February 2011 Volume 3 • Number 2
Mortgage PROFESSIONAL N A T I O N A L
MAGAZINE
Your source for the latest on originations, settlement, and servicing
1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 / (888) 409-9770 Fax: (516) 409-4600 Web site: www.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 Domenica Trafficanda Art Director domenicat@nmpmediacorp.com Karen Krizman Senior National Account Executive (516) 409-5555, ext. 326 karenk@nmpmediacorp.com
2
Jon Blake Advertising Coordinator (516) 409-5555, ext. 301 jonb@nmpmediacorp.com Tara Cook Billing Coordinator (516) 409-5555, ext. 324 tarac@nmpmediacorp.com
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. MO
RTGAGE PRO
NATIONAL
NMP
SSIONAL
FEBRUARY 2011
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.
FE
ARIZONA MORTGAGE PROFESSIONAL MAGAZINE
NationalMortgageProfessional.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.
MAG
AZIN
E
National Mortgage Professional Magazine is published monthly by NMP Media Corp. Copyright © 2011 NMP Media Corp.
A Message From NMP Media Corp. Executive Vice President Andrew T. Berman How can a reduction of 33 percent in volume actually be a good thing? The latest Mortgage Finance Forecast from the Mortgage Bankers Association (MBA) is calling for a drop from $1.5 trillion in originations for 2010 to $966 billion in 2011 and $976 billion in 2012. However, there is some positivity in that harsh reality. It is forecasted that the purchase market will moving from $473 billion in 2010 to $614 billion in 2011, and then $740 billion in 2012. If you take into consideration the massive attrition we have seen in the originator sector, as states like Florida are reporting that only 36 percent of mortgage brokers are currently still in business from last year. Is this a blessing or a curse from the SAFE Act? This number means now is a pretty good time to be in the mortgage industry if you are a referral-based purchase-targeted originator. In this month’s edition, Dave Hershman discusses how the purchase market will be strong in 2011 on page 12 in month’s installment of The Secondary Market Overview, “The Great Real Estate Debate.”
How do we capture this purchase boom? ... It’s all about marketing! This month, we take a look at marketing strategies that are working in today’s marketplace. We all know that marketing is much more than just sending out postcards or taking out Yellow Page ads. In this special section, we see that marketing today runs the gamut from making a strong first impression to cultivating relationships, to quality in customer service to maintaining and following up on referrals. It’s managing and analyzing every step of the process to ensure that you have an everlasting pipeline of loans. I hope you find some nuggets of info to capture your share of the purchase boom.
NMP’s Mortgage Professional of the Month This month, we had the pleasure to sit down and chat with Chris Frost, vice president and business development manager of Frost Mortgage Banking Group. With a banking background and philosophy that puts him in the trenches with his staff, Chris is looking to help guide Frost Mortgage Banking, Primary Residential Mortgage Inc. (PRMI)‘s second biggest division, to the $1 billion mark in production volume in 2011.
Two new additions to the publication You will notice two new sections in the pages of National Mortgage Professional Magazine this month. First, on page 15, you will find “Mortgage Heroes,” a section provided in partnership with USA Cares. Each month, “Mortgage Heroes” will highlight mortgage professionals who go out of their way to support the men and women who have fought to protect this great country we live in. For our column launch, USA Cares selected the folks at Kentucky Neighborhood Bank (KNB) in Radcliff, Ky. for all of their work on behalf of our nation’s defenders. Also new to this issue is the column on page 19, “Leaders on the Frontline” by Stewart Hunter and Jim McMahan of Benchmark Mortgage. In this first installment, we hear from these two execs who lead from the trenches about “Leadership’s Top Priorities.”
Rounding out the issue… Other articles of note in the February 2011 issue include the return of Jeff Mifsud’s “FHA Insider” series on page 17, “Complaint Filed With HUD: Will Lenders be Forced to Accept FHA Minimum Scores?;” in our second installment of “Lykken on Leadership” on page 18, David Lykken breaks down the “7 Cs” or characteristics of what makes a strong leader; “The NAMB Perspective” on page 21 from NAMB Board member Deb Killian where Deb shares a real-life example of closing loans in today’s tough regulatory environment; Part VI of Atare E. Agbamu’s “FIT for Reverse Mortgage Lenders” series on page 22 discussing reverse mortgages and life decisions; “Value Nation” from Charlie W. Elliott on page 32 discussing a rebound in the housing market; and a look at “Trends in Mortgage Lending for 2011” on page 33 from Christopher Brown Esq. of the law firm of Begos Horgan & Brown LLP. Until next month …
Andrew T. Berman, Executive Vice President NMP Media Corp.