The Magazine for the National Association of Mortgage Brokers SEPTEMBER 2022
OUTGOING NAMB PRESIDENT LINDA MCCOY AT NATIONAL 2021. The National Association of Mortgage Brokers is the voice of the mortgage industry, representing the interests of mortgage professionals and homebuyers since 1973.
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As I think back over this last year, I can tell you there have been many challenges to overcome. I can tell you that the person happiest that my presidency is coming to an end is not me; it is my husband, Tiffany McCoy. I’ve been married to him for more than 50 years and he does not like sharing his wife for one day, much less a whole year. He has supported me as the president of NAMB –one of the greatest business honors I’ve ever had – but he told me, “Never do that again.”
“My Year at NAMB” has comprised hours of Education, Government Affairs, Women in the Mortgage Industry, Zoom Calls, Committee Meetings, BOD Meetings, Inter views and much, much more. The one thing I really had no idea about when I took this office was that the presi dent is the voice of NAMB in the media! Thank you, Josh Steinfeld, better known as NAMB’s PR guy. He has guided me every step of the way through the media maze of reporters, magazines, TV, radio and social media. I took Laura Brandao’s advice, from her book, to “Never Say No.” I did not but, looking back, maybe I should have on a few.
COVER PHOTO BY COURTNEY HALL ON UNSPLASH. NAMB STAFF
IN THIS ISSUE
There were past presidents, past board members, friends and Industry Partners that I reached out to for advice this year and for them I am grateful. I learned that I knew a lot more than I thought I did and if I didn’t, I spent time Astudying.goodfriend of mine said, “Linda, you should tell the Good, the Bad, and the Ugly.”
The Bad is that we did not get everything done that we wanted to do because we ran out of time. This year has just flown by.
President’s Letter... 3 by Linda McCoy #NAMBNational2022 in Brief... 6 by Lisa O’Connor
The GOOD is we had a huge presence in DC this year with the help of our lobbyist, the Williams Group. We created the “NAMB Future Leaders” training course, which is ready for its first class. (If you’re interested, we still have room for one more.)
My Year at NAMB
President’s Letter BY LINDA McCOY CONTINUED ON PAGE 5 >>
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Another GOOD was the launching of our monthly digital magazine, NAMB Central. Some felt it might be a task too big to tackle but we’ve had so many compliments and the members love it. They get to read about what’s going on at NAMB. A special thank you to Jilly MacDowell, our Director of Marketing and NAMBCentral editor, who took on that project and made it happen. A GOOD is that women are shining and playing a bigger role at NAMB these days. I am looking forward to this year’s panel featuring Cindy Ertman and our “High Heels on Glass Ceilings” panel of women industry professionals sharing ideas. Last year’s was a huge success and I am sure that this year’s will be the same. I am asking for support from everyone to join us and learn the importance of women in a leadership role in organizations, whether it’s the mortgage industry or associations. We are worker bees! NAMB has a great support team, and I am so glad that I have been privileged to sit on the NAMB board continu ously since 2011. Thanks to Kimber, Ernest, Val, Mike and Rocke serving with me on my EC, my BODs, Brandie and Tiffany. My year has been a great one. What’s UGLY? Our rates right now. NC Linda McCoy is NAMB’s President and CEO of Mortgage Team 1, Inc., in Mobile AL.
It was not GOOD but GREAT that we held so many certifi cation classes this year all over the US, giving our mem bers a way to set themselves apart from other loan officers. We’re currently working on an FHA Certification for next year! A very exciting GOOD was High Heels in High Places, a mentoring group for women, to help them succeed in our industry. We held women’s panels at both NAMB National and NAMB Focus. We had monthly Zoom calls, sharing valuable information to help the next generation navigate their Thoughbusiness.it’schanging, we still need more women in top positions in the mortgage industry. We want to see more women break through those glass ceilings! Since I was the first female NAMB president in 25 years, I feel like I am one of them. We have something very special planned for women on Saturday at #NAMBNational2022. Our keynote speaker is Randi Zuckerberg and we cannot wait to see what she has to say. “I learned that I knew a lot more than I thought I did and if I didn’t, I spent time studying.” – Linda McCoy
President’s Letter, CONTINUED FROM PAGE 3 >>
Sept 2022 5
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BY LISA P. O’CONNOR
While the pandemic has certainly taken its toll on us as individuals, it has taken our business to new levels of production and technology. Now it’s time to create our new normal way of doing business: It’s Not Work…. It’s Network! Did you know it’s been reported that 60 percent of leaders believe that events held in person are the most critical marketing channel for companies to achieve their business goals? Once again, NAMB is live and in person! In the unique style only the industry’s leading mortgage originator association can present, #NAMBNational2022 returns to Las Vegas, Nevada, and the world-re nowned Caesar’s Palace, October 7 – 10! (Face masks are welcome but no longer required). We’re proud to present #NAMBNational2022, offering something for everyone in the mortgage industry! If you or your staff are looking for continuing education, don’t miss the opportunity to register for the NMLS Approved 8 Hour Continuing Education on-site!
Las Vegas, NV October 7th–10th Meet our incredible team to learn what Wholesale the FAIRWAY is all about! BOOTH 828
Industry newcomers will benefit from our NAMB Certified Credit Specialist Course (CCS); government originators can set themselves apart with our Certi fied Veterans Lending Specialist Course (CVLS). We’re featuring a dynamic agenda with an extensive list of guest speakers and topics. Our convention hall is open two days to allow the opportunity for networking with the nation’s top lenders and each other during a busy schedule! And for our golf lovers, we’re hosting a kick-off tournament on October 7. Come out and join thousands of others in your industry for three days packed with networking, hands-on instruction and fun! We look forward to seeing you and offering you opportunities to learn, share and succeed in one of the most phenomenal industries in our nation! NC Lisa P. O’Connor is NAMB’s Conference Committee chair. She is a licensed LO at Coastline Federal Credit Union in Jacksonville FL. 2022
The majority of mortgage companies and originators are moving into survival mode versus seeking opportunity. There has been a dramatic negative shift in the finances of many originators due to the virtually overnight stop of the refinance gravy train. This is one of those things that we knew was going to happen but very few planned for it or positioned themselves to take advantage of it. When you’re in survival mode you’ll ask yourself ques tions like:
Granted, the current market conditions may not provide the windfall of re-fis that we've seen before. But the originators who are focused on systematically growing their referral partner relationships or accomplishing two things: they are seeing their purchase originations increase and they are positioning themselves for explo sive growth when the housing market does open up.
Mortgage professionals that focus on prosperity are asking very different questions than those that are focused on survival. I’m not oblivious to the fact that you may need to change how you spend in these challenging economic times. However, there’s a difference between making decisions on conservation and dwelling on it.
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to ask given what’s happen ing in the market. However, survival questions do not focus on growth. Survival questions limit one's ability to think and see opportunity.
• What can I do that average and typical loan officers either don’t know how to do, or are unwilling to do?
• What must I master in order to gain a tremendous competitive advantage in today's market?
Today, you have the choice to make a decision as to what you’re going to do. You can either focus on all that’s going wrong, or devise a plan that gives you a competitive Takingadvantage.advantage of what average and typical originators will not do can be habit-forming. This habit will lead you to a lifetime of abundance in this business no matter what the market throws at you.
STRATEGIESsurvival,theboldestloan
An in-demand trainer and coach in the mortgage indus try, 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 SARA COHEN ON UNSPLASH.
Prosperity seekers ask questions like:
officers are focused on capitaliz ing on current circumstances and actually seeing their business grow.
In football, there is offense and there is defense. Each side’s mission and goals are very different. Offense is focused on increasing score, while defense is protecting the score. Focusing on survival is akin to playing defense. When you focus on offense, you’re looking for opportuni ties to take advantage of the current situation.
• Can I get through this?
BY RON VAIMBERG
• How do I get through this?
• How long will this last before the market changes?
• What expenses do I need to cut both personally and Theseprofessionally?arenaturalquestions
• How do I take advantage of today's market conditions?
Asking and answering prosperity questions is the easy part. Execution is where the game is changed. You can have the greatest game plan, but if you fail to execute, it’s highly unlikely you will win.
No matter the situation, in any market there is a way to seize opportunity and grow. The current housing market is no different. While some focus on preservation and “Mortgage professionals that focus on prosperity are asking very different questions than those that are focused on survival.”
Which Game Are You Playing?
Success
The housing market is the playing field. The field never determines who wins. Your game plan, your commit ment to it and the plays you execute on the field will determine whether you win or lose. NC
Tech media personality Randi Zuckerberg is a bestselling author, investor & founder of Zuckerberg Media, whose mission is putting intelligent, tech-savvy, entrepreneurial women & girls at the center of pop culture & media. nambnational.org
When asked when they expect to move next, 27% feel confident they would move again, while 36% believe they will not move and 37% simply don’t know. These data suggest this population is in no rush to leave their current Regardlesshomes.
PHOTO BY SARA COHEN ON UNSPLASH.
Let me break down the sticker shock the millennials are Millennialfacing: family buys a home for $350,000, in 2016, with a 4.75% FHA mortgage rate and a monthly PITI of $2,400. In 2021, they refinanced that mortgage to a 2.75% conventional loan with a monthly PITI of $1,700, retaining over $200k in equity (which could be used for a down payment on a $700,000
This is both a problem and an opportunity for real estate agents and brokers. Boomers own many of the “move-up” homes their children covet but can’t afford. Millennials might love to sell their $500,000 homes, and trade up to a $700k home but are locked in to sub-3% mortgage rates in a 5.5% mortgage rate environment.
There are two problems today: That $700k home is now $800k and mortgage rates are at 5.5%. If they sold their smaller homes, used their home equity as a down payment, the “trade-up” home would have a monthly mortgage payment of $4,400 rather than the $3,000 it would have cost when they conceived the plan a year ago. The higher price and mortgage rate added over $1,400 in payment shock.
of their plans to move or age in place, 66% of survey respondents say they expect their home to need some degree of renovations to make the space livable for the long term if they were to age in place. Between personal savings and longer-term retirement and invest ment accounts, those who think they would need reno vations to age in place say they are confident they could afford them.
WHYhome).
“Higher mortgage rates and property taxes cause Boomers to ‘hunker down.’ Many own the ‘move-up’ homes their children covet but can’t afford.”
WON’T PEOPLE Move?WHY WON’T PEOPLE Move?
Reverse mortgages are a much maligned and often misunderstood mortgage product which requires delib eration, research and a competent mortgage loan consultant to introduce, explain, originate, process and fund the loan. NC This article first appeared on the Bloodhound Blog. Brian Brady is a San Diego-based mortgage broker. Working with his wife, Debra, Brian deploys Wall Street experience to make sure the loans he underwrites fit his clients’ overall financial plans.
BY BRIAN BRADY Sept 2022
The housing market is “stuck.” Higher mortgage rates and the fear of higher property taxes cause Boomers and Millennials to “hunker down” rather than move to new homes. Reverse mortgages might offer a solution to this problem. Two out of three Baby Boomers are rejecting retirement communities and “aging in place.” Sixty-six percent of this population plan to age in place so, in fact, little changed from 2016, when 63% said the same. However, given their reported financial gains in the past five years, they may be more equipped to do so.
This is going to be an ongoing problem unless the Boom ers start downsizing. What can agents do to list and sell these “move up homes”? Reverse mortgages might be a solution for those 2-out-of-3 Boomers. Essentially, Boomers can “cash in” their equity on the bigger home (assuming it’s paid off), plunk down $250,000 on a $500k retirement home with a $250k reverse mortgage, and add some $500,000 to their investment accounts. The Boomers won’t be required to make a mortgage payment as long as they live in the retirement home and add liquidity to their net worth. This is a simplistic illustration of how a reverse mortgage works. Whenever we prepare to present the reverse mortgage solution to mature Americans, we recommend they consult the website/book “Understanding Reverse.”
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