NAMBCentral Summer 2022

The Magazine for the National Association of Mortgage Brokers SUMMER 2022

Fairway Wholesale Lending is proud to serve veterans and military families within your communities. We have partnered with American Warrior Initiative (AWI) to sponsor and fund a service dog for a veteran.

We need your help!

We are in search of a deserving veteran to receive a service dog this year.

Brokers, do you know someone who would be a perfect candidate to nominate? If so, please complete this form.

Fairway Wholesale Lending proudly supports our nation’s veterans and has a full suite of VA products to help YOU honor and serve your local veteran community: • 580 minimum credit score

• Cash-out on a manufactured home

• Maximum DTI according to AUS for approve/eligible loans

• Joint loans

• DTI on manual UW can exceed 41% per UW discretion with comp factors and >120% residual income • High-LTV VA cash-out refinance (up to 100% LTV)

• Assistance from our team on the VA entitlement worksheet and calculating entitlement • our team at Training@fairwaywholesalelending. com for assistance.

Visit us at Fairwaywholesalelending.com/about-us/awi to learn more today.

Copyright©2022 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. B2B communication — not intended for consumers. Distribution to general public is prohibited. All rights reserved. FW1759357

editrix

BY JILLY MacDOWELL

The Tide Is High “We are in a rising market now with no clue of the outcome,” said NAMB President Linda McCoy in a recent MoneyWIse article.

The news in the mortgage industry has been extreme: meager inventories, inflated home prices, rates from all-time-lows to now 5% and climbing, nonstop jobhopping, layoffs, closures -- volatility is the only constant.

Predictability is off the table. So what do you do?

You fortify the foundation. Start with the mental. Build your skills. Grow your knowledge. Get certified. Continue your education. Improve how you communicate, listen and negotiate. Take deliberate action to better yourself – as columnist Ron Vaimberg advises on the next page – and you will feel your power.

Find online support – connect with others who are in similar circumstances (they’re out there!). There is strength in unity. You are not alone. Did you know NAMB has an official LinkedIn group? Join the dialogue!

Or start your own Facebook or Meetup group! Drill down to your niche: CRMS Book Club of or 40 & Fabulous Loan Officers of East Jabip maybe? Shared experiences are where progress happens.

contents SUMMER 2022

~ IN THIS ISSUE Success Strategies... 4

by Ron Vaimberg

Driving Ahead.... 6

by David Childers

Drawing Upon the Board... 11

by Gabby Popowitz

Freelance Financials.... 12

by Karyn Winrich

Closing Statements... 14

ADVERTISERS

Fairway... 2 Plaza... 5 FSB Mortgage... 7 PreApp1003... 13 Citizens... 14 CIC Credit... 16

NAMB STAFF SALES:

Valerie Saunders MARKETING:

Jilly MacDowell MEMBERSHIP:

Hunter Higginbotham OPERATIONS:

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COVER PHOTO BY COURTNEY HALL ON UNSPLASH.

The National Association of Mortgage Brokers is the voice of the mortgage industry, representing the interests of mortgage professionals and homebuyers since 1973.

Equally importantly, take care of the physical self: Increase your serotonin with exercise, good sleep and outdoor time.

“Commercial fishermen can’t know the exact odds of whether a storm will blow up on a given day,” advises the Harvard Business Review, “but they keep their boats and their gear maintained and trust that their experience will enable them to navigate rough seas.” NC Also in this issue, how to get more from your board of directors and how to get a mortgage as a freelancer.

And, a reminder: NAMB is looking for outstanding brokers and service partners to celebrate at October’s #NAMBNational2022! Apply at nambawards.org!

nambnational.org

IT’S NOT WORK, IT’S NETWORK! Summer 2022

3

Success STRATEGIES

BY RON VAIMBERG

To achieve success you must deliberately plan your success. This goes far beyond typical goal setting. Make a commitment to succeed no matter what. To do this: 1. Make a real decision on how you will grow your business. This is different than thinking about what you should be doing. A real decision is being very specific on what you MUST do.

Originators are struggling – not only with a decline in business, but with the reality of what it takes to succeed today. Not only must they recognize what the market challenges are, but they must be willing to accept them.

Interest rates have gone up, the purchase market has slowed significantly and inventory is growing at a very fast pace right now. The reality is that we’re in the early stages of transforming from a seller’s market to a buyer’s market.

We don’t know how far the pendulum will swing towards purchasers, but we’re already seeing that sellers are willing to negotiate on price, even dropping list prices or assisting buyers with closing costs. No matter what happens, we don’t know when purchases will tick up.

So what does this mean for mortgage originators?

To succeed today you must get intentional and deliberate about your success. It’s not enough to think about what you need to do, you must act on it.

The challenge facing so many originators is that they’re trying to think their way to business growth. Obsessing about interest rate direction and market statistics in hopes that they’ll help you is ludicrous. There are no guarantees. Most market experts have been wrong about sales volume and interest rates for more than six months.

The market is unpredictable, so why try to base your success on predictions?

Your solution to success is to take specific actions day in and day out. A pro baseball player doesn’t think his way out of a batting slump, he hits his way out.

When business was booming, you got to ride the wave.

Today there is no way to ride. The current has completely switched and you must be willing to swim harder against the current than you have ever swum in your career.

Never before has the tide of the market reversed so quickly in the mortgage industry!

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March 2022 Summer 2022

2. Set out your plan to execute your decision. If you’re going to focus on agent relationship development, make a list of target agents.

“You must be willing to swim harder against the current than you’ve ever swum in your career.”

3. Create your competitive positioning statement. This is how to get an agent’s attention and offer more than a generic “good customer service.” Think about a specific problem you can solve or the opportunity you can create for them. Every LO can close a loan, but few LO’s help agents increase business.

4. Master your positioning statement and presentation.

Don’t assume that every agent will love the same routine.

Practice your presentation. Ask yourself what questions you need to ask agents. Think of the possible agent challenges, objections or rebuttals, and prepare for them.

5. Take action on your plan. GO FOR IT! Remember, you have more to lose by not taking action than you ever will by going for it. The storms will come. The challenges will meet you head on. However, remember you are doing what so few will ever do.

Dare to step outside your comfort zone. Set yourself apart to gain a competitive advantage. The one thing that every successful originator today has in common is they do what others won’t do. They’re committed to their success and extremely deliberate in their actions. NC An in-demand trainer and coach in the mortgage industry, Ron Vaimberg’s high-performance marketing, sales and leadership strategies are easy to implement and produce returns rapidly. Email Ron@RonVaimberg.com, call 877-582-3865, or visit RonVaimberg.com.

PHOTO BY JAIME SPANIOL ON UNSPLASH.

Roll WITH THE CHANGES

BY DAVID CHILDERS

However, not taking into consideration the recent shifts in the national market would be like sitting on the beach in Miami on a beautiful day and not thinking about a hurricane forming off shore.

We did that in 2005-2006 when we at first convinced ourselves that the downturn in the market was limited to just the “sand states.”

For decades, real estate agents have been taught to be fully informed on their local housing market. This is certainly valid advice, even today. However, true real estate professionals know that the national housing market has a big impact on the local market, and they have the tools to cultivate that knowledge and apply it to their clients’ lives.

Why is the national housing market so important now?

Realize that when a consumer has an interest in buying something, whether it’s a house, a car, or even a gym membership, they go into a hyper-sensitive state of awareness. You’ve probably had this occur in your own life but didn’t even realize it was happening.

The same thing happens when someone decides to buy, or sell, a home. While prior to this decision they ignored the housing report on CNBC, today they turn it up and really listen to it. A few weeks ago, they skipped the housing articles in The Wall Street Journal, but today they read every word (and even bookmark it).

Now that they’re in this hyper-sensitive state of awareness, they can’t help but listen to and read all the national data.

And that’s precisely why you as the real estate professional must address the national market before you start talking about the local market.

As Ivy Zelman, Hall of Fame Institutional Investor Equity Research Analyst, said, “We would never suggest that a real estate company could be successful without fully understanding local market trends. But ignoring macro trends or assuming they do not carry the same weight would be an equally erroneous suggestion. In our experience, the most effective industry leaders appreciate the appropriate balance between both ends of the spectrum.”

It can be as simple as stating: “This is what’s happening nationally with real estate.... This is what’s the same and this is what’s different from that in our local market... ”

“What the consumer expects of real estate professionals today is very different than what they expected of them only ten years ago.”

But, being oblivious to the shift could deepen its consequences in your local market unnecessarily. Let’s not repeat history and make that mistake again.

The new reality for real estate agents is this: • The real estate business has changed forever • What worked in the past to make you a successful agent won’t work today (or tomorrow) • You need skills for this new market reality What the consumer expects of real estate professionals today is very different than what they expected of them only ten years ago. The agents who don’t evolve into what today’s consumer demands will not survive.

What clients really want is someone who can: • Analyze all the available information • Connect the dots and let them know if now is a good time to buy or the right time to sell • Take the time to explain their options — simply and effectively It’s a big change, and it’s one you need to embrace to move forward.

To help put the change and the need for evolution in perspective, think of real estate as a NASCAR® race, and you, the agent, are the race car driver. Right now, you’re driving in that race, and the track is taking a sharp turn.

CONT’D ON PAGE 13 >

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Summer 2022

PHOTO BY DALLAS REEDY ON UNSPLASH.

Why Choose FSB Mortgage? tools and service model are designed to grow and increase your profitability, answer your unique needs and improve the lending experience.

Seasoned and Experienced Outside Wholesale Account Executives Direct Access to Underwriters and Quick Price and Quick Lock without a 3.4 File Prioritize Purchase Transactions Run Dual AUS — FNMA/FHLMC Day One Certainty Instant Disclosures Common Sense Writing Early CD Process Including Conventional Agency, Government, Jumbo and Combo HELOCS

Nationally ranked #11 of 200 Top Performing Banks in the country by American Banker

A lender you can bank on.

Visit fsbmortgage.com/tpo for more information.

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NMLS #411341. FSB Mortgage is a division of First Savings Bank. All rates and programs subject to change without notice. This to change without notice. This is intended totoassist Mortgage information is intended tosubject assist Mortgage Industry Professionals onlyinformation and is not an advertisement extend consumerIndustry credit.

Professionals only and is not an advertisement to extend consumer credit.

Feeling like the best...

RECOGNITION AWARDS 2022

RECOGNITION on our

NAMB Awards website, on namb.org awards tab and in NAMB Central, our monthly digital magazine.

FREE ADMISSION for up

to five at NAMB National 2022, NAMB Focus 2023 and NAMB Legislative & Regulatory Conference 2023.

MARKETING MATERIALS to proudly display on your website, available for purchase.

AWARDS GALA PLAQUE PRESENTATION to our

top 25 winners in each category! at #NAMBNational2022!

Must be a NAMB member to apply.

Applications are open until Aug 15, 2022.

Winners will be announced Sept. 1, 2022.

8

Summer 2022

New Broker of the Year

Five regional awards: Licensed less than 24 months This award recognizes individual loan originators who have obtained their intial MLO license within the last 24 months or less. Honoring originators in each of our five regions, individuals should be prepared to provide information including date of initial licensure, education, philanthropy, overall customer service, and marketing including website, social media sites such as Facebook, Instagram, etc.

We can’t wait to learn more about the great work that you do! nambawards.org

...is the best feeling!

RECOGNITION AWARDS 2022 APPLICATIONS ARE OPEN TILL 8/15! nambawards.org

Service Partner of the Year

Six categories: Software/Technology, Appraisal Management, Compliance, Title, Insurance, Training/Education

Mortgage Broker of the Year Ten awards: Fewer than 25 employees, or 25 or more, in 5 regions (Northeast, Southeast, Midwest, Southwest, Western)

This award celebrates the most outstanding Mortgage Brokerage Companies in each of our five regions and by size who have demonstrated, over the past 12 months, excellence within their respective regional market while delivering an exceptional experience for their clients.

This award honors the service provider that adds the most value to its customers' businesses. Eligible service providers include but are not limited to the above. Award recipients will show evidence of their value proposition, commitment to their customers and customer service.

Winners will be recognized at #NAMBNational2022 on October 9!

The top 25 winners in each category & region will receive a plaque & photo opp at our Awards Gala!

Summer 2022

9

Board DIRECTIVE

BY GABBY POPOWITZ

• Creating development programs for staff interested in professional growth.

• Offering opportunities for remote or hybrid work as nearly 60% of workers prefer work-from-home.

• Partnering with colleges for internship programs or using referrals from current employees.

Businesses across the country continue to face talent shortages. While they’re seeking solutions to address those shortages, 71% of board directors expect them to remain a problem for the foreseeable future.

Real estate associations, especially, should prioritize attracting and retaining talent. These associations are large, complex organizations that often rely on a small staff to meet the needs of sizable, dispersed memberships. But 60-70% of all commercial real estate firms face talent shortages.

2022’s competitive housing market accelerated talent shortages. Buoyed by higher demand, real estate associations nationwide began to compete with each other in their search for well-qualified agents.

Real estate associations also battle to find qualified younger workers. Nearly half of the real estate industry is over 50 (as compared to other industries that typically sit around 25-30%). The demographic within the real estate sector causes issues with youth hiring, mobility and career advancement. Younger people are up against more seasoned real estate professionals.

Employee expectations are changing, too. Real estate organizations must continue to adapt. Today, candidates eye flexibility, enhanced personal wellness and holistic wellness benefits (including financial and emotional health), solid cultures and significant professional development opportunities. Associations should align with the shifting needs of the labor market to attract and compete effectively for talent.

• Aligning benefits – like vacation time, mental health and wellness resources – with the market.

Acquiring talent may be the first step to building a highly qualified workforce, but retaining that talent is equally important. To increase retention, boards should: • Develop paths for career progression in the organization, and hold regular conversations at the supervisor level to discuss engagement or retention and at the employee level to offer career development such as training and mentoring.

• Create psychologically safe cultures that allow team members to share concerns with their supervisors, brainstorm resolutions and other alternatives to leaving the organization.

• Implement an anonymous complaint or suggestion mechanism offering a safety net for employees to voice their concerns. Encourage employees to use it and show its value by reviewing input regularly, holding staff meetings to discuss and forming committees to address identified needs.

• Track employee turnover to identify and address why team members leave the association. Use this data to discuss lessons learned and develop future strategies to reduce attrition.

Building a talented roster also requires solid communication among board members. Board management software streamlines and optimizes communication via agenda builders, minutes makers, e-signatures, polls, virtual voting and virtual meeting platforms.

Despite these complicated issues, real estate organizations can overcome the hurdles. Here’s how: By leaning on their board of directors to combat the crisis head-on.

How boards acquire and retain talent has changed, and they must adapt to keep their association’s talent pipeline healthy. Otherwise, real estate organizations risk losing out on valuable employees who can drive their business to the next level. NC

The responsibility of boards to provide their real estate associations with the tools to acquire and retain talent can be taxing, but it doesn’t have to be. Boards improve their odds of building an association’s talent roster by incorporating such specific tactics as:

Gabby Popowitz, senior director of talent and culture for Boardable, has more than 14 years of experience in talent management, acquisition and onboarding; engagement/retention; and training/development. Her purpose is to empower, encourage and develop people.

PHOTO BY KIT SUMAN ON UNSPLASH.

Summer 2022

11

Freelance FUNDS

BY KARYN WINRICH Qualifying for a home loan is a challenge for many Americans. Among many other steps, you must be able to prove to a lender that you can afford to cover monthly payments for the long term.

Freelancers deal with more obstacles. Lenders typically favor applicants with consistent income and job security to ensure they get their money back, and it can be difficult to prove those things when you’re selfemployed. That said, it’s entirely possible – and practical – to qualify for a home loan as a freelancer.

Committing to a significant down payment can go a long way in helping you win over a lender. On one hand, it implies your income is enough to pay a large chunk of the home’s purchase price. But it also means the bank doesn’t have to lend you as much money.

Start saving for a down payment today. The larger your down payment, the more likely you will qualify for a mortgage and the more favorable your loan terms will be. Some home buyers can get a conventional mortgage for as little as 3 percent down, though the average is 20 percent of the home’s purchase price.

Instead of trying to meet the minimum requirement, remember that lenders are more stringent with freelancers. Make a plan to save as much as possible.

Mortgage lenders want to see that your business is growing and that you’re pulling consistent income. One way to improve your chances of qualifying is to set up your company legally (if you haven’t already).

First, create a business plan that includes your mission, goals and strategies. Then determine which structure to form (e.g., sole proprietorship, partnership, LLC, etc.). You also need to ensure you have an official business name and that you register your business in your state.

If you have an LLC, consider drafting a business operating agreement even if your state doesn’t require it. And obtain an employer identification number (EIN) so you can open a business bank account. You can consult an easy guide on starting a new business to get started!

Your credit score will play a significant role in whether or not a lender approves your mortgage application. In most cases, home buyers need a credit score of 580 or higher though there are exceptions. Make sure you pay 12 Summer 2022

“Remember that lenders are more stringent with freelancers – plan to save as much as possible.” your bills on time, and refrain from taking out additional lines of credit during the application process.

Lenders often evaluate mortgage applicants by their debt-to-income (DTI) ratio. Essentially, this percentage shows how much monthly debt you have compared to your monthly income. You can quickly reduce your DTI and put yourself in a better position by snowballing your debt and cutting unnecessary expenses.

Take time to diligently organize your tax returns and accounts to ensure they’re up to date and accessible.

The lender will evaluate this information as evidence before making a decision on your application. Showing well-kept accounts, a strong credit score and a significant down payment will do wonders in winning over the lender.

Finally, your specific self-employed status can make a difference in your mission to secure a home loan. For example, freelancers and contractors typically need to show three years' worth of accounts, and the lender might multiply the worker's daily rate by the number of working days in the year. If you’re a sole proprietor, you’ll probably get by with three years of accounts and may bolster your application with profit projections.

It’s no secret that securing a home loan can be challenging when you don’t have a traditional 9-to-5. But you can improve your chances and position yourself for a favorable mortgage on your next home by following this strategy. Keep learning about the process as you tighten up your finances and grow your company. NC Karyn Winrich is a personal accountant with over 20 years of experience. She believes that with some strategic planning, anyone can take charge of their financial wellness. She created Financial-Literacy to offer helpful and practical advice to people from all walks of life to establish a more financially secure present and future.

PHOTO BY CLEMENT REMONT ON UNSPLASH.

> CONT’D FROM PAGE 6 To some agents this might be scary.

But this is actually a tremendous opportunity. Why? Because successful agents, like great race car drivers, don’t get paid to navigate the straightaways. Think about it — if anyone got into a race car, hit the gas, and kept the wheel steady on a straight, empty road, they could drive very fast without a problem.

Navigating the straightaways is easy. But approaching a turn at 180 mph without either slamming the brakes or crashing into the wall requires true skill.

When things change dramatically, some agents (like novice drivers) will hit the brakes. Some will stop the car, pull over and get out. And some agents keep going full throttle and crash. Not a great strategy.

Great agents, like great drivers, see the opportunity in this turn: They separate themselves from their competition.

The turn we face in the real estate industry right now is an opportunity for those who navigate it properly. NC This is a chapter from “How to Succeed in a Changing Real Estate Market,” a fantastic eGuide by David Childers. As President of Keeping Current Matters, David has kept his finger on the pulse of the real estate industry for more than 20 years. KCM’s approach to educational content and marketing helps agents stand out as market experts.

Download the eGuide at keepingcurrentmatters.com.

Summer 2022

13

THANK YOU TO OUR

industry partners

Closing STATEMENTS

Partner with NAMB!

Email valsaun@namb.org.

As the largest bank-owned Wholesale Lender+ in the country, Citizens is positioned to deliver in this ever-evolving mortgage climate. As overall wholesale market share continues to grow, Brokers need to be partnered with a company that can meet current demands.

Offering bank products, such as Portfolio Jumbo, Tandem HELOCs and CRA (in select states) has given our customers the ability to structure loans in ways that are not offered by many other wholesale lenders.

Now with purchase transactions dominating the market and inventory in short supply, our fully underwritten Lender Certified Approval for TBD properties allows your borrowers to compete with confidence. In addition, to help you win more new construction loans, we offer Long-Term Locks of up to 270 days with a float down option.

We understand that relationships matter! To ensure your customers have a smooth experience after closing, we retain and service 100% of our mortgage loans as well as offering options like netting escrows for refinances, unlimited recasts, and the ability to easily eliminate mortgage insurance. Additionally, we commit to never solicit our active partner’s customers for mortgage related products. When you refinance those borrowers with Citizens, we incent you to return them by offering reduced admin fees.

As our partnership grows, so do your advantages with Citizens when you qualify for our Loyalty Rewards program. Most importantly, we offer local Account Executives throughout the country and a dedicated Sales Support Team to help solve challenges in our daily grind!

We stand committed to the Broker community. Contact us at Citizenswholesalelending@citizensbank.com for additional details. We will have one of our experienced Account Executives reach out to you! + BASED OFF 2021 IMF RANKINGSSHARE

SPONSORED ARTICLES ARE $995.

14 Summer 2022

Email magazine@namb.org to showcase your company.

Sponsorships & advertising opportunities! valsaun@namb.org

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