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O DECEMBER 2011

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ARIZONA MORTGAGE PROFESSIONAL MAGAZINE NationalMortgageProfessional.com O

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Mortgage PROFESSIONAL A R I Z O N A

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Your source for the latest on originations, settlement, and servicing

Arizona Association of Mortgage Professionals P.O. Box 487 O Peoria, AZ 85380 Phone: (623) 972-6180 O Web site: www.azamp.org

AZAMP STATEWIDE BOARD OF DIRECTORS Paul Klimke Tina Rose Aaron Vantrojen David Almaraz Linda Hall Daniel Huss

Phone # President (602) 402-1801 President-Elect (480) 306-7093 Vice President (480) 368-2000 Secretary (480) 248-0138 Treasurer (480) 596-1577 Immediate Past President (480) 458-2621

Rocke Andrews Lisa Lund Telle Countryman Letty Huffman Steven Van De Beuken

Director Director Director Director Director

(520) 886-7283 (623) 875-9940 (480) 368-2004 (520) 909-4463 (520) 235-6862

E-mail paul@amerifirst.us tinarose@vipmtginc.com aaron@genevafi.com mortgagemaster50@gmail.com linda@lindasuehall.com mortgagemandan@gmail.com randrews@lendingarizona.com lisal@lundmortgage.com telle@genevafi.com letty.huffman@novahomeloans.com stevevdb@sunstreetmortgage.com

CENTRAL CHAPTER BOARD OF DIRECTORS Lisa Lund Telle Countryman David Almaraz Linda Hall Aaron Vantrojen

President President-Elect Secretary Treasurer Immediate Past President

(623) 875-9940 (480) 368-2004 (480) 248-0138 (480) 596-1577 (480) 368-2000

lisal@lundmortgage.com telle@genevafi.com mortgagemaster50@gmail.com linda@lindasuehall.com aaron@genevafi.com

Joseph Ashton Richard Griffin Matt Oliver

Director Director Director

(602) 912-0222 (602) 295-3949 (623) 875-9940

joe@orionmtg.com rgriffin@sonorantitle.com matto@lundmortgage.com

SOUTHERN CHAPTER BOARD OF DIRECTORS Rocke Andrews Letty Huffman Ray Edwards Ernest Jones Jr. Steven Van De Beuken

President Director Secretary Treasurer Immediate Past President

(520) 886-7283 (520) 909-4463 (520) 498-9992 (520) 235-6862

randrews@lendingarizona.com letty.huffman@novahomeloans.com raye@edwardsfinancial.biz ernest@helpingotherswin.info stevevdb@sunstreetmortgage.com

Tom Beach Kimberly Keegan Denise King

Director Director Director

(520) 360-9660 (520) 429-8488 (520) 548-2408

tbeach@o2funding.com kimberly.keegan@fnf.com dmking@fnf.com

FEBRUARY 2012 Tuesday, February 14 AzAMP Southern Chapter Luncheon Sullivan’s Steak House • River and Campbell • Tucson, Ariz.

11:30 a.m.-1:00 p.m.

Wednesday, February 15 AzAMP Central Chapter Luncheon Millennium Scottsdale Resort • 7401 North Scottsdale Road • Scottsdale, Ariz.

11:30 a.m.-1:00 p.m.

MARCH 2012 Tuesday, March 13 AzAMP Southern Chapter Luncheon Sullivan’s Steak House • River and Campbell • Tucson, Ariz.

11:30 a.m.-1:00 p.m.

Wednesday, March 21 AzAMP Central Chapter Luncheon Millennium Scottsdale Resort • 7401 North Scottsdale Road • Scottsdale, Ariz.

11:30 a.m.-1:00 p.m.

APRIL 2012 Wednesday, April 18 AzAMP Central Chapter Luncheon Millennium Scottsdale Resort • 7401 North Scottsdale Road • Scottsdale, Ariz.

11:30 a.m.-1:00 p.m.

For information on all AzAMP events, call (623) 972-6180 or visit azamp.org.

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AzAMP Code of Ethics O AzAMP Members shall perform his business in a manner reflecting honor and integrity. He shall avoid and report fraudulent and unethical practices to the Arizona Association of Mortgage Professionals or the Arizona State Banking Department.

O AzAMP Members shall advise the relevant parties of any equity interest he may have in the collateral offered as security for the mortgage loan.

O AzAMP Members shall not advise, advertise, or intimate terms and conditions not available and not likely to be made available.

O AzAMP Members shall attempt to put all agreements into written form, but shall abide by all agreements made by him whether written or oral.

O AzAMP Members shall maintain special accounts separate from his personal accounts for the deposit of trust or escrow funds.

O DECEMBER 2011

O AzAMP Members shall not speak disparagingly of the business practices of his competitor or of a transaction being negotiated by a committee.

Disputes between members shall be resolved by decision of the Ethics, Grievance and Arbitration Committee.

ARIZONA MORTGAGE PROFESSIONAL MAGAZINE

O AzAMP Members shall abide by generally accepted principles of real estate valuation when reporting to the investor regarding the valuation of the offered collateral for his loan.

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O AzAMP Members shall act in accordance with any laws, rules, and regulations of the State of Arizona and in accordance with the Bylaws of the Arizona Association of Mortgage Professionals.

Phoenix Area Home Sales Riding Sixth Month Rise

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Phoenix-area home sales were higher than a year earlier for the sixth month in a row in October. Sub-$100,000 deals rose 22 percent year-over-year, mid-market activity fell slightly and high-end sales posted a modest gain. Home price indicators were mixed, while the share of sales to absentee buyers rose and the portion involving distressed properties edged lower, according to San Diego-based DataQuick. A total of 8,051 new and resale houses and condos closed escrow during October in the combined Maricopa-Pinal counties metro area. That was down seven percent from the month before but up 15.2 percent from a year earlier.

Phoenix-area sales usually don’t change much between September and October. On average, the difference between those two months has been just 0.8 percent since 1994, when DataQuick’s complete Phoenix region statistics begin.

Total October home sales fell 13.5 percent short of the average number sold in October since 1994, but that was only because new-home sales remained extremely low. Resale volume has fared much better: The number of houses and condos that resold in October, 7,382, was 5.5 percent above the October average and was the highest for that month since October 2009, when 7,960 homes resold.

Once again, the highest sales gains came in the lowest price ranges. The number of homes selling for less than $100,000 rose 21.9 percent year-over-year, while sales between $100,000 and $200,000 increased 12.9 percent. Deals in the $200,000 to $600,000 range fell 0.7 percent from a year earlier, while above $800,000 sales increased 6.6 percent.

Among the Phoenix region’s larger communities, the biggest annual gains in existing single-family house sales in October occurred in Casa Grande (up 54.8 percent from a year earlier); Glendale (up 14.3 percent); Laveen (up 26.3 percent); Maricopa (up 19.2 percent); Mesa (up 22.9 percent); Phoenix (up 26.4 percent); Queen Creek (up 25 percent); Scottsdale (up 16.9 percent); Surprise (up 17.3 percent); and Tempe (up 66.2 percent).

Of those larger communities with year-over-year sales increases, Scottsdale, Ariz. had the highest median resale house price in October, at $335,000, which was 8.1 percent lower than a year earlier. All of the other communities listed above had medians below $155,000, and only one of them, Maricopa, saw its median rise year-over-year. Maricopa’s $94,000 October median was up 4.6 percent from a year ago.

Across the two-county region, 265 buyers, representing 3.3 percent of all October purchases, had a foreign mailing address listed in public property records. It is unclear how many more sales there were to foreign buyers who used a domestic mailing address. Of the foreign buyers who could be identified, most—89.3 percent—were from Canada.

October’s foreign buyers paid a median $115,000 for resale houses, which made up about 70 percent of their purchases. They paid a median $87,900 for resale condos, representing about 20 percent of their purchases, and $250,301 for newly built homes, which accounted for 10 percent of the purchases. The highest price paid by one of the identified foreign buyers was $1,050,000 for a 3,500square-foot Scottsdale home situated on just over an acre.

Among all buyers, the median price paid in October for all new and resale houses and condos sold in the Phoenix region was $120,000. That was down 3.6 percent from September and down 6.8 percent from a year earlier. The median has changed little this year, ranging from a low of $118,347 in August to a high of $124,500 in September.

October’s median stood 54.6 percent below the all-time peak of $264,100 in June 2006.

Another key price gauge analysts watch, the median price paid per square foot for existing single-family detached houses, rose in October to $69, up from $67 the month before but down 1.4 percent from a year earlier. It was the lowest annual decline since September 2010. October marked the 14th consecutive month in which the median paid per square foot fell year-over-year. The October figure was 59.6 percent below the $171 peak median price paid per square foot in May and June of 2006.

At the county level in October, the median price paid per square foot for resale single-family detached houses in Maricopa County was $70, the same as in September but down 5.3 percent from a year earlier. The Maricopa County median price per square foot has changed little during the first 10 months of this year, ranging from $68 to $70. The Pinal County median paid per square foot was $49 in October, up from $47 in September and up 6.2 percent from a year earlier— the first year-over-year gain since June 2010. The Pinal County figure hasn’t changed much this year, either, ranging from $44 to $49.

Absentee buyers, who include investors and vacation-home buyers, bought 44 percent of all Phoenix-area homes sold in October, up from 42.6 percent in September and 42.7 percent a year earlier. Absentee purchases peaked for the current real estate cycle at 47.1 percent in March this year. In October, absentee buyers paid a median $100,000, the same as in September but down from

$105,000 a year ago.

Cash buyers represented 39.7 percent of all sales in October—the lowest level since October last year, when the figure was 39.5 percent. The October 2011 figure was down insignificantly from 39.8 percent in September. The record for cash buying was 48.0 percent in February this year. October’s cash buyers paid a median $88,500, up from $88,000 for both the month before and a year earlier.

Specifically, these were transactions where there was no indication of a purchase loan recorded at the time of sale.

Many cash and investor buyers target distressed properties. In October, distressed sales represented 59.2 percent of all resale activity—the lowest level for any month since the figure was 57.7 percent in August 2008. Distressed sales are made up of lender sales of foreclosed properties, as well as “short sales,” where the sale price falls short of what was owed on the property.

Foreclosure re-sales, defined as homes that had been foreclosed on in the prior 12 months, accounted for 43.0 percent of October re-sales—the lowest level since June 2008. October’s figure was down from 44.4 percent in September and 53.9 percent a year earlier. The peak level for foreclosure re-sales was 66.2 percent in March 2009.

Short sales represented an estimated 16.2 percent of October’s resale activity, down from 16.8 percent in September, but up from an estimated 15 percent a year ago and 14.2 percent two years ago.

Lenders foreclosed on 2,845 Phoenix-area homes in October, the lowest number since March 2008. The October figure fell 9.7 percent from September and fell 39.0 percent from a year earlier. During the first 10 months of this year, lenders foreclosed on 45,628 Phoenix-area homes, down 13.1 percent from the same period last year. The figures are based on the number of Trustees Deeds filed with county recorder offices. The document signals that a home was lost to foreclose.

Real Estate Investor Convicted for Leading a Mortgage Fraud Conspiracy Eitan Maximov, a citizen of Israel and lawful permanent resident of the United States, has been convicted after a six-day jury trial on one count of conspiracy to commit wire and bank fraud and one count of wire fraud as a result of his leadership in a cash-back mortgage fraud scheme that took place 2006-2008. The defendant was taken into custody following the jury verdict and his sentencing is set before U.S. District Judge David G. Campbell on Feb. 27, 2012.

“During the height of the real estate boom, this defendant saw an opportunity to profit and he took it,” said Acting U.S. Attorney Ann Birmingham Scheel. “He furthered his scam by creating fictitious companies and billed himself as an investor. However, the only investment he made was in his lavish lifestyle that eventually crashed down on him.”

The defendant played a leadership role in the underlying conspiracy which involved at least nine residential properties in the Scottsdale, Ariz. area. The objective of the conspiracy was to recruit unqualified borrowers as straw buyers, submit fraudulent loan applications on their behalf and on his own behalf, obtain mortgage loans in excess of the selling price of the property and then take the excess amount of the loans out through escrow in what is known as a “cash back” scheme.

The defendant recruited straw buyers and worked with an escrow officer in the scheme to defraud and then benefitted from their involvement in the scheme.

Most of the properties were purchased or attempted to be purchased for in excess of a million dollars. Following the funding of the loans, the defendant received “cash back” or proceeds that he used to live a lavish lifestyle and further perpetuate the scheme. All of the homes purchased through the conspiracy have been foreclosed or sold at a loss to the lending institutions. The conspiracy resulted in approximately $5 million in loans obtained by fraud and an actual and intended loss to lending institutions of nearly $6,500,000.

“Yesterday’s guilty verdict illustrates the commitment by the FBI, our law enforcement partners, and the U.S. Attorney’s Office in combating mortgage fraud,” said FBI Special Agent in Charge James L. Turgal. “When individuals use the housing market to intentionally defraud the public for their own personal financial gain, using other people’s money and dreams to live lavish lifestyles, it damages our economy and further exacerbates the mortgage crisis. The FBI’s Mortgage Fraud Task Force will continue to investigate those who orchestrate and participate in various mortgage fraud schemes in order to protect the public against those who would seek to further damage our local and national economy.”

A conviction for conspiracy to commit wire and bank and wire fraud carries a maximum penalty of 30 years in federal prison, a $1 million fine or both. In determining an actual sentence, Judge Campbell will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

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ARIZONA MORTGAGE PROFESSIONAL MAGAZINE

O DECEMBER 2011

I DTI Subject to DU Findings

I 90 Day Seller Seasoning Not Required

I Free DU

I FHA and FHA High Balance Loans Down to 640 Fico

I LPMI Available to 95% I Direct Access to Underwriting

I Limited Trade Line Requirements- Subject to DU Approval

I Bank Funding

I Maximum 10 Financed Properties Allowed

DECEMBER 2011 O

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TABLE OF CONTENTS

ADVERTISERS

Volume 3, Number 12

December 2011

Company

Web Site

Page

AppraisalScrub.com ........................................ www.appraisalscrub.com ......................................40 Bay Equity LLC ................................................ www.bayeq.com ........................................AZ1 & 37 Benchmark Mortgage ...................................... www.iambenchmark.info ..............Inside Front Cover Best Rate Referrals, LLC .................................... www.bestratereferrals.com ..................................23 Calyx Software ................................................ www.calyxsoftware.com ......................................38 NMP MEDIA CORP. 1220 WANTAGH AVENUE WANTAGH, NEW YORK 11793

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Elliott and Company Appraisers, Inc................... www.appraisalanywhere.com ................................28

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A Special Look at “Growth Strategies for 2012”

CBC National Bank .......................................... www.cbconnex.com ..............................................9

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Equity Loans LLC .............................................. www.equityloans.com ..........................................27 Flagstar Wholesale Lending .............................. www.paperless.flagstar.com ......................Back Cover

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Freedom Mortgage .......................................... www.fmbranch.com ......................Inside Back Cover

Pursuing the Military Niche Market in 2012

By Beverly Ray Frase ............................................................40

Frost Mortgage Lending Group .......................... www.frostmortgage.com/nmp ..............................42

Keeping Your Edge in 2012 By Erik Wind ..........................41

Hometown Lenders .......................................... www.hometownbranch.com ................................35

A View Into 2012: Looking Back By Erik Wiley ..................41

Icon Residential Lenders, LLC ............................ www.iconwholesale.com ........................AZ4, 5 & 32

Building a Team for Growth in 2012 By Leif Boyd ............43

GSF Funding .................................................... www.gogsf.com ....................................................7

Land Home Financial Services .......................... joinamx@lhfinancial.com ....................................38 Loyalty Express ................................................ www.loyaltyexpress.com ......................................32 Menlo Park Funding ........................................ www.menloparkfunding.com ................................37

Features The Gift of Leadership By Mary Beth Doyle ..........................4

Mortgage Brokers Network Corp, Inc. ................ www.mortgagebrokersnetwork.com ......................25 NAPMW .......................................................... www.napmw.org ..................................................6 Nationwide Equities Corp. ................................ www.nwecorp.com ..............................................33

The Elite Performer: Don’t be a “Realist” in 2012

By Andy W. Harris, CRMS ........................................................4

PB Financial Group Corp. .................................. pbfinancialgrp.com ..............................................38

Developing a Solid Branch Starts With Being a Servant

By Kurt Reisig ........................................................................8

Polaris Home Funding Corp. (Wholesale) ............ www.polarishfc.com ............................................31

National Mortgage Professional Magazine’s 40 Under 40....................................................................10

Shortsale Speedway.......................................... www.shortsalespeedway.com/freedemo ................30

ValueNation: Effective Reporting in Automated Valuation Management Platforms By David Rasmussen ......16

Veros Real Estate Solutions .............................. pmc2012.com ......................................................43

NCRA’s 19th Annual Conference Closes to Great Reviews By Terry W. Clemans ................................20

Lykken on Leadership: Need More Production?

Adapt or Die! By David Lykken & Jon Traver ..........................24 Make Real Estate Agents Your Soldiers!

By Raymond Bartreau ............................................................26

Columns Heard on the Street ........................................................6 NMP News Flash: December 2011 ................................26

NMP Mortgage Professional Resource Registry ..........44 NMP Calendar of Events ................................................48

TMS Funding.................................................... www.tmsfunding.com ..........................................29

DECEMBER 2011

New to Market ................................................................32

REMN (Real Estate Mortgage Network)................ www.remnwholesale.com ....................................17

ARIZONA MORTGAGE PROFESSIONAL MAGAZINE

The Secondary Market Overview: From Bonds to Production … Be Prepared

By Dave Hershman ................................................................22

Polaris Home Funding Corp. (Branches).............. www.polarishfc.com/TimeForAChange ..................39

NationalMortgageProfessional.com

The NAMB Perspective ..................................................18

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December 2011 Volume 3 • Number 12

A Message From NMP Media Corp.

Executive Vice President Andrew T. Berman The 40 Most Influential Mortgage Professionals Under 40

1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 / (888) 409-9770 Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com STAFF Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 ericp@nmpmediacorp.com Andrew T. Berman Executive Vice President (516) 409-5555, ext. 333 andrew@nmpmediacorp.com Joey Arendt Art Director joeya@nmpmediacorp.com Jon Blake Advertising Coordinator (516) 409-5555, ext. 301 jonb@nmpmediacorp.com Kelsey Domino Executive Sales Assistant (516) 409-5555, ext. 316 kelseyd@nmpmediacorp.com Tara Cook Billing Coordinator (516) 409-5555, ext. 324 tarac@nmpmediacorp.com ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact Senior National Account Executive Karen Krizman at (516) 409-5555, ext. 326 or e-mail karenk@nmpmediacorp.com.

ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or e-mail ericp@nmpmediacorp.com. The deadline for submissions is the first of the month prior to the target issue.

SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext.

301; e-mail orders@nmpmediacorp.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600.

Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Credit Reporting Association (NCRA) and/or other state mortgage trade associations.

Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA, and other state mortgage trade associations.

National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in NMP Media Corp. publications. National Mortgage Professional Magazine and NMP Media Corp. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.

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National Mortgage Professional Magazine is published monthly by NMP Media Corp.

Copyright © 2011 NMP Media Corp.

This feature, by far, is one of the greatest projects I get to work on as a publisher, but it also is somewhat bittersweet. Sweet because I learn about new up-and-coming mortgage professionals who are crushing it today or at least laying the tracks to crush it in the future. It’s also bitter because out of the hundreds of submissions we receive, I can only select 40. First to be selected are the nominations who’ve received the most votes.

Then, we wade through the additional nominees to determine who have some made unique contributions to the industry.

What’s your 2012 going to look like?

Time over time, you’ve heard that failure to plan is the plan to fail. With that in mind, I’d like to share a passage from the timeless, The Strangest Secret by Earl Nightingale: Think of a ship with the complete voyage mapped out and planned. The captain and crew know exactly where the ship is going and how long it will take—it has a definite goal. And 9,999 times out of 10,000, it will get there.

Now let’s take another ship—just like the first—only let’s not put a crew on it, or a captain at the helm.

Let’s give it no aiming point, no goal and no destination. We just start the engines and let it go. I think you’ll agree that if it get out of the harbor at all, it will either sink or wind up on some deserted beach—a derelict.

It can’t go any place because it has no destination and no guidance.

This is why I always feel that this issue is the most important issue of the year. We hope our December 2011 issue provides you with a few growth strategies to incorporate into your 2012 business plan.

Our special look at “Growth Strategies for 2012” starts off with a contribution from Beverly Ray Frase of USA Cares on page 40, sharing some ideas on how to work with veterans and active duty servicemembers.

It’s rewarding to be able to help those who have helped protect our country. Following that is Erik Wind of ShortSaleSpeedway on page 41 sharing ideas on communication for guideline changes and education as two items to address in 2012. Following Mr. Wind, another Erik, Erik Wiley, shares with us his business plan for 2012, which includes showing extra love for your real estate agent referrals partners, less recruiting and more internal growth, more face-to-face and other important growth strategies. Wrapping up the section on page 43 is a piece from Leif Boyd of American Pacific Mortgage where he shares his insights on how to plan, hire, train and grow in the new year.

Other “must reads” in this issue While we on the subject of growth and planning, make sure you read the piece by Andy W. Harris, CRMS on page 4, “Don’t Be a ‘Realist’ in 2012” where he’s got planning tips, a quote from the great Winston Churchill, and a reference to my favorite sitcom, “Modern Family.” Next up is a piece from American Pacific’s CEO Kurt Reisig on page 8 where he shares his ideas about being a servant to your customers and clients. Later in the magazine on page 22, Dave Hershman shares his insights on planning for the new year and we feature the latest installment of “Lykken on Leadership” on page 24. This time around, Mr. Lykken and guest co-author Jon Traver share their thoughts on the importance of leaders adapting new methods of bringing in production or how they will make themselves extinct in this marketplace! Would you rather real estate agents pine for your business than kowtow to them for a deal here and there? On page 26, Raymond Bartreau, chief executive officer of Best Rate Referrals, shares with us his secrets on how to have real estate agents work for you in his debut article, “Make Real Estate Agents Your Soldiers!”

The holiday season? Try the conference season!

Fresh off the conference circuit, this month, you can catch recaps and photos from the two major trade shows, first the 2011 NAMB/WEST Loan Originators Conference in Las Vegas on page 18 and the NCRA’s 19th Annual Conference in New Orleans on page 20. Las Vegas and New Orleans you say? Sure, these two U.S. cities are synonymous with good times, but rest assured, the value that each attendee took away from these conferences is sure to equip them with the tools and ideas needed to succeed in 2012 and beyond.

What’s next?

We’ve got big things in-store for 2012 and 2011 has been a blast. We thank you for the feedback and hope to continue to be your source for everything from originations to settlement to servicing.

Until next year ...

Andrew T. Berman, Executive Vice President NMP Media Corp.

The Association of Mortgage Professionals

National Association of Professional Mortgage Women

2701 West 15th Street, Suite 536 Plano, TX 75075 Phone #: (703) 342-5900 Fax #: (530) 484-2906 Web site: www.namb.org

P.O. Box 451718 Garland, TX 75042 Phone #: (800) 827-3034 Fax #: (469) 524-5121 Web site: www.napmw.org

NAMB Board of Directors

National Board of Directors 2011-2012

OFFICERS President—Donald J. Frommeyer, CRMS Amtrust Mortgage Funding Inc. 200 Medical Drive, Suite D Carmel, IN 46032 (317) 575-4355 dfrommeyer@amtrust.net Vice President—Michael Anderson, CRMS Essential Mortgage 3029 S. Sherwood Forest Boulevard, Suite 200 Baton Rouge, LA 70816 (225) 297-7704 mikea@essentialmtg.com Treasurer—John Councilman, CMC, CRMS AMC Mortgage Corporation 2613 Fallston Road Fallston, MD 21047 (410) 557-6400 jlc@amcmortgage.com Secretary—Olga Kucerak, CRMS Crown Lending 222 East Houston, Suite 1600 San Antonio, TX 78205 (210) 828-3384 olga@crownlending.com Past President—Jim Pair, CMC Mortgage Associates Corpus Christi 6262 Weber Road, Suite 208 Corpus Christi, TX 78413 (361) 853-9987 jlpair@aol.com

DIRECTORS Rocke Andrews, CMC, CRMS Lending Arizona LLC 1996 North Kolb Tucson, AZ 85715 (520) 886-7283 randrews@lendingarizona.net

Donald Fader, CRMS SMC Home Finance P.O. Box 1376 Kinston, NC 28503-1376 (252) 523-5800 dfader@smchf.com Deb Killian, CRMS GMAC 246 Federal Road, Unit C-24 Brookfield, CT 06804 (203) 778-9999, ext. 103 debkillian@snet.net

Vice President-Eastern Region Christine Pollard (607) 656-5005 cpollard1046@gmail.com

Senior Vice President Jill Kinsman (206) 344-7827 jill.kinsman@usbank.com

Secretary Katheryn M. Farrell (509) 528-0349 katherynfarrell@yahoo.com

Vice President-Northwestern Region Nita Cook, GML, CME, CMI (360) 705-5053 nita.cook@legacyg.com

Treasurer Jeanne Evans, CME (918) 431-0155 drmjevans@att.net

Vice President-Western Region Lyman King III, CME, CMI (916) 967-4653 lking@gemcorp.com

Parliamentarian Hulene Bridgman-Works (800) 827-3034 hulene137@yahoo.com

National Credit Reporting Association Inc. 125 East Lake Street, Suite 200 Bloomingdale, IL 60108 Phone #: (630) 539-1525 Fax #: (630) 539-1526 Web site: www.ncrainc.org

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2011 Board of Directors & Staff Tom Conwell President (800) 445-4922, ext. 1010 tconwell@credittechnologies.com Donald J. Unger Vice President (303) 670-7993, ext. 222 don@advcredit.com Daphne Large Treasurer (901) 259-5105 daphnel@datafacts.com Marty Flynn Ex-Officio (925) 831-3520, ext. 224 marty@ccireports.com

Janet Curtis Director—New Membership & Elections Co-Chair (212) 224-6121 jcurtis@sarma.com Renee Erickson Director—Tenant Screening Co-Chair (800) 311-1585, ext. 2101 renee@zipreports.com Nancy Fedich Director—Conference Chair (908) 813-8555, ext. 3010 nancy@cisinfo.net

Judy Ryan Director—New Membership & Elections Chair (800) 929-3400, ext. 201 William Bower Director—Tenant Screening Chair jryan@kroll.com (800) 288-4757 Tom Swider wbower@confinfo.com Director—Legislative Co-Chair Mike Brown Director—Technology Chair (800) 285-6691 mike.brown@ncogroup.com Susan Cataldo Director—Education & Compliance Chair (404) 303-8656, ext. 204 susancds@cdsusa.net

(856) 787-9005, ext. 1201 tswider@creditlenders.com Terry Clemans Executive Director (630) 539-1525 tclemans@ncrainc.org Jan Gerber Office Manager/Membership Services (630) 539-1525 jgerber@ncrainc.org

DECEMBER 2011

Linda McCoy Mortgage Team 1 Inc. 6336 Picadilly Square Drive Mobile, AL 36609 (251) 610-0494 linda@mortgageteam1.com

President-Elect Candace Smith, CME (512) 329-9040 csmith@wrstarkey.com

ARIZONA MORTGAGE PROFESSIONAL MAGAZINE

Kay A. Cleland, CMC, CRMS KC Mortgage LLC 200 South Wilcox Street #224 Castle Rock, CO 80104 (720) 810-4917 kaycleland@comcast.net

Vice President-Central Region Lisa Puckett, CME (405) 741-5485 lpuckett@ameagletitle.com

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Fred Arnold, CMC American Family Funding 24961 The Old Road, Suite 101 Stevenson Ranch, CA 91381 (661) 284-1150 fred@fredarnold.com

President Laurie Abshier, GML, CME, CMI (661) 283-1262 lauriea@gemcorp.com

The Gift of Leadership

by Mary Beth Doyle, Founder

Take a moment to reflect upon the substantial market changes that have occurred since January. Interest rates fell to record lows, and the government implemented numerous policies to stimulate economic recovery. As a respected mortgage professional, do not overlook the responsibility of continuously educating clients,

Don’t Be a “Realist” in 2012

partners & prospects on money-saving strategies and opportunities. You can count on LoyaltyExpress to get the job done for you, with high-impact results.

Discover why top-producing loan officers & executives rely on LoyaltyExpress to maximize loan production: t Our proprietary technology allows us to automate consistent, high-impact communications that 4

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direct mail, e-mail & on-demand templates – our marketing solutions reach & engage target audiences through cross-media formats and channels. t We continuously impact closed loan production.

The sophistication of our data mining technology steadily identifies & promotes new business opportunities and referrals.

As the holiday season approaches, we wish you the best for a healthy and prosperous new year. It would be a pleasure to assist you in the days and months ahead.

LoyaltyExpress is the leading mortgage marketing company in the nation. For more information: call 877.938.1175 or visit www.loyaltyexpress.com.

t’s no secret to anyone that we’ve been on a wild ride over the last few years in our industry. With 2011 quickly winding down, we’re facing yet another New Year right around the corner. So how was your 2011? Did the six inches between your ears help or hurt your business? Looking back, did you meet or exceed your goals set earlier in the year? What do you expect for 2012?

There are two typical ways people address these questions … they either ignore their failure to meet goals and continue with business as usual, or they continue to adapt and innovate with new market opportunities and goals to crush.

I was recently watching “Modern Family” (which is a great show by the way) and the episode was about the “realists” and the “dreamers” of the family. There were members of each family that felt as though other family members were holding them back by their negative perception. The family broke apart into “teams” and there was a debate about the possibility of sending a pumpkin 100 yards with a sling shot.

Of course, the debate thickened and they had to prove each other wrong by heading to the football field and testing the theory. The dreamers teamed up to take on the pumpkin tossing challenge while the realists stood on the sidelines shaking their heads.

This analogy is a little silly, but really does put things into perspective.

There is a distinct difference between each person and how they perceive information and challenges (such as the ones we’ve faced in our industry).

I’ve found that many who claim to be realists are, in reality, predominantly pessimists. They usually do not even realize they’re holding themselves back by challenging the possibilities, similar to good ideas without action. Many of these pessimists also view optimists similar to how this show portrayed them as “dreamers.” We can never assume that just because someone is

I

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

—Sir Winston Churchill

optimistic, that they are also naïve or ignorant. An unrealistic or uninformed optimist definitely could use a little dose of reality, but an informed optimist is a force to be reckoned with.

The optimist sees the glass as half full, while the pessimist sees the glass as half empty. The realist just sees a glass of water. You’ll find that anyone you talk with working in the mortgage industry lately has one view or another.

They definitely don’t see just a glass of water. There are primarily pessimists and optimists in our world. Now I’m not saying that a true realist cannot adapt, change and survive. What I am saying is that in order to truly succeed in our industry, being a true realist isn’t enough. You owe it to the future of your business to choose the path that yields the highest dividends, which is the path of the informed optimist. Start 2012 prepared to take on any challenge with a different perspective and with NO LIMITS. From my family to yours … Merry Christmas and Happy New Year!

Tip of the month To have a successful 2012 you must have a vision. Take a half or full day off in December dedicated only to strategic 2012 business planning. If you don’t schedule the time, you’ll find yourself blind in January.

Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and 2010-2011 president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431 or e-mail aharris@vantagemortgagegroup.com or visit AndyHarrisMortgage.com.

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For additional information regarding Conforming, Jumbo, FHA and VA Lending, Call us at 1-888-247-4207 or visit us online at www.iconwholesale.com

NMLS

Total Mortgage Services Now Licensed in Ohio

Why W hy NAP NAPMW? M MW? Three T hree Simple Reasons Reaso ons Education E d duccation Organized Or ganized ffor or the pur purpose pose of providing providing education education tto o pr professionoffe essionals in all phases off the mor mortgage industry, NAPMW offers educa-tgage industr y, NAP N MW off ers educa tion via man enues – seminars and w orkshops k ound the manyy vvenues workshops held ar around on-line,, and National Conference ccountry, ountry, on-line a at at its Na tional EEducation ducation C onference held May. each hM ay.

NAPMW NAP MW membership membersship gives gives you you exclusive exclusive access a cess to ac to timely educaeducaaffecting career tion regarding regarding the e regulations regulations aff ecting yyour o car our eer such as a webinar FREE TO TO MEMBERSS monthly monthly w ebinar on industry ind dustry updates updates AND education class offering our 8 hour NMLS continuing continuing educa tion cla ss off ffe ering (NMLS Provider 1400309) P rovider # 140030 09) 6

Leadership p Leadership If If you you believe believe in helping helping to to elevate elevate the educational edu ucational standards standards of this industry, industry, or assisting asssisting in developing developing the e most competent competent industry work industry w ork force, force, then you you believe believe in NAPMW. NA APMW.

DECEMBER 2011

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NAPMW Butt sinc since women NAPMW is not a women’s women’s organization. organization. Bu ew omen make up the major majority profesity off professionals professionals in the mortgage/banking morrtgage/banking pr ofession, our purpose business,, personal personal,, purpose is to to help them advance advance in business and leadership development. de evelopment.

Net wo ork king i Networking NAPMW is a ccommunity NAPMW omm munity of near nearly ly 2,000 professionals prof o essionals acr across oss the Country engage mortgage banking industry.

C ountry who eng age in the mor tgage / ba anking industr y. Men Men and w omen from from all backg rounds have have joi ned NAP MW because women backgrounds joined NAPMW excel whatt they do do.. Emplo Employers want they want want tto oe xcel e aatt wha yers who w ant eexcelxcellenc e from from their employees emplo e yees engage eng NAP N MW for for up-to-date up-to-date lence with NAPMW education. educa tion. B Both oth pr professionals p ofessionals and employers emp yers emplo e ha have ve found found there there is a plac e ffor or them in n NAP MW W. place NAPMW.

National E National Education ducation Na tional Training Training National National Networking Na tional N etworking

To T o Join NAPMW NAPMW W visit: www.napmw.org w ww.napmw.o org or ccall: all: 1-800-827-3034 1 800 8 1-800-8 827 3034 827-3034 Have Ha ve Q Questions? uestion ns? Please ffeel eel free free to to e e-mail -m mail us a at: t: napmw1@aol.com napm w1@aol.c . om

Coas Coast oast to to C Coast oas A oast Associations ssociations D iscoun un nted Services Serrvic v es Discounted IIndustry ndustrry Updates U Updatess

Total Mortgage Services LLC has announced that it is now registered with the state of Ohio’s Department of Commerce, Division of Financial Institutions, under the Mortgage Broker Act Mortgage Banker Exemption, and is now entitled to broker residential mortgage loans as a Freddie Mac seller/servicer, Fannie Mae seller/servicer, VA non-supervised automatic lender, and Federal Housing Administration (FHA) nonsupervised mortgagee. Total Mortgage can now originate residential mortgage loans in 24 states and the District of Columbia, with five additional state licenses pending.

“With both mortgage interest rates and housing affordability close to historical lows, Total Mortgage is excited about entering the Ohio market at this opportune time and helping borrowers with their purchase and refinancing needs,” said John Walsh, president of Total Mortgage Services. “Total Mortgage is committed to delivering exceptional mortgage advice, one-on-one personal service and some of the lowest mortgage rates in the industry to every borrower. Our goal day in and day out is to deliver the perfect mortgage and avoid any unpleasant surprises or delays.”

Veterans Mortgage Forum Launched to Educate U.S. Veterans on Homeownership and VA Products Lenders Compliance Group has formed the Veterans Mortgage Forum, an interactive and discussion Web site found online at VeteransMortgageForum.blogspot.com.

Membership in the Veterans Mortgage Forum is free and open to all, and invitations have been sent to industry participants. Veterans Mortgage Forum is an Open Group on LinkedIn, with social media functionality in Twitter and Facebook. In addition to the social networking media, Veterans Mortgage Forum welcomes articles and posts from contributors, thereby further enhancing the information available to veterans and other interested parties.

“Often, veterans are improperly informed about VA mortgage financing and we have found that there is a need for

greater familiarity with various issues involved in such financing,” said Jonathan Foxx, president and managing director of Lenders Compliance Group. “And that is why we formed the Veterans Mortgage Forum, specifically to expand the knowledgebase of veterans and enable them to be more effective and educated.”

Veterans Mortgage Forum is not associated or affiliated with the Veterans Administration (VA). The views expressed are those of the contributing authors and commentators, as well as news services and Web sites linked to it, and do not necessarily reflect the views or policies of any governmental agency, business entity, organization or institution. Veterans Mortgage Forum is not affiliated with and is not a mortgage broker, mortgage banker or a federal or state financial institution.

“The Veterans Mortgage Forum site is not a referral source for loan originators or U.S. veterans who seek a mortgage, nor is it associated or affiliated with the VA or any person or entity involved in originating a VA residential mortgage,” said Foxx. “Veterans Mortgage Forum’s Administrator will ban any comments that use this forum as a referral source. This forum has a very focused purpose: It has been created to empower, educate and provide a space to discuss and share information about VA residential mortgage issues. It should not be used as a source of referrals or a way to originate loans.”

LoanSifter to Feed Google With Live Pricing LoanSifter Inc. has announced a strategic relationship with Google Inc. that gives consumers access to mortgage loan products and real-time pricing based on LoanSifter’s technology, including sideby-side comparisons of mortgage loan products from multiple lenders through Google Advisor. Google Advisor help consumers shop for mortgages online by retrieving quotes based on the borrower’s specific loan criteria. Through a strategic relationship between both companies, Google will leverage LoanSifter’s technology—which automates pricing for lenders using a real-time database of investor pricing and eligibility content—to provide Google users with information on mortgage products and pricing from the lenders using LoanSifter. When Google users get these rates, LoanSifter’s lenders will receive qualified online leads.

Greg Ulrich, production manager at

Fairway Independent Mortgage Corporation in Colleyville, Texas, believes that Google’s popularity provides a great opportunity as another channel for borrowers to reach the company, without substantial investment costs.

“This saves us money, allowing us to pass a greater savings to the consumer,” Ulrich said. “We chose LoanSifter for our Google auto-quoting because it enables us to customize our pricing more accurately and effectively. Other vendors require manual supervision, which would have been problematic in keeping up with market shifts.”

Consumers who search for popular mortgage-related terms or phrases on Google are drawn to Google’s proprietary mortgage Google Advisor, where they can anonymously provide details such as their desired loan amounts and credit scores. Google will then retrieve multiple reliable offers from dependable lenders, placed side-by-side so the borrower can compare them. After investigating different scenarios and choosing a lender, the borrower is then able to contact the lender by phone or e-mail.

Borrowers do not have to fill out lengthy forms or click through walls of advertisements in order to access up-to-the-minute loan products and rates, and the leads generated to lenders are anonymous, so that borrowers can protect their private information until they are ready to move forward in the mortgage process.

“Our relationship with Google will be of tremendous benefit to both lenders and consumers,” LoanSifter President Bruce Backer said. “A growing number of borrowers are using the Internet to find the best possible mortgage deals, and Google’s immense popularity makes it a first stop for many. Borrowers benefit from the side-byside comparison in an open marketplace, while lenders benefit from LoanSifter’s ability to accurately price mortgage scenarios on their behalf.”

Ocwen

Zillow to Provide Home Shopping Experience for AOL Users Zillow has announced a partnership with AOL to bring the Zillow Mortgage Marketplace shopping experience to AOL Real Estate and DailyFinance users, providing tools to research, shop for and compare mortgages. The sites’ visitors will have easy access to important home financial information, such as mortgage calculators, real-time mortgage rates, and Zillow’s

innovative mortgage shopping experience, which allows users to compare personalized loan quotes and lender reviews, and connect directly with lenders.

“AOL Real Estate has many thousands of users who are either home owners or interested in buying a home, so we’re excited to be able to offer them important financial tools and personalized loan quotes from Zillow Mortgage Marketplace,” said Jay Kirsch, vice president and general manager of AOL Marketplace. “We’ll be offering the kind of useful financial information our readers want and need, including the ability to find out how much they can afford when purchasing a home as well as the ability to track historical mortgage rates and more.” continued on page 16

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ARIZONA MORTGAGE PROFESSIONAL MAGAZINE DECEMBER 2011

Financial Corporation has announced that its subsidiary, Ocwen Loan Servicing LLC, has entered into an agreement with MortgageKeeper Referral Services to easily connect English and Spanish-speaking homeowners to high quality, well-vetted community services via MortgageKeeper’s database. Ocwen customer care representatives already use MortgageKeeper data to help customers who call Ocwen directly.

Ocwen’s English-speaking customers can access MortgageKeeper data through Ocwen’s “Mortgage Instant Help Center” on Ocwen.com. Customers type in their zip code, and choose from up to 20 different service categories to receive a list of local, well-qualified nonprofits and government agencies ready to help them with their personal and financial needs. Examples of MortgageKeeper resources include employment services; utility, food and prescription drug assistance services; and senior services.

Now, Spanish-speaking customers will have access to the same best-in-class resources.

“Underperforming loans are bad for

Gorey, president of MortgageKeeper Referral Services. “We look forward to reaching Ocwen’s Spanish-speaking customers with the same high quality data.”

NationalMortgageProfessional.com

Ocwen Servicing Partnership to Benefit Spanish-Speaking Population

everyone—for our customers, the economy, and the community,” said Ron Faris, president and chief executive officer of Ocwen. “When we saw that the use of the MortgageKeeper product significantly improved loan performance, it was important to make the product more accessible to all of our customers.”

Since Ocwen became a MortgageKeeper client two years ago, Ocwen customers have received more than 90,000 referrals—referrals that Ocwen data show improved homeowner’s loan performance in 38 percent of cases.

“Based on Ocwen’s research, it seems that quality servicing, progressive loan modifications, and MortgageKeeper resources make a strong, positive impact on Ocwen customers,” said Rochelle Nawrocki

By Kurt Reisig

n today’s uncertain and highly fragmented mortgage industry, mortgage professionals must continually strive to distinguish themselves. Reforms over the past few years have drastically limited the ability of originators to differentiate based on loan rates and structure, but there are still ways to stand out. Those who have made their mark as successful branches, brokers, loan officers and support staff often have a couple things in common.

First, they demonstrate an understanding that their role requires them to serve other people within their branch, as well as their clients.

Second, successful lenders and loan officers practice a few old-fashioned sales techniques that are paramount to increasing sales, retaining current clients and getting referrals for new business.

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“

Building a ‘servant culture’ must start at the top, with management setting an example for loan officers and assistants of what it means to be a servant.

”

Sales training Mortgage rates and loan programs are relatively similar across the industry right now, so lenders and loan originators must develop new ways to differentiate themselves from their competitors. One way to do this is to develop a streamlined, internal process for loan approvals. This positions originators to build relationships with referral partners and ensure that loans are approved for consumers and real estate agents in a timely manner.

Originators who provide customers with a realistic timeline and deliver results on time will build credibility. This will help an originator to establish a positive reputation and drive repeat business.

Once good internal processes have been developed, loan originators should sharpen their basic sales techniques.

There are time-tested techniques, often overshadowed in the age of technology, where many salespeople rely heavily on e-mail marketing campaigns, digital ad buys and other high-tech methods of communication. These campaigns will be even more effective and will achieve a higher return on investment (ROI) if a loan originator takes that extra step to make it personal. Brokers and loan officers should pick up the phone and call potential customers, reach out to current customers and regularly meet with current and prospective clients face-to-face.

Conducting a personal phone call or meeting gives a loan originator the opportunity to add value to the services they offer. They can learn more about what a customer’s needs are and can tailor their services specifically to that client.

They can offer guidance and suggestions about a loan to a client. This helps make an originator an even stronger service provider moving forward with clients. It shows that they’ll go the extra mile to help their clients make good decisions.

Taking a personal approach is a proven technique for success in every type of business or sales, and using it today can be an invaluable tool to stand out.

Developing a culture of service During the booming years of the housing market, many mortgage companies got so caught up in making money that they forgot they were in the service industry.

There is a difference between being a service provider and truly being servant to customers and clients. A service provider offers a service that their customers need, however, that does not mean that each person who provides a service is a good servant. A servant is one who remembers that they should add value and go beyond the basics. They see their organization as one that serves to benefit their customers, clients and team members, for the long haul. They do not think transactionally. Their focus is on the long-term relationship.

An organization with a servant culture is one where employees work as a team to understand and better assist client needs. Not every originator understands being a servant. Building a “servant culture” must start at the top, with management setting an example for loan officers and assistants of what it means to be a servant. Once each staff member embraces the concept of service and realizes that no task is too small (or too big), the company as a whole will benefit.

A servant culture is a key tool to generate new business. A client who has worked with a company that provides a necessary service versus one that actually serves well will likely be more satisfied with the latter. In turn, they may be more willing to recommend that specific company to friends and colleagues.

Eventually, this will build a group of loyal, satisfied customers who will increase word-of-mouth referrals and generate new leads for new customers.

The cycle will continue as these new customers provide additional referrals and tell more people about the excellent service they received.

To develop a company culture of servants, many companies have turned

their organizational charts upside down. An executive team that serves its staff produces a staff more willing to serve the executive team and more importantly, customers. In this business, every staff member—no matter their position or the office they work in— must realize that they are servants to each other, vendors, and external clients and customers.

To act as a servant in the mortgage industry, companies and originators must remember that they first have to earn that role. It takes solid sales skills and a personal touch to find a client or customer in today’s competitive market.

If a broker sells a service and can deliver a good product, on time and with impeccable integrity, they have earned the opportunity to serve. This will lead to repeat business and new customers coming through the door simply because of referrals. The number of loans that a branch closes will continue to grow, increase branch revenues and (ideally) increase pay for every branch staff member.

Many companies may never become true servants, though the commitment to seek it is most important and loan originators must consistently strive to become better servants. For managers who want to increase revenues and, in turn, their salaries, their work as servants and salespeople is never done.

Now, more than ever, the art of service has come into the forefront of the mortgage industry. Those who sell well and provide excellent service to their customers will continue to be top performers. Those who embrace a true “servant culture” will experience this success to an even greater level. Serving is a great strategy!

Kurt Reisig is the founder and chief executive officer of American Pacific Mortgage Corporation. He may be reached by phone at (916) 960-1325 or email kareisig@apmortgage.com.

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DECEMBER 2011

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n our third annual “40 Under 40” feature, you will find a list of the top mortgage professionals under the age of 40, as voted on by their peers, who exemplify professionalism and top production in today’s housing market. Despite the rough waters of the U.S. economy and the ever-shifting landscape known as the mortgage industry, these 40 professionals have persevered in a time of great uncertainty.

In assembling this list, we at National Mortgage Professional Magazine took some criticism when we began this endeavor. Many felt a list of this nature ignored many, and others felt that a list of this type is a “thing of the past,” while some even cited age discrimination, but we firmly stood by our decision to assemble this group. Like their

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industry pioneers before them, these individuals are the ones who carried the torch of professionalism in the year 2011 and beyond, fighting the daily barrage or regulatory and legislative pressure and negative coverage by the mainstream media as the culprits for the collapse of the U.S. economy. However, they forge forward, as they continue to lead by example and set the bar for education, professionalism and excellence in the mortgage industry.

We’d like to congratulate all of the following individuals named to our “40 Under 40” list—in no particular order but alphabetical—and thank all the nominees for their participation in our second annual “40 Under 40: The 40 Most Influential Mortgage Professionals Under 40” feature.

BRIANNE ASTON Senior Business Analyst CBC National Bank Alpharetta, Ga. www.CBConnex.com Brianne Aston attended the University of Georgia and graduated in 2002 with a degree in finance. In the mortgage business since 2002, Brianne has held many positions throughout her career, including closer, processor, sales assistant, and her current role as senior business analyst and bank officer with CBC National Bank.

TIMOTHY BAISE President & Chief Executive Officer Top Flite Financial Williamston, Mich. www.TopFliteFinancial.com As president and chief executive officer of Top Flite Financial, an Inc. 5,000 company, Timothy Baise has been changing the lending industry, one person at a time, by being and staying in compliance with state and federal laws. As many lending firms have downsized or have closing their doors altogether, Top Flite Financial has been increasing its revenue and has expanded its operations through the toughest economic times the mortgage industry has ever seen.

RAYMOND BARTREAU Chief Executive Officer Best Rate Referrals Las Vegas, Nev. www.BestRateReferrals.com Raymond Bartreau is a marketing specialist whose focus is the mortgage industry and how to effectively market in today’s conditions. Raymond’s company, Best Rate Referrals, is a marketing firm specializing in direct mail, call center campaigns and online marketing. Best Rate Referrals was named to the Inc. 500/5000 list for the second consecutive year in 2011.

DEREK EGEBERG Branch Manager/Loan Officer Academy Mortgage Yuma, Ariz. www.TheApprovalCoach.com Derek Egenberg’s passion is building his automated ACT database and teaching other loan originators how to better track and communicate with their clients. Derek has done many training calls with loan officers nationwide, describing his world class ACT database and how his communication methods are key to success. Derek has been featured in various interviews and industry trainings, such as Mortgage Success Source’s “Mastery Business Plan” in November of 2011.

MATHEW GOLDMAN Regional Vice President/Branch Integration FBC Mortgage LLC Orlando, Fla. www.GoldmanLoans.com Matthew Goldman is a 12-year veteran of the mortgage industry. He has been a very active member of both the Mortgage Bankers Association of Central Florida (Governor) and of the MBA of Florida as a Board of Director. He is consistently called upon to chair important committees or events and has always been very successful in ensuring that any event that he is involved in is successful.

DECEMBER 2011

DAN GREEN Loan Officer Waterstone Mortgage Cincinnati, Ohio www.TheMortgageReports.com Ohio resident Dan Green is a loan officer with Waterstone Mortgage. In 2006, Dan founded Bring the Blog, a provider of daily blog content. In 2010, Dan launched Rate Quote Widget, a standalone application for loan officers, installed directly on a Web site that improves mortgage lead conversion rates and keeps loan officers from wasting time on “bad leads.” Dan also writes a daily mortgage blog, The Mortgage Reports, seen by Dan as a tireless effort that attracts new business and educates the industry.

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MARK W. BOYER Chief Executive Officer Foundation Financial Group Jacksonville, Fla. www.FFG.com Mark W. Boyer began his role as chief executive officer of Foundation Financial Group in January of 2011 at the age of 36. He immediately launched a massive realignment while preparing to open the company’s sixth regional sales center in Rochester, N.Y. Mark began laying the groundwork for what has become known as “Project Sequoia,” the company’s new green initiative that will save Foundation Financial Group $50,000 its first year. Foundation Financial Group was named to the Inc. 500|5000 in 2011.

JOHN F. CADY Senior Vice President of Retail Stearns Lending Inc. Santa Ana, Calif. www.StearnsBranching.com Throughout his time on the retail side of mortgage origination, John F. Cady has consistently applied focus to training, motivating and mentoring and as a result, has enabled his previous companies, including MetLife and PrimeLending, to aggressively expand their retail footprint. At Stearns Lending, John has continued his momentum to restructure and catapult the firm’s retail model. In less than six months, he has increased new branch signings by 96 percent with the addition of 24 branches.

NationalMortgageProfessional.com

JENAY BOWEN Senior Loan Officer Service First Mortgage Richardson, Texas www.ServiceFirstOnline.com With a BBA in both finance and real estate, Jenay Bowen got her start right out of college and has worked her way up as one of the top producers at Service First Mortgage. Jenay began as a processor, transitioning to underwriting before becoming a loan originator. Jenay has been in the industry for more than 10 years and is a certified Federal Housing Administration (FHA) Underwriter.

CHRIS BROWN Home Finance Advisor Certified Mortgage Planners Orlando, Fla. www.MortgageChiliBlog.com Chris Brown is a vocal leader for originators seeking to change their own futures in the mortgage industry. Chris actively grows his business by acting as a “coach” for his partners rather than a vendor, earning the nickname, “Chris the Implementer.” In addition to his role as home finance advisor with Certified Mortgage Planners, Chris is also a published author, frequent contributor to local Orlando FOX News affiliate and AM radio shows.

SHAUN GUERRERO Loan Officer The Legacy Group Silverdale, Wash. www.ShaunGuerrero.com Shaun Guerrero started in the business of being a loan officer when he was 20, and has partnered with a great lending platform that has allowed him to do 100 percent financing on homes sold at foreclosure auctions.

Shaun has hosted many events in the local community that have attracted hundreds of members of the small business community to learn how to integrate networking methods, sales training and video into their business model.

JULIAN HEBRON Branch Manager/Mortgage Banker RPM Mortgage San Francisco, Calif. www.RPM-mtg.com/julian Julian Hebron funds $50 million in mortgages annually and operates runs San Francisco-based RPM Mortgage’s branches. Julian manages partnerships with major real estate firms and building groups and is RPM’s lead marketing. Launched in 2010, Julian’s blog, TheBasisPoint.com, is a must-read for consumer education and insider news. Julian’s long-term media mission isn’t loan leads, it’s to bring credibility to the mortgage industry so consumers, regulators and the mainstream media are constantly reminded how smart, committed, and responsible people in the mortgage industry are.

ARIZONA MORTGAGE PROFESSIONAL MAGAZINE DECEMBER 2011

RYAN KOHL Chief Executive Officer/Vice President Express Capital Mortgage Inc. Chandler, Ariz. www.ExpressCapitalMtg.com Ryan Kohl is owner and founder of Express Capital Mortgage and was instrumental in creating multiple channels of lending for foreign buyers purchasing real estate in the state of Arizona. Since mid-2010, Ryan has dedicated his resources to finding capital for these buyers. Primarily focused on Canadians and Australians, Ryan has educated many on the homebuying process in America and relayed them to other industry professionals for local homebuying assistance.

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DECEMBER 2011

TOM HURST Executive Vice President StreetLinks Lender Solutions Indianapolis, Ind. www.StreetLinks.com As a founding partner of StreetLinks Lender Appraisal Solutions, Tom’s focus on strategy, ops and sales proved to be instrumental in the firm’s growth into an industry-leading partner. StreetLinks currently houses nearly 600 employees and works with more than 350 clients, including many of the top 10 banks and mortgage lenders in the country.

DAN KELLER Loan Officer Hometown Lending Everett, Wash. www.MyMortgageGuyDan.com Dan Keller adds value to his real estate agent referral partner network by serving as a transparent resource for homebuyers preparing to purchase a home. Dan currently has more than 7,000 views on his YouTube channel, and more than over 600 followers on each Facebook, LinkedIn and Twitter. His blog and social media accounts for more than 60 percent of his closed loan volume, and the rest comes from relationships built with real estate professionals through teaching “Tech-related” classes on blogging, social media and video marketing.

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DUSTIN HUGHES Owner Northwest Mortgage Advisors Portland, Ore. www.Dustin360.com Dustin Hughes is a nationally-recognized loan officer and the owner of Northwest Mortgage Advisors in Portland, Ore. Dustin’s unique and ingeniously creative videos have inspired more than 350,000 viewers on YouTube! Dustin was recently diagnosed with Stage 4 GBM brain cancer, and as a result, has continued to inspire the industry through his message.

CHAD JAMPEDRO Chief Executive Officer GSF Mortgage Corporation Brookfield, Wisc. www.GSFLending.com As chief executive officer of GSF Mortgage Corporation, Chad Jampedro has been changing the lending industry and the landscape of what a mortgage professional is and does. Chad converted GSF from what was known as a mortgage broker company to a mortgage banker at a time when the broker business was booming. In making the transition, Chad grew the company from an $11 million company to a $70 million company.

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JASON “HAMMER” HELMER Director of Business Development First Priority Financial Fort Lee, N.J. www.FirstPriorityFinancial.com An active industry participant, Jason “Hammer” Helmer trains and coaches thousands of originators on current industry topics and origination strategies. Hammer currently has 14,000 subscribers to RateAlert who attend his Webinars, in addition to approximately 3,500 loan originators who subscribe to his FPF PowerTips video marketing messages and blogs.

DANIEL H. JACOBS President of Retail Branching Residential Finance Corporation Charlotte, N.C. www.GoBranch.com A recognized mortgage thought leader and entrepreneur, Daniel H. Jacobs is an executive with 15-plus years of mortgage industry experience who enjoys building and growing companies that solve industry problems. A mortgage banker since 1996, Daniel is the former chief executive officer of 1st Metropolitan Mortgage until he sold the firm in 2009. Daniel is regularly featured as subject matter expert in trade journals, The Wall Street Journal and other major publications. He has also served as a panelist and speaker at major industry events for the National Association of Mortgage Brokers (NAMB) and the Mortgage Bankers Association (MBA) among others.

ERIC KUJALA National Sales and Consulting Manager DocVelocity Troy, Mich. www.DocVelocity.com With his knowledge of the industry and years of expertise, Eric Kujala applies it to his sales and consulting role implementing DocVelocity as the firm’s national sales and consulting manager. Through DocVelocity, Eric bring to the market a Web-based paperless solution that simplifies the mortgage loan origination process by creating an online collaboration tool for staff, lenders and borrowers.

JOHN V. LEVONICK Chief Legal and Compliance Officer Mortgage Cadence LLC Denver www.MortgageCadence.com John V. Levonick has worked closely with mortgage originators, servicers, technology vendors, commercial banks, hedge funds and insurers on identifying and managing regulatory compliance risk through the use of technology. In working with each aspect of the industry, John has obtained the ability to understand risk, advise on best practices, and has worked to enhance technology to increase productivity, operational quality, while reducing institutional risk and enhancing asset quality. John is a regular speaker and participant in industry conferences on mortgage compliance risk, and has written numerous articles for various trade publications.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE DECEMBER 2011

PHIL RASORI Chief Operating Officer MCT Trading San Diego, Calif. www.MCT-Trading.com Phil Rasori has led MCT Trading’s operations since 2005.

His areas of expertise include complex financial modeling, computational dynamics and linear programming for operational optimization. He developed the mortgage pipeline hedging algorithms that form the foundation of MCT’s HALO Program. He has also pioneered several metrics that have become standard industry parlance, including “beta pull-through” factors. In addition to banking clients, Phil has consulted with the government-sponsored enterprises (GSEs) and the U.S. government on hedging best practices for community banks.

STEVE RENNIE Managing Partner Hammerhouse LLC Mission Viejo, Calif. www.TeamHammerhouse.com Steve Rennie is a founding partner of Hammerhouse LLC, a national recruiting and strategic growth firm with mortgage sales and leadership placement at its core. Steve has lead the implementation and execution of Hammerhouse’s model-matching process for the firm’s clients and candidates. He has been extremely successful in working with hundreds of mortgage sales and leadership candidates to help them identify the best modelmatch with a mortgage lender in order to positively impact growth, profitability and retention.

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DECEMBER 2011

SCOTT A. MILNER Executive Vice President US Mortgage Corporation Melville, N.Y. www.USMortgage.com Scott A. Milner has 10-plus years of extensive equity derivatives and structured products sales experience having worked at some of the largest investments banks in the world, including ABN AMRO, Deutsche Bank, Credit Suisse and the Royal Bank of Scotland. Currently, Scott is leveraging his financial, analytical and business acumen to embark on a new career in the mortgage banking industry, having joined US Mortgage Corporation in 2010 as their executive vice president.

JOE PUTHUR President Mortgage Coach Irvine, Calif. www.MortgageCoach.com Joe Puthur has been president of Mortgage Coach since 2009. To date, he has launched four products for the company including: Ratewatch, Certified Mortgage Coach, Social Pro and Edge. Joe’s eight-plus years of industry experience help him develop the tools that loan officers must use to remain complaint, grow their practice and educate consumers about their mortgage purchase.

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BRETT MCGOVERN President and Owner Bay Equity Home Loans LLC San Francisco www.BayEq.com Brett McGovern has more than 15 years of experience in real estate sales and lending. Prior to joining Bay Equity, he was senior vice president of Grubb Ellis Company in San Francisco. As president and owner of Bay Equity Home Loans, Brett is responsible for key corporate functions, including investor and warehouse line relations, oversight of accounting and secondary functions and marketing and corporate communications.

EDDY PEREZ President Equity Loans LLC Atlanta, Ga. www.EquityLoans.com Eddy Perez has more than 10 years of experience in the mortgage industry as a top producing loan officer, sales/branch manager and executive. Along with his partner, Kunjan Patel, Eddy transformed a small refinancebased mortgage broker into a growing force in the mortgage industry. His five-year plan began with a commitment to solid warehouse and investor relationships and grew into one of the more profitable purchase-driven lenders in the Southeast.

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KHAI MCBRIDE Owner Khai McBride Companies Los Angeles, Calif. www.KhaiMcBride.com As owner of Khai McBride Performance, Khai’s marketing and teaching methodologies are recognized by top companies and producers nationwide. A faculty member of Mortgage Success Source, Khai is a highly-sought-after industry speaker, innovative coach and consultant, coaching some of the industry’s top performers in the area of mindset and performance.

AMANDA NILES Senior Mortgage Banker Summit Mortgage Portland, Ore. www.NilesHomeLoans.com Amanda Niles has been a mortgage banker for 10 years.

She earned two degrees from the University of Oregon and her MBA from George Fox University. Amanda was a member of National Mortgage Professional Magazine’s 2010 “40 Under 40” list and she has continued her pursuit of being a top originator in Oregon and Washington.

RENE RODRIGUEZ Sales & Marketing, Brand Strategist PrimeSource Mortgage New Mexico www.SeeReneSpeak.com Rene Rodriguez heads up sales, marketing and brand strategy for PrimeSource Mortgage, a publicly-traded mortgage bank. A captivating, high-energy speaker, Rene is in high demand for annual events, conventions, and keynotes speeches. He has been a featured speaker at the Mastery Business Plan 2008 and 2011 Conferences in Las Vegas, has emceed for all four Mortgage Revolution events, and is a frequent contributor and author to industry publications, including National Mortgage Professional Magazine.

RICK ROQUE Senior Vice President/Board Member PrimeSource Mortgage Washington, D.C. www.WeWalkYouHome.com Rick Roque is the formerly led sales and business development at Calyx Software and has served as a consultant for the industry’s top tech and lending firms. He is currently executive vice president of growth and strategy at PrimeSource Mortgage, managing the day-to-day business operations at one of the nation’s few publicly-traded mortgage lending companies.

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GARRICK WERDMULLER Branch Manager First Priority Financial Alameda, Calif. www.Garrick.biz Through technology, blogging and video logging Garrick Werdmuller has built an amazing community of fans. Garrick has been a part of the “Funky Formal,” an event to help many local charities, including the Alameda Food Bank, Alameda Education Foundation and the Alameda Boys and Girls Club among others. He founded the Alameda Green Home Expo.

ERIK WIND President EWDC Melville, N.Y. www.ShortSaleSpeedway.com During his 10-plus years in the real estate and mortgage business, Erik Wind has worked with hundreds of appraisal and real estate professionals to improve their business through technology. Erik is the developer of ShortSaleSpeedway, used by real estate professionals to effectively negotiate short sales and loan modifications and by mortgage professionals as a tool to market to real estate agents.

LOUIS ZITTING Founder/President LenderFeed Salt Lake City, Utah www.MonitorBase.com Louis Zitting founded LenderFeed, a consumer-focused, credit monitoring technology to maintain the retention for borrowers who have been turned down or whose loan had been cancelled. LenderFeed monitors the borrower’s credit profile, and based upon specific parameters, will contact the loan officer when it is the appropriate time.

DECEMBER 2011

ADAM P. SMITH President The Colorado Real Estate Finance Group Inc. Greenwood Village, Colo. www.CoreFinanceGroup.com Adam P. Smith is president of The Colorado Real Estate Finance Group Inc., a commercial and residential real estate finance firm. During his career, Adam has helped thousands of clients, both individuals and corporations, in their goals regarding real estate finance, as well as both personal and corporate finance, and has personally written billions of dollars in mortgage and finance deals.

ERIC TISHAW Chief Operating Officer Hometown Lenders Huntsville, Ala. www.HTLenders.com Growing up around the mortgage business, Eric enjoys helping mortgage professionals reach their goals and fullest potential.

In an effort to uncover the major pitfalls of making a transition to a different employer, Eric authored the Net Branch Survival Kit to help mortgage professionals make a more informed decision about their future partnership with a potential company.

More than 10,000 copies have been downloaded to date.

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MICHAEL SMALLEY Regional Manager Waterstone Mortgage Winter Park, Fla. www.Mike-Smalley.com Mike Smalley has been a loan originator since 2002, and owned his own company from 2004-2008. Currently a regional branch manager from 2008 to current, and over the last three years with his two partners, has grown his team from one branch to four, and his team from five to 40. Mike is also a frequent industry speaker, being the youngest person ever to speak at LoanToolbox Business Plan (in 2006 at age 27), presenting at Mortgage Revolution twice in 2010 (Atlanta and Orlando), and Sales Mastery in 2011.

HOLDEN THOMAS President Oak Mortgage Group Inc. Dallas, Texas www.OakMortgageGroup.com Holden Thomas started Oak Mortgage Group Inc. at the age of 25 with no mortgage experience and built the firm from a mortgage broker in 2006 into a mortgage banker as U.S. Department of Housing & Urban Development (HUD) Direct Endorsed Underwriters. Holden relies heavily on social media strategies to drive leads for Oak Mortgage Group.

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SHASHANK SHEHKAR Chief Executive Officer Arcus Lending San Jose, Calif. www.LendingExpertBlog.com Shashank Shehkar is chief executive officer of Arcus Lending, author of the blog, LendingExpertBlog.com and two real estate books. A social media expert, Shashank helps incorporate social media ideas into his customer’s daily business plans and is always willing to help others in their advances for business and social media. Within three years of originating loans, Shashank is closing more than $30 million in personal production in 2011 by building one of the strongest personal brands in the San Francisco Bay Area region.

JOHN GLEN STEVENS Branch Manager Bank of England d/b/a ENG Lending Draper, Utah www.ENGUtah.com John Glen Stevens served as president of Utah Association of Mortgage Brokers in 2010, the state affiliate of NAMB, the Association of Mortgage Professionals. Nationally, John served NAMB as chairman of the Loan Originators Conference in Las Vegas. John campaigned for a seat in the Utah State House and currently serves locally as County Planning Commissioner.

The Next 40 Mortgage Professionals to Watch …

Due to the hundreds of submissions we received for our “40 Under 40” list, there are those who are making serious waves in the industry who could not be overlooked. They, like those on the “40 Under 40” list are the leaders of this industry for years to come, so keep an eye out as well for the following innovators and originators as they continue to shape the industry: John Antonelli

President/Mortgage Specialist

Belinda Austin

Processing Manager

Alan Blood Lanie Boudreaux Liz Bushman Brian Call Peter M. Citera

President Mortgage Originator

Capital Financial Group Inc., Bountiful, Utah St. Martin Bank & Trust, Lafayette, La. Academy Mortgage Corporation, Diamond Bar, Calif.

President

Rubicon Mortgage Advisors LLC, Minneapolis, Minn.

Director of Mortgage Education Regional Sales Manager

Jay Crowell

Vice President

Sherri Dyer

Ranch and Coast Mortgage Group, San Diego, Calif.

Branch Manager

Gwen Creel

Richard Donine

Vantage Point Financial Group Inc., Blue Bell, Pa.

Vice President of Marketing Owner/President

Real Estate Institute, Niles, Ill. United Fidelity Funding, Kansas City, Mo. Cornerstone Home Lending, Seattle, Wash.

Stearns Lending, Orange County, Calif.

MDI Mortgage Group, Bar Harbor, Maine

Richard L. Erb II

Licensed Loan Originator

Weichert Financial, Alexandria, Va.

Ron Haddad

Senior Mortgage Banker

Key Mortgage Services d/b/a Baird & Warner Financial, Chicago

Adam Hall Josh Harmatz Justin Henneke Dan Holtz

Community Reinvestment Analysis Chief Operation Officer Senior Loan Officer Vice President

Fifth Third Bank, Louisville, Ky. Voyage Financial Group Inc., Sacramento, Calif.

America’s Choice Home Loans Sovereign Lending Group Inc., Irvine, Calif.

Vince Ingui

President & CEO

Louviers Mortgage Corporation, Wilmington, Del.

Jesus I. Jimenez

Finance Director

Security National Mortgage, Forest Park, Ill.

Steven Kaufman

President

Eric Kelly

Managing Partner

Zeus Mortgage Ltd., Houston, Texas Assurance Financial Group, Birmingham, Ala.

Vice President

Topaz Mortgage, Rockville, Md.

Heather M. Lee

Branch Manager

PMC Mortgage, Yakima, Wash.

Crista Lowrie

Branch Manager

Vision Mortgage, a division of Continental Bank, Montgomeryville, Pa.

Joseph Metzler Darius Mirshahzadeh Jasen Neutzman Robert Palmer

Founder & President Senior Mortgage Loan Officer Senior Vice President of Wholesale Lending Certified Mortgage Consultant President, CEO & Majority Stockholder

Mortgage Quality Management and Research, Sherman Oaks, Calif.

Mortgages Unlimited Inc., St. Paul, Minn.

Pacific Union Financial Atlas Mortgage, Lynnwood, Wash.

RP Funding, Maitland, Fla.

President

Silvercreek Finance Corporation, Chicago, Ill.

Nathan S. Pierce

President

Advanced Funding Home Mortgage Loans, Salt Lake City, Utah

Joni Pilgrim

Vice President of Sales & Marketing

Nationwide Appraisal & Settlement Network, Oldsmar, Fla.

Reza Rahimzadeh

Chief Executive Officer

Loan America, Calabasas, Calif.

David B. Ricketts

Area Manager

Bank of England, Denver, Colo.

Kyra Sommerville Moore

Partner/Branch Manager

Darin Sullivan Brian Swanson

Paul Ueckert Paul Volpe

Vice President of Mortgage Operations

BOFI Federal Bank (Bank of Internet), San Diego, Calif.

Senior Vice President & Chief Lending OfficerResidential Lending

BOFI Federal Bank (Bank of Internet), San Diego, Calif.

Mortgage Loan Officer President Vice President

Associated Bank, Belleville, Ill. Voyage Financial Group Inc., Sacramento, Calif.

NOVA Home Loans, Tucson, Ariz.

DECEMBER 2011

Joanna Theismann

Inlanta Mortgage, Johnston, Iowa

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Sam Perez

NationalMortgageProfessional.com

Todd LaBorwit

Benjamin Madick

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heard on the street

Effective Reporting in Automated Valuation Management Platforms

By David Rasmussen

DECEMBER 2011

ARIZONA MORTGAGE PROFESSIONAL MAGAZINE

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Lending managers today need to be everywhere at once.

They are accountable for helping to ramp up lending volume while ensuring that stringent risk oversight and review controls are in place. This dichotomy can be seemingly daunting for organizations that have yet to embrace the power of the automated tools discussed in this article series on valuation management platforms.

Management may hesitate to integrate the technology for fear it will distance them from the details in the valuation process. However, a bestin-class valuation management platform should provide users with total transparency throughout the entire valuation process. Each and every user, product order, product return, and all of the rules/data in between should be recorded and electronically documented. Recording this level of granularity allows for full retrieval, access and reporting at a later time, and in many cases, provides managers with tools and insights not available in a manual process.

To fully and effectively monitor the entire range of transactions in a valuation management platform, the reporting function needs to be comprehensive, yet flexible. Standard or “canned” reports, as well as ad hoc reporting functions, allow managers to view, monitor, track and even score the procedures, policies and partners that make up their valuation strategies. The following sections explore the necessary system components of each reporting type that should be available for use.

Standard reporting A strong management platform should include a comprehensive selection of standard reports that are available to run quickly, are designed to provide a clear view of the most frequently accessed data points, and to meet compliance mandates. These are considered common reports that users will utilize frequently according to their access and needs. It is essential for standard reporting to be integrated into the everyday business process and procedures. It is up to the management at an organization to ensure the system provides an intuitive fit with its workflow.

These standard reports should also allow users to monitor the entire valuation lifecycle (as their access level permits), making each employee accountable for their successful role within the organization’s workflow.

Advanced platforms allow reports to run in real-time or to be scheduled to run and electronically delivered at regular intervals. This consistent data reporting offers fresh perspectives and often provides direction in the valuation management chain.

Ad hoc reporting While standard reports fill certain business demands, they will never be able cover every data request that may arise. The management in most organizations will agree that their company has unique needs, and waiting for continued on page 34

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Zillow Mortgage Marketplace on AOL Real Estate and DailyFinance is expected to launch in 2012.

“With historically low mortgage rates, it’s more important than ever for home shoppers and homeowners to understand their mortgage options and to shop around for the best rates,” said Spencer Rascoff, Zillow chief executive officer.

“We’re excited to bring our innovative and award-winning loan shopping experience to AOL sites. In addition to the consumer benefits, this partnership also will extend the reach of Zillow Mortgage Marketplace’s network of lenders, providing them with a new, cost-effective customer acquisition channel to connect with home shoppers.”

CampusMBA to Produce Course for Chartered Realty Investor Designations The Mortgage Bankers Association (MBA) has announced that it has executed an agreement with the Chartered Realty Investor Society (CRIS) to provide a course through CampusMBA to help those seeking a Chartered Realty Investor (CRI) designation to prepare for an assessment examination. Under the agreement, MBA will develop and offer through CampusMBA an instructor-guided, online, self-study prep course to complement the CRI Level 1 study guide, currently being offered by CampusMBA. This comprehensive commercial real estate coursework will educate industry professionals to analyze property data and appraisal techniques, to understand financing fundamentals and funding sources including commercial mortgagebacked securities (CMBS) and to comprehend loan servicing and the underpinnings of real estate as an asset class.

“We are proud to join with CRIS to offer top-notch training for commercial real estate finance professionals,” said David H. Stevens, president and chief executive officer of the MBA. “CRIS is known for its ethicsbased approach to professional development and anyone carrying a CRI designation is recognized for his or her commitment to professional excellence and ethical conduct.”

The mission of CRIS is to give the public confidence in the professionals and fiduciaries within the commercial real estate industry perfectly complements MBA’s efforts to foster professional development and business ethics, which is critical to the industry’s success and reputation. It was founded in 1999 to help ensure the safety of the public and other stakeholders by supervising its real estate certification designations, the CRI Charter and CRI Associate.

Its mission is to recognize ethics-based competency in the global real estate industry for the benefit of the public through the award of a limited, revocable right to hold its designations.

RealtyData Acquired

by ULS CEO and Former NREIS CEO Charles Sanders, the founder of Urban Lending Solutions (ULS), has teamed up with settlement services industry veteran Michael Forgas, former chief executive officer of National Real Estate Information Services (NREIS), to acquire RealtyData, a provider of unique title search productivity solutions. Sanders will serve as president and will hold a majority interest in the company and Forgas will serve as CEO. “The technology that RealtyData has developed is very exciting and will change the way the title industry operates,” Sanders said. “That made the company a good investment at this time. I’ve known Mike for many years and look forward to working with him.”

RealtyData technology allows title companies to automate title searches in 900 counties across the nation. In addition, a quality control (QC) engine can perform automated QC on the resulting title commitments, reducing title agent expenses significantly.

“The title industry has been slow to adapt to technological change, but economic pressure is forcing title agents to seek out tools that will allow them to provide their services more efficiently,” Forgas said. “Our technology allows title agents to not only be more efficient but also improve quality and at favorable prices. We must not forget about quality, especially in this time of significantly increased regulatory oversight.”

Sanders said he and Forgas will first focus on penetrating deeper into RealtyData’s existing client base, moving good customers beyond simple searches and into the company’s quality control solution.

Clayton Holdings to Acquire REO Specialist Green River Capital Clayton Holdings LLC has announced that it has agreed to acquire Green River Capital LC, a provider of real estate-owned (REO), short sale and broker price opinion (BPO) services based in West Valley, Utah. The transaction is expected to close within 60 days and no financial details were announced. Green River will now become a wholly-owned subsidiary of Clayton and continue to operate as a standalone business, under its current brand, in its current location and will be led by its current management team of Christopher West, Green River’s founder and chief executive officer, and Paul Bossidy, Clayton’s chief executive officer, will become co-CEOs of Green River, and Joseph D’Urso will remain the company’s president.

“Green River is an excellent strategic fit for Clayton and our clients,” said Bossidy. “It will expand our loss mitigation offerings at a time when short sales and REO dispositions are both expected to remain strong.

Green River’s BPO offerings will help our clients, along with our Quantum special servicing unit, to make better loss mitigation decisions and will complement Clayton’s diligence and whole loan acquisition services.”

Green River currently has a number of large investor, financial institution and government-sponsored enterprise (GSE) clients with a staff of approximately 200. Green River provides its BPO and REO services with the support of a nationwide network of more than 5,000 real estate brokers.

“During the past year, our REO and short sale assignments have grown by more than 87 percent,” said West. “By joining with an industry leader such as Clayton, we expect to continue this growth and create a more scalable company while increasing the strength of the Green River brand.”

Bapodra as vice president and managing director of its TitleNet division.

First Guaranty Mortgage Corporation has announced the addition of Mark Mayhook as managing director of capital markets and Jeffrey Gibson to the position of assistant vice president, correspondent division manager.

Brad Nease has joined Carrington Mortgage Services LLC as senior vice president of capital markets.

Shore Financial Services Inc. has named Michael Kaysen as its new chief operating officer.

Supreme Lending has named Craig Goetz as western region production manager and Glynnis Barber as its new underwriting manager.

Paige Warren, president of Prudential

Affordable Mortgage Company, has been named head of Prudential Huntoon Paige, the FHA lending business of Prudential Mortgage Capital Company.

Prudential Mortgage Capital has also announced the addition of Michael McRoberts as head of the company’s conventional Fannie Mae and Freddie Mac lending business.

Ashley Anderson has been named assistant vice president, operations manager of WFG National Title Insurance Company’s Default Services Group.

Scott Anderson has joined loanDepot.com LLC as executive vice president, head of corporate strategy.

Clear Capital has named Gabriel Nacht as chief financial officer and Brian Wick as vice president of marketing.

Your turn National Mortgage Professional Magazine invites its readers to submit any information, events, passages, promotions, personal or professional occurrences that seem appropriate and/or other pertinent data to the attention of:

Heard on the Street/Mortgage Professionals to Watch column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

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Jonathan Corr has been named chief operating officer of Ellie Mae. In addition, Ellie Mae has also announced three new hires: Karen Paratore as manager of the firm’s data center’s day-to-day operations; Gene Bowen as a designer and builder; and Marina Levinson to oversee Ellie Mae’s data center.

Real Estate Mortgage Network Inc. (REMN) has added Justin Tucci as a mortgage loan originator to its Myrtle Beach, S.C. office, and Donna Quigley and Tammy Burge as mortgage loan originators in REMN’s Atlanta-area branch.

The Federal Housing Finance Agency (FHFA) has announced the additions of Richard B. Hornsby as the FHFA’s chief operating officer and Jon Greenlee as deputy director of the Division of Enterprise Regulation.

Mike Forgas has been promoted to the position of president of Urban Lending Solutions (ULS).

Matt Morris has been elected chief executive officer of the board of directors of Stewart Information Services Corporation.

NewDay Financial has announced the promotion of Julie McMillin Lee to the role of president of NewDay Reverse.

U.S. Mortgage Corporation has named Kelly Sabino as director of its reverse mortgage division.

MortgageFlex has announced the addition of Phil Scialabba to its team.

Lender Processing Services Inc. (LPS) has named Nancy Murphy as its new vice president of investor relations.

Carrington Mortgage Services has announced the hiring of three new area sales managers: Bryson Bede for the Pacific Northwest area, Tamara Joi Henry for the Southern California region and Jodi Nelson for the Northern California region.

ServiceLink has announced the appointment of Chris Azur as company president, David Holt as senior vice president of default strategy and execution, Greg Whitworth as executive vice president of servicing solutions, and Donald Blanchard as general counsel.

Steve Butler has joined QuestSoft as vice president of business development.

WFG National Title has named Ravi

The President’s Corner: December 2011 Season’s Greetings to All! state to become a member of NAMB. The Delegate Council passed the new association by-laws that allow for the joining to either NAMB alone, the NAMB state affiliate alone or the option to join both. Now we would like to see everyone join both organizations, but we realize that now you have a choice.

You can log on to NAMB.org, go to the “Membership” page and click on the “Join NAMB” tab or click on your state affiliate and join both associations. The other news is that the two memberships are as follows: 18

DECEMBER 2011

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NAMB President Donald J. Frommeyer welcomes attendees to the 2011 NAMB/WEST Loan Originators Conference

want to touch on a few things that we should reflect on during this holiday season. First, make sure that during this festive season, you remember why you do things. Make sure that you thank all of your employees and their families for allowing you to be in the greatest job in the whole world. The mortgage business has changed so many times over my 35 years in the business, that I am continually reminded that those of you that are left out there as mortgage brokers and mortgage professionals are the best in the business. You continue to produce and talk with customers each and every day using your expertise and your wisdom to make dreams come true.

Second, a big thank you goes out to all who helped produce the 2011 NAMB/WEST Loan Originator Conference in Las Vegas. This turned out to be one of the best gatherings of speakers and exhibitors that I have ever witnessed. The camaraderie and shar-

I

ing of ideas was top notch. Those who missed out can only hope that next year will be a repeat of this year. John Stevens did an outstanding job as the Committee Chair of the event, and he is already talking about the changes to make next year even better and larger.

Third, as those of you who were at the Delegate Council Meeting and luncheon, Think Big Work Small’s and Frank Garay and Brian Stevens have agreed to work with NAMB and produce a really great NAMB BLOG and share this information with our state affiliates. The states, in turn, can share this information with their members. If you think about this, it is an exciting time and we are all only going to get better from this association with them. The end result should be a larger membership for the states and a larger membership for NAMB. One of the items that really mystifies me has to do with membership. The door is now open for everyone in every

Platinum Membership is $120 per year. This is an exclusive membership that includes a discount to all NAMB events, free or reduced costs on Webinars that will be produced at least monthly, and the ability to have early sign up for these Webinars. It also includes a quarterly conference call with me to inform you of items that the NAMB Government Affairs team is working on and to answer questions. This membership category also includes the ability to vote in the election of NAMB board members and on by-law changes at the Annual Meeting.

Silver Membership is $50 per year and is for the mortgage professional who wants to be a member, but does not want all of the extras that come with the Platinum Membership.

These members will have to pay regular price for the NAMB functions, NAMB Webinars and will have no vote in the affairs of the association.

The ironic part of membership is that we (NAMB) represent all mortgage loan originators, either licensed, registered or exempt. We do not discriminate.

That, according to the NMLS figures, is over 130,000 of you. If we could just get 75 percent of you to join, that would mean we would have 97,000-plus members. If this would happen, we could go to Congress with a large majority behind us and that would mean something to the legislators on Capitol Hill.

This is another reason why we have teamed up with Frank and Brian of Think Big Work Small. They can help us get the information out to all of the states and to all of the LOs in America.

They can also help pass information down to everyone with the NAMB Blog we are developing. So stay tuned to hear more about this.

And lastly, if I may, being a mortgage professional myself and representing you as president is a great honor. I am excited to see some of the things that we have been able to do in the first 30 days. That is why I am asking each and every one of you to make a commitment. Join NAMB and become a part of this great organization. We are here to represent you and we are going to continue to fight for you, the mortgage professional. It is my career and it is your career. That means that you take a vested interest in your work. If you want to join as a Platinum Member, its $120 per year ($10 per month, and we know that is only just one breakfast or lunch per month). It is really a small amount that you pay for what you get. Or you can join as a Silver member for just $50 for the year (only $4.17 per month or the cost of a latte at Starbucks). So if you need answers as to why you should be a member, ask yourself this basic question: WHY NOT? My e-mail is president@namb.org, and I am open to answer any of your questions. If you would like to be involved in one of our committees, just let me know as well. I will arrange for you to get in contact with a committee chair in your area of interest. We are going to make this association a big and powerful player, and we will continue to represent you. It is time to join and be part of the solution. If you are a member, ask your friends why they are waiting.

Sincerely, Donald J. Frommeyer, CRMS, President NAMB, The Association of Mortgage Professionals

Scenes From the 2011 NAMB/WEST Loan Originators Conference December 3-5 at the MGM Grand in Las Vegas NAMB Past President Jim Nabors listening to bids at the NAMBPAC Auction

Terry W. Clemans, executive director of the National Credit Reporting Association (NCRA), delivers his session, “Rapid Rescore Compliance Infractions”

Sue Woodard of Mortgage Success Source, presenter of the “Successful Originations in Today’s Challenging and Dynamic Market” session

NAMB Director Fred Arnold and 2011 NAMB/WEST Conference Committee Chair John Stevens pause for a photo

19 Brian Stevens of Think Big Work Small discusses video marketing with attendees

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Jim McMahan of LoanToolbox delivers his presentation, “Unlocking Your Success Disciplines That Make a Lasting Difference”

Beverly Frase of USA Cares (center) chats with Mary Ann Pino (left) of Home & Garden Mortgage Corporation and NAMB Director Kay Cleland (right) of KC Mortgage LLC Kristina Bennett, Danny Marogy and Catherine Parsell from United Wholesale Mortgage on the exhibit hall floor of the MGM Grand in Las Vegas

photos continued on page 38

DECEMBER 2011

David Ellis of 1st Rate Mortgage (second from left) stops by the RMS-Reverse Mortgage Solutions booth for a photo with Michael Kent (left), Garret Kolb (second from right) and Ralph Rosynek Jr. (far right)

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Mark Madsen of RehabLoanNetwork, Raymond Bartreau of Best Rate Referrals and Mark Teteris of Mortgage Success Source pause for a photo

NCRA s 19th Annual Conference Closes to Great Reviews

By Terry W. Clemans

DECEMBER 2011

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imilar to a major holiday, after lots of planning and work, our National Credit Reporting Association Inc. (NCRA) annual conference seems to be over before we know it and 19th Annual Conference is now one for the history books. This year garnered 108 participants, representing more than half of the nation’s mortgage credit reporting industry.

The conference opening featured the annual changing of the association’s officers. Thank you to 2011 President Tom Conwell of Credit Technologies in Michigan for a great year of leadership! Incoming President Don Unger of Advantage Credit in Colorado and Vice President Daphne Large of Datafacts in Tennessee will provide a smooth transition.

The highlight of the agenda was the Keynote Address by Craig Zablocki, sponsored

by TransUnion. Craig received a standing ovation for a motivational address that was both humorous and thought-provoking. NCRA members provided multiple references to his presentation throughout the remainder of the conference as he left a positive impact that lasted for days. His “two people in one shirt improvisation” with a surprised member had everyone laughing to the point of tears.

Zablocki’s message fit well with NCRA’s commitment for renewed volunteerism to lift the association into its 20th anniversary celebration in 2012. The association’s founding and charter members provided a commitment of both time and financial contributions to help establish NCRA in 1992. As that milestone is approached, NCRA is recommitting to the industry by promoting greater committee projects and emphasis to energize the membership after a couple of trying years during the aftermath of the mortgage meltdown.

A close second in popularity (based on the speaker scores provided at the end of the session) was Rob Strand, an economist from the American Bankers Association (ABA) who joined NCRA for the second straight year–back by popular demand. His entertaining and no-nonsense approach to the economy in general and specifically its impact on the housing industry, has been rated the highest of any economist to address NCRA over the past decade! The participants at NCRA’s conference thought a lot of all of the speakers as they all were well-received and obtained high marks for their presentations.

Barrett Burns, president and chief executive officer of VantageScore Solutions provided an enlightening look into the VantageScore program and where they are headed after their first five years in the credit scoring world and specifically clearing the FICO legal challenges. While FICO has dominated the mortgage industry, Vantage has made huge inroads into all other aspects of credit scoring and is sure to turn up in the mortgage process in the future.

From the federal government, NCRA featured three speakers this year. The first, from the newly formed Consumer Financial Protection Bureau (CFPB), Assistant Director Corey Stone addressed the group on the CFPB’s progress and plans. From the Federal Trade Commission (FTC), Tony Rodriguez spoke to the group twice, once as an individual speaker and then again as part of a panel discussion. Closing out the federal government speakers was HUD’s Louisiana director speaking to the members about the requirements for housing authority background checks in a changing marketplace.

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And we cannot forget the attorneys: NCRA’s Legal Counsel Larry Henry spoke to the group about the various state laws that impact tenant screening and credit reporting. NCRA is pleased to announce a new program to assist member in compliance, CRA Helpdesk, authored by Mr. Henry.

A frequent NCRA speaker on legal issues, Andrew Smith of Morrison and Forrester, started the discussions on the Dodd-Frank Act, and Paul Scheiber of Stevens and Lee closed that topic with a special focus on the implica-

tions of the Real Estate Settlement Procedures Act (RESPA), the act that has RESPA moving from the U.S. Department of Housing & Urban Development (HUD) to the CFPB. NCRA also introduced two new Web sites and three new strategic alliance partners at the conference. A complete overhaul of the NCRA Web site, NCRAInc.org, is almost complete and it includes an end-user certification test (as reported in the November 2011 edition of National Mortgage Professional Magazine on page 32) to assist users of

consumer reports in understanding the obligations they need to follow. A new NCRA Web site, SafeHousing.org is being completed to promote the benefits provided by tenant screening. Both sites are in the final stages of production and will be running by Jan. 1, 2012.

The feature event for networking and entertainment was a Mississippi River cruise aboard the paddle wheel steam-powered Natchez. Southern cuisine, Dixieland jazz and cocktails for all were provided by event sponsor Meridian Link as we left the historic

French Quarter for a tour of the Crescent City by water. We met our goal of two days of educational stimulation mixed with networking and a little Cajun flavor and are now planning for NCRA’s 20th Anniversary Conference next November … stay tuned for details.

Terry W. Clemans is executive director of the National Credit Reporting Association Inc. (NCRA). He may be reached at (630) 539-1525 or e-mail tclemans@ncrainc.org.

Scenes from the

NCRA s 19th Annual Conference

November 9-11 at the Crowne Plaza • Astor, New Orleans 2011 NCRA President Thomas Conwell; Corey Stone, Assistant Director of the CFPB; and Don Unger, 2012 NCRA President

Barrett Burns, CEO VantageScore Solutions, addresses NCRA members

Panelists Thomas Conwell; Anthony Rodriguez, staff attorney for the FTC; and Diane Terry, vice president consumer relations fraud division for TransUnion, field questions from the audience

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Daphne Large, NCRA 2012 vice president, and Director Mike Brown pause for a photo

DECEMBER 2011

NCRA Past President Thomas Conwell, 2012 President Don Unger and Executive Director Terry Clemans celebrate a successful NCRA 19th Annual Conference

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Thomas Conwell presents Nancy Fedich with the NCRA Board Member of the Year Award

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NCRA members enjoying the Marketplace and Welcome Reception

Be Prepared f you are a good loan officer, you are already getting ready for 2012. Many are asking, what will next year bring to the industry? My advice will be the same as it is in most years … be prepared. Of course, you might ask me, “Be prepared for what?” The answer is—be prepared for everything and anything.

What could happen in the next year?

On the negative side …

Rates could rise and refis could stop before real estate recovers (witness early 2011).

The budget negotiations and/or Europe could blow up and drag us down into a deeper recession. Great for refis, but not devastating for real estate.

We could lose a major program such as conforming loans and make it that much harder to Americans to get financing.

Now that you are really scared, let’s take a look at what could happen on the positive side …

Rates stay low and refis continue as the economy and real estate continues to recover gradually.

Congress extends higher loan limits, giving us a boost in higher-priced markets.

As the economy recovers, job creation picks up. This causes household formulation to increase and create even more demand.

A stronger economy means that real estate prices firm up and therefore, mortgage loans become a better investment. This enables lenders to loosen up on approval standards.

Which way will all this go? Predictions are futile; however, it would not be unreasonable for the markets to land “in between” these options. Yet, all of these scenarios are feasible and that is why you need to be ready for just about everything.

How do you do that? You must plan. If you don’t have a business plan for 2012, now is the time to put one in place. What will you do if the refis disappear? How about if the market gets stronger? Obviously this plan must be flexible.

Think I am being coy about what rates will do for next year? Take a look at this quote from Mortgage Daily…

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“Fannie Mae has mortgage rates falling in the first half of next year, while Freddie Mac forecasts an increase. In its October 2011 Economic and Housing Market Outlook,

Freddie predicted that the 30 year will average four percent in the fourth quarter then rise 20 BPS each quarter through the second-quarter 2013. But Fannie’s Housing Forecast: October 2011 has the 30-year falling from four percent this quarter to 3.9 percent in both the first and second quarters of 2012.”

If these agencies, which employ highly paid economists, cannot agree, you will excuse me for not putting my own two cents into the equation. Don’t get lost in trying to predict what will happen. Again, be prepared for anything to happen.

We have not set a date as of the writing of this column, but if you e-mail me at success@hershmangroup.com, I will let you know when my Business Planning 2012 Webinar is scheduled for December and early January (we hold it two times).

You will be able to register for free if you mention National Mortgage Professional Magazine when you e-mail us.

Meanwhile, there are still a few weeks left in the year. You could just plan for next year and take the rest of the year off.

In reality, the pipeline you bring in now could help you make your goals for next year. So we are not suggesting that you abandon production for the planning process. Not knowing how long these low rates will last should be giving you and your clients a sense of urgency.

As a leader, you need to move them off the fence. No, you cannot predict the future. Yet, you do know that there is a greater risk of rates moving up than there is a chance that they will move down significantly. Rates hit historic lows in October and again in early November.

Every month that a client waits to refinance, it costs them money if they are in a profit situation. You need to calculate their cost of waiting so they realize the consequences of inaction.

Dave Hershman is a leading author for the mortgage industry with eight books and several hundred articles to his credit. He is also a top industry speaker. If you would like to stay ahead of what is happening in the markets, visit www.ratelink.originationpro.com for a free trial. Dave’s OriginationPro Marketing System can be found at OriginationPro.com and he may be reached by e-mail at dave@hershmangroup.com.

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DECEMBER 2011

By David Lykken & Jon Traver

Need More Production? Adapt or Die! daptation … one been around long of the lesser spoenough, think back to ken-about traits before automated underof the top business writing. Originators had executive. In the everto put a very thick loan changing world of file together and send it mortgage production, to underwriting.

An the ability to adapt underwriter had to examcould mean the differine the file, page by page ence between success (remember when we actuand having to find a ally used paper?), and new line of work. then make their own deciCongratulations! The sion on whether or not to “If you are forced to mere fact you are taking spend more than half of approve the loan. five minutes out of your your time on compliance Remember when there day to read an article on issues, you better make were just a couple of the subject, by a writer well-worded disclosures great use of the little you may never have instead of the multitude time you have left to heard of, shows you can of confusing pages we build your business.” adapt. After many years must attempt to explain —David Lykken of negativity in the to buyers today? The mortgage business, don’t you think it’s amount of time we all spend on nontime we look forward? producing activities has grown to an The goal of this article is to begin all-time high, with no end in sight. If the process of looking at the job of you are forced to spend more than increasing production differently half of your time on compliance than the way it used to be. With all issues, you better make great use of the changes our industry has gone the little time you have left to build through over the last few years, old your business. methods are simply not as effective Production, or basic loan generaas they used to be. While we will only tion, has been the job of the loan be able to skim over several topics, originator for a very long time. the basic ideas and principles cov- Unless you work with a company that ered in this article have proven to be buys leads and spreads them out very effective in helping my clients throughout their call center, generatrefocus their energy into new areas ing loans has most often been left to and begin to build production for the loan officer. Some originators the long haul. Whether you are a VP spent day after day, sitting in a level executive, branch manager or a model home, hoping to grab a cusloan officer, hopefully you will pick tomer when buying a new home. up a few new ideas and begin to During the many hours of boredom, move forward. we might begin to build a relationIf you look back over your time in ship with that salesperson. But who this business and compare the many has the time to do that anymore? facets of your job and how you exe- With the high turnover in new home cuted them, you will see how much sales, and the lower upside on peryou have already adapted. If you have sonal income on a per loan basis, this

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method of generating on YOU! If you are loans is simply too inefdepending upon your ficient. And don’t get me company, processor, or started on the “prea lead generation ferred lender” situation; source, to keep you we can address that in a afloat, you are doomed later article! to fail!

Generating business Begin by setting some from Realtors has goals for yourself in areas always been tricky. other than volume or Many Realtors simply number of loans. This is haven’t wanted to the biggest mistake I see involve themselves in loan officers make. They “Simply waking the loan side of the often center everything up and taking what transaction. Others simon how many loans can comes your way ply do not fully underbe closed. A quality busiwill not keep you stand the importance of ness plan might finish in this business very the loan, and therefore, with a goal of “X” nummuch longer. have little desire to ber of loans, but it doesAdapt or die!” work with a talented n’t start there. You need —Jon Traver loan officer. But when to start by building a we tried to build those relationships, plan on how to increase your referral what did we do? Drop off flyers or base. Developing a strategy to doumuffin baskets, take a Realtor to ble or triple the number of real lunch? These were all very common estate professionals that consider methods of reaching out to the real YOU their primary source for all estate agent community. And half things loan related. A sound and the time, we actually succeeded in detailed plan to build these relationmeeting and getting to know a ships will generate the desired volRealtor, we would find out they were ume of loans, provided you are comonly part-time and closed five trans- mitted to following that plan every actions a year. Again, not an efficient day. Simply waking up and taking use of our time, especially in today’s what comes your way will not keep climate. you in this business very much So given the diminishing returns longer. Adapt or die! in most of the typical production When working with a classroom strategies, we now must adapt how of loan officers, I give them a little we attempt to grow our business. The test at this point. I ask everyone to first step is to take a look at our per- list the two main things they would sonal business plan. Don’t have one? “sell” if given three undivided minThen get one, fast! Okay, maybe we utes from a potential referral should start there. Business plans are source. The short version of this test an essential part of the success of any is the following: If either of your business. A loan originator is a one- answers include the following: Low man business and should be treated rates, great turn times or closing as such. When all is said and done, loans on time, or the age-old “I give your success or failure will depend great service and will always answer

they earn their override or margin.

Those who don’t will lose those originators (and their production) to a new branch manager or a company that caters to loan officers, allowing them to run their own one-man branch. And finally, those referral sources, the gold bars of the mortgage world, will find a new loan officer who can show a value propositions that help increase the sales of the real estate agent.

So, build a plan and work to execute that plan each and every day.

Don’t be afraid to ask your branch manager or company for help. They should earn your business just like you must earn the loans you generate each month. If they cannot or will not help you, maybe you are working in the wrong place. Realtors fire us every day when we don’t deliver the best, so can you. Believe in yourself, work hard, and ADAPT OR DIE!

DECEMBER 2011

To listen to author David Lykken’s online radio show, “Lykken on Lending,” log on to www.lykkenonlending.com.

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David Lykken is president of mortgage strategies and managing partner with Mortgage Banking Solutions. He has more than 35 years of industry experience and has garnered a national reputation, and has become a frequent guest on FOX Business News with Neil Cavuto, Stuart Varney, Liz Claman and Dave Asman with additional guest appearances on the CBS Evening News, Bloomberg TV and radio. He may be reached by phone at (512) 977-9900, ext. 10, or e-mail dlykken@mortgagebankingsolutions.c om or dlykken@mbs-team.com. Jon Traver is production consultant— branching, recruiting and LO training for Mortgage Banking Solutions. Jon has spent 12 years forging referral relationships with builders and realtors for his own mortgage company.

He has extensive experience working with branch companies to grow their businesses through branch and LO acquisition, as well as building longterm business development plans. Jon trains executives, branch managers, and loan officers how to redefine who they are and what they do. He then helps them build a game plan for taking that new knowledge to the streets, including the execution. He may be reached by phone at (512) 977-9900, ext. 112, (972) 467-3990 or e-mail jtraver@mbs-team.com.

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my phone, etc.,” then you fail!

First off, that is the same old message that almost every loan officer delivers every day. How do those messages set you apart from your competition? Everyone says the same things and most Realtors simply don’t believe you. Even if you are the very best, how can you prove you really are different from the rest?

Secondly, the biggest risk you face with those messages, even if they do work from time to time, is that you cannot control the level of success. You might have the best rates today, but what about tomorrow? Turn times might be great today, but if your rates are really low and your company’s volume spikes, what happens to turn times?

And what happens when you finally let yourself enjoy life a little and go to a movie? You don’t answer your phone and they move on to someone else. If you are currently out there selling those value propositions, you will eventually fail on one or more, most likely through no fault of your own. Sell something you can keep in your control. Adapt or die!

Recruiting is a more important part of the mortgage business than ever before. Companies need successful branches, branch managers need quality loan officers and originators need referral sources. I often ask the question, “What is your value proposition?” I am consistently amazed at the blank stares I receive when I ask that question. It’s not that nobody has a value proposition, it’s usually that they never bothered to think about things in those terms. But why would a branch join your company over the many others out there? Why would a loan officer join your branch over the hundreds of others? And finally, why would a Realtor send business your way over the thousands of others out there? Your value proposition is what sets you apart from almost everyone else. Great rates and good turn times are not value props that set you apart, a lot of companies can offer those. You must develop your own personal value proposition and then work to deliver on that every day. There are competitors out there right now working overtime to take away your production. Adapt or die!

Production is the lifeline of the mortgage business. The job of increasing production falls to everyone within an organization, but it all ends up with the loan officer.

Companies must, and many are, providing new and successful methods to help their employees grow their personal production. Choosing which company to work for can make or break your ability to succeed. Many branch managers are working hard every day to help their loan officers succeed, and in turn,

Make Real Estate Agents Your Soldiers!

DECEMBER 2011 FHFA Sets GSE Loan Limits for 2012

BY RAYMOND BARTREAU

DECEMBER 2011

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The age-long question of, “the best way to gain and keep relationships with real estate agents” is becoming more obvious … you must give them business to get their business. Of course it isn’t as simple as it sounds. It takes strategic planning, research and the right relationships to help you achieve this goal.

First, you must determine who you want to work with. A few suggestions would be looking for the real estate agents with the most listings. Or, who is the most aggressive buyer agents in your market. My advice would be to target two or three new real estate partners to work with and send business to.

Once you have your target list of new partners, you now must gain a source of business for them. There are many ways you can do this and lower you overall cost per acquisition. One of the easiest ways with an almost immediate return on your investment is providing homebuyer leads to highproducing buyers’ agents/brokers. Real estate agents are in desperate need of leads, and when they have a strategic partner providing them leads, they are guaranteed to send you all their loan business.

Make the real estate agents your soldiers, your army on the frontline. As we know, getting a hold of any lead is the first major battle. By sharing homebuyer leads with a real estate agent, you are doubling your chances of contacting the individual to pre-qualify them for a loan. This is another battle within itself as you always have to make sure that your real estate partners are calling the leads multiple times a week until they get a hold of them.

I have spent the last six months putting together a business model to target real estate agents using our traditional marketing methods as our core value to the real estate industry. If you can consistently feed a real estate partner leads day in and day out for less than half of your current budget, you will have real estate agents eating out of the palm of your hand. Activity breeds higher sales, easier recruiting, more agents working in office and paying desk fees to receive leads, and MOST important to you … a happy real estate partner or two.

Where do you get exclusive buyer and seller leads and how can you deliver them to your partners on a real-time basis? Our staff of mortgage and real estate marketing professionals can help with the entire process, in fact, we are giving 10 leads away free on any purchase loan marketing consultation.

I can personally set you up with a specialist in your state, simply e-mail me at RBartreau@BestRateReferrals.com.

Raymond Bartreau is Chief Executive Officer of Best Rate Referrals. He may be reached by phone at (800) 811-1402 or e-mail RBartreau@BestRateReferrals.com.

SPONSORED EDITORIAL

The Federal Housing Finance Agency (FHFA) has announced that, under Photo credit: Creatas terms set forth in the Housing and Economic Recovery Act of 2008 (HERA), the maximum conforming loan limits for mortgages acquired by the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac in 2012 will remain at existing levels except in Fairfield County, Conn., where it will increase.

The maximum conforming loan limits for one-unit properties, which generally have applied to loans originated since Oct. 1, 2011, are $417,000 in most locations, but are as high as $625,500 in certain high-cost areas in the contiguous United States.

For loans originated prior to October 2011, the maximum loan limit was as high as $729,750 in the contiguous U.S. However, that higher “ceiling” was permitted under legislation that no longer applies to newly-originated loans. The 2012 loan limits are set under the permanent formula established under HERA. Under the HERA formula, the 2012 maximum loan limit for one-unit properties in Fairfield County, Conn. will increase by $26,450 from $575,000 to $601,450. The increase results from a rise in the local median home value, which is a key part of the HERA formula for determining local loan limits. While other counties also saw increases in home prices, Fairfield County, Conn. was the only one for which the increase ultimately produced higher loan limits after other HERA terms (e.g., the statutory ceiling and floor on loan limits) were taken into account.

In determining 2012 loan limits under the terms of HERA, the FHFA did not change the baseline maximum conforming loan limit for the United States.

The baseline limit, $417,000 for oneunit properties in the contiguous U.S., was left unchanged based on declines in FHFA’s monthly and quarterly house price indexes. HERA requires that the baseline limit be adjusted each year to reflect changes in the national average home price, but prohibits declines in the limit. If average home prices decline, then the baseline loan limit is to remain the same.

In setting HERA limits for 2009, 2010, and 2011, FHFA found that the national

average home price declined over preceding years. As a result, the national loan limit was left unchanged. This year, the monthly and quarterly house price index (HPI) series produced by FHFA show further national price declines and thus the baseline loan limit is again unchanged.

While the FHFA HPI has been used this year and in preceding years for assessing the national average price change, pursuant to terms set forth under HERA, FHFA has evaluated a number of alternatives. FHFA plans to publish a Federal Register notice in the coming months that will proffer a specific methodology for measuring price changes for loan limit adjustment in the future. The notice, which will detail the methodology and also describe an alternative approach, will invite public comment.

SIGTARP and Google Take Down Ring of 85 Fraudulent Loan Mod Sites The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has announced that it has shut down 85 alleged online loan modification scams promoted through Web banners and other Web ads. SIGTARP investigates loan mod schemes in which companies charge struggling homeowners a fee in exchange for false promises of lowering the homeowner’s mortgage through TARP’s housing program, the Home Affordable Modification Program (HAMP). Google, in cooperation with an ongoing criminal SIGTARP investigation of these scams, has suspended advertising relationships with more than 500 Internet advertisers and agents associated with the 85 alleged online mortgage fraud schemes and related deceptive advertising.

“The first place many homeowners turn for help in lowering their mortgage is the Internet through online search engines, and that’s precisely where they are being taken advantage of and targeted,” said Christy Romero, Deputy Special Inspector General for TARP. “Web ads that offer a false sense of hope may not be legitimate and can end up costing homeowners their home. SIGTARP is diligently working on every level to stop these frauds, to protect homeowners from being victimcontinued on page 28

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DECEMBER 2011

If you are an experienced loan professional that wants to build a dynamic future, call David Gowen @ 877-255-3554 x 144 or email dgowen@equityloans.com . Also, Visit us on the web at www.equityloans.com or on Linkedin and Facebook.

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ized, and to hold accountable criminals who defraud homeowners in connection with HAMP and other TARP programs.”

SIGTARP, through an investigative inquiry, notified Google of a list of Web sites alleged to be fraudulently claiming to assist homeowners with the HAMP mortgage modification process.

The advertisers or agents, via Webbased advertisements on Google, were instead scamming distressed homeowners. The most common schemes included asking homeowners for an upfront fee and telling homeowners to stop paying their mortgage and to cease all contact with their lender.

The schemes included diverting mortgage payments to the scammers, transferring property deeds, and/or releasing personal financial information. In some instances, the Web sites claimed to be affiliated with the U.S. government through the use of a government seal or name similar to a government agency. Google’s suspension of these advertising relationships will have a dramatic and immediate impact on the ability of scam artists to seek out and victimize unwitting homeowners.

FHA Cash Reserves See Near 50 Percent Annual Drop

DECEMBER 2011

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The U.S. Department of Housing & Urban Development (HUD) has released its Annual Report to Congress Regarding the Financial Status of the FHA Mutual Mortgage Insurance Fund: Fiscal Year 2011 on the financial status of the Federal Housing Administration (FHA) Mutual Mortgage Insurance (MMI) Fund, the backbone of the FHA single-family and reverse mortgage programs. In reporting on findings of the annual independent actuarial study, HUD indicates that, in the midst of continued weakness in housing markets across the county, the MMI Fund capital ratio remains positive this year at 0.24 percent. With new risk controls and premiums put in place by the

Obama Administration, the independent actuaries predict the Fund will return to the Congressionally-mandated threshold of two percent capital more quickly than was projected by last year’s review. The economic value of new insurance endorsements in FY 2011 for the Fund was nearly double that of FY 2010 endorsements, being close to $11 billion.

As was the case last year, the new actuarial study shows that FHA is expected to sustain significant losses from loans insured prior to 2009, and thus its capital reserve remains below the congressionally mandated threshold of two percent of total insurancein-force. However, the actuaries’ report concludes that, barring a further significant downturn in home prices, the MMI Fund will start to rebuild capital in 2012, and return to a level of two percent by 2014—outpacing last year’s prediction. The actions taken by this Administration have put FHA into a position where the actuaries expect rapid growth in capital once the housing market begins a broad-based recovery.

“In the midst of a tough housing market the FHA MMI Fund continues to be actuarially sound,” said Acting FHA Commissioner Carol Galante. “Because of the Obama Administration’s strategy to protect the FHA Fund—tightening of risk controls, increased premiums to stabilize near-term finances, and expanded loss mitigation assistance to avoid unnecessary claims—this past year’s endorsements had the highest credit quality ever recorded, and will yield historically high levels of net receipts in the years ahead.”

FHA’s capital reserve ratio measures reserves in excess of those needed to cover projected losses over the next 30 years. The independent actuarial reviews of the MMI Fund estimate FHA’s capital reserve ratio to be 0.24 percent of total insurance-in-force this year, falling from 0.50 percent in 2010. FHA’s total liquid assets (cash plus investments) grew by $800 million since last

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year, to $33.7 billion. That amount is $1.9 billion higher than at the end of FY 2009, and is also $7.7 billion higher than was predicted last year by the independent actuaries. At the same time, the economic net worth of the Fund fell by $2.1 billion this year, from $4.7 billion to $2.6 billion, as FHA continued to build loss reserves to prepare for greater claims in the coming years.

Losses on loans insured through the first quarter of fiscal year 2009 continue to place a significant strain on the Fund and are expected to reach $26 billion within a few more years. Though they were prohibited in 2009, the ongoing effect of so-called “seller-funded downpayment assistance loans” is still significant. The net expected cost of those loans, as projected by the independent actuaries, grew by $1.8 billion over the past year to $14.1 billion. Conversely, the actuaries found that the FY2010 and FY2011 books are expected to be very profitable, providing significant net revenues to offset losses on earlier books.

Loans insured to-date under the Obama Administration are providing $18 billion in economic value for the MMI Fund. Under the base-case forecast used by the independent actuaries, the FY 2012 book will add an additional $9 billion in economic value to the Fund.

NAR Forecasts Commercial Market Growth in 2012 Commercial real estate markets have been relatively flat this year, but improving funPhoto credit: Medioimages/Photodisc damentals mean a more positive trend is expected in 2012, according to a report from the National Association of Realtors (NAR).

Looking at commercial vacancy rates from the fourth quarter of 2011 to the fourth quarter of 2012, NAR forecasts vacancies to decline 0.6 percentage point in the office sector, 0.4 point in industrial real estate, 0.8 point in the retail sector and a 0.7 percentage point in the multifamily rental market.

“Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant’s market,” said Lawrence Yun, NAR chief economist. “However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year. Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn’t ramp up, rent growth could potentially approach seven percent over the next two years,” Yun said.

The Society of Industrial and Office Realtors (SIOR), in its SIOR Commercial Real Estate Index, an attitudinal survey of 231 local market experts, shows the

broad industrial and office markets were relatively flat in the third quarter, in step with macroeconomic trends.

The national economy continues to affect the sectors, with 92 percent of respondents reporting the economy is having a negative impact on their local market. The SIOR index, measuring the impact of 10 variables, rose 0.6 percentage point to 55.5 in the third quarter, following a decline of 2.6 percentage points in the second quarter. In a split from the recent past, the industrial sector advanced while the office sector declined.

The SIOR index is notably below the level of 100 that represents a balanced marketplace, but had seen six consecutive quarterly improvements before the last two quarters. The last time the index reached the 100 level was in the third quarter of 2007. Construction activity remains low, with 96 percent of respondents indicating that it is lower than normal; 88 percent said it is a buyers’ market in terms of development acquisitions. Prices are below construction costs in 83 percent of markets.

NAR’s latest Commercial Real Estate Outlook offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas were provided by REIS Inc., a source of commercial real estate performance information.

FinCEN Seeks to Stamp Out Mortgage Fraud Among GSEs The Financial Crimes Enforcement Network (FinCEN) has announced that it has proposed regulations that would require the government-sponsored enterprises (GSEs)— Fannie Mae and Freddie Mac—to develop anti-money laundering (AML) programs and file suspicious activity reports (SARs) with FinCEN. The GSEs currently file fraud reports with their regulator and conservator, the Federal Housing Finance Agency (FHFA), which then files SARs with FinCEN when the facts in a particular fraud report warrant a SAR under FinCEN’s reporting standards. The proposed regulations would require that the GSEs file SARs directly with FinCEN, which will help streamline the reporting process, provide law enforcement with quicker access to data about potential fraud, and result in the reporting of a wider range of suspected financial crimes.

“This action is another step to help restore the integrity of the mortgage market,” said FinCEN Director James H. Freis Jr. “Providing law enforcement with quicker access to data about potential financial crimes will help them better hold illicit actors accountable for mortgage fraud and other scams.”

FinCEN closely coordinated this proposal with the FHFA, to which FinCEN would delegate responsibility for examining the GSEs with compliance for the

regulations. FinCEN anticipates that new AML and SAR programs can be efficiently and effectively integrated into the GSEs’ existing anti-fraud policies, procedures and training programs.

“This is a positive step and we are pleased to work with FinCEN on this project,” said FHFA Acting Director Edward J. DeMarco. “The proposed rule will streamline the process and build on the efforts of FHFA and the GSEs to support law enforcement in its important work to fight mortgage fraud.”

Another important benefit to the GSEs of developing an AML program and filing SARs directly with FinCEN is that the GSEs, including their directors, officers, and employees, will become subject to the Bank Secrecy Act’s (BSA) “safe harbor” provisions, which are intended to encourage financial institutions to report suspicious activities without fear of liability from lawsuits

by SAR subjects.

FinCEN has placed combating mortgage loan fraud and related criminal activity as one of its highest priorities over the past five years. FinCEN has a pending rule to apply AML program and SAR reporting requirements with respect to non-bank mortgage lenders and originators and has released quarterly mortgage loan fraud reports to track the type and number of suspected fraud.

Ginnie Mae Reports Record Year of $1.184 Billion in Net Income

Completed Loan Mods Pass the Five Million Mark Nationwide HOPE NOW has reported that as of the third quarter of 2011, 4.97 million

loan modifications have been completed for homeowners since 2007. This total includes more than 4.11 million proprietary modifications and 856,974 completed under the Home Affordable Modification Program (HAMP) through September 2011. Based on current trends, the industry has surpassed the five million loan modification mark to date.

“When HOPE NOW started reporting data at the end of 2007, loan modifications were barely measurable,” said Faith Schwartz, executive director of HOPE NOW. “Homeowners either paid their mortgages or forfeited their homes. However, over the past four years, the housing crisis has taught us to re-think helping distressed homeowners through an unprecedented level of

collaboration, funding, manpower and expanded resources. Five million hard working American families have been able to prevent foreclosures through permanent loan modifications.”

The latest data compiled by HOPE NOW shows that after six months of seasoning, more than 80 percent of the proprietary loan modifications completed are performing (less than 90 days past due). The inventory of 60-dayplus delinquencies in the third quarter of 2011 was 2.81 million. This compares to 3.17 million at the same point in 2010, an 11 percent year-over-year decline. Foreclosure starts stood at approximately 600,000. This compares continued on page 30

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ARIZONA MORTGAGE PROFESSIONAL MAGAZINE DECEMBER 2011

Ginnie Mae has reported that its fiscal year net income for 2011 reached a corporate highpoint of $1.184 billion, surpassing $541.5 million in FY 2010 and a previous high of $906 million in FY 2008. Revenues of $1.064 billion were up from $1.011 billion in 2010, while retained earnings rose to $15.7 billion from $14.6 billion.

“Ginnie Mae has had a remarkable year; it’s our best yet,” said Ginnie Mae President Ted Tozer. “Our financial performance this fiscal year—despite a mortgage market still in turmoil—is a testament to our well-functioning business model. Our business is simple, our approach to risk-taking is conservative, and our ability to finance governmentinsured mortgages is helping to keep the housing market afloat.”

As the private sector retreated in recent years, Ginnie Mae stepped in to help maintain the flow of capital from global markets to the nation’s housing markets, financing nearly 60 percent of all home purchases in FY 2011. The value security holders place on Ginnie Mae’s full faith and credit guaranty means that the corporation can ensure a consistent pool of funding for government mortgages. This supports the economic stabilization efforts of Congress and the Administration by making it possible for financial institutions to continue mortgage lending.

“Ginnie Mae’s role and significance in U.S. housing finance is as strong as it has

ever been,” said Ginnie Mae EVP Mary Kinney. “Since the onset of the credit crisis, Ginnie Mae has guaranteed $1.3 trillion, which financed about 4.8 million singlefamily homes and multifamily units for families across the country. Our ability to simultaneously attract private capital from the global capital markets and provide effective business solutions for MBS issuers keeps capital flowing into U.S. housing even during recessionary periods.”

nmp news flash

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with 709,000 during the third quarter of 2010, a decrease of 15 percent.

Foreclosure sales were approximately 200,000. This compares to 314,000 during the same period last year, a decrease of 36 percent.

“While this is quite an accomplishment, the housing crisis is far from over,” said Schwartz. “The industry, and its partners in the non-profit counseling community and the government, remains committed to reaching out to struggling homeowners, improving the customer experience and embracing new technology.”

Fixed Rate Mortgages the Overwhelming Choice for Refi Borrowers

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Why Is It Easy to Trap Real Estate Agents with ShortSaleSpeedway™?

DECEMBER 2011

ARIZONA MORTGAGE PROFESSIONAL MAGAZINE

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What Do We Provide You? When you have your own ShortSaleSpeedway™, we provide you with the following: Q Your own customized private labeled ShortSaleSpeedway™ site Q Access to reporting on all borrowers being put into the system Q Training for you, your real estate agents and a dedicated support team Q Marketing materials to promote your ShortSaleSpeedway™ to real estate agents In many cases, the setup for the private labeled site costs you nothing!

For a free demo, contact Erik Wind, at (800) 262-3783, ext. 701 or visit shortsalespeedway.com/freedemo

According to the Freddie Mac Quarterly Product Transition Report for the third quarter of 2011, Photo credit: George Doyle fixed-rate loans accounted for more than 95 percent of refinance loans.

Refinancing borrowers clearly preferred fixed-rate loans, regardless of whether their original loan was an adjustablerate mortgage (ARM) or a fixed-rate.

Freddie Mac’s Quarterly Product Transition Report comes from a sample of properties on which Freddie Mac has funded at least two successive loans and the latest loan is for refinance rather than for home purchase. Some loan products, such as one-year ARMs and balloons, are based on a small number of transactions. During the third quarter of 2011, the refinance share of applications averaged 78 percent in Freddie Mac’s monthly refi survey, and the ARM share of applications was seven percent in Freddie Mac’s monthly ARM survey, which includes purchase-money, as well as refinance applications.

“Fixed mortgage rates averaged 4.29 percent for 30-year loans and 3.47 percent for 15-year product during the third quarter in Freddie Mac’s Primary Mortgage Market Survey (PMMS), well below long-term averages,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5.3 percent during the third quarter of 2011. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.”

An increasing share of refinancing borrowers chose to shorten their loan terms during the second quarter of 2011. Of borrowers who paid off a 30year fixed-rate loan, 40 percent chose a 15- or 20-year loan, the highest such share since the second quarter of 2003.

“The extension to the end of 2013 and additional enhancements to the Home Affordable Refinance Program (HARP) announced on Oct. 24, provide

opportunities to eligible borrowers who had not yet refinanced,” said Nothaft.

“More than 900,000 borrowers have already refinanced via the program through September. The enhancements provide incentives for eligible borrowers to shorten their loan terms, from 30 years to 20- or 15-years.”

Sixty-three percent of borrowers who had a hybrid ARM chose a fixed-rate loan during the third quarter, while the remaining 37 percent chose to refinance into the same type of product.

“Compared to a 30-year fixed-rate mortgage, the interest rate on 15-year fixed was about 0.8 percentage points lower during the third quarter,” said Nothaft. “For borrowers motivated to refinance by low fixed-rates, they could obtain even lower rates by shortening their term. The initial interest rate on a 5/1 hybrid ARM was about 1.2 percentage points lower than on a 30-year fixed-rate loan. For borrowers who plan to remain in their current home for only a few years, the hybrid ARM allows for even a greater interest-rate savings.”

Report Finds Rise in Misrepresented Borrower Data Interthinx has released its 2011 Third Quarter Mortgage Fraud Risk Report, and according to the most recent analysis, employment and income fraud risk is on the rise, up 8.8 percent from third-quarter 2010 and up 50 percent from third-quarter 2009. Company analysts believe the increase is due to borrower data being misrepresented in order to meet debt-to-income (DTI) thresholds required by lenders in the face of stagnant or declining real incomes.

Other results uncovered in the most recent report include: For the sixth consecutive quarter, the two riskiest states are unchanged: Nevada has the highest fraud risk, with an index value of 255; Arizona is next, with an index value of 243.

California was the third riskiest state overall, with an index value of 197. It was particularly well-represented in all the indices, containing half of the ten riskiest metropolitan statistical areas (MSA), seven of the top ten ZIP codes, and more than half of the top 10 MSAs in the property valuation and employment/income indices.

Non-geographic risk profiling suggests that fraud risk is greatest in loans with high loan-to-income ratios (the ratio of loan amount to monthly income). In general, all the fraud risk indices increase as the loan-to-income ratio increases, so almost universally, the highest indices occur at loan-to-income values close to or greater than 100.

“We’ve been carefully monitoring

the increase in the employment and income fraud risk index for the last two years,” said Mike Zwerner, senior vice president for Interthinx. “This actionable risk intelligence led us to develop the integration of The Work Number from Equifax within FraudGUARD to provide lenders with an efficient and effective way to confirm a borrower’s ability-to-repay. At Interthinx, we rely heavily on trending from our Mortgage Fraud Risk Report to lead technology and product innovation.”

George Washington University Study Reveals FHA’s Layered Risk Increases Likelihood of Default

Quicken Loans Ranks Highest in Customer Satisfaction in Latest J.D. Power Survey

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ARIZONA MORTGAGE PROFESSIONAL MAGAZINE

Overall customer satisfaction with primary mortgage lenders has increased considerably from 2010, according to the J.D. Power and Associates 2011 U.S. Primary Mortgage Origination Satisfaction Study. The study measures customer satisfaction in four key factors of the mortgage origination experience: Application/approval process, loan representative, closing and contact. Customer satisfaction in 2011 averages 747 on a 1,000point scale, up 13 points from 2010.

“The increase in customer satisfaction is driven by improvements in many of the key best practices, including proactive status updates, providing a time frame to expect and meeting it, and providing follow-up contact after the application is submitted,” said David Lo, director of financial services at J.D. Power and Associates. According to Lo, this increase in satisfaction is in stark contrast to the mortgage servicing industry, in which homeowner satisfac-

A Bright Spot in

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A new study conducted by the George Washington University School of Business (GWSB) has found that the Federal Housing Administration (FHA) is at risk and needs to rethink layering risk— especially to borrowers with poor credit history and high payment burdens. The new report, released by GWSB’s Center for Real Estate and Urban Analysis (CREUA), is the third in its “FHA Assessment Report” series. Coauthored by Robert Van Order, professor of finance, and Anthony Yezer, professor of economics, the report examines data on mortgage default supplied by different sources, concluding that downpayment and equity are not the only things that matter in determining losses.

“Our analysis seeks to illuminate the factors that can greatly increase a loan’s risk of default,” said Dr. Van Order, Oliver T. Carr Professor of Real Estate and chair of CREUA. “We have found that down payment alone is not the leading cause of default; nor are low down payment loans much riskier than other loans. However, a number of factors working together—poor credit score, a high ratio of debt-to-income and other variables, such as sellerfunded assistance—can create a recipe for disaster.”

The report, “FHA Assessment Report: The Role of the Federal Housing Administration in a Recovering U.S. Housing Market,” analyzes credit risk in mortgage lending, finding that while low downpayment lending can be done safely, those loans with the highest likelihood of default are those in which downpayment size, credit score (known as FICO score) and debt-to-income (DTI) ratio, are “layered,” or present in combination. While the FHA has slightly tightened up on layering, the report claims it is still at risk. While the private sector has mitigated such risk by imposing stricter guidelines for low down payment loans, FHA continues to qualify such borrowers for mortgage financing, putting it at risk of being selected against. The report cites FHA’s “political oversight” as a cause of its inflexibility.

FHA guidelines permit it to give maximum financing (96.5 percent loan-to-

value ratio) to an individual with a 580 FICO score. Moreover, such borrowers can have a DTI that can reach 48 percent. With such a low credit score and high DTI, the report looks at 2008-2009 data to find that such a loan would have a greater than 25 percent chance of default in a sharp recession. However, in the private sector, low down payment loans (3.5 percent) are generally limited to a borrower with FICO scores of approximately 720 and more manageable DTI ratios, such as below 41 percent. According to the same analysis, such a loan would have about a two percent chance of default. The report makes the point that FHA does not have to mimic the private sector, but it must have the ability to “adjust to changes or it risks being selected against.”

“For FHA, it’s a simple matter of prudent underwriting,” said Dr. Van Order.

“When a portfolio includes such a high volume of high risk mortgages to borrowers with significant debt loads and poor credit history, you’re either going to collapse from defaults or be forced to try to recover losses by chasing revenue from premium increases for new borrowers.”

The report finds that the true value of a borrower’s equity in a house can be masked by the source of the downpayment. The FHA’s treatment of loans with seller-assisted financing has been associated with inflated house prices, less real equity in the property, and it has accounted for a significant share of the loan losses eroding reserves. Political impediments have made it difficult for FHA to modify policies toward sellerassisted financing of down payments and closing costs and increased losses to the insurance fund that have required higher fees for current borrowers.

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AllRegs and The Prieston Group Collaborate on Lender Level Due Diligence Tool

New United Wholesale Mortgage Offering Simplifies Customer Pricing and Options

AllRegs and The Prieston Group Inc. (TPG) have announced the launch of a new suite of risk assessment resources and benchmarks for the mortgage industry. The cornerstone of these products is the patented Mortgage Operational Safety Assessment (MOSA) Score and Report.

AllRegs has become the exclusive distributor of MOSA and its related products. Lenders are evaluated with the risk assessment tools in MOSA and then receive a score between 0 and 800, with higher scores indicating lower risk. In a recent study reviewing 400,000 loans, higher MOSA scores have been proven to be effective indicators in reducing overall mortgage repurchase risk. “MOSA is poised to be an industry benchmark that will help mortgage companies reduce their corporate risk, changing how they approach business,� said Dan Thoms, executive vice president for AllRegs.

The MOSA Score and Report consists of a methodology and process that evaluates 11 different key aspects of mortgage operations and origination, including Operational Controls, Company Background, Warehouse Lines, Geographic Mix, Product Mix, Repurchase History, Quality Control (QC) Plan, Operational Checklists, Broker Management, Correspondent Management and Appraiser Management.

MOSA includes an in-depth evaluation conducted by an independent third-party which includes, but is not limited to, file reviews and analysis as well as interviews with lender’s key personnel. Mortgage lenders are then rendered a MOSA score and detailed report of the assessment and evaluation findings. “We are very excited to nationally launch the patented MOSA Score and Report,� said Arthur Prieston, chairman of TPG. “Ten years in the making, MOSA is the Lender level due diligence tool all industry participants, including rating agencies, regulators, investors, and lenders of all sizes, have needed to manage their appetite for risk. To have AllRegs as our exclusive distributor to its thousands of customers will render MOSA the industry standard.�

United Wholesale Mortgage (UWM) has announced that it has implemented a proprietary decisioning solution within its broker portal, developed inhouse, that returns accurate pricing and product eligibility on up to 10 programs at once with the click of a mouse. “Simply put, the addition of Easy Qualifier (EQ) to our already robust broker portal makes it easier and quicker for our broker community to quickly identify programs, price loans and offer the lowest payment options while talking with borrowers,� said Mat Ishbia, president of UWM. “We want to make it as easy as possible to do business with us and technology is key to providing excellence in service.

Using EQ, our brokers are able to confidently say ‘yes’ to borrowers at the point of first contact and close the loan.�

EQ is integrated with EASE (Easiest Application System Ever), UWM’s custom broker portal, which provides brokers with a number of Web-based and pipeline management tools. EASE contains an automated pricing engine that brokers rely on for accurate pricing on eligible loans. The portal also allows for rate-locks, offers real-time status on conditions, enables ease of communication with underwriters and provides visibility over the entire pipeline from submission to funding. In addition, EASE allows brokers to instantly order FHA case numbers and conveniently generate a UWM Truth-inLending (TIL) disclosure.

EQ and EASE work together to help brokers close more loans in a shorter timeframe and with greater accuracy.

The portal’s functionality provides UWM’s brokers with a distinct competitive advantage over other originators in the market, which ultimately facilitates customer loyalty. UWM says their technology and mortgage tools increases its volume and pull-through rates, speeds up turn times, attracts top tier brokers and more. “UWM’s Easy Qualifier is an intuitive time saving tool that gets you immediate answers on products and pricing,� said Andy Brikho, senior loan officer at

C2 Financial Corporation. “It allows brokers to find the best program for my clients and saves precious broker time.

Easy Qualifier is just another great tool from the best lender I do business with that always has the broker in mind.”

American Pacific Announces Free Android and iPhone Based Marketing Tool

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Zillow Inc. has launched a free real estate app for the Android Tablet, Zillow’s eighth app. The

lion U.S. homes.

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“With today’s announcement, we are proud to say that Zillow has the largest collection of mobile real estate apps,” said Spencer Rascoff, Zillow’s chief executive officer. “Zillow continues to reinvent the mobile home shopping experience and the Zillow Android Tablet App is no exception. The app was designed just for the Android Tablet and brings two entirely new features to real estate shopping–side-by-side compare and a nearby-homes widget, giving home shoppers two new ways to shop for homes.”

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Zillow Brings New Property Search App the Android Market

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American Pacific Mortgage (APM) has announced the release of APMConnect, a new marketing platform which includes a Web-based marketing engine and mobile phone app for both iOS-(iPhone) and Android-based phones. APMConnect will keep loan originators (LOs) connected to their home offices, realtors and customers from wherever they are. The app gives LOs the ability to access and order customized marketing materials and promotional company items, while giving customers and realtors access to mortgage calculators, educational videos and a tool that helps map a route between open houses.

“When our executive team announced APMConnect to our branch managers and bankers, they were all amazed by its capabilities,” said Leif Boyd, SVP of production at American Pacific Mortgage.

“These are tools that have never been available to mortgage bankers in this way and will allow them to do their jobs more effectively and efficiently.”

APMConnect allows an LO to quickly order a customized flier for an open house while meeting with a realtor and can have the file emailed to a smart phone, sent to the realtor directly, sent to a local copy store or have hard copies mailed to them. Having these user-fulfilled, customized materials available at their fingertips provides bankers with additional flexibility.

Bankers and LOs can create the materials when they are thinking of them and they don’t have to go back to the office.

If they are in a meeting with a customer or realtor, they can give them the digital file within minutes.

APMConnect can be customized for each branch office and is free to realtors and customers to download through iTunes and the Android Market. After downloading the app to their mobile devices, customers and realtors can connect directly with their LOs or bankers, archive their personal and client loan information, access a mortgage calculator and watch customer education videos on multiple topics. APMConnect also provides an open house mapping feature. Customers and realtors plug in the houses they want to visit and the app will map the best route using Google Maps.

Zillow Android Tablet App’s photodriven home shopping experience was built specifically for the Android Tablet to take advantage of the highresolution, touch-screen interface, allowing home shoppers to scroll through full-screen photos of homes for sale and rent, and even compare them side by side. The free app provides home shoppers the opportunity to select multiple homes and compare them side by side. When comparing homes, home shoppers can view photos, sort by home details and save one or all of the homes to favorites.

With the Zillow Android Tablet App, home shoppers now can: Browse, compare and shop for

new to market

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New LPS Interface Integrates With the UCDP

DECEMBER 2011

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Lender Processing Services Inc. (LPS) has announced that, through its Loan Quality Gateway, LPS’ RealEC, Empower and LSI divisions are now directly integrated with the Uniform Collateral Data Portal (UCDP). The UCDP was developed by Freddie Mac and Fannie Mae, the government-sponsored enterprises (GSEs), for the electronic collection of appraisal data. LPS’ Loan Quality Gateway is an open, Webbased industry utility providing loan origination services and technology solutions leveraged to meet loan quality requirements.

“Implementing uniform appraisal and loan delivery standards to improve data accuracy and transparency is essential to restoring confidence in loan quality,” said LPS Chief Operating Officer Dan Scheuble.

“By interfacing with the UCDP, we can help our clients simplify the exchange of loan data with the GSEs, improve risk management capabilities and better respond to changing requirements and market conditions.”

LPS’ integration with the UCDP will facilitate seamless electronic appraisal report submission for lenders that meet the GSEs’ requirements, including compliance checks for the new Uniform Appraisal Dataset (UAD) requirements now in effect. The UCDP and UAD are two of several initiatives within the GSEs’ Uniform Mortgage Data Program, an ongoing effort to enhance uniform appraisal and other loan delivery standards for the mortgage industry.

Aklero Caters to Small Lender Market With New QC Offering Aklero Risk Analytics has announced the release of DQx Scan, designed to meet the quality control

valuenation

(QC) needs of small lenders; particularly, community banks and credit unions. The lender scans the loan documents, names the file, hits send and delivers the documents securely to Aklero, which classifies the documents and extracts critical loan data. An automated deficiency detection analysis is performed on both the documents and the data, before performing the most comprehensive and accurate QC audit in the industry. In addition, Aklero will provide the scanner to the client.

“The aim is to provide these financial institutions with the same quality control capabilities that we provide to the largest lenders and investors,” said Brian K. Fitzpatrick. “They want fast, efficient, highquality services and that’s what DQx Scan delivers to them.”

If the lender does not have their files previously scanned, DQx Scan eliminates the hassle of delivering loan files for audit.

The solution reduces the time that the QC process requires, saves money, and provides the most accurate and detailed QC in the industry, because it validates data from source systems to the data contained in the documents, in a highly automated fashion.

“With DQx Scan, files never leave the lenders premises, the files go securely into our platform to begin the classification of loan files, extraction and validation of key data elements, a process that is completed within 24 hours,” said Fitzpatrick.

“Depending on the needs of the lender, Aklero can perform QC for specific functions such as pre-closing or at any point in the mortgage life cycle.”

New Equifax Solution Offers Access to Multiple Credit Scores and Mortgage Performance Indicators Equifax Inc. has announced the launch of a user-friendly, online solution for investors and lenders. Equifax’s new whole loan solution provides up-

to-date borrower credit scores and data across all accounts for non-securitized mortgage and home equity loans— enabling rapid turnaround of this critical data for investors. This unique suite of solutions enables investors and lenders to better predict loan delinquency, default and prepayment and more accurately value and price investments using hundreds of leading indicators of mortgage loan performance and highly accurate risk models.

Equifax designed this latest innovation as an online platform consisting of three products—Credit Risk Insight PreBid, Credit Risk Insight Post-Bid and Credit Risk Insight Surveillance. Pre-Bid statistically matches anonymous borrower credit information to loan-level data and then appends various leading indicators of loan performance such as updated credit and bankruptcy scores, performance on past mortgages, debt balances, delinquencies and monthly payments. With Pre-Bid, investors receive 12 months of anonymous credit history for each loan while investors and lenders using Post-Bid and Surveillance benefit from timely access to current data on each borrower.

Investors and lenders have the option of applying this analysis at the loan level as early as pre-bid—giving them a more complete picture of the collateral health underlying non-securitized mortgage and home equity loans.

“Investors and lenders historically have had limited, up-to-date borrower information on mortgage loans—until Equifax’s post-bid and surveillance solutions. For many investors and lenders, this has created a blind spot when assessing the financial profile of mortgage borrowers and making loan purchase and sale decisions,” said Dennis Corkery, vice president, Equifax Capital Markets. “By providing a 360 degree view of borrower financial health, Credit Risk Insight Whole Loan equips financial institutions with the insight they need to value residential whole loans based on an asset’s complete risk profile.”

Visionary Apps Brings Foreclosure Tracking Tool to the Android Marketplace continued from page 16

custom reports to be programmed for this purpose is neither cost- nor time-efficient.

This is often a secondary hurdle to the adoption of this helpful technology. As a result, there is a clear need for on-demand and robust “ad-hoc” reporting.

It is important to understand what “ad hoc” means. True ad hoc reporting provides the user the ability to create and customize reports on-demand by pulling from available data fields and generating a new view of the data. Ad hoc reporting is not having the technology provider build reports behind the scenes. That is report “customization,” which translates to lengthy timelines and additional costs.

Utilizing a strategic combination of standard and ad hoc reporting gives users of a valuation management platform a competitive edge in meeting business and compliance needs critical to success. Having the ability to control, manage and deploy strategies through well-tuned reporting modules provides the necessary efficiency, accountability and performance required in today’s mortgage environment David Rasmussen is senior vice president of operations at Veros Real Estate Solutions. For more information, call (714) 415-6300 or visit Veros.com.

Visionary Apps LLC has announced that its Complete Foreclosures App, exclusively powered by data from RealtyTrac, will be launching its service on the Android mobile platform. The Complete Foreclosures App has the ability to search all of RealtyTrac’s bank-owned, pre-foreclosure and auction listings from more than 2,200 U.S. counties in the Complete Foreclosures App as soon as they are posted in RealtyTrac. Complete Foreclosures now shows the most recent listings first so that users can easily keep on top of the market they’re watching locally or nationally.

Consumers will have access to more than 800,000 properties with full data and address information. Remaining

properties have partial data with complete data being made available to current RealtyTrac subscribers or those with a seven-day free trial subscription with RealtyTrac.

When launched in February 2010, the Complete Foreclosures App became the first national foreclosures app available for mobile users that provided the most current information on properties easily and quickly.

Complete Foreclosures understands the way homebuyers and investors search for properties, and so they developed a quick and easy way for consumers to access millions of foreclosed properties locally and nationwide. Easy customizable options allow users to filter-out any properties that do not meet their needs. Custom sort options include price, square footage and number of bedrooms and bathrooms.

“The Complete Foreclosures app has been instrumental in providing the real estate industry and consumers alike the needed information to make the best purchasing decisions possible so we’re excited to debut the Android app at the NAR conference because we’re reaching our core users…real estate professionals,” said Daniel Burrus, chief executive officer and founder of Visionary Apps.

“With its introduction into the Android Marketplace, the real estate industry will benefit from the most recent updates to streamline the process making the search that much more transparent in a business where new listing can become very valuable.”

New Cloud Computing UCDP Submission Service Hits the Market Bradford Technologies, Schakra and Nasoft have jointly announced the release of Bradford Technologies’ PortalDirect, a new Uniform Collateral Data Portal (UCDP) submission service powered by Windows Azure. PortalDirect is the result of a development partnership between appraisal software provider Bradford Technologies, software developer Schakra and real estate finance technology developer Nasoft, in collaboration with Microsoft. The relationship allows Bradford to work alongside Nasoft, Schakra and Microsoft, its technology experts to enable, deliver and manage all Uniform Appraisal Dataset (UAD)-related appraisal services.

Based on the Windows Azure cloud computing platform, PortalDirect offers lenders and appraisal management companies (AMC) complete scalability with a virtually limitless capacity for submitting appraisals through the UCDP Portal, accelerating their compliance with the new UAD regulations. IT departments concerned with “home grown” UAD solutions now have a choice to employ a UCDP solution that is secure, highly available, scalable, and built for the future on Microsoft’s Windows Azure cloud computing platform.

“We’re thrilled to be able to offer the

industry a UCDP connection built for the future. This is just the first of many services we will be offering to the industry based on the Windows Azure cloud computing technology,” said Jeff Bradford, chief executive officer of Bradford Technologies.

PortalDirect is fast and uncomplicated to set up, and provides the reliability of an enterprise-class solution.

PortalDirect service consists of a B2B solution for companies that need to integrate an appraisal delivery service with their existing systems, plus a web portal that allows companies to submit appraisals to the UCDP portal. In addition, a UAD Compliance checking service that can be performed at the appraiser’s desktop prior to submission to the AMC or prior to submission to the UCDP portal is also being offered. In leveraging the Windows Azure capabilities, Bradford Technologies’ PortalDirect is able to offer unprecedented scalability in a secure, reliable and highly-available computing infrastructure to allow its clients to respond quickly to competitive challenges and business needs.

Windows Azure enables companies to build, host, and scale applications in Microsoft datacenters. Providing the power of cloud computing to the mortgage industry, Schakra and Nasoft will offer many benefits over traditional computing for customers in this segment, providing a platform for customers and partners interested in building on additional investments in cloud-oriented services such as data services and applications for AMCs. Nasoft and Schakra will offer services to assist with the development of new applications and migration of existing applications.

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CoreLogic has announced the release of AppraiserSuite, a platform that combines multiple listing service (MLS) and public record data in a single online workspace for appraisers, review appraisers, underwriters and quality control (QC) personnel. The new subscription-based platform enables appraisers to quickly research and compile property and market information from multiple sources. AppraiserSuite also streamlines the comparable selection process and offers the ability to export data into standard appraisal reports through form population tools.

AppraiserSuite provides direct access to the MLS data in many of the top U.S. markets gathered through the CoreLogic Partner InfoNet program in which more than 66 MLSs participate.

By incorporating MLS and public record data into a single workspace, AppraiserSuite provides details on the subject property, comparable properties, historical transaction information, tax data, and other property and market area characteristics. AppraiserSuite is also able to highlight inconsistencies between the two data sources, and offer the opportunity for Appraisers to contribute their own information that may help reconcile these differences.

“Real estate professionals contribute local market insights directly into their MLS systems,” said Ben Graboske, chief executive officer of CoreLogic MarketLinx. “AppraiserSuite makes it easier for appraisers to gather the information they need when determining the value of a property. By incorporating MLS information into AppraiserSuite,

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QuestSoft, a provider of mortgage compliance software and services for the mortgage industry, has significantly enhanced its Compliance EAGLE module that helps lenders validate and review multi-state and single state mortgage exam files prior to submission to governing agencies.

Administered jointly by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR); the multi-state exams for state-chartered lenders began in January of this year.

Several states have already begun the process, while many others will be implementing the exams in early 2012.

Lenders utilizing the Licensee Examination File (LEF) Validation features in Compliance EAGLE, which is certified through RegulatorConnect, will be able to review loan files by batch prior to submission to state examiners. This will result in remarkable improvements in accuracy, a reduction in data entry errors and enhancements to a financial institution’s ability to meet regulator demands.

“The new exams use electronic formats to scrutinize over 250 data elements of each loan file, far more data than in the past,” said Leonard Ryan, president of QuestSoft. “Lenders using Compliance EAGLE can review all of their loan files, test the files against compliance violations and generate reports that will help them understand the quality of their loan data.”

QuestSoft also introduced its new ACE State Exam Services (Accurate Compliance Evaluation) to further assist lenders with the LEF process by formatting all data to the regulator specifications, filtering the data per examiner request, and providing a streamlined submission.

Compliance EAGLE evaluates loan files against a comprehensive suite of compliance regulations and standards, including the Home Mortgage Disclosure Act (HMDA), Community Reinvestment Act (CRA) and flood determination requirements, as well as the Truth-in-Lending Act (TILA), and federal, state and local consumer and predatory lending laws. Additionally, Compliance EAGLE’s reviews are widely accepted by many secondary market investors.

new to market

continued from page 35

we are providing appraisers with a broader view of the market and with the tools to make the entire appraisal process more efficient.”

NewDay Announces Enhancements to Its Free LO Training Programs NewDay Financial, a national VA and reverse mortgage lender, has announced that it has enhanced its comprehensive training program for loan officers to better prepare them for the latest industry and regulatory changes.

NewDay’s training program is a six-week regulatory training course that is completely free for loan officers. NewDay pays for required background checks, fingerprinting as well as the cost of all fees and applications.

“NewDay is committed to updating our training program on a regular basis whether it be legislative changes or just evolution of the industry,” said Chris Andrews, vice president of training for NewDay Financial. “We believe strongly in investing in our employees, which is why we cover the costs associated with all training and licensing. New mortgage industry professionals who come

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nmp news flash

to work at NewDay say that the unparalleled educational and training program offered

by NewDay University gives them confidence in their abilities and deep industry knowledge.”

NewDay has a SAFE Act examination pass rate of 93 percent, compared the national average of 61 percent. For state examinations, the pass rate of NewDay trained loan officers is 96 percent, while the national average is about 74 percent, according to the company’s research. NewDay licenses loan officers in 15 to 25 states.

“In the industry’s current and everchanging environment, compliance is paramount,” said Paul Alger, president of NewDay Financial. “NewDay University specifically focuses on ensuring loan officers truly comprehend the regulations and are able to provide the best quality service to our clients while consistently adhering to compliance requirements.”

DataQuick Unveils New Appraisal and BPO Review Tool DataQuick has announced the release of AppraisalQ, a new appraisal and broker price opinion

continued from page 31

tion has declined significantly from 2010.

“The reality today is that it’s a lot harder to get credit than it was a few years ago,” said Lo. “Many homeowners are stuck in their current mortgage and are unable to refinance due to credit or equity challenges, and they’re not happy about it—thus the drop in satisfaction for mortgage servicing.

But on the mortgage origination side, among customers who are able to get credit, lenders are taking the extra steps needed to please their customers, and it shows.”

Quicken Loans ranks highest among primary mortgage lenders for a second consecutive year with a score of 818, and performs particularly well in the application/approval process and closing factors. SunTrust Mortgage follows in the rankings with a score of 791, performing particularly well in the loan representative and closing factors. ING Bank ranks third with a score of 789.

The study finds that lenders that have improved in customer satisfaction tend to experience increases in market share. Among the lenders that have experienced a substantial increase in overall mortgage origination satisfaction since 2009, overall satisfaction improved an average of 35 index points, and their collective market share has increased by nearly five percent. In contrast, among brands that have declined substantially in satisfac-

tion from 2009 to 2011, satisfaction has dropped 25 index points, and their collective market share declined by nearly five percent.

“In this current environment, the perception among some is that what’s good for the customer isn’t necessarily good for the lender,” said Lo. “However, we see a clear relationship between a lender’s ability to deliver a superior customer experience and the relative impact on higher loyalty, retention and advocacy.”

The 2011 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from more than 3,600 customers who originated new mortgages. The study was fielded between July and September 2011.

Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of:

NMP News Flash column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

(BPO) review tool. AppraisalQ evaluates and scores valuations based on six criteria: Appropriateness of sales comps, sales comp adjustments, accuracy of property value, accuracy of assumed market conditions, administrative accuracy and potential fraud.

“AppraisalQ is the culmination of our company’s three strengths—highquality data, innovative analytics and automated decisioning,” said John Walsh, president of DataQuick, “combined to meet our industry’s greatest demand and possibly most detrimental weakness in valuation evaluation.”

AppraisalQ enables clients to select and weigh the criteria that are most important to their business. Once the analysis is complete, AppraisalQ provides an overall evaluation of the appraisal or BPO, specific recommendations to guide the review process, and a full audit trail to defend against future claims of under- of over-valuation.

“AppraisalQ does more than offer data and numbers,” said Walsh. “The tool provides specific recommendations to a lenders review staff that are configurable to specific business requirements.”

New ISGN Plug-In Ensures Compliance With Fannie Mae’s LQI ISGN Corporation has announced a MORvision Premium Plug-In integration into Fannie Mae’s EarlyCheck service, as service that automatically provides loan level data checks to assist in identifying and correcting potential data issues early in the loan process and prior to loan delivery. Lenders using the MORvision loan origination system can access Fannie Mae’s EarlyCheck at any point in their business process, including closed loans in the secondary market before final delivery.

Fannie Mae’s EarlyCheck service, initiated on Sept. 25, 2010 as part of the GSE’s Loan Quality Initiative (LQI), offers multiple data checks that include: DU Compare (comparison of input loan application data with the data used in the most recent DU submission); Social Security Number checks; occupancy checks; address checks; unit number checks; DTI checks; loan limit checks; checks for required delivery fields; and other basic eligibility and data integrity checks. EarlyCheck provides lenders with real-time, loan level results in formatted user-friendly reports that highlight many loan eligibility issues that need to be corrected. It also helps lenders identify recurring quality issues needing to be addressed that can affect loan eligibility.

Fannie Mae’s EarlyCheck service, available through the MORvision Premium Plug-in reduces delivery stops and corresponding financial and operational impacts. It can reduce loan funding and pooling delays caused by uncorrected loan delivery issues. It cuts down on manual resolutions of loan errors during the delivery process and after the loans are sold in the secondary market, saving lenders time and money.

“MORvision lenders will realize substantial time savings from the MORvision Premium Plug-In’s direct integration to Fannie Mae’s EarlyCheck service, more than if they tried to access the system on their own,” said Jason Cohen, senior director of product operations at ISGN. “The ability to access it from within MORvision makes it easy for lenders to quickly verify the loan and then act accordingly depending on the EarlyCheck results. EarlyCheck allows lenders to catch discrepancies before they submit a loan to Fannie Mae, so by integrating the service directly, we’re giving our customers the opportunity to speed up and streamline the loan delivery process as well as reduce errors.”

Blueberry Systems Launches Mobile Dashboard App for Seamless Processing Blueberry Systems LLC has announced the launch of RelayWatch Mobile, a mobile application that presents users a custom dashboard with secure access to current mortgage production stats. RelayWatch Mobile utilizes the user’s corporate Relay database to blend information coming from different systems or sources to offer information in an actionable timeframe. It offers a global at-a-glance view for anyone from executives, to production managers, to loan officers.

RelayWatch Mobile is scalable for any operating system on any smart-device, including Apple iPhone and iPad, Android, RIM Blackberry and Microsoft Windows Mobile.

“Working with Blueberry Systems ensures we always have access to superior data quality,” said Bill Burke, chief information officer of Plano, Texas-based Starkey Mortgage.

“We share the goal of a more seamless loan production process, and having RelayWatch Mobile in our arsenal furthers this vision.”

Blueberry Systems’ flagship solution, Relay, offers a complete loan origination system (LOS) to lenders, featuring a universal data model, which provides the most accurate loan production data in the industry. Contrasted with many other systems that work off an outdated database of record, the universal data model combines the various systems and applications involved in the production process, eliminating data silos and the need for duplicate or staggered data entry.

“Blueberry Systems is laser focused on leveraging our mortgage DNA to deliver the very latest technology in the most efficient, user-friendly way possible,” said Lloyd Booth, president and chief operating officer of Blueberry Systems. “RelayWatch Mobile represents a continuation of our commitment to improving the loan production user experience by delivering better data management solutions to our customers, enabling them to view loan data on demand, at their convenience.”

Foreclosure Response Team Releases New SPOC Compliance Tool Foreclosure Response Team has announced the release of Simplor Version 7.0 and SPOC exponential, the latest and most advanced version of its default transaction management software. Simplor technology allows borrowers, title agents, real estate agents, attorneys, servicers, investors, and regulators to work together via a single platform in order to coordinate activities related to defaulted mortgage loans assuring new regulations are met within the mortgage industry. The company has had the assistance of Default Servicing Solutions, Stewart Default Services, select Exit, RE/MAX and Keller Williams Brokerages, as well as select local title agents and law firms across the country.

“We started developing our complex copy written technology around a single point of contact for short sales almost four years ago,” said Scott Coloney, president and CEO of Foreclosure Response Team and software developer of Simplor technology.

“A short sale is hands down the most complex default transaction, so when default, loan modification and deed in lieu were added three years later in Version 7.0, Simplor already had the complex foundation. The hard part had been completed in versions 1.0-6.0.

Foreclosure Response Team is established and more than prepared to support the implementation process with mortgage servicers.”

Simplor generates automated email notifications delivered instantly to all relevant parties, provides proper users with secure access to required forms and documents online, scores individual users for performance/turnaround time, and automates tracking of all document requests. All communication, document collection, and processes are streamlined in individual electronic files within Simplor enabling Single Point Processors to work efficiently while maintaining a high level of customer service and quality control.

Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of:

New to Market column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

37

Come in out of the dark

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Change Chang ge to... to...

A Special Look at

2012

Growth Strategies for Pursuing the Military Niche Market in 2012

By Beverly Ray Frase n this current tight economy, you’re probably looking for business anywhere you can. It might make more sense to look for underserved market segments and become their expert. A group that has been overlooked and is begging for help is our U.S. Armed Forces.

Simply understanding their lives, their language, and particularly, how to read their Leave and Earning Statement (LES), enables lenders to build a rapport with their military clients. Once you understand that, you can properly qualify your military client and guide them toward whatever lending product makes the best sense for them within current market conditions, whether that’s a Veterans Affairs (VA) loan or some other product.

Veterans Affairs purchase mortgages include a funding fee, which can add significantly to the transaction. The fee can be waived in its entirety. However, if the veteran has a service-related disability, this will result in much less money that the veteran must bring to the closing table. This simple and important fact helps make you the “Local Lending Expert” to this niche market.

Remember the original Soldiers and Sailors Relief Act of 1940? A new version, the Servicemembers Civil

I

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Relief Act (SCRA) was signed into law on Dec. 19, 2003, amending and replacing the original act of 1940. In general, the new act prohibits judicial proceedings against servicemembers during their military service, but there are many more benefits as well. SCRA rules can be absolutely critical for servicemen and women everywhere, and you will indeed be the respected “local expert” if you know and share them whenever and wherever you can. All servicemembers have access to their military Legal Assistance Office (known as the JAG Office—Judge Advocate General) and this is the best place to refer your military clients who suspect that their SCRA rights have been violated, as there are state-specific laws to consider as well.

JAG offices provide lease reviews and a standard “military clause” to cover instances of Permanent Change of Station (PCS), or if base housing becomes available. This service is free to military personnel and can sometimes be done by phone. Rental contracts vary dramatically. It is crucial to make sure there’s no clause that waives SCRA rights. Some landlords use such a clause that, once signed, relinquishes all SCRA rights and often leads to hardship. This could help with credit report issues

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that need to be removed who are on the frontfrom the report. This is lines in helping military great news for the clients. Many more pro“Local Lending Expert” fessionals are adding to deliver through a this niche market to “lunch and learn” their 2012 plan and group. eagerly taking the free As the “local lending training that certifies expert” for your local their ability and commilitary community, taimitment.to helping lor your marketing military personnel. materials toward buildThis military housing ing rapport through the education plan has “… follow current language and lifestyle of been germinating events around these the client. Make it your awhile, and is now borrowers. Not only job to know their rank, can you increase busi- flourishing with the the acronyms that repspeed of a Kudzu Plant! ness in military and resent their short-form retiree markets, this is Not familiar with the language, and whatever a great opportunity to Kudzu? It’s that beautipertinent changes come generate positive pub- ful, albeit invasive, along for this segment creeping vine that licity in your local of borrowers. thrives in mostly southcommunity.”

Make it your busiern areas. The Kudzu ness, literally, to follow current grows a foot a day and experts advise events around these borrowers. Not “Don’t sit down next to a Kudzu vine only can you increase business in for long, or you may never be heard military and retiree markets, this is a from again!” Interest in this undergreat opportunity to generate posi- served niche market is thriving much tive publicity in your local communi- like the Kudzu, and we are more ty. Announce any courses you com- than happy to provide this additionplete with credentials earned to max- al effort to “give back” to those who imize effectiveness in your niche. By serve and protect us all. reading this article, you have just The year 2012 is expected to be learned five commonly-used service “the year of the short sale,” and we acronyms without missing a beat and know it has already begun. Our eduthe rest of the military world is not so cation events will often include this difficult to understand either. training, particularly in militaryOur focus at USA Cares remains on heavy areas. Our regional and state our servicemembers’ daily assistance CMHS coordinators are disseminating needs, but is mushrooming with information to every quadrant of the requests for the Certified Military United States where this free inforHousing Specialist Course (CMHS), mation/certification is available to which produces experts who are ensure this valuable niche market is trained and ready to provide skilled properly served. service to their military clients. Our The mortgage industry is practihousing education course is available cally reinventing itself and you can free non-linear, and for 2012, we’ll do the same. Narrow your business be presenting more live course to a market you enjoy and conquer events. Already well-received in sev- it. There’s a good chance your milieral major cities to state and nation- tary clients will have nowhere else to al groups, we’re working on a nation- turn but to you. al initiative to have trained housing professionals available to military Beverly Ray Frase is a former loan personnel everywhere. Interest is officer, real estate broker and Army increasingly enthusiastic at federal wife. She has written a course and state levels, with industry and designed to provide a clear undertrade associations and those who standing of how to work with military “get it” and want to give back in clients, funded by a grant from Fannie some way. Spring events are already Mae and sponsored by USA Cares popping onto calendars. available online at USACares.org by This national initiative is critical in clicking on the “Education” tab. She bringing information to the “boots may be reached by e-mail at on the ground,” those professionals Beverly.Frase@USACares.org.

A Special Look at

2012

Growth Strategies for Keeping Your Edge in 2012

A View Into 2012: Looking Back

By Erik Wiley

By Erik Wind

I

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DECEMBER 2011

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business by efficiently uch like today’s targeting their existing other surviving customer base. Longindependent term relationships with mortgage origination Realtors yielded diminfirms, Pacific Residential ishing results, as Mortgage LLC (PRM) has Realtors themselves endured the business experienced a slowchanges, housing environdown or left the busiment correction and comness. Some experienced pliance overhaul that Realtors made the shift our entire industry has to real estate-owned experienced over the (REO) listings. Clients past five years. While “Face-to-face that haven’t shopped us this has not been withcommunication is in the past started out pain or sleepless the way to go if you nights, we did it without expect to earn referred d o i n g s o . A n d t h e n changing our overall business. This means t h e r e ’ s t h e m e d i a reporting that indebusiness philosophy and literally getting pendent mortgage only slightly altering our face-to-face with companies were unsafe general business plan. consumers so that Necessary course correc- they become clients.” and unscrupulous and that banks and credit tions are continually being made and should be. From unions are the secure lending Politicians vilified these changes, we have learned how resources. to adapt to current conditions and “mortgage brokers,” while at the turn a profit from less-funded vol- same time, demonstrated that they ume, all the while, staying focused didn’t understand the home loan on our loan originator/employee- process or consumer behavior in centric, relationship-driven referral the slightest.

Rather than allow these issues to model.

As a point of reference, our firm break us, our 2011 business plan operates in four states with a staff of focused on recruitment of quality approximately 130, half of which are originators and processing staff full-time loan originators (LOs). We with an eye to maintaining profare a purchase-oriented operation itable levels of production. We also and we earn almost all of our busi- focused on the sustained employness off of referrals from past clients ment of our sales support staff and real estate professionals. This which includes our corporate, mortbusiness strategy hasn’t changed gage banking, IT and marketing over the course of our seven years groups. I mention this because and will remain the basis of our medium- and large-sized companies business model going forward into need to have significant structure in place in order to successfully oper2012. ate as a mortgage banker while supporting LOs. Today’s higher costs of Bending, but originating a closed loan, plus the not breaking The purchase side of the referral- compliance and quality control (QC) based model of our business took a overhead that goes along with daily beating these past few years. As refi- operations, is much more expensive nances ebbed and flowed, we discov- than in the past. All of these ered that too many of our origination changes mandate that LOs receive staff had let their purchase business increased company support, none deteriorate. The causes for this vary. of which is available for free or easy Refinances were the low-hanging to come by.

Our overall 2012 plan will focus fruit. Online lenders and big banks/servicers effectively competed for refinances and even purchase continued on page 42

NationalMortgageProfessional.com

gage professional who is ’ve written previously on staying on top of their how by the time the holpipeline. The borrowers will idays are here, the year appreciate your initiative. has already ended. It’s the time to spend time with Educating your family, friends and those referral network business relationships we In addition to your probreally appreciate. But, it lems, real estate agents in can also be a time for your referral network will reflection, goal-setting and have their own set of chalplanning for the new year. lenges to deal with, particuThe year 2012 is going to larly when it comes to short be a great challenge for “2012 will be a year many of us. Lending guide- where taking the ini- sales. If it’s their problem, lines are changing faster tiative to educate your then it’s your problem too.

Stay one step ahead of than ever, while foreclo- referral network and the changing short sale and sures and short sales aren’t provide them with real estate landscape. Don’t going away any time soon. resources to make The following areas are two more money will pay expect real estate agents to of the biggest challenges dividends throughout know what they have to know to close a short sale originators can face next the year.” smoothly. If you can eduyear. By being prepared, you can turn these adversities into oppor- cate your agents on how to easily close a tunities while others continue to struggle. short sale, they can close more business; leading to more originations for you.

Victor Pascale of Continental Home Dealing with Loans spends considerable time to educate changing guidelines There’s often a significant period of time his real estate agents on the short sale between when a borrower gets pre-quali- process.

“I can only imagine how much comfied and when they actually apply. Since guidelines are changing frequently, origi- missioned real estate agents would have nators often find themselves getting con- lost if I wasn’t there to help them with their tacted by those who were pre-qualified short sales,” said Pascale.

Victor gets his real estate agents the weeks or months ago, and being forced to tell their would-be borrowers that the pre- education and tools they need to make qualification is no longer valid. This can short sales just another transaction.

While it’s never bad to be proactive, lead to mistrust between the borrower and originator and a setback to the borrower 2012 will be a year where taking the initiawho may have been ready to move on a tive to educate your referral network and provide them with resources to make real estate transaction.

By diligently keeping in touch with bor- more money will pay dividends throughrowers whom you pre-qualified, you can out the year. inform them of these guideline changes on Wind is co-founder of your terms, rather than reacting to them Erik when the borrower comes back to you. ShortSaleSpeedway. He may be reached by With this strategy, the perception changes phone at (516) 882-6930 or e-mail at from mistrust and frustration, to a mort- erik@ewdc.net.

A Special Look at

2012

Growth Strategies for on organic internal growth, while selectively adding origination staffers who share our way of doing business.

This organic growth plan has already been put in place and will be refined in 2012 to address business conditions.

mated underwriting engines (Aunt Fannie and Uncle Freddie have probably been regretting the initiatives they pushed upon us back then).

So what was normal? Normal was when a loan originator had to fully document a consumer’s income and The game has changed … assets and then fully verify that documentation. Appraisals were peror has it?

A lot of people in and around our formed and underwriters actually industry describe today’s market- scrutinized those appraisals. place as very different from what Federal Housing Administration they consider a “normal” market- (FHA) loans required FHA inspecplace. It’s true, today’s loans are tions. Lenders were careful in handharder to find and harder to fund ing out hundreds of thousands of than in any time during most of our dollars and they actually expected careers. Then again, 2005 was not to be paid back in full. Debt ratios normal and neither was 2003. In above 36 or 41, depending upon the fact, it hasn’t been normal any time loan type, required teeth-pulling in since 1998 when our industry order to receive loan approvals. We embraced credit scoring and auto- are still looser today in many of

DECEMBER 2011

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these categories than when I got into the home loan business 17 years ago.

Normal was also when, in a purchase-oriented marketplace, LOs actually had to go out and “originate” a loan. Personal relationships were essential and quality service was key.

The game itself really hasn’t changed. What has changed is how we all will individually focus on the “normal” of how loans are originated.

have someone regularly hear your voice, even if they cannot see you live and in person, will make a difference over those who don’t get upclose and personal.

Refinances are not where professionals put their energy

Here today, gone tomorrow … my firm’s long-range view has been that refinances will diminish in 2012.

Given that view, a year ago, we chanGetting up close neled energy to expand our purand personal chase-business. Ask yourself the folIn focusing on what we see as “nor- lowing, “If rates go to six percent, mal” and “essential” for business in what happens to my pipeline?” Be 2012, PRM will emphasize having honest with your answer. That’s what our entire sales team be face-to-face we did and we didn’t like what we oriented instead of conducting busi- saw. Today, thanks to hiring outside ness through other more passive sales trainers while performing our means. Our management team is own internal sales coaching, we are engaged in coaching calls and live achieving our goals with stronger meetings with our mortgage sales results due to LO buy-in. Simply bankers, not as micro-mangers, but stated, this sales-focused developas team leaders to enable individual ment activity works. success, but that is not enough. If we are asking our sales team to main- Picking up dollars and tain this type of behavior then we, as stepping over nickels management, must also lead by We all know it is extremely difficult example. Effective sales managers to predict mortgage loan volume can no longer be passive—they must over the next 12 months. This reality truly manage sales and sales-related necessitates that our revenue and activity, as their titles suggest. This expense structure be flexible in order creates a sense of accountability to handle less volume or to support from the top down that is necessary increased volume. Over the years, to compel originators to step out of our firm has made continual their comfort zone and get into a enhancements in this regard and will win-win mindset. continue doing so going forward. We Face-to-face communication is also know that spending money on the way to go if you expect to earn developing future sales isn’t tied just referred business. This means liter- to just running ads and circulating ally getting face-to-face with con- product flyers—these are support sumers so that they become clients. elements in our marketing platform.

It means wearing out the rubber on Investing money, appropriately, to your soles and your tires to get in enhance our client experience, to front of referral sources such as make loan origination more effiRealtors and other real estate pro- cient, and to further develop a fessionals. There is no substitute for strong, relationship-driven sales frequent face-to-face interaction if force able to originate loans, will all you intend to create long-lasting be key to our success in 2012 and and profitable relationships. beyond.

Salespeople and their management need to practice this method as Eric Wiley is chief operating officer often as possible. and co-founder of Pacific Residential If you cannot be face-to-face, the Mortgage LLC. He has served on the phone is the next best communica- board of the Oregon Association of tion option for sustaining and build- Mortgage Professionals (OAMP) and is ing relationships. It is still you com- an active member of the Oregon ing through on a live and personal Mortgage Lenders Association (OMLA). basis versus something less personal He may be reached by phone at (503) like an e-mail, a text, a blog or some- 905-4902 or e-mail eric.wiley@pacresthing similar. Disciplining yourself to mortgage.com.

A Special Look at

2012

Growth Strategies for would not have attained the success I see today.

Building a Team for Growth in 2012

Know the tools

By Leif Boyd e are about to say goodbye to 2011 and welcome in 2012.

Over the last year, the mortgage industry has gone through numerous changes, most notably compensation reform. Now that the dust has begun to settle, it is time to plan a growth strategy for next year.

Building an origination team and using the right tools can have a positive impact on your company’s bottom line.

W

Knowing when to grow

Know the steps

There are two basic philosophies on hiring after you determine what you

My firm creates and sends loan originators all of the marketing materials they request. When an LO asks for materials, our team develops a custom marketing piece and sends out a digital file to the originator. The file can then be printed or e-mailed to prospective and current clients.

Customer relationship management

Knowing the steps it takes to build a relationship and close a loan, hiring the right team and using the right tools allows loan originators to be more successful. It takes effort to succeed, and having a team to help complete the steps and utilizing the right technology can help a senior manager build toward that success.

Leif Boyd is senior vice president of production for American Pacific Mortgage. Since joining American Pacific Mortgage, Leif has taken an active role in overseeing all aspects of mortgage origination, including the oversight of the production department and 114-plus branches. He may be reached by phone at (916) 960-1325 or e-mail lboyd@apmortgage.com.

Using a quality customer relationship management database can determine the difference between having Know the reward It is sometimes difficult to remember solid repeat business and losing the old adage, “It takes money to clients after just one sale. This datamake money,” especially in a time base allows LOs to track every marwhen finances are tight. However, when a loan originator hires staff, their branch will become more productive. This is exactly why the assembly line was started and continues to be an important part of our manufacturing industry today. It allows staff to focus and specialize in a particular area. No one needs to be an expert at everything—they just June 4-6, 2012 need to be the best at the tasks they DANA POINT, CA are given. Once I hired and trained my staff, I went from closing three to MARK YOUR CALENDAR FOR THE RETURN OF THE four loans a month to more than 20 a month. The first assistant I hired now runs the branch I started and is one of the top mortgage bankers Hosted by within my firm. Had I not realized there would be a reward for spending the money to hire staff, I would The Predictive Methods Conference, PMC and Veros are registered trademarks of Veros Software. ©2011 Veros Software - All rights reserved. still be working long hours, but

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DECEMBER 2011

Know who to hire

One of the most important things to remember is that micro-managing will not lead to increased productivity. You should hire a staff that can be trusted and empowered to do their job, knowing they will make mistakes in the process. Ask yourself, “How controlling am I?” The hightouch, high-value tasks should remain with the senior person to mitigate long-term damage, but the other tasks should be delegated to trained staff.

Fulfilled marketing support

“One of the most important things to remember is that micro-managing will not lead to increased productivity. You should hire a staff that can be trusted and empowered to do their job, knowing they will make mistakes in the process.”

My firm, American Pacific Mortgage, uses a proprietary lead generation system, APMConnect. This system lets loan originators access relevant data and connects them with appropriate industry partners to develop new leads.

ARIZONA MORTGAGE PROFESSIONAL MAGAZINE

Before hiring for the sake of hiring, a manager should develop an outline of the process of closing a loan from beginning to end. Every mortgage banker has a different process that works for them. I detailed a 65-step process and identified which steps I had to do and which steps I could hire others to do. Delegating a portion of the process gave me free time to build more relationships and put more loans in the pipeline. I found that I could hire employees to accomplish 65 percent of the work, and I could keep 35 percent, freeing me up to grow my business.

Know how to train and manage

Lead generation technology

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Knowing when to grow is just as important as knowing how to grow. It is important to understand the need to invest in your business and spend money in order to make money. By investing resources in new hires, a company can make money over time.

Strategic hires allow branch managers and bankers to focus on what they are good at and offload tasks other staffers can handle. Banking industry reform in 2011 created additional processes on the path to getting a loan approved. These processes take time and effort, detracting from new business development. With a staff on-hand, senior management can have the support they need so they can focus on prospecting and building their business.

need. You can hire the best allaround candidate, or you can hire the best person to do certain tasks in your process. I decided to hire a team of three individuals who could complete certain tasks within the process I had developed. These people were each highly skilled, willing to learn and motivated to succeed. I knew that once they were trained and well-versed in their responsibilities, they would thrive and my branch would increase the number of loans closed.

Beyond hiring more staff, there are certain tools that can increase productivity, simplify tasks and help realtors and customers to choose one loan originator over another. There are three basic tools that every loan originator should be able to access: Fulfilled marketing support, customer relationship management software and lead generation technology.

keting piece that the client has seen, check on the status of loans and look back at the date each meeting took place.

Accounting and Audit

Branch Manager

Branch Manager

Flagship Mortgage Corporation ........1-800-492-5239 Multi-State mortgage bank has management opportunities available for experienced, successful & ethical professionals.

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iServe Residential Lending www.iservelending.com afriedman@iservelending.com 415-298-2500 Freedom Mortgage Corporation www.fmbranch.com info@fmbranch.com 800.220.9498

iServe offers a complete product mix - aggressively priced, with hassle-free service & turntimes. Branching & Loan Officer opportunities available nationwide. For a change, focus on production, quick closes & a good night's sleep!

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Appraisal Management Company

HVCC Appraisal Ordering National Appraisal Management Center www.HVCCAppraisalOrdering.com Please call 866-396-6260

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CENTERED ON YOUR NEEDS - FOCUSED ON YOUR SUCCESS

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Inlanta Mortgage W229 N1433 Westwood Drive, Suite 103 Waukesha, WI 53186 www.inlanta.com • 262-513-9853

Church Financing

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Continuing Education

DocVelocity www.docvelocity.com (877) 362-8356 sales@docvelocity.com DocVelocity is an end-to-end paperless solution designed to simplify the loan origination experience. Imagine having all your documents in the loan process as electronic files, all online, from pre-approval to closing. DocVelocity provides: Fast and easy loan delivery to any lender … Automatic doc sorting, naming and filing … Real-time online document sharing for anyone you choose …

Friendly and intuitive user interface … No start-up fees, and free training and support. DocVelocity addresses important compliance issues while giving your office the competitive advantage of being paperless. It streamlines all aspects of the mortgage process and most important, it does so in one easy-touse and inexpensive package. DocVelocity is the flagship product of Paperless Office Solutions, Inc., a wholly owned subsidiary of Flagstar Bancorp. Visit www.docvelocity.com to find out more.

Abacus Mortgage Training and Education PO Box 780 Summerfield, NC 27358 888-341-7767 • www.GetYourEd.com NMLS approved 20 hour Prelicensing Education NMLS approved Continuing Education Live Classroom Instruction, Web Delivery and Private Events The SAFE-Smart ExamCram, Powerfully Innovative Test Prep

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Document Preparation

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646.210.2545 • 914.763.8008 “The Expo for Real Estate Professionals" For ongoing Networking Events throughout the year please visit www.nycnetworkgroup.com.

FHA Audit and Licensing

Bonnie Nachamie & Jonathan Pinard have assembled a team of experts to assist Mortgage Brokers, Mortgage Bankers, Federal and State Chartered Banks & Credit Unions with their mortgage compliance needs.

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Direct Mail

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ACC Mortgage, Inc. 932 Hungerford Drive #6 • Rockville, MD 20850 240-314-0399 • 240-314-0336 fax WeApproveLoans.com

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Mortgage marketing company with decades of combined experience providing quality leads, mailers, lists and dialer products. www.bestratereferrals.com & www.mortgageleads.org

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Mortgage Loan Closing Document Preparation & Compliance Services Fulfillment Services Including Pre-Funding Review & Post-Closing Interfaces with Leading Loan Origination Software Systems Foreclosure – Loss Mitigation Services

LenderCity Home Loans is now offering individual franchises. This is perfect for the L.O. who has always wanted to open their own brokerage but didn't know how. Benefits include:

Income Verification Services

Advanced Data (800) 537 - 0458 www.advanceddata.com verifications@advanceddata.com Advanced Data is a leading national provider of data services, streamlining income and employment verification with proprietary software. Clients can submit 4506-T directly through Encompass360.

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Mortgage Forms

Leads

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Best Rate Referrals The Leading Direct Marketing Company for Mortgage Professionals 800-811-1402 • www.bestratereferrals.com Reach affluent and creditworthy consumers who are in-market and ready to transact. Bankrate is a consumer direct Web site, NOT a lead aggregator. Qualified leads for every sized budget, and pay only for performance. No set up fees! No contracts! No risk!

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Income Verification Services Platinum Credit Services, Inc.................631-299-2084 Tax return vertification (4506 tax transcript done in less than 24 hours in most cases). Call Lorenzo Pugliano, President and CEO at 631-299-2084.

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Leads

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NationalMortgageProfessional.com

AAA Refi Leads.....AAA Refi Leads.....AAA Refi Leads Learn how I went from failure to success by mailing cheap refi letters from home, closed 71 loans & made $248,954.62 last yr.

I’ll show you exactly how I did it. Go to: www.Refi-Leads.NET

Internet’s Leading Consumer Mortgage Marketplace Attracting over 8 million unique consumers every month www.Bankrate.com • 561-630-1257 Reach affluent and creditworthy consumers who are in-market and ready to transact. Bankrate is a consumer direct Web site, NOT a lead aggregator. Qualified leads for every sized budget, and pay only for performance. No set up fees! No contracts! No risk!

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HUD Settlement Cost Booklets CHARM Booklets Uniform Residential Loan Applications HUD Case Binders

Regulatory/Compliance

Best Rate Referrals is the direct marketing leader in the mortgage and banking industry.

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Mortgage Direct Mail & List Services Mortgage Live Transfers Mortgage Internet Leads Mobile Marketing

Comergence Compliance Monitoring, LLC 630 The City Drive South, Suite 205 • Orange, CA 92868 Office: 714-740-9000 www.ComergenceCompliance.com Comergence Compliance Monitoring is the mortgage industry’s only Complete broker desk management software and outsource solution for TPO management and monitoring. We can supplement lenders inhouse management and monitoring resources departments.

Loanbright 27902 Meadow Drive, Suite 375 Evergreen,CO 80439 866-391-2709 • www.Loanbright.com Loanbright helps mortgage companies capture and close more business through its marketing and software tools. An INC. 500 awardee, Loanbright has helped thousands of companies since 1999 by providing them with well over 3 million qualified sales leads.

MortgageLoan.com

Retail Branch

SM

www.mortgageloan.com • 877-390-4750 MortgageLoan.com is the largest online directory for mortgage professionals and a favorite of consumers shopping for mortgage loans.

Our network attract over one million visitors per month. Our paid lead program as well as our free lender directory will help you connect with targeted new consumer traffic from with high-intent consumers searching online for the right mortgage lender.

Polaris Home Funding Corp.

616-667-9000 timeforachange@polarishfc.com www.polarishfc.com/timeforachange #1 USDA RD lender in multiple states with strong FHA/VA/CONV product lines as well. Don't be held hostage by a captive branch arrangement. Bank it or broker it. Have a business name/identity you don't want to give up? We allow DBAs (subject to state rules).

• Reach self directed, highly qualified consumers that are actively searching for mortgage loans • Geo-targeting – reach the right consumers in the right markets • Our proprietary Advertiser Portal gives you complete control over your campaigns, budgets, and performance reports.

• YOU determine your daily/weekly/monthly budget • Pay only for consumers who click on your listing • NO cancellation fees Try us risk-free! Call 561-630-1257 or visit www.bankrate.com/cpcprogram/ for more details.

The Lykken on Lending RADIO PROGRAM

Sign-on weekly at nmpmag.com/lykkenonlending

Loan Origination Systems

(800) LOANS-15 www.usmortgage.com Are you a broker/owner or current branch manager looking to expand your business into Mortgage Banking with FHA capabilities?

Then our PARTNER BRANCH ADVANTAGE© program is perfect for you. We are offering you all the benefits of partnering with an established lender while still enjoying your independence. US Mortgage Corporation is a nationwide FHA Direct Lender with a 16 year long reputation of excellence.

Calyx Software 800-362-2599 sales@calyxsoftware.com www.calyxsoftware.com Calyx Software, the #1 provider of mortgage solutions is dedicated to offering reliable and affordable software that streamlines, integrates and optimizes the loan process. Find out how PointCentral can streamline your business and create compliant processes today.

YOUR SUCCESS IS OUR SUCCESS! For more information contact THOMAS R. SIRICO, Vice President of Business Development at (917) 923-1472 or email at tom.sirico@usmortgage.com.

We look forward to sharing our services with you!

Wholesale/Correspondent

Wholesale/Residential

BankFinancial ..........................................800-894-6900 We have money to lend for apartments, $250M to $2MM, up to 75% LTV. We offer competitive rates, fees & terms. We’re committed to helping you and your clients close the deal. Call us.

Wholesale/FHA

Icon Residential Lenders (888) 247-4207 www.iconwholesale.com

Flagstar Wholesale Lending www.wholesale.flagstar.com (866) 945-9872 WLSC@flagstar.com Flagstar Wholesale Lending, a division of Flagstar Bank, is one of the nation’s largest wholesale and correspondent mortgage lenders, providing the technology, products, service and support that independent mortgage brokers, correspondents, and bankers need in today’s mortgage arena. In the ever-changing environment of mortgage banking, Flagstar takes pride in accommodating the specific needs of each customer. At Flagstar, we understand that you need every available advantage to stay ahead of the competition. This is why we provide multiple technology options to meet your needs to register, lock, underwrite, close, fund and deliver your loans. Our wholesale website (wholesale.flagstar.com) and the loan processing tool Loantrac provides our customers with the functionality that make it easier and faster to close loans, saving you time and money! Visit wholesale.flagstar.com to learn more.

Icon Residential, a wholly owned subsidiary of Grand Bank N.A., is one of the nation’s leading Conforming, Jumbo, FHA and VA wholesale lenders. Our strength, success and longevity is derived from delivering customers service that exceeds our valued business partners expectations. With deep industry knowledge, financial stability and innovative technology we provide the solutions for our business partners to fund loans while avoiding risk.

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Direct Access to Underwriters Competitive Pricing Innovative Technology Paperless Solution Bank Funding

Terrace Mortgage 4010 W. Boyscout Blvd., Suite 550 Tampa, FL 33607 866-934-4631 • www.terracemortgage.com We offer competitive pricing and fast turn-times for FHA, VA, Conventional, and USDA programs without having a retail presence in the industry. We are a wholesale lender with 22 years of experience and believe in exceptional service.

Wholesale/Residential AMX/Land Home Financial ..................800-349-4172 AMX/Land Home Financial Services Wholesale Lending Division - Great Rates, Great Programs, Great Service.

Offering financing options that work in today's market.

TMSfunding Wholesale Lending 326 W Main Street • Milford, Ct. 06460 888.371.2989 • WWW.TMSFUNDING.COM Your Partner in Success!

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Paperless! Quick and Easy!

Top Tier Account Executives Committed to Wholesale Operations that Earn Your Business

Now Wholesale Lending in:

• Arizona • California • Colorado

• Nevada • New Mexico • Oregon

• Texas • Utah • Washington

Veros Real Estate Solutions 2333 North Broadway, Suite 350 • Santa Ana, CA 92706 (866) 458-3767 www.veros.com • @verosres (Twitter) Veros Real Estate Solutions is a premier technology leader in the mortgage industry and proven leader in enterprise risk management and collateral valuation services. Veros combines the power of predictive technology and data analytics for advanced automated solutions.

CBC National Bank is one of the nation’s fastest growing wholesale lenders offering Conventional, FHA, VA, and USDA. The most important aspect of being a leader in today’s market is the ability to build and maintain a meaningful relationship with each customer. We understand that these meaningful relationships coupled with competitive pricing and efficient technology are the pillars of today’s lending environment.

We are now hiring Account Executives in AL, TN, KY, VA, & MD.

Big Enough to MATTER…Small Enough to CARE

to register your company.

Wholesale Reverse Mortgages

NATIONWIDE Equities Nationwide Equities Corporation 201-529-1401 www.nwecorp.com For Licensed Mortgage Brokers in NY, NJ, CT, PA and FL No HUD Approval Required – Live Help Desk Will Provide Training at Our Office or Yours 48 Hour Underwriting - Get Paid Within 48 Hours of Funding

Bookmark this!

Access these listings online at

nmpmag.com/directory_list

DECEMBER 2011

Contact Stu Ehrlich in our HR department at sehrlich@cbcnationalbank.com for further details.

Call 888-409-9770 ext. 4

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

CBC National Bank 3010 Royal Boulevard South, Ste. 230 Alpharetta, GA 30022 888-486-4304

The Resource Registry is a directory of lenders (wholesaler or retail that are recruiting), affiliated services and resources that is seen by more than 191,181 active Professionals.

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NationalMortgageProfessional.com

88 Kearny Street, 3rd Floor San Francisco, CA 94108 Phone: (415) 632-5150 • Fax: (925) 226-1938 www.bayeq.com

If your ad was here, you would be seen by 191,181 Mortgage Professionals looking for resources to help them in their business.

To submit your entry for inclusion in the National Mortgage Professional Calendar of Events, please e-mail the details of your event, along with contact information, to newsroom@nmpmediacorp.com.

JANUARY 2012 Monday-Friday, January 23-27 MISMO January 2012 Trimester Meeting One Ocean Resort Hotel & Spa 1 Ocean Boulevard Atlantic Beach, Fla. For more information, call (800) 793-6222 or visit MortgageBankers.org.

ARIZONA MORTGAGE PROFESSIONAL MAGAZINE DECEMBER 2011

MARCH 2012 Sunday-Thursday, March 11-15 29th Annual Regional Conference of Mortgage Bankers Associations Trump Taj Mahal Casino Resort 1000 Boardwalk at Virginia Avenue Atlantic City, N.J. For more information, call (732) 596-1619 or visit MBANJ.com.

APRIL 2012 Wednesday-Thursday, April 18-19 2012 National Policy Conference Hyatt Regency on Capitol Hill 400 New Jersey Avenue Northwest Washington, D.C. For more information, call (800) 793-6222 or visit MortgageBankers.org.

Sunday-Wednesday, April 22-25 2012 National Technology in Mortgage Banking Conference & Expo Arizona Biltmore 2400 East Missouri Avenue Phoenix For more information, call (800) 793-6222 or visit MortgageBankers.org.

Sunday-Wednesday, May 20-23 2012 Commercial/Multifamily Servicing & Technology Conference Hilton Anatole 2201 North Stemmons Freeway Dallas For more information, call (800) 793-6222 or visit MortgageBankers.org.

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OCTOBER 2012 Sunday-Wednesday, October 21-24 Mortgage Bankers Association 99th Annual Convention & Expo The Hyatt Regency 151 East Wacker Drive Chicago For more information, call (800) 793-6222 or visit MortgageBankers.org.

RTGAGE PRO O M

NMP

SSIONAL

Tuesday-Friday, February 21-24 The Mortgage Bankers Association’s 2012 National Mortgage Servicing Conference & Expo Orlando World Center Marriott 8701 World Center Drive Orlando, Fla. For more information, call (800) 793-6222 or visit MortgageBankers.org.

Thursday, March 29 Maryland Association of Mortgage Professionals 2011 March Mortgage Madness Convention Martin’s Crosswinds 7400 Greenway Center Drive Greenbelt, Md. For information, call (410) 752-6262, or visit MDMtgPros.org.

Friday-Wednesday, May 18-23 2012 Mortgage Bankers Association of Georgia Education Forum & Expo Sandestin Hilton Golf Resort & Spa 4000 South Sandestin Boulevard Destin, Fla. For more information, call (478) 743-8612 or visit MBAG.org.

JUNE 2012 Sunday-Wednesday, June 3-6 Mortgage Bankers Association’s 2012 Chairman’s Conference The Breakers 1 South County Road Palm Beach, Fla. For more information, call (800) 793-6222 or visit MortgageBankers.org.

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FEBRUARY 2012 Sunday-Wednesday, February 5-8 2012 CREF/Multifamily Housing Convention & Expo Atlanta Marriott Marquis 265 Peachtree Center Avenue Atlanta For more information, call (800) 793-6222 or visit MortgageBankers.org.

Wednesday, March 14 Florida Association of Mortgage Professionals Broward Chapter 2012 Annual Trade Show Broward County Convention Center 1950 Eisenhower Boulevard Ft. Lauderdale, Fla. For more information, call (850) 942-6411 or visit FAMB.org.

MAY 2012 Sunday-Wednesday, May 6-9 2012 National Secondary Market Conference & Expo New York Marriott Marquis 1535 Broadway New York, N.Y. For more information, call (800) 793-6222 or visit MortgageBankers.org.

Sunday-Wednesday, May 20-23 2012 Legal Issues/Regulatory Compliance Conference La Quinta Resort & Club 49-499 Eisenhower Drive La Quinta, Calif.

For more information, call (800) 793-6222 or visit MortgageBankers.org.

NATIONAL

Sunday-Wednesday, April 22-25 2012 National Fraud Issues Conference Arizona Biltmore 2400 East Missouri Avenue Phoenix For more information, call (800) 793-6222 or visit MortgageBankers.org.

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rida L ss: ut of Flo hem e: O r Bo c S e d v u age Fra erco s M o rtg Un d ast Texa E r jo a M 203(k) Rehab Loan Program: Foreclosures Present Challenges, Opportunity NMLS an d St ate Testing fo r Mortgage Pr ofessionals

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Nationwid e FHA Lend er Looking fo r: TO P P R O D U CER

S

Call for De tails!

T h e B E ST B r a n c h S o l u t i o n , P e r i o d .

www.Fmbranch.com 800.220.9498 Info@Fmbranch.com This information is provided to assist business professionals and is not an advertisement extended to the consumer, as defined by Section 226.2 of Regulation Z. Freedom Mortgage corporate office is located at: 907 Pleasant Valley Ave. Suite 3, Mount Laurel, NJ 08054. Lender NMLS ID: 2767. Licensed by the NJ Department of Banking and Insurance, License #9100861. All Rights Reserved.

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Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change. The information provided herein is for dissemination to and for the use of real estate and financial business entities only and is not an advertisement for the extension of credit to consumers. Š 2011 Flagstar Bank