

Favorite drink: I drink a ton of water every day. If I’m going to have an adult beverage, it’s going to be Crown on the rocks.

Favorite food: That would have to be steak. My wife works at Cargill, a beef-producing company, so if I said anything other than steak I’d probably get in trouble.

Best part about working in the mortgage industry: Working with people. At one time, I had an office with 11 different loan officers working with me. It was a much larger team, and I didn’t really have the interaction with the customers. Now I’m a producing manager, and I hadn’t realized how much I missed interacting with customers.

There are three days that are big stages in your life: the first time you get married, the first time you have a kid, and the first time you buy a home. And I get to be part of one of those.

Photo of Michael Jordan by Joshua Massel

Favorite vacation spot: Cozumel, Mexico. My wife and I went there on our honeymoon in May of 2013. The place was great. They had all-inclusive resorts. You don’t have to worry about everyday life. It was just peaceful and relaxing.

Favorite movie: Braveheart. Since that movie came out, I’ve probably watched it 100 times. To me, it’s a great movie. It’s got a little bit of everything in it.

www.mpamag.com

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48-IBC-OBC_Favorite things.indd 50

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