NAMBCentral May 2023

NATIONAL ASSOCIATION OF MORTGAGE BROKERS MAGAZINE MAY 2023

Tech Committee Update 4

Industry Tech Tools 6-9

BY NAMB’S INDUSTRY PARTNERS

#NAMBLRC2023 Recap... 10

BY JILLY MacDOWELL

BY ERNEST JONES, JR.

As I stated in our last issue of NAMB Central, what a great first quarter of 2023 for NAMB. Even more exciting, the month of April was also terrific, highlighted by what some are describing as one of NAMB’s best, if not the best, Legislative Conferences ever. Each speaker was engaging, extremely knowledgeable about NAMB’s concerns and well-received by the conference attendees.

The highlight of the conference was having Rep. Ritchie Torres (D-NY), House Committee on Financial Services, address the conference the day before H.R. 2656, the “Trigger Leads Bill” he sponsored, was introduced to the House of Representatives. You can be a part of this exciting opportunity by responding to NAMB’s Call to Action at namb.org/advocacy

During the month of April, NAMB held its first-ever road show in Alaska, co-sponsored byFHA/NewRez. Kimber White & Valerie Saunders made the long but rewarding trip to the largest US state. The building & maintaining of relationships with states is critical to NAMB’s long-term impact on the mortgage industry.

The next BIG event for NAMB is the annual convention in Las Vegas, Nevada. Please make plans to join NAMB there, September 8-11, 2023. Over the next months, monitor your media sources for NAMB education classes & road shows coming to a location near you.

Thanks for reading this issue of NAMB’s monthly magazine; please share it with other industry professionals.

If you are not a NAMB member, visit namb.org/joinNAMB to join the association, which has been the voice of the mortgage industry, representing the interests of mortgage professionals & homebuyers since 1973. NC

NAMB STAFF

MARKETING:

Jilly MacDowell

MEMBERSHIP:

Hunter Higginbotham

OPERATIONS:

Brandie Starks

TRY NAMB FOR FREE! Look for “Courtesy Associate Membership” at namb.org/joinNAMB.

INDUSTRY PARTNERS & BENEFIT PROVIDERS IN THIS ISSUE

Floify... 4

Lending Pad... 5

CIC Credit... 6

LiveSwitch Video... 9

EPM Wholesale... 12

PreApproveMe... 13

Submit your news to magazine@namb.org.

©2023 NAMB All rights reserved.

May 2023

COVER PHOTO BY JIMMY CHANG ON UNSPLASH.

THE LRC WAS HELD AT THE LEGENDARY NATIONAL PRESS CLUB.

NAMB MEETINGS ARE NOT WITHOUT LAUGHTER.

WE ENJOYED FAIR WEATHER ON THE HILL.

PHOTO BY BRANDIE STARKS.

What Does NAMB Do?

In recent years, the mortgage industry has made significant strides in adopting mobile technology to enhance communication with consumers. Mortgage brokers have recognized the need to meet their clients where they are –on their mobile devices. NAMB strives to partner with the best technology partners to help members stay ahead of the curve.

CardTapp is one of those companies, which specializes in creating mobile business cards for mortgage brokers & their realty partners. The cards offer an innovative, userfriendly way for brokers to engage with potential clients. With a simple tap on their device, prospective clients can access the broker's contact information & relevant information about the mortgage application process.

The CardTapp digital business card also allows brokers to send text messages to their clients. Moreover, the Cardtapp platform delivers real-time engagement alerts of borrower interactions. These notifications allow brokers to proactively reach out to the prospective client at the moment they’re interacting with the digital business card. This functionality helps brokers stay connected with clients through the entire mortgage process.

Another technology provider NAMB has partnered with is PreApproveMe, a company that offers a best-in-class POS that promises to streamline your borrower’s mortgage experience. They integrate with the broker channel’s top LOS platforms, like Lending Pad, to make communication between the loan originator, realtor & borrower more simple than ever.

PreApproveMe's platform offers real-time status updates to borrowers & realtors throughout the application process. It keeps your customers engaged while they shop for homes by allowing them to issue real-time, qualification-specific pre-approval letters directly from your own white-label-branded mobile app or web portal. This feature allows all parties to track the progress of the loan, ensuring that everyone is on the same page.

NAMB's is committed to finding the best technology providers who are critical to today's ever-changing digital landscape. NC

Mike Farrell is NAMB’s Technology Committee chair. Learn more about our 20-plus committees at namb.org/committees

Streamline

Originate loans up to 10 days faster and provide borrowers with a world-class lending experience by integrating Floify to-end mortgage point-of-sale system into your origination workflow

Scan the code below or visit schedule a demo and learn how Floify can help improve your lending operation.

Stay Up to Date

BY DAN SMITH

The memories of your last LOS switch are right up there with getting a root canal. But how easily we forget that, just as the industry changes & improves, so does technology & innovation behind the scenes.

Gone are the days when onboarding a new system was a lengthy, painful process. So, before we jump into why brokers from all over the country are switching to a more modern LOS, let’s set aside our fear of change.

Selecting an LOS vendor that provides quality support is crucial to the success of your business. Timing is everything. Having a support team that can respond to your request within minutes gives you the competitive edge you need to keep those agents referrals coming.

LendingPad support is woven into the system's very DNA. The instant chat feature & live Zoom support are available to all users. Support tickets are centralized within the LendingPad LOS, and the support team is staffed by industry veterans who speak your language.

Leaving your dated LOS doesn’t have to mean leaving behind robust pricing engines. You will notice that there are new LOS’s on the market with closed ecosystems that restrict your pricing abilities. Find a system that doesn’t require you to compromise the very thing that sets a broker apart. Equip yourself with the ability to find unique

products & pricing that can better facilitate homeownership in your community.

With LendingPad, you have the option to integrate with your preferred PPE, such as taking advantage of Lender Price’s or LoanNex’s marketplace, and pricing out 50-plus lenders free of charge to LendingPad users.

Having a tech vendor who prioritizes your success over profits is a game changer! It gives you the breathing room to focus on building your pipeline. Looking for options to consolidate your LOS & POS can be just the strategic move you need to save time & money. LendingPad gives you the choice – integrate with one of our many POS industry partners should your business require specialty features or take advantage of the complimentary POS included in your subscription. The decision is yours, as it should be.

The mortgage industry is long overdue for a tech makeover. Loan origination systems such as LendingPad are here to do just that. The very foundation of this system was built on facilitating success & growth for users by hosting an open universe to give you the choice of vendors you want to work with. Take back the power of decision making, and build your business the way you want – with LendingPad the Modern LOS. NC

Dan Smith is VP of Sales Strategy for LendingPad.

Marketing Is Key

BY NICK BELENKY

Modern technology has opened a new world of opportunities for mortgage brokers. Now, marketing tools that were once only accessible to financial giants with Super Bowl budgets are accessible to lenders of all sizes, including brokers, the lone wolves of the industry.

Marketing is a critical component of brokers’ success. To stand out & stay ahead in a competitive industry, brokers must prioritize marketing strategy & the tools they use to execute it.

Brokers who invest meaningfully in marketing efforts are more likely to generate high-intent leads & close more deals. Successful brokers will differentiate themselves by highlighting the unique value they will bring to a mortgage transaction. Generic messaging will not cut it today.

Brokers can look to their loan origination systems (LOS) to determine the messaging needed to support the loan types & market areas they specialize in. For instance, a broker may generate a sales report & find they are most successful at converting loans for first-time homebuyers.

With this insight, a broker can leverage a marketing engine to create a custom-branded website highlighting their expertise to inexperienced homebuyers. Brokers can embed an application portal on their site that automatically transfers incoming loan applicants into lead nurture marketing workflows based on each applicant’s financial situation & goals.

An LOS with built-in product & pricing capabilities can help brokers validate that their pricing is accurate. Adopting a

broker origination platform with native pricing tools also helps eliminate the need to endure a lengthy third-party pricing engine implementation. Redirecting this time & money can help brokers deepen relationships with consumers & partners.

Text messages, social media & search engines allow brokers to engage borrowers where they most frequently begin the homebuying journey: their mobile devices. Featuring interactive, informative marketing tools on a broker’s website and in email & text message outreach gives prospective homebuyers a convenient, mobilefriendly way to calculate mortgage payments & estimate their affordability.

However, consumers are not the only ones who will derive value from this content. Through partner outreach, delivering loan comparison tools & other educational content helps real estate agents put prospects on the fast track to financing. A speedier sale & a greater chance of future business is right there for the broker considerate enough to offer those tools.

Above all, mortgage brokers looking to enhance marketing performance should look to plug-and-play solutions built especially for them. By implementing marketing best practices using insights from a comprehensive broker loan management & marketing toolset, brokers can better position themselves for long-term success in the competitive mortgage industry. NC

Nick Belenky is Managing Director of Originations Technology Performance Sales at Black Knight

POS Your Process

BY THE FLOIFY TEAM

31% of borrowers abandon their mortgage application, while 25% of these borrowers say they didn’t finish because the application process took too long, which significantly impacts pull-through rates.

– 2022 Borrower Insights Survey by ICE Mortgage Technology

So, what can be done about these challenged conversion metrics? Mortgage point-of-sale (POS) technology simplifies the loan origination process for brokers and borrowers. Here are eight advantages to using a mortgage POS to automate & streamline the process, improve conversion metrics & close more loans, faster.

1. Enhanced User Experience

Mortgage POS technology simplifies the application process for borrowers. Accessible from any device, borrowers can input information & track progress in real time, eliminating meetings & reducing paperwork. Saving time is key to customer satisfaction. The best POS only asks for what is needed, when it is needed.

2. Improved Efficiency & Productivity

Automating steps in the mortgage loan origination process also saves time for brokers. Mortgage POS technology automates document collection, data verification & simple communication, allowing brokers to focus on higher-value tasks such as relationship-building. As a result, mortgage professionals can handle a higher loan volume without sacrificing quality, leading to increased productivity & profitability.

3. Enhanced Security & Compliance

Mortgage POS technology offers robust security to protect sensitive borrower data from potential breaches. Advanced encryption & authentication protocols ensure only authorized users access the platform. The best POS tech proactively keeps up with changing regulations.

4. Improved Communication

Clear communication between borrowers, brokers, realtors & other parties is crucial to successful mortgage loan origination. Mortgage POS tech simplifies communication by offering a centralized platform where all parties can

collaborate, share information & receive realtime updates, resulting in faster decision-making. Loans supported by a digital point-of-sale system like Floify reach clear-to-close status 7.5 days faster.

– John Norris, VP of Technology & Innovation, Benchmark Mortgage

5. Reduced Human Error

The origination process involves a complex, vast amount of information. Manual data entry & verification is prone to human error. Automation ensures accuracy & consistency, minimizing errors that could cause costly delays.

6. Data-Driven Decision-Making

Advanced analytics & reporting tools within mortgage POS technology provide valuable insights into borrower behavior, market trends & loan performance. Brokers can then make informed decisions while lenders can assess credit risk more accurately, leading to better loan approval rates & reducing default likelihood.

7. Scalability

Whether a business is in a growth phase or looking to do more with fewer resources, the capacity to scale operations is always important. Top-tier mortgage POS technology can easily adapt to changing loan volumes, evolving business requirements & changes in workforce. It’s important to choose a flexible system that won’t require costly system upgrades as the business evolves.

8. Post-Close Client Care

The best point-of-sale systems allow brokers to maintain & nurture relationships with their clients long after the loan has closed, providing LOs with an important retention tool, i.e., a free moving concierge or home management app.

The mortgage POS is a must-have component of the origination process. By adopting POS tech, mortgage professionals can streamline operations, improve communication, increase productivity & profitability, and stay ahead of the competition via continuous innovation.

To learn how Floify can improve your lending operations, book a demo: floify.com/demo

Unearth Opportunity

BY RICK WEBSTER

As the mortgage industry evolves, mortgage brokers are turning to technology to enhance their processes & gain a competitive edge. Technology can help brokers streamline their work, communicate with clients & ultimately close more deals.

Using a free pricing engine like Lender Price can help brokers reduce cost in a tighter market & get access to a broader selection of loan products to choose from. Lender Price has developed an innovative & effective PPE for the broker community, making it easier to find the ideal loan & get faster access to low rates.

It’s important to know what lenders & programs are around & thriving. Marketplace by Lender Price gives brokers free access to a large selection of agency loan programs – and the best way to gain insight into all loan programs. Get deeper access to a wide selection of products including non-conforming, non-QM & programs that fit any borrower situation (DSCR, HELOCs, etc).

Providing value is always important. Utilizing Lender Price’s product comparison feature, originators are equipped with a quick & effective tool that provides immediate value to referral partners & borrowers.

The loan origination process can be daunting for many, especially first-time borrowers. As a lender, it’s essential to guide & educate. Educating borrowers not only helps them understand the process, but make informed decisions.

Social media platforms like Facebook, Twitter & LinkedIn can help brokers build their brand & connect with a wider audience. By regularly posting informative, engaging content, brokers can establish themselves as thought leaders, build trust with their followers & connect with potential clients directly.

By implementing these strategies, brokers can build their brand, connect with a wider audience & streamline their processes, ultimately leading to increased revenue & growth. Mortgage brokers are an integral part of the mortgage industry, helping potential homebuyers secure the best mortgage rates & terms. As technology continues to shape the industry, brokers will need to leverage & embrace technology to stay competitive & win more business. NC

Rick Webster is the CMO at Lender Price. Brokers, make the switch today & start pricing for free: lenderprice.com/marketplace

Closing STATEMENTS

In a shocking decision, the Department of the Treasury’s Community Development Financial Institutions Fund (the “CDFI Fund”) has denied a Community Development Financial Institution (“CDFI”) the ability to serve disabled Americans (the “Disabled”), including disabled veterans, as part of its Target Market.

Over the past year, the CDFI Fund has held seminars & conferences highlighting the credit issues facing the Disabled and the need for CDFIs to serve this important community. Despite clear & convincing academic & governmental research (including extensive research by the CDFI Fund itself) which underscores the persistent issues

Disabled Americans face in accessing credit from banks, the CDFI Fund nevertheless denied a CDFI’s application to provide financial products & services to the Disabled. The CDFI Fund wrote, “…the CDFI Fund has not approved disabled persons as a Target Market and therefore… your application to expand your Target Market to include the Disabled is declined.”

Director Jodie Harris’ CDFI Fund might be the only group in America that stands firmly against increased access to home loans for Disabled Veterans.

Regulations implementing the 1994 Riegle Community Development & Regulatory Improvement Act, as drafted by the CDFI Fund, define Target Population as, “…individuals, or an identifiable group of individuals, who… lack adequate access to Financial Products & Services.” In a twist of utter hypocrisy, in October 2022, the CDFI Fund itself called for all Disabled Americans to qualify as Target Populations. The CDFI Fund was for the disabled getting access to financial products from CDFIs before they were against it.

Questions are now surfacing about whether the CDFI Fund’s decision violates the Americans with Disabilities Act (“ADA”) which was signed into law in 1990 & makes it unlawful to discriminate against a person based on that person’s disability. The ADA defines an individual with a disability as, “…a person who has a physical or mental impairment that substantially limits one or more major life activities, a person who has a history or record of such an impairment, or a person who is perceived by others as having such an impairment.”

The CDFI Fund’s decision now puts CDFIs at risk of losing their certification if they lend to Disabled veterans or other Disabled Americans. This is the very thing the ADA was

adopted to prevent. For instance, a CDFI who makes 60% of their loans to Target Market borrowers can be decertified if they make a single loan to the Disabled, thereby dropping their Target Market lending to under 60%. By requiring CDFIs to make 60% of their loans to borrowers designated by the CDFI Fund as Target Market loans, CDFIs are being forced to choose between serving the Disabled (including Disabled veterans) or maintaining their CDFI certification.

In fact, the CDFI Fund is threatening to decertify a CDFI that followed the CDFI Fund’s call to increase access to capital to the Disabled. The CDFI Fund simply needs to accept the research they themselves have published which clearly demonstrates that the Disabled meet the statutory requirements to qualify as Target Market borrowers.

By making loans to Disabled veterans, a CDFI can fall below the minimum percentage of loans it must make to its Target Markets. In fact, this is not just a hypothetical issue. America’s largest non-bank CDFI lender, The Change Company (“Change”), is facing this risk directly.

Change is passionate about leveling the playing field for homeownership by serving Black, Latino, low income and other underserved borrowers including the Disabled and Disabled veterans. Because of its passion to serve Disabled veterans, Change is being forced by the CDFI Fund to choose between lending to disabled veterans & losing its CDFI certification.

“It is a sad day when the Disabled are denied access to programs designed to serve those underserved by traditional bank lenders,” stated Reverend L.B. Tatum, Pastor of Emmanuel Lutheran Church in North Hollywood, CA, & a U.S. Navy veteran. “It is clear that the Disabled face financial discrimination & exclusion from private lending due to their disabilities. The CDFI Fund was formed to level the playing field for all Americans. The ongoing exclusion of the Disabled from the CDFI program is inexcusable.”

In February, CDFI Fund Director Harris resigned under a cloud of controversy; however, her resignation does not go into effect until the end of April. In the meantime, Secretary Yellen continues to allow Director Harris to damage the CDFI brand, hurt CDFIs and exclude the Disabled from receiving the services CDFIs provide.

It is far past time for Secretary Yellen to take action to replace Director Harris with a supporter of CDFIs and someone not looking to destroy the success CDFIs are having expanding access to capital to the underbanked and the underserved. NC

Visit thechangecompany.com for more.