Hawaii Mortgage Professional Magazine July 2015

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NationalMortgageProfessional.com

n Hawaii Mortgage Professional Magazine n JULY 2015

HAWAII EDITION

Hawaii Association of Mortgage Professionals State Office P.O. Box 1074 v Honolulu, HI 96808-1074 HAMB Web site: www.hamb.org HAMB Officers & Directors 2015 OFFICERS Phone #

Tiare Fullerton

E-mail

President

(808) 347-1028

tfullerton@mahiloans.com

Cathy Lee

President

(808) 585-7221

clee@cbllending.com

Dennis Oshiro

Vice President

(808) 523-8115

------------

Donald Lau

Secretary

(808) 732-8893

donald.lau@hawaiiantel.net

Tiare Fullerton

Treasurer

(808) 347-1028

tfullerton@mahiloans.com

Dawn Smith

Director

(808) 591-1300

dawnsmith808@gmail.com

Tiare Fullerton

Immediate Past President

(808) 347-1028

tfullerton@mahiloans.com

Cathy Santa Ana

Executive Administrator

Donald Lau

By-Laws Committee

(808) 732-8893

Cathy Lee

Education Committee

(808) 585-7221

clee@cbllending.com

Jean Savoy

Ethics & Grievance Committee

(808) 630-0166

jeans@financefactors.com

Stephen Higa

Fundraising Committee

(808) 783-4442

steve@harborfi.com

Dennis Oshiro

Golf Club

(808) 523-8115

------------

Claude Phillips

Legislative Committee

(808) 220-1504

mpclaude@aol.com

Stephen Higa

Long Range Planning

(808) 783-4442

steve@harborfi.com

Cathy Lee

Long Range Planning

(808) 585-7221

clee@cbllending.com

Lisa Kahihikolo

Monthly Seminars Committee

(808) 479-4379

lisa.kahihikolo@fnf.com

Stephen Higa

State Conference & NAMBWEST Committee

(808) 783-4442

steve@harborfi.com

Cathy Lee

Technology Committee

(808) 585-7221

clee@cbllending.com

------------

catsa@hamb.org

COMMITTEE CHAIRS donald.lau@hawaiiantel.net

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calendar of events HAMB

Wednesday, August 19

Thursday, August 27 HAMB 24th Annual State Conference “Carpe Diem” Japanese Cultural Center of Hawaii Manoa Grand Ballroom 2454 South Beretania Street Honolulu, Hawaii SEPTEMBER 2015

Wednesday, September 16 HAMB Golf Club Hawaii Prince Golf Club 91-1200 Fort Weaver Road Ewa Beach, Hawaii Noon

For information on all HAMB events, visit www.hamb.org.

n Hawaii Mortgage Professional Magazine n JULY 2015

HAMB Golf Club Waikele Golf Club 200 Paioa Place Waipahu, Hawaii Noon

NationalMortgageProfessional.com

AUGUST 2015

JULY 2015 n Hawaii Mortgage Professional Magazine n NationalMortgageProfessional.com

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Save the Date Thursday, August 27

HAMB 24th Annual State Conference “Carpe Diem” Japanese Cultural Center of Hawaii Manoa Grand Ballroom 2454 South Beretania Street Honolulu, Hawaii Don’t let this chance pass you by ...

This year marks the 24th year of the annual Hawaii Association of Mortgage Brokers (HAMB) State Conference. The theme this year is “Carpe Diem” or “Seize the Day.” Take this opportunity to expand your network, while earning your required eight continuing education credits for maintaining your NMLS registration.

Schedule of events 7:30 a.m.-8:00 a.m. ....Registration and Coffee & Continental Breakfast 8:15 a.m.-12:15 p.m ..David Luna CE Class (Part 1) 12:25 p.m.-1:25 p.m...Lunch 1:30 p.m.-5:30 p.m.....David Luna CE Class (Part II) 5:45 p.m.-8:30 p.m.....After Dark Party (Heavy Pupus, Networking and Lender Roundtables)

HI 3

About the speaker

n Hawaii Mortgage Professional Magazine n JULY 2015

For more information, e-mail Steve Higa at steve@harborfi.com or visit www.hamb.org.

NationalMortgageProfessional.com

David Luna is president of Mortgage Educators, an NMLS-approved provider. As a mortgage professional for more than 30 years, David has instructed thousands of mortgage professionals through live and online course formats, and is a proven mortgage producer, having closed 7,000-plus loans.

David has held several positions in the mortgage industry, including branch manager; principal lending manager and vice president of production just to name a few. He also sat on local and national mortgage association boards, has served as one of his state’s mortgage regulators, and is active in developing NMLS education on both the state and national level.

24th Annual

State Conference Thursday, August 27, 2015

Japanese Cultural Center of Hawaii Manoa Grand Ballroom • 2454 S. Beretania Street • Honolulu, HI 96826

Event Schedule 7:30 AM - 8:00 AM Registration Coffee & Continental Breakfast

8:15 AM - 12:15 PM David Luna CE Class (Part 1)

12:25 PM - 1:25 PM HI 4

Lunch

1:30 PM - 5:30 PM

JULY 2015 n Hawaii Mortgage Professional Magazine n

NationalMortgageProfessional.com

David Luna CE Class (Part 2)

5:45 PM - 8:30 PM After Dark Party (heavy pupus, networking, and lender round tables)

About The Speaker David Luna is the President of Mortgage Educators, an NMLS approved provider. As a mortgage professional for over 30 years, he has instructed thousand of mortgage professionals through live and online course formats, and is a proven mortgage producer having closed over 7,000 loans.

For additional information E-mail Steve Higa at Steve@HarborFi.com

MONDAY BROUGHT TO YOU BY

Master the Markets with Barry Habib Recap of key economic events that took place over the past week and a look ahead to events that will potentially impact interest rates in the housing market.

Airs every Monday at 7 a.m. EST Gain access to an exclusive FREE TRIAL OFFER from MBS Highway for Mortgage News Network viewers, visit MBSHighway.com/mnn

The Industry’s Latest Topics Five Days A Week!

COMING IN JULY ...

TUESDAY BROUGHT TO YOU BY

Trend Spotter What are the top housing and financial planning trends impacting your business?

How can you capitalize on these opportunities? Find out this and more.

Airs every Tuesday at 7 a.m. EST

WEDNESDAY BROUGHT TO YOU BY

Grow Your Business

1

Build a billion dollar business by implementing the tactics of the industry’s first Billion Dollar Originator, Greg Frost.

Airs every Wednesday at 7 a.m. EST For more information on taking your business to the next level, visit PrimaryResidentialMortgage.com NationalMortgageProfessional.com

THURSDAY BROUGHT TO YOU BY

Hash It Out with Frank Garay & Brian Stevens

Airs every Thursday at 7 a.m. EST For more information on REMN Wholesale vist REMNWholesale.com

FRIDAY BROUGHT TO YOU BY

Compliance Matters Lenders Compliance Group provides practical advice regarding current mortgage compliance topics.

Airs every Friday at 7 a.m. EST For more information on Lenders Compliance Group, visit LendersComplianceGroup.com

n Hawaii Mortgage Professional Magazine n JULY 2015

Hard-hitting, fact based look at some of the most important issues facing the home finance industry today – with a bit of humor and irreverence thrown in.

If you have a product or service for mortgage professionals you can be a sponsor for these videos.

For more information about these sponsorships or Mortgage News Network custom video productions please send an email to Info@MortgageNewsNetwork.com or call Beverly Bolnick, VP-Sales & Marketing, at 516-409-5555 ext. 4 and she'll tell you how you can be part of the action!

Visit www.MortgageNewsNetwork.com to see these videos and a lot more and to sign up to receive the Mortgage News Network show alerts!

28

N A T I O N A L

M O R T

Is the Decline in Bank Mortgage Originations a Bad Thing?

By Brian Sacks

36 NMP’s Mortgage Professional of the Month: Christine Pollard, Immediate Past President, NAPMW

By Phil Hall

J U L Y

2 0 1 5

l

V O L U

A SPECIAL FOCUS ON “SOCIAL MEDIA” Utilizing Social Media to Boost Your Brand By Tiffany Hade....................56 The Importance of Social Media By Ashley Lubey ....................................58 Four Places Every Mortgage Lender Needs to be Social Online

By Erica Tafavoti ............................................................................................60 Video as a Relationship Building Tool By Adam P. Smith ........................62 Social Media and Your Brand By Brent Emler ............................................63 Face the Book By Eric Weinstein..................................................................65 Engaging Borrowers at Mobile Speed By David Hultquist ........................66 A Happy Medium: Three Steps to Staying Compliant on Social Media

By Maureen Cioni ..........................................................................................68

40

NAMB National By Nathan Pierce ..................................................................8

Closing Disclosure: Deep Dive—Pages One and Two

By Jonathan Foxx

One-Size-Fits-All Lead Generation ............................................................16

FEATURES The Elite Performer: Embrace Momentum By Andy W. Harris, CRMS ......8 Four Tips to Tap the Growing Hispanic Real Estate Market

By Bubba Mills................................................................................................10 Five Tips for Effective Direct Mail Pieces By K. Justin Restaino ..............18 NAMB Perspective........................................................................................20 Do You Know Any of These People? By Brian Sacks ................................26 The Fastest Route to Career Advancement By Kerry Elam ......................30

25 2015

43 2015’s 25 Most Connected Mortgage Professionals

MOST CONNECTED MORTGAGE PROFESSIONALS

70 New Rules: Large Added Costs for Lenders and Borrowers Alike

By Tom LaMalfa

V I S I T Company

Web Site

O U R

A Page

Academy Mortgage ............................................ www.academymortgage.com ..........................................69 Agility Resources Group ...................................... www.agilityresourcesgroup.com ......................................55 American Financial Resources Inc. ...................... www.afrwholesale.com/wd-benefits ....................Back Cover Angel Oak Mortgage Solutions ............................ www.angeloakms.com ..................................................35 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................88 Caliber Home Loans.............................................. www.caliberhomeloans.com ............................................53 CallFurst.com ...................................................... www.callfurst.com ............................................................61 CAMP .................................................................. www.thecampsite.org ......................................................72 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................31 & 58 Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................7 Equity Prime LLC................................................ www.equityprime.com ..........................................34 & 57 FAMP ................................................................ www.myfamp.org ..........................................................47 First Guaranty Mortgage Corp. ............................ www.fgmc.com ..............................Inside Front Cover & 47 Flagstar Bank .................................................... www.flagstar.com/ae ....................................................17 Freedom Mortgage Corporation .......................... www.freedomwholesale.com ............................29, 60 & 81 HAMB .............................................................. www.hamb.org ............................................................HI4 HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................13 iServe Residential Lending, LLC .......................... www.joiniserve.com ......................................................19 Lykken On Lending ............................................ www.lykkenonlending.com ............................................74

T G A G E

M E

P R O F E S S I O N A L

7

N U M B E R

7

Lenders Beware: “Liability After Foreclosure” Disclosure Presents Compliance Risk By Richard Horn ..............................................32 NMP’s Economic Commentary: The Fed, Greece and Employment

By Dave Hershman ........................................................................................34 Opportunity Lies Ahead in Non-Agency Lending By Tom Hutchens........38 Find “Friends” and New Business on Social Media By Mike Jensen ......42 Lykken on Lending: Ten Things You Must Manage to be Successful in the Mortgage Industry By David Lykken ................................................50 The Long & Short: The Business of Short Sales By Pam Marron ............52 Just Ask Eric & Laura By Eric Weinstein & Laura Burke ............................54 The Power of Leadership By Keith Bilodeau ..............................................76 NAPMW Report: July 2015 By Kelly Hendricks ..........................................80 MBA’s Mortgage Action Alliance: A Message From MAA Chairman Fowler Williams..................................................................82

COLUMNS New to Market..............................................................................12 News Flash: July 2015 ................................................................14 Heard on the Street ....................................................................39 Outstanding Places to Work ......................................................84 NMP Calendar of Events ............................................................85 NMP Resource Registry..............................................................86

D V E R T I S E R S Company

Web Site

Page

MBS Highway .................................................... www.mbshighway.com/MNN ..........................................33 Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ......................................1 Movetube.......................................................... www.movetube.com ......................................................83 NAMB+ ............................................................ www.nambplus.com ......................................................25 NAMB National .................................................. www.nambnational.com ..........................................3 & 27 NAPMW ............................................................ www.napmw.org ....................................................49 & 64 NAWRB ............................................................ www.nawrb.com ............................................................77 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................15, 51 & Inside Back Cover PB Financial Group Corp..................................... www.calhardmoney.com ................................................67 PreApprovalLetter.com ...................................... www.preapprovalletter.com/lender ................................63 Radian Guaranty ................................................ www.radian.biz ............................................................59 RCN Capital ...................................................... www.rcncapital.com ......................................................75 REMN Wholesale ................................................ www.remnwholesale.com ......................................HI1 & 5 TagQuest .......................................................... www.tagquest.com ........................................................79 The Bond Exchange............................................ www.thebondexchange.com ..........................................50 The National Real Estate Post.............................. www.thenationalrealestatepost.com ..............................72 Titan List & Mailing Services, Inc. ........................ www.titanlists.com ..........................................................9 United Wholesale Mortgage ................................ www.uwm.com ..............................................................11

JULY 2015 Volume 7 • Number 7 FROM THE

How “Connected” Are You?

1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com STAFF Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 ericp@nmpmediacorp.com

Joel M. Berman Publisher - CEO (516) 409-5555, ext. 310 joel@nmpmediacorp.com

Joey Arendt Art Director (516) 409-5555, ext. 307 joeya@nmpmediacorp.com

Beverly Bolnick VP-Sales & Marketing (516) 409-5555, ext. 316 beverlyb@nmpmediacorp.com

Scott Koondel VP of Operations (516) 409-5555, ext. 324 scottk@nmpmediacorp.com

Phil Hall Managing Editor (516) 409-5555, ext. 312 philh@nmpmediacorp.com

Richard Zyta Social Media Ambassador (516) 409-5555 richardz@nmpmediacorp.com

Francine Miller Advertising Coordinator (516) 409-5555, ext. 301 francinem@nmpmediacorp.com

ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact VP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail beverlyb@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.

4

publisher’s desk

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 Consumer 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.

Looking back to the simpler days of my youth (circa 1960s-1970s), to be connected had a totally different meaning than today. It either meant you were or knew a member of organized crime families (okay … trying to be politically correct here!) or you had a contact to buy something wholesale. While both of these had no relationship with one another, both gave you an advantage others didn’t have. Well let’s fast-forward to 2015 and the definition of “connected” has taken on a whole new meaning. Through social media, being “connected” still delivers an advantage for you that others don’t have. Technology has created a connectivity that enables one to network through to discover new products and leads, not to mention even your next romantic interest, to name just a few.

Greg Frost, vice president of national training for Primary Residential Mortgage Inc. (PRMI), and host and presenter for Mortgage News Network’s “Grow Your Business” weekly video series, takes the concept of connectivity further. He looks at every transaction, i.e. a closing, as an opportunity to expand your sphere of influence and connect with more individuals. Look at each interaction as a lead generator and use the tools of social media to keep in touch with your newly acquired contacts. As he often says “it’s a numbers game.”

The more you reach out to connect the more opportunity you’ll have to turn those connections into profit opportunities.

His philosophy to connect extends beyond the initial interaction with his strong conviction that you need to take each successful outcome and harvest the potential referrals from those individuals. Frost encourages that, garnered with that information, you use the tools of the Internet and social media to form the next layer of individuals with whom you’ll maintain a connection.

For the individuals featured as “The 25 Most Connected Mortgage Professionals” in this edition, I congratulate you on your achievement to be nominated and selected for this coveted honor. Although based on what I saw in some of those nominations and the extent of your social media activities, I wonder if you’ll ever have time to read this column or even read this magazine and discover your recognition. All kidding aside, for those who understand the importance of being “connected” in the current era of technology, I give you a lot of credit. Extend your reach, compliantly of course, via social media and you will reap rewards that will make the time of your effort worthwhile.

In closing, in my old neighborhood in Ozone Park, Queens (where The Mortgage Press was born over 20 years ago) they had “social media,” but they called it “The Social Club.” Much has changed since then, but the concept of making “connections” remains the same. Use social media as a tool to extend your sphere of influence and your “club” will be filled with happy clients who proudly profess that you are their “go-to” guy or gal.

Hey … I have to run. I just got an e-mail with another source to get my lox (smoked salmon to the nonNew Yorkers) wholesale!

Sincerely, Joel M. Berman, Publisher-CEO NMP Media Corp. joel@nmpmediacorp.com

JULY 2015 n Hawaii Mortgage Professional Magazine n

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National Mortgage Professional Magazine is published monthly by NMP Media Corp. • Copyright © 2015 NMP Media Corp.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

EDITORIAL CONTRIBUTORS Featured Editorial Contributors Rocke Andrews, CMC, CRMS

John H.P. Hudson, CRMS

Laura Burke

Richard Horn

K. Justin Restaino

Fred Kreger, CMC

Maureen Cioni

David Hultquist

Brian Sacks

David Lykken

Kerry Elam

Tom Hutchens

Adam P. Smith

Pam Marron

Brent Emler

Mike Jensen

Erica Tafavoti

Nathan Pierce

Tiffany Hade

Ashley Lubey

Eric Weinstein

Kelly Hendricks

Bubba Mills

Fowler Williams

John Councilman, CMC, CRMS

Jonathan Foxx

Donald J. Frommeyer, CRMS

Andy W. Harris, CRMS

Dave Hershman

Editorial Contributors Keith Bilodeau

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n Hawaii Mortgage Professional Magazine n JULY 2015

NAMB The Association of Mortgage Professionals

National Association of Professional Mortgage Women

2701 West 15th Street, Suite 536 l Plano, TX 75075 Phone: (972) 758-1151 l Fax: (530) 484-2906 Web site: www.namb.org

2015-2016 NAPMW National Board of Directors

NAMB 2014-2015 Board of Directors OFFICERS John Councilman, CMC, CRMS—President AMC Mortgage Corporation 10136 Avalon Lake Circle l Fort Myers, FL 33913 Phone: (239) 267-2400 l E-mail: jlc@amcmortgage.com Rocke Andrews, CMC, CRMS—President-Elect Lending Arizona LLC 3531 North Pantano Road l Tucson, AZ 85750 Phone: (520) 886-7283 l E-mail: randrews@lendingarizona.net Fred Kreger, CMC—Vice President American Family Funding 28368 Constellation Road, Suite 398 l Santa Clarita, CA 91350 Phone: (661) 505-4311 l E-mail: fred.kreger@affloans.com Rick Bettencourt, CRMS—Secretary Mortgage Network 300 Rosewood Drive l Danvers, MA 01923 Phone: (978) 777-7500 l E-mail: rbettencourt@mortgagenetwork.com Andy W. Harris, CRMS—Treasurer Vantage Mortgage Group Inc. 15962 SW Boones Ferry Rd., Ste 100 l Lake Oswego, Oregon 97035 Phone: (503) 496-0431, ext. 302 E-mail: aharris@vantagemortgagegroup.com

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Donald J. Frommeyer, CRMS—Immediate Past President/NAMB CEO American Midwest Bank 200 Medical Drive, Suite C-2A l Carmel, IN 46032 Phone: (317) 575-4355 l E-mail: donald.frommeyer@gmail.com

1851 South Lakeline Boulevard, Suite 104, Box 303 Phone: (800) 827-3034 • E-mail: napmw@napmw.org Web site: www.napmw.org

National President Kelly Hendricks (314) 398-6840 president@napmw.org

Treasurer Judy Alderson (918) 250-9080, ext. 300 nattreasurer@napmw.org

President-Elect Nikki Bell (678) 442-3966 preselect@napmw.org

Parliamentarian Frances Reinhardt (678) 331-1384 freinhardt@firstservicetitle.net

Vice President Cathy Kantrowitz (845) 463-3011 nvp1@napmw.org

Vice President Laurel Knight (425) 412-6787 nvp2@napmw.org

Secretary Windee Falla (281) 556-9182 natsecretary@napmw.org

National Consumer Reporting Association 701 East Irving Park Road, Suite 306 l Roselle, IL 60172 Phone: (630) 539-1525 l Fax: (630) 539-1526 Web site: www.ncrainc.org

2014-2015 Board of Directors

JULY 2015 n Hawaii Mortgage Professional Magazine n

NationalMortgageProfessional.com

DIRECTORS Kay A. Cleland, CMC, CRMS KC Mortgage LLC 2041 North Highway 83, Unit CPO Box 783 l Franktown, CO 80116 Phone: (720) 670-0124 l E-mail: kay@kcmortgagecolorado.com

Mike Brown President (908) 813-8555, ext. 3020 mbrown@cisinfo.net

Judy Ryan Director Credit Plus (800) 258-3488 judy.ryan@creditplus.com

John H.P. Hudson, CRMS Premier Nationwide Lending 1202 W. Bitters Road, Bldg. 1, Ste. 1205 San Antonio, TX 78216 Phone: (817) 247-4766 l E-mail: jhudson@pnlending.com

William Bower Vice President (800) 288-4757 wbower@continfo.com

Mike Thomas Director (615) 386-2285, ext. 285 mthomas@ciccredit.com

Maureen Devine Ex-Officio (413) 736-4511 mdevine@strategicinfo.com

Dean Wangsgard Director (801) 487-8781 dean@nacmint.com

Julie Wink Treasurer (901) 259-5105 julie@datafacts.com

Terry Clemans Executive Director (630) 539-1525 tclemans@ncrainc.org

Renee Erickson Conference Chair (866) 932-2715 renee@zipreports.com

Jan Gerber Office Manager/Member Services (630) 539-1525 jgerber@ncrainc.org

Olga Kucerak, CRMS Crown Lending 110 Broadway, Suite 360 l San Antonio, TX 78205 Phone: (210) 828-3384 l E-mail: olga@crownlending.com David Luna, CRMS Mortgage Educators and Compliance 947 South 500 E, Suite 105 l American Fork, UT 84003 Phone: (877) 403-1428 l E-mail: david@mortgageeducators.com Linda McCoy, CRMS Mortgage Team 1 Inc. 6336 Piccadilly Square Drive l Mobile, AL 36609 Phone: (251) 650-0805 l E-mail: linda@mortgageteam1.com Valerie Saunders RE Financial Services 13033 West Lindburgh Avenue l Tampa, FL 33626 Phone: (866) 992-0785 l E-mail: valsaun@gmail.com John Stevens, CRMS Bank of England d/b/a ENG Lending 11650 South State Street, Suite 350 l Draper UT 84062 Phone: (801) 427-7111 l E-mail: jstevens@englending.com

Mary Campbell Director (701) 239-9977 mary@advantagecreditbureau.com

Scott Ledbetter Director (801) 375-5522 sledbetter@propertysolutions.com

We wish to thank our loyal employees, computer wizards, amazingly supportive clients and every other person that has been a part of DocMagic becoming the company it is today.

Excited about the future, we have new magic up our sleeves for the innovative solutions our industry will be needing next.

Happy Birthday, Doc! 7

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25 Years of Innovative Loan Document and Compliance Solutions!

1.800.649.1362 I www.DocMagic.com

The CFPB has selected DocMagic to participate in its eClosing Pilot Program.

To ďŹ nd out more, click the code or visit our website.

Photo credit: castillodominici

NAMB National The Nation’s Largest Conference and Trade Show for Mortgage Professionals October 17-19, 2015 Luxor Hotel and Casino • Las Vegas, Nevada

By Nathan Pierce

JULY 2015 n Hawaii Mortgage Professional Magazine n

NationalMortgageProfessional.com

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NAMB, The Association of Mortgage Professionals returns to Las Vegas, Nevada for NAMB National conference and tradeshow on Saturday, October 17. Mortgage professionals from across the country will convene at the fabulous Luxor Hotel and Casino for three days filled full of educational and networking events.

This year will feature guest speaker Don Mann, author of the autobiography Inside SEAL Team Six: My Life and Missions with America’s Elite Warriors. Attendees will be able to choose from multiple education tracks, including, a compliance track, an innovation track, and a marketing track. In addition, those needing to complete their required NMLS continuing education courses will be able to do so at the conference.

This year’s tradeshow will be larger than ever with over 60 exhibitors, ranging from wholesale lenders, technology providers, sales and marketing companies, credit solutions, education providers, and many more. Exhibitors will offer education, discounts, and of course prizes. The conference with also host the annual Mortgage Professional of the Year Gala which recognizes elite mortgage professionals that work tirelessly to improve the mortgage industry. New this year will be a Certified Residential Mortgage Specialist (CRMS) and Certified Mortgage Consultant (CMC) preparation workshop for those wishing to earn one of these distinguished professional designations.

Attendees will have the opportunity to register for FREE using discount codes that will be made available through the exhibitors. Discount codes will be emailed directly from exhibitors beginning in July.

As the mortgage industry continues to change it has become increasingly more important for mortgage professionals to separate themselves from the average mortgage employee. Learning to adapt to changing marketing strategies, such as, social media advertising is vital to your success. Understanding the effects of legislative changes before they occur will make them easier to implement into your business. At NAMB National all of these topics will be discussed along with many more.

Begin planning today to attend the nation’s largest mortgage professional conference and tradeshow. We look forward to seeing you in Las Vegas!

Visit www.nambnational.com for more information.

Nathan Pierce is the chairman of NAMB National. He is a Certified Residential Mortgage Specialist and the president of Advanced Funding Home Mortgage Loans in Salt Lake City, Utah.

SPONSORED EDITORIAL

THE

elite performer Embrace Momentum

By Andy W. Harris

’ve noticed a common subconscious behavior of self-sabotage that many of us experience without being aware of it. It happens when we’re facing a level of success that is new to us. When we’re close to a breakthrough in income or business advancement, it’s as if we create these invisible brakes that slow us down and keep us at a level of consistency in our pre-set comfort zone. There are a number of behaviors and mental blocks that can get in our way, causing us to pump the brakes, but when we see we’re ahead in the race there is no better time to hit the gas pedal.

Momentum is defined by the quantity of motion, measured by a product of its mass and velocity. It makes sense then if our business is experiencing momentum, that we embrace it and jump on board to fully embrace the ride. Instead, a number of factors get in “A person who doubts the way. For some of us, it could be that we never think things can be this himself is like a man who good, or that they continue in such a would enlist in the ranks positive manner. For others, there may be a sense of guilt related to success if of his enemies and bear you were raised at a humbling level arms against himself. He financially. Many of us don’t want to lose ourselves or become a different makes his failure certain person.

Strangely enough, some people are by himself being the first afraid to succeed, but not fail. It may person to be convinced be related to the anxiety that success of it.” can bring that many experience, especially when it comes on quickly. It’s —Ambrose Bierce almost as if you feel like you’re walking on eggshells, waiting for something to go wrong. When in reality, likely you’re subconsciously the root of the problem by developing fears artificially. It’s important that when you face a new level of success that you step back and take a breath. Remember your values, who you are, and how you got to where you’re at. Embrace the success and jump on to ride the wave.

I

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, e-mail aharris@vantagemortgagegroup.com or visit www.vantagemortgagegroup.com.

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Four Tips to Tap the Growing Hispanic Real Estate Market

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By Bubba Mills Here’s an undeniable fact: Hispanics are playing a huge role in the U.S. real estate market and they’ll continue to do so. Ignore this point at your peril.

The Wall Street Journal has just reported that Hispanics are the fastestgrowing segment in the both first-time buyers and luxury markets.

Plus, in five years, four out of every 10 new households that form in the U.S. will be headed by someone of Hispanic descent—more than any other single racial or ethnic group, reports the Demand Institute, a nonadvocacy, non-profit think tank. In fact, in 2014, 320,000 new Hispanic households were formed, representing an astounding 40 percent of total U.S. household growth.

And the National Association of Hispanic Real Estate Professionals (NAHREP) says that since 2000, the number of Hispanic owner households has increased 61 percent, and every year, one million U.S.-born Hispanics enter adulthood. What’s more, 65 percent of top agents in NAHREP surveyed expect 2015 to be a “breakout year” for Hispanic homeownership because many Hispanics

“…the National Association of Hispanic Real Estate Professionals (NAHREP) says that since 2000, the number of Hispanic owner households has increased 61 percent, and every year, one million U.S.-born Hispanics enter adulthood.” are credit-ready and would buy now if homes were available.

“This is a story of pent-up demand. Latinos are ready to buy homes now. Their biggest obstacle coming into today’s market isn’t credit; it’s lack of available housing,” said Jason Madiedo, president of NAHREP. “The readiness of this firsttime buyer market represents a whole new purchase cycle that can drive recovery in local communities and put the housing recession behind us once and for all.”

Is your mouth watering? It should be.

Here are four tips you can start using

Hispanics. Take time to meet with him or her and discuss their specific needs.

3. Realize the Hispanic population has different lending needs The incoming president of NAHREP, Teresa Palacios Smith, says in 2014, Hispanics were turned down for loans at twice the rate of White borrowers.

“Hispanics in general have different underwriting needs, as there may be several family members living together and several wage earners contributing to household income. Some may be selfemployed,” Smith said. “All these factors make it more difficult to qualify for a loan.”

today to tap the growing Hispanic market:

4. Network with your nearest NAHREP chapter

1. Take time to build the relationship

Smith has said one of her goals as the new president of NAHREP is to facilitate relationships between industry stakeholders, real estate professionals and housing professionals.

“We want everyone to know what NAHREP is and to realize it’s a place where you can’t afford not to be a member,” Smith said.

In general, Hispanics interact in a more personal manner and prefer to connect on a personal level before getting into the details of business. So take your time before going into sales mode.

2. Team up with a good real estate agent who serves the Hispanic population You can learn a lot from a good agent who has experience working with

Bubba Mills is executive vice president of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 9578353 or visit www.corcorancoaching.com.

YOUNITED IS YOU AND UWM

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consistent turn times in the industry. You have direct access to the industry’s most knowledgeable AE’s, underwriters and support teams. We offer programs to build your business and help you stay connected to your borrowers. Being Younited is having a partner that has your back 24/7 - no matter what. It means we’re a success only when you are. That’s why more brokers choose UWM than any other lender.

800.981.8898 | UWM.COM This information is provided to mortgage and real estate professionals only and is not intended nor is it authorized for consumer distribution.

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At UWM we focus on YOU, not the transaction. When you’re Younited, you have the fastest and most

DocMagic Kicks Off TRIDCompliant Testing of SmartCLOSE Portal

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DocMagic has announced that a group of clients have begun to test the features and functionality available within its new Collaborative Closing Portal, SmartCLOSE. The portal was made available to nearly 250 lenders last week to start working with the system and provide comments. The complete product will be rolled out in two planned phases as features are continuously added and the solution is enhanced.

“The idea behind releasing SmartCLOSE to a select group of clients for initial testing is that it will help us refine the feature set to ensure we provide the very best TRID closing portal,” said Dominic Iannitti, president and CEO of DocMagic. “The workflow and functionality is already incredibly intuitive and every screen is designed with simplicity in mind.”

SmartCLOSE offers a secure, centralized online environment for lenders, settlement providers, and other associates to share, validate, audit, track and collaborate on documents, data and fees. DocMagic’s Audit Engine runs continuously behind the scenes to ensure compliance for any changes that may affect tolerance levels, calculation reconciliation and potential RESPA violations. Everything is accessible within SmartCLOSE, including the eSigning and eDelivery of documents.

DocMagic’s Audit Engine captures who changed what, what was changed, what you need to fix and why, and all of the electronic evidence to log and complete all transactions in full compliance.

“There a lot of closing portals that have been recently announced to address TRID compliance, but we believe most fall short in adequately tracking tolerance levels, changes in circumstance, and other very complex aspects of TRID compliance,” said Iannitti. “There is a great deal of work and complex problem-solving required to create a robust portal that addresses every facet of TRID compliance while providing a truly dynamic and collaborative workflow environment. Our TRID wizards have been very busy.”

Credit Plus Enhances Its Credit Scoring Tools

Credit Plus Inc. has announced that it has enhanced both its ScoreWizard and Lending Hand programs, giving loan officers the ability to simulate the removal of an account in dispute to better measure the possible impact on a borrower’s credit score.

ScoreWizard is a tool that helps borrowers make better financial decisions to improve their chances of being approved for a mortgage loan. It quickly and easily generates a detailed analysis of the consumer’s credit score and includes a “What If Simulator” that can simulate changes to the consumer’s credit file and predict the score that may result from those changes.

Lending Hand is a service that utilizes the experience of Credit Plus’ credit experts to give mortgage loan applicants the highest probability of a successful rescore. Working directly with loan officers, these experts develop customized solutions for applicants. The loan officers, in turn, present each solution to their applicants which include an indepth analysis of each credit file, an evaluation of how financial decisions may impact their credit score and timeline, and a personalized, action plan.

“Our scoring tools aren’t meant to artificially inflate borrowers’ credit scores.

Rather, they are there to help mortgage professionals educate applicants on their financial health and make them aware of various situations that may positively or negatively impact their scores,” said Greg Holmes, national director of sales and marketing for Credit Plus. “Simulating the removal of an account in dispute is just another way to do that.”

radius financial Develops Training Program to Target Millennial Homebuyers radius financial group inc. has announced the launch of a paid train-

ing program called Next Generation Independent Mortgage Banker or “Nex Gen IMB” for short. Keith Polaski, radius financial group inc.’s founder, principal and chief operations officer, developed the program to address the issue of an aging workforce and the needs of future Millennial homebuyers. The 12-week training program focuses on a core curriculum around sales, operations and marketing to teach candidates about the residential mortgage loan business and prepare them to be loan officers, sales support and operations.

At the end of the program, candidates will be tested and the best will be offered employment with radius financial.

“When we thought about the future of this business, it really came down to the people,” said Polaski, radius financial’s founder and principal. “Nex Gen IMB allows us to teach the next generation about the mortgage loan business and pass along what our leadership team has learned in their more than 15 years’ experience in this industry.”

The Nex Gen IMB program interviewed over 40 candidates from across Massachusetts and narrowed it down to 20 to undertake the training program.

The candidates range in age between 2139 and they are graduates of Boston University, UConn and Villanova to name a few colleges.

“We’re looking for smart, technology proficient and analytical individuals who are excited about this industry,” said Polaski. “Nex Gen IMB seems like a Survivor-like competition pitting these potential job candidates against each other, but in reality we’re teaching them how to work together towards a common goal—to service and provide a quality loan to a future homebuyer.”

help mortgage lenders produce and deliver accurate, TRID compliant Loan Estimates (LE) and Closing Disclosures (CD). After Aug. 1, the mortgage industry will begin using a revised set of forms to disclose to consumers the costs of loans, making them easier to understand and giving borrowers greater confidence in the estimates provided.

The Consumer Financial Protection Bureau (CFPB) rule will prevent fee and rate changes by lenders after the initial LE is disclosed and before the CD is issued, just prior to closing. The CFPB created the new disclosure rule, known as the TILA-RESPA Integrated Disclosure (TRID), as a result of the Dodd-Frank Wall Street and Protection Act. Calyx’s Point 9.2 release provides and automates the new LE and CD forms, and includes enhancements to ensure the generation of accurate and compliant disclosures.

“We learned recently that some origination software systems are only supporting TRID compliant LE and CD going forward from Oct. 3,” said Doug Chang, president of Calyx. “This means some lenders will have to stop originating loan types that still use the old forms after TRID goes into effect. It was quite challenging to continue supporting the current disclosures as well as adding the new disclosures within one system, and we are pleased that we managed it. We worked hard to maintain a user-friendly solution and limit the changes to a minimum, keeping many of the familiar steps and screens intact.”

LoyaltyExpress Releases New CRM Solution

Calyx Announces LoyaltyExpress has announced the TRID-Compliant Point 9.2 release of CustomerManager 6.0, an Solution enhanced version of its flagship CRM

Calyx Software has announced that the company’s Point Version 9.2 is ready to

technology. This new release builds on the company’s initial integration with Ellie Mae’s Encompass all-in-one mortgage management solution by including the ability to pass additional data

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EWSFLASH l JULY 2015 l NMP NEWSFLASH l JULY 2015 NMP NEWSFLASH l JU TransUnion: 700,000 Boomerang Buyers to Return in 2015

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More than 1.5 million homebuyers negatively impacted by the financial crisis could potentially reenter the mortgage market in the next three years, according to a new study from TransUnion. This population of consumers negatively impacted by the financial crisis—commonly known as boomerang buyers—was defined by TransUnion as being 60plus days delinquent on a mortgage loan, having lost a mortgage through foreclosure, short sale or other nonsatisfactory closure, or having a mortgage loan modification.

TransUnion’s study found that approximately 700,000 boomerang buyers may be able to re-enter the housing market in 2015. Over the next five years, TransUnion anticipates 2.2 million boomerang buyers could re-enter the market.

The study analyzed the overall U.S. credit-active population at the end of 2006 (the end of the mortgage Bubble), the end of 2009 (the end of the Burst) and in 2014 to determine consumers’ ability to re-enter the mortgage market.

“Based on our study findings, the Burst had a significant and dramatic impact on many consumers’ ability to re-enter the mortgage market after suffering through the downturn,” said Joe Mellman, vice president and head of TransUnion’s mortgage group. “It’s been over seven years since the beginning of the mortgage crisis; this is significant because many derogatory items, such as foreclosures and short sales can prevent consumers from qualifying for a new mortgage for a period of time. The timing of that challenge can vary: for example, four years must pass after a short sale and seven years must pass after a foreclosure. As consumers responsibly manage their credit and pass these milestones, we anticipate a tide of

newly mortgage-eligible consumers entering the market.”

TransUnion analyzed, on a depersonalized basis, every consumer it could longitudinally track between 2006 and 2014, which came to 180 million consumers. During the mortgage Bubble in 2006, 43 percent of that population, or 78 million consumers, had a mortgage.

Approximately eight percent of these consumers had a negative impact on their mortgage—60-plus days delinquent, foreclosure, etc.—between the Bubble and Burst.

TransUnion analyzed this impacted population of seven million consumers to determine how many consumers had recovered to meet agency credit underwriting guidelines by the close of 2014. The study found that only 18 percent of consumers impacted had recovered by December 2014. However, the study found that 2.2 million of the remaining 5.7 million unrecovered consumers could meet agency underwriting guidelines over the next five years.

According to TransUnion’s study, 42 percent of the recovered consumers currently have a mortgage, while 58 percent of the recovered consumers have not yet re-entered the mortgage market.

Genworth Study Finds Lack of Confidence in Today’s Homebuyers Genworth Mortgage Insurance, a unit of Genworth Financial Inc., recently presented research showing that a majority of lending executives surveyed believe many eligible borrowers do not feel they can realistically purchase a home. The findings stem from a poll of 113 lending executives

conducted at this year’s MBA Secondary Conference where this point of view was voiced by 66 percent of respondents.

“Everything that private mortgage insurance stands for is about helping more borrowers become homeowners,” said Rohit Gupta, president and CEO of Genworth Mortgage Insurance. “Many qualified borrowers are uncertain about their own eligibility so it’s critical for our industry to be proactive about encouraging homebuyer education as a tool to help borrowers fully understand how the home buying process will work for them.”

Nationwide Settlement Monitor: One of Five Servicers Fails Metrics Test

Joseph A. Smith Jr., Monitor of the National Mortgage Settlement (NMS), has released a summary of five reports he filed with the United States District Court for the District of Columbia. This summary includes updates on compliance by Bank of America, Chase, Citi, Green Tree and Wells Fargo with the NMS mortgage servicing rules during the third and fourth quarters of 2014.

Joseph Smith reports in the Compliance Update that he and his professionals uncovered one failed test in the second half of 2014. Citi failed one of the new metrics Smith and the Monitoring Committee negotiated related to the loan modification process. Neither Bank of America, Chase, Green Tree nor Wells Fargo failed in any of the metrics tested in the second half of 2014.

“I am pleased to see that the servicers are adhering to the NMS’s servicing rules, which aim to give borrowers better experiences,” Smith

said. “Among five servicers and over six months, only one failure was uncovered, and of the servicers who had earlier fails to address, the corrective actions put in place were successful. Green Tree completed eight corrective action plans (CAPs) to address the root causes of its previous fails. During the cure period, which is Green Tree’s chance to fix the issue, I found no evidence of any failures. Citi failed one of the new metrics the Monitoring Committee and I negotiated to address the loan modification process. It also implemented an approved CAP and cured the fail in the next quarter.”

Compliance Update does not include Ocwen’s compliance. In April, Smith reported issues he found with the integrity of Ocwen’s IRG and with letter-dating processes.

“My team is still in the process of reviewing Ocwen’s compliance testing for the first and second quarters of 2014. I will report to the Court and the public when I am confident that the results are complete. It is important that we take the time to verify the accuracy of Ocwen’s work,” Smith said.

Compliance Update summarizes the fifth set of compliance reports on four of the original parties to the Settlement—Bank of America, Chase, Citi and Wells Fargo. This is the third report on Green Tree.

Interthinx: Mortgage Fraud Decreases as Market Stabilizes Interthinx Inc., a subsidiary of First American Financial Corporation, has released its annual interactive Mortgage Fraud Risk Report, which includes data collected in 2014 from loan applications processed by the Interthinx FraudGUARD system. According to the report, the 2014 Annual Mortgage Fraud Risk Index value is 100, a four percent decrease from

2013 that signals a halt in the gradually rising trend observed in the previous four years. Of the four type-specific fraud risk indices Interthinx tracks— Property Valuation, Identity, Occupancy and Employment/ Income—only Property Valuation Risk increased (by 17 percent).

“After three years of increasing fraud risk, the 2014 data show both an overall decrease and a shift to more localized concentrations of specific fraud types,” said Jeff Moyer, chief product and strategy officer at First American Mortgage Solutions. “In no way diminishing the imperative for lenders, servicers and investors to remain vigilant, overall market stabilization does allow our industry to focus on more highly targeted strategies to address specific fraud threats.”

The Mortgage Fraud Risk Report is created by an internal team of fraud experts in order to provide deeper insight into current fraud trends through the analysis of millions of loan applications collected from the Interthinx FraudGUARD loan-level fraud-detection tool.

mercial/multifamily mortgage debt outstanding increased by $40.4 billion in the first quarter of 2015, as all four major investor groups increased their holdings, a 1.5 percent increase over the fourth quarter of 2014. Total commercial/multifamily debt outstanding stood at $2.68 trillion at the end of the first quarter.

Multifamily mortgage debt outstanding rose to $989 billion, an increase of $20.6 billion, or 2.1 percent, from the fourth quarter of 2014.

“Strong first quarter mortgage originations boosted the level of commercial and multifamily mortgage debt outstanding,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research.

“Multifamily mortgages continued to grow even more quickly than the market as a whole, with banks increasing their portfolios by $8 billion and agency and GSE portfolios and MBS increasing their holdings by $10 billion.“ The four major investor groups are: Bank and Thrift; Commercial Mortgage-Backed Securities (CMBS), Collateralized Debt Obligation (CDO) and other Asset-Backed Securities (ABS) issues; Federal Agency and Government-Sponsored Enterprise (GSE) Portfolios and Mortgage-Backed Securities (MBS); and Life Insurance Companies.

CMBS, CDO and other ABS issues are the second largest holders of

commercial/multifamily mortgages, holding $534 billion, or 20 percent of the total. Agency and GSE portfolios and MBS hold $422 billion, or 16 percent of the total, and life insurance companies hold $363 billion, or 14 percent of the total. Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the “CMBS, CDO and other ABS” category.

Looking solely at multifamily mortgages, agency and GSE portfolios and MBS hold the largest share, with $422 billion, or 43 percent of the total multifamily debt outstanding. continued on page 16

Fannie Mae Eliminates Desktop Underwriter Fee

According to the Mortgage B a n k e r s Association (MBA), the level of com-

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Q1 Commercial/ Multifamily Mortgage Debt Shows Continuous Growth

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Fannie Mae has announced that it will eliminate fees on its Desktop Underwriter automated underwriting system (AUS) and Desktop Originator (DO) tool, enhance its EarlyCheck loan verification tool, and soon introduce a new loan delivery system. These changes were designed to help customers originate mortgages with increased certainty, efficiency and lower costs.

“We continue to strive to have lenders choose Fannie Mae because we provide the most insightful, innovative and effective tools in the industry,” said Andrew Bon Salle, executive vice president of Single-Family Business at Fannie Mae. “For years, our technology tools have been the tools of choice for mortgage lenders across the industry.

We want to continue to provide value to our lenders and we don’t want technology fees to get in the way of lenders using our technology to its full potential. That is why we have introduced tools such as Collateral Underwriter, EarlyCheck and Servicing Management Default Underwriter at no cost to lenders or servicers, and why today we are also eliminating our DU fee. We will continue to innovate to provide extraordinary value to our partners and help them succeed.”

One-Size-Fits-All Lead Generation Combine direct mail, telemarketing, online marketing (re-marketing), with the most advanced tracking systems available. The tracking will allow you to find trends and keep ahead of the market and ahead of your competition.

The combination of marketing methods to the same group of prospects allows everyone to respond in their own way. The way they prefer. That’s what drives such high results. Give people the respect of being different and allow them to respond in their own way. This will drive more leads. Leads that have more interest which results in higher close ratios and more return-on-investment (ROI).

You don’t have to believe in direct mail, telemarketing or online marketing for it to work. It’s the combination of them all that makes this work so well.

Start with the mail and use the data to target people that will qualify for the loan product of your choice. Then follow up with a telemarketing campaign to the same people that received your mail. This will give you something to talk about once you do actually talk to them. “Did you get the letter that I sent you?” is a great conversation starter and builds credibility into your offer.

Now you need to add an online effort. Take your mailing list and use it to create a social media custom audience and serve ads to the same people that are getting your mail and your phone call. You can also add a Personal URL (PURL) to your letter that will create leads from your landing page. Once they’ve gone to your landing page you can use social media sites and Google to re-market (continue to send ads) to your list of prospects.

This is the one-size-fits-all because you get to pick your own custom filters and it produces your own exclusive leads. You don’t have to compete with six other companies or lower your fee’s to get the business. Higher revenue per loan, a higher response rate, higher close ratios, and better customer retention all equate to more business—a scalable model that you can depend on month after month.

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TagQuest client spotlight: Gary D. Hayes, branch manager at Mi Mutual Mortgage in Arizona Each month, we talk with our clients to see how their campaigns are going. Here’s some feedback we received from Gary D. Hayes, branch manager at Mi Mutual Mortgage in Arizona, licensed in 30 states (NMLS#: 12901/AZ BK#: 0928769).

Marketing method: Direct mail voice l Volume: 5,000 pieces targeting VA loans l Results: More than 80 calls yielding a 1.67 percent response rate, 72 leads generating with qualifying data, with $2.1 million in potentially closed loans Highlights of the campaign that worked well …

“The automated voicemails,” said Hayes. “My staff was completely surprised and caught off guard by how successful this approached worked, and how well it was received by the borrowers. Honestly, this was part of the campaign that I wrote of a somewhat of a gimmick, and I am now a believer as I have seen how this works firsthand.”

Highlights of the campaign that might appeal to others in the industry …

“I think this approach would work well for any mortgage professional who has experience in working leads, or has strong support or sales training that will help them capitalize on these call-ins,” said Hayes.

Based in Medford, Ore., TagQuest Inc. is a full-service marketing firm developed throughout the ever-changing mortgage industry. Utilizing industry knowledge, marketing expertise, and technology we implement any or all aspects of your marketing and/or advertising campaigns. With a proven track record, more than 10 years in business, and decades of experience TagQuest knows what it takes to produce unprecedented results in today’s fast-paced mortgage environment.

For more information, call (888) 717-8980 or visit www.tagquest.com.

SPONSORED EDITORIAL

nmp news flash continued from page 15

They are followed by banks and thrifts with $305 billion, or 31 percent of the total. State and local government hold $92 billion, or nine percent of the total; CMBS, CDO and other ABS issues hold $71 billion, or seven percent of the total; life insurance companies hold $57 billion, or 6 percent of the total, and federal government holds $13 billion, or one percent of the total.

In the first quarter of 2015, banks and thrifts saw the largest increase in dollar terms in their holdings of commercial/multifamily mortgage debt— an increase of $18.4 billion, or 1.9 percent. Agency and GSE portfolios and MBS increased their holdings by $10.0 billion, or 2.4 percent, and life insurance companies increased their holdings by $5.2 billion, or 1.4 percent.

Private pension funds saw the largest decrease at $728 million, or down four percent.

In percentage terms, other insurance companies saw the largest increase in their holdings of commercial/multifamily mortgages, an increase of five percent. Private pension funds and nonfinancial corporate business saw their holdings decrease of four percent.

The $20.6 billion increase in multifamily mortgage debt outstanding between the fourth quarter of 2014 and first quarter of 2015 represents a 2.1 percent increase. In dollar terms, agency and GSE portfolios and MBS saw the largest increase in their holdings of multifamily mortgage debt, an increase of $10.0 billion, or 2.4 percent.

Commercial banks increased their holdings of multifamily mortgage debt by $8.0 billion, or 2.7 percent. State and local government increased by $3.9 billion, or 4.4 percent. CMBS, CDO and other ABS issues saw the largest decline in their holdings of multifamily mortgage debt, by $2.1 billion, or down 2.8 percent.

In percentage terms, State and local government recorded the largest increase in holdings of multifamily mortgages, at four percent. Private pension funds saw the biggest decrease at four percent.

ALTA Announces 12-State TRID Education Tour Move over, U2 and Foo Fighters–the hottest tour this summer, at least from a mortgage industry perspective, is the 12-state odyssey by the American Land Title Association (ALTA) to educate homebuyers and real estate professionals about the upcoming TRID changes.

ALTA’s tour will begin in Texas on June 18 and end in Missouri on Sept. 26, with stops along the way in California, Arizona, Idaho, Colorado, Kansas,

Indiana, Ohio, New York, North Carolina and Florida. During the tour, ALTA will host booths at industry events and coordinate local homeowner education programs to explain the impact of TRID on the homeownership process.

“For many consumers, buying a home is the single largest investment they will make in their lifetime and every homebuyer should be wellinformed about the real estate closing process,” said Michelle Korsmo, ALTA’s CEO. “Our tour is designed to educate homebuyers about the new process to purchase a home that must be followed starting in August. Additionally, while the majority of our members are prepared to start using the new mortgage disclosures in less than two months, we want to ensure our 5,400 member companies and their employees are equipped with the tools needed to effectively implement the new federal regulations.”

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.

coming in august 2015

who

who’s

in the wholesale arena

Wholesale

FHA Lender1

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Send us your FHA deals today.

Visit wholesale.flagstar.com to find an account executive near you.

Source: FHA Neighborhood Watch, December 2014.

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Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change. The information provided in this flyer 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 customers.

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New policy changes and near-historic low interest rates have made it an ideal time to purchase or refinance with FHA loans. With more than two decades of industry know-how, Flagstar Bank is a national leader—and a partner you can rely on.

Five Tips for Effective Direct Mail Pieces

By K. Justin Restaino To excel with direct mail, you need to write effective copy that appeal to your recipients. In this article, we propose exactly how you can do that by highlighting these critical factors: Tone, Appeal, Headline, Call-to-Action and Postscript.

Tone The writing tone in a direct mail piece is very important. It should be personable, relatable and very similar to how you would communicate in-person. Rather than reaching for the dictionary, use language that is less formal in nature.

Copy should be concise and action-oriented. For example, you’ll want to choose action-packed verbs, rather than more passive language. Along those same lines, your paragraphs should be brief and punchy—write two or three sentences max per paragraph. People tend to skim long blocks of text.

Appeal Rather than writing copy that focuses on you as a mortgage broker, you’ll want to write copy that addresses the needs of the recipient. For instance, you would probably want to address how much money they could save by refinancing—and what they could spend that money on. The important thing to remember is that the mail recipient will want to know, “What’s in it for me?” You’ll want to write copy that answers that all-important question.

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Headline Headlines grab the interest of the reader and pull them in so they want to learn more. We recommend that you write dozens of different headlines until you settle on the best one. This is going to be one of the most important parts of your direct mail piece.

Call-to-Action A “call-to-action” is simply a directive advising the consumer to take a specific step. Your call-to-action might be to ask the recipient to pick up the phone and schedule a free consultation with you. Or maybe your call-to-action is an invitation to attend a free first-time homebuyer seminar that you’re offering.

Make sure that it clearly stands out from the rest of your letter and that it conveys a sense of urgency. For example, you might want to suggest that if the recipient acts within the next 10 days, they’ll get their credit score at no cost or receive a coupon book. By making your mailer time-sensitive, you’re more likely to inspire your potential clients to act.

Postscript Direct mail copywriter Ray Jutkins states that 79 percent of people read the postscript first. This makes it almost as important as your headline. To write a successful postscript, reiterate something that you’ve already addressed in your letter.

If you’re a mortgage lender looking to attract new clientele, direct mail can be an excellent strategy. In fact, if it’s done well, it can yield you significantly more leads than internet marketing. To experience success with your direct mail campaign, pay careful attention to your copywriting by: creating a catchy headline, using action-packed copy, including a postscript, appealing to your recipients’ desires, and having a clearly delineated call-to-action. This will ultimately generate more interest among your direct mail recipients, attract new leads, and grow your business.

K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For more than 15 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. He may be reached by phone at (800) 544-8060, ext. 204 or e-mail justin@titanlists.com.

SPONSORED EDITORIAL

new to market continued from page 12

fields associated with each closed loan.

Additionally, with the latest release of CustomerManager, marketing campaigns can be dynamically applied against every prospect’s loan status, with timely distribution of trigger-based emails, direct mail or both. For example, when a lead in Encompass reaches prequalification status, a corresponding multimedia campaign commences with timely communications to the borrower. Once the same prospect completes an application, intelligent automation signals termination of the initial prequalification campaign and starts the new application campaign.

“Our enhanced integration with Encompass enables lenders to simplify the marketing process throughout different stages of the loan process, so they can efficiently grow their business,” said Jeff Doyle, CEO of LoyaltyExpress. “CustomerManager automates the intelligent delivery of communications to the right audiences, with the right content, at the right time.

We are deeply committed to the business development value that we continue to deliver and enhance upon for Ellie Mae Encompass users.”

Ellie Mae Publishes Comprehensive TRID FAQs

software and our clients are ready and it is important to share what we have learned thus far,” said Ellie Mae President and CEO Jonathan Corr. “The new Integrated Disclosure Rule will impact almost everything lenders do.

We hope that the FAQ we are publishing will shed light on the grayer areas of the new rule, so that everyone can better prepare.”

The FAQ will be a continuously evolving document and is being written by Ellie Mae’s compliance team.

The chapters are based upon commonly asked questions from Ellie Mae training and Webinars. Citing specific language in the 1,888-page Integrated Disclosure Rule, the FAQ includes critical information about when the new disclosures apply, which loans are excluded, and which loans are partially exempted, as well as important definitions and requirements involving the timing of disclosures. The first four chapters, which include information on Rule Applicability, Definition of Application, and Loan Estimate can be found at www.elliemae.com/RT-FAQ and additional chapters will be added regularly.

Users can visit the page and submit their e-mail address for updates as chapters become available.

Black Knight Releases TRID-Compliant Empower Upgrade Ellie Mae has announced that it has published a free, comprehensive 16chapter guide designed to help mortgage lenders understand and comply with new federal mortgage disclosure requirements scheduled to take effect later this year. Created by Ellie Mae’s award-winning compliance team and available on the company’s Compliance Central, Ellie Mae believes that the Ellie Mae RESPA-TILA FAQ is the most comprehensive guide to the CFPB’s Integrated Disclosure Rule available in the mortgage industry.

The new federal rule mandates the use of two new disclosure forms to help borrowers better understand the impact of getting a mortgage: A Loan Estimate, which replaces the current Good Faith Estimate (GFE) and the initial Truth-in-Lending (TIL) Disclosure; and a Closing Disclosure, which replaces the HUD-1 Settlement Statement and final Truth-in-Lending Disclosure currently used by lenders today.

Industry concern over the new disclosures, also known as RESPA-TILA, has pervaded since they were first proposed two years ago and has gained momentum as this year’s effective date approached.

“The new disclosures, proposed to go into effect on Oct. 3, are the most significant changes the industry has seen.

Ellie Mae has been working diligently over the last year to ensure that our

Black Knight Financial Services (BKFS) has announced the release of version 5.1.4 of Empower, the company’s loan origination system (LOS) for retail and wholesale lending, which includes the core functionality required for lenders to support the Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosure (TRID) rule. The new version enables clients to further engage in production-level testing and provide final feedback regarding any refinements that would better support their operations, processes, training requirements and workflow.

As testing of Empower 5.1.4 is finalized, BKFS may release additional versions of the LOS in the coming months based on client testing and findings as they continue their TRID-readiness plans. Additionally, Empower’s configurable design will easily accommodate the latest CFPB mandatory TRID date change for implementation without the need to update core source code.

“Although it appears that the industry has a little more time than expected before the TILA-RESPA changes go into effect, it is imperative for lenders to stay steadfast in their efforts to finalize continued on page 25

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n Hawaii Mortgage Professional Magazine n JULY 2015

NAMB PERSPECTIVE The President’s Message: July 2015 We seemed to have a longer than usual 4th of July this year because it fell on a Saturday. We had a Friday holiday and a Saturday holiday, for

those of us who work weekends.

As I reflected on the founding of our country, I couldn’t help but think what our founding fathers would have thought of the current laws and economic system. Borrowing was a privilege

The CEO Perspective A Message From NAMB CEO Donald J. Frommeyer, CRMS

JULY 2015 n Hawaii Mortgage Professional Magazine n

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So you all know that I write a lot of articles every month. I write a weekly Monday Morning Messenger. I write an article every month for National Mortgage Professional Magazine, and I write an article every month for the Mann Report in New York City. I always seem to have something to write about. It’s like having a dog and you need to take him for a walk but you decide to watch TV instead. What a predicament I have upon myself.

So, what is lacking here is some type of motivation. How many of you have ever gone through this scenario? Maybe you have gone into the office and you are tired of all of the who’s and haws of the job and you just don’t want to work. Maybe your boss won’t leave you alone and the processor is bugging you about stupid stipulations that they

could get, but they don’t want to do it either. This is where you need to stand up at your desk and think to yourself, “How do I get out of this funk?”

Well, here is the answer to all of your problems. Think and think hard! Think real hard about all of the other jobs you could have and how much you love what you do. Being in the mortgage business is, in my opinion, way better than having a different kind of job. You have the ability to make money and help people. And only you can set a limit on how much money you want to make and how hard you will work.

Someone once told me that in the mortgage business, only you set the limit.

Only you have total control how much you want to work. Only you are your own limitation. I know a lot of guys and girls who work very hard and a lot of long hours to make $80,000 a year and regret each and every day because they don’t like it.

in those days, not a right. People talked instead of texting. We had very few laws, and somehow, we built a great country.

It made me think of the economic system that we work under. They left us a lot of freedom in the Constitution, but they left the government a lot of freedom too. It drove me to look into what our Constitution really says about our current laws. It is a little deeper than you may be used to seeing in a trade publi-

cation, but some of you will like it. Read my article “Isn’t Our Country Based on Capitalism?” this month on page 22 and let me know what you think.

Sincerely,

I have to admit that the mortgage business is different than most every other job. Why? Because to almost 99 percent of us, it is not a job, but a life that we choose and want. We decide on our direction and we decide our goals, and we do this to be successful.

If anyone gets into this business, they make a decision very quickly whether to stay or to go. If you have to work to understand what you do and it is very hard to comprehend, you might not stay long. It is because you either love it or hate it. The mortgage business is not for the weak and you really have to have the passion to continue.

Even when you get into the funk I spoke about in the beginning, you have to know how to deal with it. And the secret is right around the corner. It is personal motivation! And how do you do this? You think about everything that you do every day for all of those good and deserving people. You remember how your customer thought so much about what you did for them that they thanked you at the closing, sent you a note to thank you or referred you to some of their friends.

Your circle of life … it is what keeps you going. It is the smile on the face of

the husband and wife that just bought their first home and you worked very hard to make happen. It is the military veteran who you put into that VA loan so they could buy a home for no money down. It is that young nurse who has just graduated from college and got this great job in a NICU ward and wanted to buy a home to start their life. This is what you look back upon when you get into this funk. The good things outweigh the drab, boring and bad things one hundred-fold.

So, the next time you start feeling bad and you get yourself into that funk, just think back about all of your successes. Your accomplishments and the people you have helped. Then, pick up the phone, call one of them and begin the process all over again and ask for referrals. When they give you two people to call and you talk to them about a loan, your funk is over. Because now you are on the road again to helping someone and the joy you have with this is again on your radar.

John L. Councilman, CMC, CRMS NAMB President president@namb.org www.joinnamb.com

Donald J. Frommeyer, CRMS is chief executive officer for NAMB—The Association of Mortgage Professional. He may be reached by e-mail at namb.ceo@namb.org.

Are You A Mortgage Professional and Want a Free Trip to Las Vegas?

Tell us and the world what makes you a #MortgagePro!

By John H.P. Hudson, CRMS The ultimate goal of NAMB’s #MortgagePro Social Media Contest is to have fun and share “Our Story” as mortgage professionals with the rest of the world. Your friends, family, referral partners, politicians, and regulators all

need to hear about how much you love helping families with their dream of homeownership. They need to hear why small business is great for America. Or, simply what makes you and our industry “Professional.”

It never hurts to show potential clients what separates you from the pack.

Entering NAMB’s Social Media Contest is as simple as using the hashtag

“#MortgagePro” in your Facebook and Twitter posts, or sending us a video telling the world what makes you a #MortgagePro! You may be the lucky winner of a trip for two to NAMB National 2015 in Las Vegas!

And remember, I don’t care if you are a mortgage broker or a mortgage banker, you are a mortgage profession-

al. Send your stories to communications@namb.org.

John H. P. Hudson is NAMB Communications Committee Chair, a member of the NAMB board of directors, and vice president of Mortgage Financial Services. He may be reached by phone at (817) 247-4766, email jhudson@mfsus.com or follow John on twitter @JHPHudson.

NAMB PERSPECTIVE Next Year’s Goal

By Rocke Andrews, CMC, CRMS NAMB’s new year kicks off at NAMB National in Las Vegas at the Luxor in October. The event has been sold out to vendors and we have been trying to accommodate other interested partners. It promises to be wellattended and a lot of fun, as well as educational. Make sure to make your reservations early before the discounted rooms are gone. Las Vegas has recovered well and sells out early these days.

In preparation for the new year, NAMB’s board of directors and execu-

tive committee is planning the coming year’s goals and activities. As part of NAMB, its members should provide their input as well. What would you like NAMB to concentrate on? What would help you to compete in your market? I will list some of our ideas. Please indicate what is important to you or feel free to add a topic we did not put down.

Some of our ideas are: l Removing the compensation to the broker from the three percent calculation l Monthly Webinars to keep you updated on government affairs and

Mortgage-Minded Millennials

By Fred Kreger, CMC

platform, curriculum and transparent vision for the Millennials. This article is an ongoing message to everyone in the mortgage industry. Stay tuned for more insights, and I look forward to being a fellow “Pathfinder” for the Millennials.

Thank you and Namaste.

Fred Kreger, CMC is branch manager at

the originator’s voice is heard in our legislator’s offices l Easier and more uniform broker approval packages This is a wide and varied list, but we are open to your input. Please let me know what interests you and if you would like to help out. We are always looking for people to help out on various committees. So send your ideas to me at info@LendingArizona.net.

Rocke Andrews, CMC, CRMS of Lending Arizona LLC in Tucson, Ariz. is presidentelect of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (520) 886-7283 or email randrews@lendingarizona.net.

American Family Funding, a Division of American Pacific Mortgage. He is also a past statewide president of the California Association of Mortgage Professionals (CAMP) and currently is the vice president and Government Affairs vice chairman for NAMB—The Association of Mortgage Professionals. He may be reached by phone at (661) 505-4311 or e-mail fred.kreger@affloans.com.

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Why Do I Need NAMB? l NAMB Testifies Before Congress l NAMB Works With the CFPB l NAMB Participates in Multiple Regulatory/CFPB Panels l NAMB Webinars l Full-Time NAMB Lobbyist on Capitol Hill l NAMB Protects Your Business l NAMB Forms Industry Coalitions l NAMB Education

For detailed information, visit www.namb.org.

n Hawaii Mortgage Professional Magazine n JULY 2015

www.namb.org … JOIN TODAY!

NationalMortgageProfessional.com

“Millennial” is a term loosely used to describe people born between the early 1980s and the early 2000s. By 2025, Millennials will make up 75 percent of the workforce.

What is the perception of the Millennials of our mortgage industry? It seems that every magazine related to real estate (many non-real estate as well) has some sort of take on the Millennial question. Report after report I am reading these days is how to sell to and recruit Millennials. Did each generation have this question before them on how to sell to, hire, train and manage the next generation? I am assuming so and this is just the next transition of understanding.

I myself am participating in a Millennial Brainstorming group, and the first question that we started with was: “What is the perception of Millennials of our mortgage industry?”

Here is a general statement that one of our group’s founders laid out: “They grew up in their formidable years with negativity with their parents losing their homes, with social media blasting the mortgage industry. Academia is blaming the recession on the mortgage industry. It is in the textbooks communicating that same message of negativity in the curriculum. What we are finding is that the Millennials who are in the industry are usually only in the industry because of family.”

We all adhere now to the platinum rule, not the golden these days. The platinum rule stipulates that we talk and sell to those the way they want to

be sold to. Now with keeping the platinum rule at hand, how do we talk and sell to Millennials? Now, some of my statements are going to be generalizations and I know that each person is an individual with their own personality makeup, etc. These are observations from an older generation and from Millennials themselves.

To attract today’s job-entering Millennial, we need to offer more than just here is your loan application software and now go originate. They want to be given a goal and then let them figure out how to master it and move on to the next goal. They, in general, do not subscribe to the paying your dues in order to move up in an organization.

We need to be transparent about their career path, or we will lose them in the short run.

They also need to know that there are rewards for their achievements and recognition for their contributions and accomplishments. They need to see the path of how to move up and us, as their managers, need to balance that need with our business goals. We need to bring them into the goal-setting experience and allow them to have a voice in order to contribute and not expect them to just have a “follow the rules” mentality.

There are a number of us in the industry who want to fully engage with this generation in order to provide a career path and visualization of what this industry has to offer them. This is an incredible opportunity for all of us to reach out, become mentors and share our wealth of experience with this new generation of mortgage professionals.

Are you in it with me? We need your help as well. We have to develop this

regulations l A new and improved Web site with links to blogs and other sites l A cyber-security partner to provide tech tools to small companies at an affordable price l An educational portal to provide members with sales training, antimoney laundering (AML) education for your employees, as well as links to NMLS education classes l Updated CMC, CRMS, GMA certification materials and tests to make it easier to get your certifications to show the public your level of professionalism l More discounts and member benefits through NAMB+ l Raise more funds for our Political Action Committee (PAC) to make sure

NAMB PERSPECTIVE Isn’t Our Country Based on Capitalism?

By John L. Councilman, CMC, CRMS

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You may wonder why we need to think about this in a publication devoted to the mortgage industry. The answer is that everything we do is based on laws or a lack of laws to control our economy. If we didn’t have laws, we wouldn’t have mortgages. Constantly, we see new laws and rules that are changing the way the mortgage industry is carried out. Many claim that we have moved away from laws that promote capitalism and have moved to socialism.

First, let’s get down to basics. The entire concept of mortgages requires laws that allow someone to borrow money with legal consequences if they don’t pay and protection if they do pay. Without laws, there would be anarchy, where whoever was the strongest or had the most power would do whatever they wanted.

There have been systems like that, but they didn’t work very well.

In the mortgage business, most believe that the economic system of the United States is based in capitalism. Webster’s Dictionary defines capitalism as, “An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.” In other words, people providing a good or service set the price and consumers decide if they are willing to pay that price. As we all know, that is not totally in practice in the mortgage business.

The question becomes: “What is the system for America?” Is it capitalism where the business sets the terms and the consumer chooses to accept them? Or, should the government set the terms to protect the consumers and the business then decides if it wants to operate under those terms? Many believe this is a battle for the heart and soul of America and how our society will operate.

When we look back into the early 1960s, the mortgage business had very little government intervention.

Lenders could set whatever rate and terms they saw fit. There were usury laws in many states that set the maximum rate of interest and that was

about it. There were no disclosures to speak of and little government control. There was no Real Estate Settlement Procedures Act (RESPA) nor Truth-in-Lending Act (TILA). In 1968, TILA was enacted, more or less simply as a disclosure statute. A much more restrictive law, RESPA, was passed in 1974 to itemize settlement costs and prevent kickbacks.

These laws saw some changes over the years, most notably, Section 32 of TILA which made it risky to offer high-cost mortgages. Those laws were not drastically changed for nearly four decades. Then, the economy nearly collapsed in 2008 and the mortgage industry was blamed.

Nothing would ever be the same for mortgage laws thereafter.

Loan originators were quickly licensed nationwide. Compensation for originators had to be the same for every borrower. Nearly everything in common practice was declared to be illegal or a guideline violation. Large lenders were forced to pay huge fines. Fannie Mae and Freddie Mac became government wards and private capital in the mortgage industry all but disappeared. The qualified mortgage (QM) defined what type of mortgage could safely be made and compensation rules were tightened further. Equal opportunity became as important, if not more important, than underwriting criteria. We entered a whole new world in the mortgage industry, one that could hardly be described as based on the concepts of supply and demand. The government was offering an infinite supply of money that was more or less priced by what the government would pay for the mortgage bonds originated.

This extreme intervention by the government was derided by many as socialism, not democracy. The interesting point is that those are not equivalent terms. Democracy could be socialistic, rather than capitalistic.

Democracy simply means the people choose the economic system. So, is it perfectly okay to switch the United States to a more socialistic system? I can sense the blood pressure of many free-enterprise entrepreneurs going up at the moment. Let’s take a quick look at the founding of our nation.

The United States was formed at a time when capitalism was really just being introduced. In 1776, Adam Smith wrote The Wealth of Nations which clearly influenced our founding fathers. He was quoted by them.

Smith believed in economics driven by the desire to make money. Put quite bluntly, Smith said people are in business to make money, not to be benevolent. These are hard words that may offend, but this is essentially how the U.S. economy was operated and flourished above all others.

It is part of the freedom that Jefferson envisioned. Rather than having prices and the economy controlled by a powerful monarch, entrepreneurs were free to create what they wanted and sell it for what the market would bear. That encouraged competition which kept prices in check. We call it a “free-market economy.” Forces—such as competition and scarcity—regulate the economy quickly and efficiently with little need for laws that are generally reactionary and stagnant.

When I talk to people in the mortgage business, they ask, “Why can’t we provide loans people want at the price they are willing to pay?” Most people think the Constitution gives them the right to conduct business freely. It is true that the Ninth Amendment states, “The powers not delegated to the United States by the Constitution, nor prohibited by it to the states are reserved to the states and the people.” As time passes, the government has taken many powers from the people. Let me explain how that happened.

Many have said the Constitution contains freedom of right to contract. They base that on the contract clause, found in Article I, Section 10 of the U.S. Constitution that prohibits the states from impairing the obligations of contracts. In addition, the 14th Amendment due process clause guarantees “the right of man to be free in the enjoyment of the faculties with which he has been endowed by his Creator, subject only to such restraints as are necessary for the common welfare.” The unfettered business view changed in the early 20th Century where laws passed for the “common welfare” were broadly expanded.

That brings us to the current day where many laws restrict the right to contract, particularly with respect to mortgages. These laws are believed to be for the “common good.”

Congress has the power to determine what that means. No doubt, when they passed the Dodd-Frank Act, Congress thought it was good for consumers. Laws like disparate impact are considered by Congress and the Supreme Court to be good.

We may disagree, as people in the mortgage business, but many people were hurt when the market was far less restrictive. There are a lot of

angry people who are still suffering the consequences of a relatively free market.

We may wonder why, for several hundred years, a much freer market worked so well and created so much wealth. The answer is likely that people are now looking for much more government protection. They aren’t willing to live with the consequences of naked capitalism and practices they consider discriminatory. As people possess greater communication and information, they are not like the passive consumers and workers of years gone by. We also must question whether both business and consumers have the moral character of years gone by. Loans were sold knowing that they would likely default.

Other the other hand, consumers who could pay willfully walked away from homes that went underwater.

When business misbehaves, as business definitely did leading up to the financial crisis of 2008, people expect government to prevent a recurrence.

Laws were passed that further removed us from a capitalistic or free-market economy to an economy where the government is taking a larger role. It isn’t that capitalism is bad. Free-market capitalism simply doesn’t fully meet the expectations of today’s society who want both wealth and protection. They have turned to government to produce a modified system.

Heavy regulation works against capitalism and generally moves us toward socialism. The assumption of socialism is that government can do things better than private industry.

Socialism is where pricing is leveled and government begins to provide services. Pricing of loans and services have been leveled for everyone, irrespective of low or high risk. The government essentially seized Fannie Mae and Freddie Mac and their profits. There is no question that the economic system of the United States has swung more toward socialism in addition to the heavy regulation No one feels the effects of the nation’s swing from capitalism more than those of us in the mortgage industry. Unlike Adam Smith, people today expect business to be benevolent, not just there to make money. It will be interesting to see if that will produce the wealth that the freemarket system has provided over the nation’s history.

John Councilman, CMC, CRMS of AMC Mortgage Corporation in Ft. Myers, Fla. is president of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (239) 267-2400 or email jlc@amcmortgage.com.

NAMB PERSPECTIVE

getting toknow Harry Dinham NAMB Chief Operating Officer B Y

For the past two decades, Harry Dinham has been a vibrant leader in the mortgage profession at both a state and national level. As the head of the Texas Association of Mortgage Professionals, he was responsible for leading the effort to bring broker licensing to the Lone Star State. As president of NAMB, he was a prominent figure in Washington and at industry conferences during a crucial period of economic change.

Today, in his role as chief operating officer for NAMB, he is responsible for the oversight of the organization’s membership and certification operations. And simultaneous to his association responsibilities, he successfully ran The Dinham Companies out of Plano, Texas.

National Mortgage Professional Magazine spoke with Dinham about his work within the mortgage industry trade associations and his views on the wider state of industry affairs.

NMP: How and why did you get involved with NAMB? And can you share the track within your association that led to your current role of NAMB COO? Harry Dinham: I joined NAMB back in 1995. I got involved and was elected to the board in 2001. I began as treasurer, then vice president, then presidentelect, and then I served as president from 2006-2007. After that, I was just a past president. In 2010, they decided against having volunteers run the organization and contracted it out. At

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that time, I also got involved with board’s Membership Committee.

Why do you feel mortgage professionals should join NAMB? Dinham: It is hard to get members— many people think someone else will do it for them. But no one out there is going to protect you unless you get involved in your profession. If you are a small business loan originator, you need to become involved. Being a member helps to keep you updated on what going on and ensures that we have a say in where we are going. If you are not a member, you are really cutting off your nose to spite your face.

What do you see as your most significant accomplishments in your years with NAMB’s Texas state affiliate and nationally with NAMB? Dinham: I testified before Congress several times. One of the big things involved the Federal Housing Administration (FHA) when they said lenders needed to provide audited financial statements to do FHA loans.

We thought that was ridiculous and felt there was a need to change that. We got it started, and it eventually took place.

You have to remember, everything at a national level takes much longer to accomplish.

Back then in Texas, brokers were not licensed. It was pretty clear that licensing would give the profession some kind of creditability. But Texas

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legislature meets 140 days every two years, and it was too late for us to get anything going in 1995 when I first became involved with the Texas association. We tried in 1997 to get something, but did not happen. When I was president in 1999, we worked with the Texas Association of Realtors to put forth a bill that was satisfactory and ultimately passed.

How would you categorize NAMB’s relationship with its state affiliates?

Dinham: It is hard to say. When I first got into leadership roles with NAMB, reciprocity was a requirement. Every member of a state association had to be member of the national association.

The board decided around 2011 that there was no need for such a requirement. But I feel that state affiliation makes us stronger. We have reduced the amount of members and I don’t feel like the state level bond is as strong as it was in the past.

In your role as NAMB chief operating officer, you are in constant contact with the membership of NAMB. What do they tell you about how the association can help them?

Dinham: They always want some sort of better discount or something to benefit them. I don’t hear many complaints.

They wanted better communication and we’ve done a better job communicating. Members get information from us on a weekly and daily basis.

23 In your opinion, what can be done to bring more young people into mortgage careers?

Dinham: I’ve been involved with the industry since 1967. I first worked in a servicing department, and everything I learned was from processors. But there is no place to go now and get mortgage education. We could develop a curriculum with a college. If we can get a college interested, it would certainly be a benefit.

We need to stress that this profession is a great way to help consumers and great way for people to make a living.

How do you view the government’s role in formulating housing policy?

Dinham: With all of the changes coming down, it will make it more difficult for consumers. We went from 10-12 days to get a loan to 30 days. People are talking about 60-75 days. It shouldn’t be as difficult as they’re making it.

Regulations do not protect the consumer—they are just making it longer and longer to get a loan. But the government keeps changing regulations and it becomes easy to regulate people out of business. When 10 percent of people cause problems for 100 percent of the people, there has got to be a better way than regulating 100 percent of the business.

Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.

NAMB PERSPECTIVE

getting toknow

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Fred Kreger joined American Family Funding in Santa Clarita, Calif., in 2002 as a loan officer and has served as branch manager since 2008. In this role, he is in charge of the company’s Credit Union and Reverse Mortgage Division.

He has also been active in the California Association of Mortgage Professionals (CAMP), serving in a number of positions before taking on the responsibilities of president from 2012-2013. Within NAMB, Kreger’s serves as the group’s vice president and as vice chairman for government affairs.

A tireless campaigner for the industry, Kreger has testified before the California State Legislature and the U.S. House Financial Services Committee. His contributions to the association and to the industry were rewarded last fall when he received the Mortgage Professional of the Year Award at NAMB National. And beyond the mortgage world, Kreger serves on the board of directors of the MS Golf Classic for the National MS Society and on Valley Industry Association (VIA) of Santa Clarita.

National Mortgage Professional Magazine spoke to Kreger to learn more about his views on the state of the industry and his work within the trade association world.

NMP: The enactment of TRID has been delayed for two months from Aug.1 until Oct. 3, but the Consumer Financial Protection Bureau (CFPB) will not commit to a good-faith grace period in enforcing compliance with the new regulations. How do you view these developments?

Fred Kreger: I was expecting CFPB Director Richard Cordray to extend the enforcement. When it comes to the enforcement of TRID, we need to know how the implementation looks in practice [in order to know what to avoid].

But right now, we don’t know what we don’t know.

We do not want to limit credit or the cost of credit for borrowers trying to get into a loan. But lenders are being very, very conservative and tight in issuing documents unless they are 100 percent sure they will not be liable for mistakes.

achieve a balance? We need to look for local communities to become involved in housing. After all, this is a community scene because we are putting people in homes and they will spend money their locally.

Fred Kreger NAMB Vice President B Y

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What have you done with your own firm, American Family Funding, to get ready for the coming of TRID’s enactment?

Kreger: I sat on a task force on TRID implements for loan officers. We’ve been ready last couple of months. Every stakeholder involved in the implementation for TRID from beginning to funding is ready. We took our planning to heart, so there will be no hiccups—our people can originate and not sink into quicksand.

Why have you been such a strong supporter of NAMB? And how can other mortgage professionals follow your example?

Kreger: This industry has been great to me and my family. At a certain point, I felt that I needed to give back. You cannot take the entire elephant at one time and assume it is yours. At the end of the day, we’re still originators helping people on a day to day basis.

I am not asking people to do 20 or 120 things. Just to do one more thing, because if you do just one more thing, your association has a better representative—and so do your borrowers.

For those who are not familiar with NAMB’s Government Affairs Committee, can you describe what you do for the industry?

Kreger: We advocate and look out for the best interests of originators.

Regardless of whether it is on behalf of a mortgage banker, a broker or a depository loan officer, we are interested in

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how to best represent our borrowers.

NAMB’s Government Affairs Committee seeks to have a great working relation with legislators. In the past, it was almost an adversarial relationship, with legislators saying to us: “You bad people!” It is not that way anymore, because we have been able to tell our story.

The biggest accomplishment is that Congress is now listening and doing bills that support our industry. Last spring, we wanted to delay enforcement on TRID and 300 representatives in Congress agreed with us—that is huge.

It proves our credibility factor.

At the risk of sounding silly, it would appear that you enjoy this aspect of your NAMB work.

Kreger: I look at Washington, D.C. as a big playground—it is fun. I have been meeting with legislators for years—it is like a homecoming to me. I call on old friends and they understand that I am not there to sell anything, just to advocate.

How would you qualify the current federal housing policy?

Kreger: Government has always been involved in housing, but it is now more focused on the protection of homeowner against what could happen versus promoting opportunities for homeownership to first-time homebuyers.

How is the state of the housing market in your home state of California?

Kreger: The good news is that it is not as bad as in previous years. Some pockets are fine, such as Silicon Valley and the 50 miles surrounding that area, and some areas, like the Inland Empire area, are now recovering. The state government had said, “You’re good enough, we do not want to give too much medicine and kill the patient.”

How much time per week do you put into your association work?

Kreger: I work about 20 hours a week on behalf of NAMB and the California Association of Mortgage Professionals, emailing legislators and regulators and continuing Governing Affairs Committee work on behalf of our legislative direction.

How do you view NAMB’s relationship with its state affiliates?

Kreger: We have a need to be involved within states that are not represented by the association. There are still a lot of states without the fortitude or resources to run their own association.

The presidential election is picking up speed and the candidates are declaring their respective runs for office. Do you see housing as being among the hot issues in this race?

Kreger: Absolutely! It is going to have to be because we have yet to recover.

How would you propose filling those voids at the state level?

Kreger: Putting two to three states together to form an association representing a region is an option. If there is a need for a yearly conference or implementation training, they would be able to have it.

There is also the question of affordable housing, or the lack thereof.

Kreger: As home prices go up and if interest rates rise, how will the federal government

Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.

new to market continued from page 18

system testing and flesh out the processes and workflows required to ensure compliance,” said Jerry Halbrook, president of Black Knight’s Origination Technologies division. “For well over a year, Black Knight has been continuously updating Empower to provide clients with as much lead time as possible to prepare for these new regulatory requirements. Now that we are in the final stretch prior to the new regulations going into effect, we are pleased to offer our clients the system functionality to help support their efforts to meet the requirements of the CFPB’s TRID rule.”

as they adapt to the new FA requirements and help them expedite loans more efficiently.”

Ernst Releases TRID Solution for Settlement Service Providers

Ernst Publishing Company has announced that the company has rolled out a new collaborative fee management system that allows settlement agents to work with lenders to negotiate

fees and then manage these fees in a Web-based tool through which they can certify that the fees are accurate and then make them available to lenders who need to provide Loan Estimates required under the new TILA/RESPA Integrated Disclosure (TRID) rules. The technology responds to a trend that is seeing lenders drop their contracts with smaller settlement services companies due to concerns that they won’t have certified accurate fees available at the time the lender must issue the Loan Estimate.

“This software allows smaller settlement agents to protect their businesses,” said Jan Clark, vice president of sales and marketing for Ernst Publishing. “A single mistake will be enough to delay the closing and

continued on page 32

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals.

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n Hawaii Mortgage Professional Magazine n JULY 2015

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NationalMortgageProfessional.com

ReverseVision has announced that it has added automated credit reporting capabilities to RV Exchange (RVX), ReverseVision’s flagship reverse loan origination system (RLOS) platform.

Through this integration, reverse mortgage lenders are able to automatically import a borrower’s credit information directly into RVX’s Financial Assessment (FA) module. This functionality will allow users to pull borrowers’ credit reports from a number of credit report providers and have the data automatically populate into the credit report fields. The interface will be available to all RVX users who set up an account with the providers. Initially, one provider was implemented that could provide maximum coverage by the FA effective date. Additional credit providers will be available via the interface in the future.

“Being able to pull borrower’s credit reports via RV Exchange is an excellent way for lenders and brokers to streamline their loan process,” said Gregg Holsapple, ReverseVision product manager. “We are excited to be able to offer this service and are certain it will enhance workflow post FA.” According to Holsapple, each reverse mortgage borrower must show a general credit standing of satisfactory, as credit may be used as an indicator the borrower has the ability to pay taxes and insurance on their property.

Otherwise, a Life Expectancy Set Aside (LESA) may need to be established for their loan. This change in policy is very similar to what is standard with a forward loan, making the reverse loan more secure for both the borrower and the investor.

“The initial provider available via the interface has an excellent reputation as the number one provider of specialized credit reports in the nation,” said President and CEO of ReverseVision John Button. “Partnering with such companies will greatly assist our clients

lenders have already realized that they can’t afford it. By managing their own fees and providing a certification to lenders that these fees are accurate, all settlement services providers can now protect their valuable lender relationships by helping their partners remain compliant.”

The Web-based TRID program is simple to use and uses MISMO data standards to allow the settlement agent to enter pre-negotiated fees that include fields for the required services by geography, and then certify that the fees are accurate with a single click. Agents can access the system at any time. Ernst then loads this fee information into a

Do You Know Any

26

By Brian Sacks t’s 9:00 a.m. and I just finished up a few hours of work before the phones go nuts. As I glanced over my schedule, I see that I have a lunch appointment with Theresa from the bank I have one of my accounts at.

I saw a few more interesting lunch and breakfast dates this week and wonder if any of these people are on my radar. If they aren’t, they should be, so let’s talk about exactly who is referring business to you.

I

Of course there are the obvious sources …

What I want to share with you are some of the less obvious sources. We all go after real estate agents, CPAs and past clients … so let’s dig in and talk about some of those “overlooked” or maybe less obvious sources of referrals.

Let’s start with Theresa. She works for a small regional bank that also has a mortgage division. I walked in one

day to open a checking account and we started speaking. I told her what I did, but knowing that their bank was a bit conservative I asked her to lunch. These small banks tend to be very conservative, and if someone’s ratios are a bit high or if there is even the slightest credit issue, they will deny them.

independent mortgage banker, we do not offer checking accounts, savings accounts, car loans, etc. I can make her look good to her clients and she can maintain the relationship for her other services. Again … a win-win situation!

Other loan officers Why should Theresa give me a chance?

There are actually two reasons and you must keep both of these reasons in mind if you are going to be successful with these often overlooked referral sources. l WIFM: Theresa, and everyone else for that matter, is tuned in to WIFM which stands for “What’s in It for Me.” You always need to know what your prospect’s objections are. I have the ability to refer clients to Theresa.

Her bank does a lot of equity-type lending and we don’t at our company. So this is a win-win for both parties involved. l I will not be “poaching” her clients: Since the company I work for is an

Many loan officers view others in their area as “the competition,” but that is a very limited train of thought. There are many loan officers who specialize in construction loans, 203k’s, reverse mortgages, doctor’s loans and other niches. Why not get together with them and learn about their programs.

When you have the opportunity to refer them you now can become viewed as a resource and referral partner. They, in turn, can refer clients to you who may not meet their product lines, but to whom you could offer an alternative.

Religious leaders Regardless of your faith, religious leaders hold major influence with their con-

gregation and in their community. It is to their benefit to be a resource for their congregation. It is also to their benefit to have resources they can turn to whenever a member of the congregation has an issue. Many have entire ministries set up just dealing with financial literacy and education. Others realize that the more homeowners they have has congregants, the more solid their foundations are.

Small mom and pop shops There is a growing number of small real estate brokerages popping up. Many would truly appreciate having you as a resource. Many of these small brokers are ignored by loan officers, yet they can provide you with a constant source of loyal business.

Divorce attorneys Divorce attorneys are almost always dealing with cases that involve real estate that needs to be refinanced for a buyout. In fact, I just learned that real estate is involved in 70 percent of

of These People? divorces and that doesn’t even take into account the times the departing spouse wants to purchase a home.

yourself. The worst thing that could happen is they say “no.”

Private lenders Credit unions and investors who These institutions are often a bit con- rehab homes servative in their underwriting, although that is changing. Go back and re-read the Theresa section because that applies here too. Credit unions have the same concerns and issues, and therefore, you can provide the same solutions.

Private lenders often lend for terms of one year. When the year is up, these purchasers or investors will need to refinance. Private investors who rehab homes are also a great source of new

business that almost no one goes after.

Assuming they are rehabbing homes, they will often find buyers and those buyers need our services.

So the bottom line is … go where there is less competition! Now that you have a few new places to think about, go out there and start marketing your services. Each of these places could account for that one extra deal you

wanted to close last month.

Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for in excess of $1 billion. You can download his report, “The Four Tools You Can Use to Immediately Grow Your Business,” at www.AgentsChaseYou.com. Brian may be reached by phone at (443) 324-8424 or e-mail loanofficertips@gmail.com.

Credit restoration firms This one is truly a gem that I have not seen anyone else talk about. But since I am a “boomerang specialist,” it’s one that I am very focused on. People go to credit restoration companies because they are concerned about cleaning up their credit. So you already know they are motivated. Once they go through the programs and get their scores, they are released into the market.

But what if they were released to you? You now have a borrower with good scores who you can get preapproved and turned over to a real estate agent as a pre-approved buyer.

Like everyone else, they will be tuned into WIFM, so make sure you let them know that you will refer all of the clients who need help over to them as well.

If there are any universities or large hospitals in your town, get over there and introduce yourself to their personnel departments. Most of these employers at universities and hospitals are constantly have people coming in as new employees.

Apartment complexes

n Hawaii Mortgage Professional Magazine n JULY 2015

Now this one is one that I am sure you have overlooked. Of course, I realize this is where the renters are and that you may even be mailing to them already. But what I am talking about is actually going to the rental agent and introducing yourself. I would not have believed this if it didn’t happen to me personally, but many of these rental agents are thrilled to let you advertise to their tenants and allow them to become homeowners. “Why” you may ask? Well if you think about, it rental rates continue to rise and many of these communities—especially if they are full—will allow their current tenants to break their leases early since they have more than enough on their waiting list they can rent to at an even higher rate. One community near my office just allowed me to put fliers up in the community offering my services. I was the only one who asked, so try it

NationalMortgageProfessional.com

Hospitals and universities

27

Is the Decline in Bank Mortgage Originations a Bad Thing?

By Phil Hall

JULY 2015 n Hawaii Mortgage Professional Magazine n

NationalMortgageProfessional.com

28

In the aftermath of the 2008 economic crash and the 2010 Dodd-Frank Act, the level of bank participation in the residential origination market has subsided, creating a surplus of opportunity for non-bank lenders.

Indeed, a recent survey released by Harvard University has determined that nonbank lending institutions increased their market share of agency purchase mortgage originations from 27 percent in mid-2012 to 48 percent in late 2014.

But is the new seesaw tilt with nonbank domination and depository retreat a good thing for both the industry and for the consumers served by lenders?

Marshall Lux, a Senior Fellow at the Mossavar-Rahmani Center at Harvard’s Kennedy School, noted that the withdrawal by banks is not pegged to a lack of consumer demand, but to the DoddFrank regulatory burdens that made residential lending less profitable.

“The fact banks feel a need to lend less because of regulatory issues is certainly not what the law was intended to do,” Lux said.

Also complicating matters for the nation’s largest banks is the financial penalties they’ve received in the years following the 2008 crash. According to the Mortgage Bankers Association (MBA), mortgage-related fines and settlements aimed at the large banks during the 2010-2014 period totaled approximately $138.5 billion.

One area where the Harvard study raised concerns involved the impact on non-bank lending on the Federal Housing Administration (FHA). The

study found that nonbanks are disproportionately engaged in FHA-insured lending to higher-risk borrowers and warned that some nonbanks might pose a counterparty risk to Fannie Mae and Freddie Mac if another economic decline occurs.

Yet MBA President and CEO David H. Stevens said in a recent Bloomberg interview that the visible benefits of non-bank lenders far outweighed the potential risks.

“The non-banks are protecting the housing market from a much slower recovery—or it could be a non-recovery story,” Stevens said. “What led to that is a defensive posture by a lot of institutions that used to make up the dominant role for lending in this country.”

Grant Stern, president of Morningside Mortgage Corporation in Bay Harbor Islands, Fla., noted that prior to 2008, banks were much more customer-centric, even if they did not wind up with the borrower.

“If a bank could not do the loan, they would act like a broker and go out and shop for customers,” Stern recalled. “It was called service. Now, they’re not doing it.”

Yet Stern believed the declining number of banks is hardly a problem for consumers.

“By having more non-depository lenders, we are probably getting more lending professionals doing loans and less generic people not specializing in the field,” Stern said.

Mat Ishbia, president and CEO of Troy, Mich.-based United Wholesale Mortgage (UWM), agreed.

“The problem with banks in general is that they do 20 things: Credit cards, boat loans, commercial loans, etc.,” said

Ishbia. “When it comes to my residential mortgage, the biggest investment in my life, I want to go to someone who is a professional that only does home loans–but knows all of the best lenders and the best deals, and has their ear to the market.”

But while non-banks are now the most prominent lending force, that doesn’t necessarily mean they can fix the mortgage market’s problems on their own.

“Credit access is definitely impacting consumers and holding back further gains we’ve seen so far in the housing market,” said Jonathan Smoke, chief economist at Realtor.com. “One part that has clearly not recovered to an extent described as normal involves the first-time homebuyers.”

But while larger banks may not be the main force in the market, community banks are not hoisting the white flag. Instead, they see their own opportunity to snag market share that their larger competitors once held.

“Their interest rates are much higher than ours,” said Peter Doiron, senior vice president of residential lending at Thomaston Savings Bank in Thomaston, Conn. “We are seeing a very strong, robust pipeline.”

Doiron added that non-banks are also working to shake of the stigma regarding their role in the housing market meltdown.

“There’s a feeling by homeowners that mortgage companies and mortgage brokers were really the crux of the problems in 2006-2008 leading up to the recession,” Doiron said. “They have a reluctance to jump back into that.”

And credit unions are also seeking to take a bigger slice of market share. A

recent Callahan & Associates study found credit union loan volume was up 10.6 percent and capital was up eight percent on a year-over-year basis in the first quarter. Bob Dorsa, president of the American Credit Union Mortgage Association (ACUMA), stated that credit unions are poised to attract Millennials that are eager to support local entities rather than multinational operations.

“Younger borrowers are going to be a little more prudent when considering the reputation of the big banks or the huge financial institutions that are not related to their community,” Dorsa said. “They are going to be looking locally for their transactions.”

Logan Mohtashami, an Irvine, Calif.based senior loan manager at AMC Lending and a financial blogger at LoganMohtashami.com, stated that while he did not believe the big banks would make a full throttle return to mortgage origination, there is a period in the near future where they may try to seize the opportunity.

“In the years 2020-2024, when Millennials get beyond their current problems and decide it is time to own a home,” Mohtashami said. “If banks make a push to return to housing, that will be the time.”

But Mohtashami added even if the banks returned, it would not be in their best interests.

“I think the mortgage business for banks was the worst thing for them,” Mohtashami said. “Retail banks were not the best for home loans anyway.”

Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.

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30

The Fastest Route to Career Advancement

By Kerry Elam n all aspects of our lives, we are in control of our destiny, whether it is a promotion at work or being in a loving relationship. Many times, we feel as though we are entitled to more money and power. For years I thought working hard, long hours, volunteering for special projects, and being needed was the ticket to success. Although I continued to advance professionally, I was left feeling drained and resentful as I was not feeling sincere internally. I was not being true to my desires. Hard work and dedication are important; however, staying true to ourselves and paving our own path is more fulfilling and inspiring. This article explores the fast track to career advancement on our terms with four guiding principles.

I

Appreciation Appreciation is a mindset that sets the

tone for living in the present moment.

William James said, “The deepest craving of human nature is the need to be appreciated.” Let’s pause for a moment and list five aspects we appreciate about our current job.

There are always areas in which we can appreciate, even if simply we are gainfully employed with a stable company or that we like our co-workers. In the book, How to Win Friends and Influence People, Dale Carnegie lists one of the fundamental techniques for handling people is to “give honest and sincere appreciation.” To be successful, appreciation must span to our employer, boss, direct reports and co-workers—our team. Appreciation, first and foremost is integral to approaching each unique situation.

If we have conflict with a direct report, we start with saying, “I really appreciate your efforts on this project, and I know you are giving it your best.”

Next, we can give the feedback to help with growth. “I would like to help you

with this project, where could I add value? Have you thought about bringing other team members together for more collaboration?” Versus starting with, “I don’t think this project is going well.

You need to bring in other team members to help you.” Always make the other person feel important.

Imagine going to your boss with the intention to ask for a promotion and instead of taking an entitled approach; starting from a place of appreciation listing why you enjoy your job and how you feel you can add more value in the role you desire.

Chances are you will be listened to more fully with this tactic.

Charles Schwab said it best, “I consider my ability to arouse enthusiasm among my people, the greatest asset I possess, and the way to develop the best that is in a person is by appreciation and encouragement. There is nothing else that so kills ambitions of a person as criticisms from superiors. I never criticize anyone. I believe in giving a

person incentive to work. So I am anxious to praise but loath to find fault. If I like anything, I am hearty in my approbation and lavish in my praise.”

1. Focus on all aspects of appreciation l Accountability: How does anyone know we are dissatisfied if we do not speak up? The next area is taking accountability in our role at work.

Blaming the politics, culture, or boss is not productive. If we are unhappy, it is our responsibility to be clear on what is wanted. Maybe it is time to make a switch, yet many times once we are clear, there is a way to be satisfied in our current organization. By taking the tone of appreciation, we can ask for our needs to be fulfilled.

Our managers are busy and prefer us to take the lead. By being proactive, seeking out mentoring, listening, asking questions and giving meaningful feedback, we can set ourselves apart and create the best career

path that meets our needs and the organizations.

For example, you have an idea to streamline a process, instead of complaining to co-workers, develop a proposal denoting what is working now and how it can be enhanced to be more effective and efficient. Or you have a difficult co-worker; try to find ways to relate versus gossiping. Determine the best way to manage the conflict towards a mutual resolution.

Additionally, if a mistake is made, take accountability for your part and denote the lessons learned. When we take accountability for each scenario, we are leading by example and taking the higher road and in turn will be more successful.

“Hard work and dedication are important; however, staying true to ourselves and paving our own path is more fulfilling and inspiring.” instance, you love giving back to the community, so take a leadership role in the firm’s charity program. Or you like working with people on career development, so ask to manage more people or develop a leadership program. Get creative to bring more aspiration to your working hours.

4. Aspire to be the best In closing, a Swish Proverb provides wisdom, “Fear less, cherish more; eat less, chew more; whine less, breathe more; talk less, listen more; hate less, love more; and all good things are yours.”

From a career perspective, appreciate more, take accountability, strengthen

acumen and aspire to be the best. In turn, career paths are paved to the highest good. As Thomas Jefferson said, “Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.”

Kerry W. Elam is managing director of operations and human resources with Actualize Consulting. She oversees the finance, marketing and recruiting functions of the firm, and is also responsible for facilitating knowledge management, training and social activities for the employees of the firm. She may be reached by phone at (703) 868-1506, email kelam@actualizeconsulting.com or visit www.actualizeconsulting.com.

2. Take accountability for actions and career

l Aspire: Steve Jobs said, “If you are working on something that you really care about, you don’t have to be pushed. The vision pulls you.” It sounds cliché to do what you love.

We may not love all facets of our jobs, yet if we focus on the areas that bring joy, we will be successful and advance. The first step is to have a heart to heart with yourself to gain clarity on what excites you personally and professionally. Make a list of all of your job functions and determine the ones that bring the most joy and you excel. What brings happiness outside the workplace?

Determine if there are themes to pull from to bring clarity to what pieces are best for your career. Next, work with your manager on how you can focus on those areas. For

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800 -561-45677. NMLS ID 22600. NNationwide ationwide Mor Mortgage tggage Lic Licensing ceensing SSystem ysstem (NMLS) CConsumer oonsume epartment of BBusiness usiness Oversight Oversight under the CCalifornia ending AZ: Mortgage CA:: Lic Licensed Mortgage AAccess ccess e website: websit e e: www.nmlsconsumeraccess.org. www..nmlscconsumer o rac a cess e .orrg. AZ Z: Mor tggage Banker Bankkeer BK-0910745; BK--0910745; 2159 2159 McCulloch McCCullo u ch Blvd Blvd 4, Lake Lakke Havasu Havasu City, Ciitty, AZ 86403. CA ensed bbyy the DDepartment aaliffor ornnia RResidential esidential Mor tgage g LLending AAct, ct, FFile iile 413 0904. CO: CO: CCheck hheck lic cense e sta tus of your yoour mortgage mortgage g loan originator orriiginator aatt w ww.dor . ra.sta a te.co.us/rreale estate/index.htm. e GA: Georgia Georrggia Residential Residential Mor tgage g Lic ensee 22721. IL Residential Mor tggage Lic ceensee. KS license status www.dora.state.co.us/real-estate/index.htm.

GA: Mortgage Licensee IL:: Illinois Residential Mortgage Licensee.

KS:: SSupervised upervised License SL.0000313.

License MN:: TThis offer enter into interest lock agreement Minnesota MO:: RResidential Mortgage Broker License 09-1746-S. NH:: Lic Licensed LLoan oan Lic ense SL .0000313. KY: KYY: Mortgage Mortgage g LLoan oan CCompany oom mpanny Lic cense e MC21112. MN hhis is not an off ffeer ttoo ent ter e int to an a int teerreest rrate ate lo ck agr reement e under M innesota LLaw. aw. MO esi esidential Mor tgage g Br rok okeer Lic ense 091746 -S. NH ensed by by the th NNew ew HHampshire ampshirre BBanking anking DDepartment. epartmentt. NJ ed bbyy the N. epartment of BBanking ankkiing and Insurance.

Insurraance. NY Y: Lic ceensed ens Mor tggage BBanker—NYS ankkeerr— —NYYS Department Department of FFinancial inanc i ial SServices. or ork Mor tggage BBanker ankkeer Lic ceense B500980/107664. OH: NJ:J: Lic Licensed N.J.J. DDepartment NY: Licensed Mortgage Mortgage License ensed ervices. New New YYork OH: Ohio Ohio Mortgage Broker Mortgage Exemption MBMB.850208.000 automatic OR: Mortgage License PA:: Lic Licensed RI:I: RRhode Licensed License Mortggage Br rookkeer AAct ct Mor tggage BBanker ankkeer Ex xemption e MBMB .850208.000 (FHA, DE & VVAA aut toomatic loans only) OR R: Mor M tgage g LLender ender Lic ense ML4886. PA ceensed bbyy the DDepartment epartment of BBanking. anking. RI hhode Island Island s Lic ensed LLender, enderr, LLender ender Lic cens eense 20112809LL. VA: VA: Lic censed e bbyy the VVirginia iirrgginia Sta te CCorporation orporration CCommission or oommission MC5382. WA: WA: CConsumer oonsumer LLoan oan Lic cense CL2 2600. Also lic censed in AL, ALL, AR, ARR, CT, CTT, DE, DEE, DC, DCC, FL D, IN N, IA, IA, ME E, MD D, MS S, MT T, NM, NM M, NC C, OK, OKK, SC, SCC, TN, TN N, TX, TXX, UT T, WV and WI NOTICE: All 20112809LL. Licensed State License CL2600. licensed FL,, ID ID, IN, ME, MD, MS, MT, NC, UT, WI.. NOTICE: onditions loans subjec subjectt ttoo ccredit, underwriting property approval guidelines.. OOffered products may state. guarantee thatt all bborrowers qualify. may apply.y. TThis lend. reeditt, under wrriting i and pr rop o erty appr roval guidelines ffffeerreed loan pr roducts ma ay vvary arry bbyy sta te. TThere hherre is no gu arrant a ee tha orrroweers will qu alifyy. RRestrictions estrriictions ns ma ay apply his h is not a ccommitment oommitment ttoo lend d. TTerms, eerrms ms, cconditions oondition rogrrams a are arre subject subject ttoo change without notic icce. TThis hhis inf for o rm mation is ffor oor mor tggage pr rof ofeessionals only and is no ot int tended e ffor oor distr riibution ttoo cconsumers. onsumers. CCarrington aarrringt i on Mor tggage SServices ervices is not ac ting on bbehalf ehalf of or aatt the dir rec e tion of HUD/FHA and pr programs notice. information mortgage professionals not intended distribution Mortgage acting direction agency. or any anny government goverrnnment agenc cy. All rrights iights rreserved. eeservedd.

n Hawaii Mortgage Professional Magazine n JULY 2015

3. Seek outside sources to enhance acumen

31

NationalMortgageProfessional.com

l Acumen: By developing our skills in an area of expertise, we become indispensable in the workplace.

Taking the method of continuous learning allows us to see different approaches and viewpoints outside of the day to day. For years, I was stuck in a “doing” mode and not able to see a bigger picture or different ways of running the internal operations at Actualize Consulting. I was at a point in which I did not feel as though I was adding value. Then I decided to go to seminars, learn from new sources, and read books on leadership and human psychology. Each time, I would find a nugget to bring back to my role and implement and slowly build a culture in which our employees want to be a part of. For example, we had the same goal setting process for eight years with little guidance to our employees. Last year, we streamlined and suggested our employees align goals to accountability, acumen, and aspirations. We were stuck in Einstein’s quote, “Insanity is doing the same thing over and over and expecting different results.” In turn, we had our best employee survey in history last year.

Lenders Beware: “Liability After Foreclosure” Disclosure Presents Compliance Risk

new to market continued from page 25

lender’s custom fee engine and when the company is ready to create a new TRID Loan Estimate, the certified accurate fees for their settlement agent partners will automatically be loaded into the disclosures and are compatible with nearly every LOS and closing system in the marketplace.

By Richard Horn

JULY 2015 n Hawaii Mortgage Professional Magazine n

NationalMortgageProfessional.com

32

One of the easily forgettable disclosures on the Closing Disclosure is on the last page: The “Liability after Foreclosure” Disclosure. It is buried in the text with the riveting Contract Details and Tax Deductions Disclosures. It seems to have little importance in relation to the terms and costs of the loan. However, this Disclosure is a wolf in sheep’s clothing. It requires a state law analysis and can subject lenders and investors to civil liability.

Dodd-Frank Act Section 1414(c) added this disclosure requirement in Section 129C(g)(2) of TILA. The Consumer Financial Protection Bureau (CFPB) included it in the Closing Disclosure, calling it "Liability after Foreclosure.” Therefore, this notice must be implemented as part of the TRID rule.

The TRID rule requires creditors to indicate, through the use of checkboxes, whether the states provide an anti-deficiency protection to the consumer. What is an anti-deficiency protection under TRID? The TRID rule considers a law an anti-deficiency protection if it protects the borrower from liability for the unpaid loan balance after foreclosure. The rule excludes statutes of limitations. The commentary acknowledges whether a protection exists will vary by state law.

These types of laws are typically considered those that prohibit deficiency judgments against consumers after a foreclosure. However, the CFPB stated in a Nov. 18, 2014 Webinar that an affirmative answer is also required if a state law limits the amount that lenders may collect in a deficiency judgment. Many states have laws that limit the remaining liability after foreclosure to the difference between the outstanding debt and the fair market value of the property, rather than the foreclosure sale price.

Based on the CFPB’s Webinar, it appears an affirmative answer is required for states with prohibitions of or limitations on the amounts of deficiency judgments.

Whether such protections apply may be transaction specific. State law may provide an anti-deficiency protection only under certain conditions, such as for particular property types or a particular occupancy status.

Lenders will need to conduct an in-depth review of the laws to determine whether the protection applies to different types of transactions.

Further complicating matters is that, in some states, these laws can depend on whether these conditions are present at the time of closing, when the foreclosure proceedings are initiated, or at the time of the foreclosure sale. Also, certain of these conditions can change over the life of the loan and, thus, cannot be known by the lender at the time the disclosure is provided. The determination of whether an affirmative or negative answer is required for this disclosure is more complicated than it appears.

Unfortunately, there is no “conservative” answer, only a correct answer.

And because this disclosure implements a requirement under TILA, lenders and investors may be subject to borrower lawsuits for a violation.

In summary, the “Liability after Foreclosure” Disclosure is not the simple and benign text disclosure that it appears to be. It is something far more. It is a 50-state survey in disguise, and a potential avalanche of liability. Because of this risk, it would be best to start working on this Disclosure now.

Richard Horn of Richard Legal PLLC was formerly with the Consumer Financial Protection Bureau (CFPB), where he served as senior counsel and special advisor in the Office of Regulations. At the CFPB, Horn led the final rulemaking for the TILA-RESPA integrated disclosures. He also led the CFPB’s design, as well as qualitative and quantitative consumer testing, of the TILA-RESPA integrated disclosures. He may be reached by e-mail at rich@richhornlegal.com.

SPONSORED EDITORIAL

Mortgage Builder Launches New TRIDReady LOS

Mortgage Builder has announced that the Architect loan origination software product has been updated to assist clients with compliance with the impending TILA-RESPA Integrated Disclosure (TRID) requirements for loan originations, processing and closing.

Architect 5.0 addresses compliance with TRID. “TRID compliance is a subject of great concern for our customers, and while achieving compliance can be complicated and challenging, it is absolutely achievable,” said Lawrence Alston, general manager at Mortgage Builder. “We’ve devoted substantial time and resources to studying the rules and updating our software, and we’re now working closely with mortgage bankers to help them prepare for the October deadline through a combination of technology and education.”

LRES Announces Integration With Platinum Data Solutions’ RealView

LRES has announced that its LRES DirectConnect integration hub now fully integrates with RealView, the appraisal quality technology from Platinum Data Solutions, a provider of collateral valuation and risk assessment technologies. Through this integration, LRES and Platinum Data offer more streamlined quality management with automated detection of overlooked or incorrect scope of work or underwriting guidelines during the home appraisal process. LRES DirectConnect offers full valuation lifecycle management to lenders by delivering collateral valuation reports and supporting data in the MISMO industry-standard format and in proprietary format on the Platinum Data platform.

Since partnering with Platinum Data Solutions, LRES has experienced a 15 percent improvement in turnaround time (TAT) and a 25 percent improvement in quality.

“Smart companies like LRES realize that quality, compliance, and transparency attract customers and prevent loss,” said Phil Huff, president and

CEO of Platinum Data. “We’re pleased that LRES is benefitting from the tangible benefits and ROI that RealView provides.”

LRES DirectConnect offers an integration framework that connects financial institutions and third-party systems to the LRES LINK order management platform to optimize and accelerate appraisal order processing.

“LRES’ integration with Platinum focuses on quality management and provides improved accuracy and enhanced operational efficiency throughout the entire appraisal process,” said Roger Beane, CEO of LRES.

CoreLogic Announces New TRID-Compliant Risk Management Suite

CoreLogic has announced the release of LoanSafe Compliance Manager, a new solution to help lenders comply with a broad array of federal, state and local residential mortgage lending regulations, including the TILA-RESPA Integrated Disclosure (TRID) rule when it takes effect Oct. 1, 2015. LoanSafe Compliance Manager is powered by ComplianceEase, and is a new part of the industry leading LoanSafe mortgage risk management suite from CoreLogic. ComplianceEase recently announced that its flagship product ComplianceAnalyzer with TRID Monitor is now able to audit and monitor all the new TRID disclosures from the initial Loan Estimate through the Closing and Post-Consummation Closing Disclosures.

Building on ComplianceAnalyzer’s capabilities, LoanSafe Compliance Manager performs multi-jurisdictional compliance audit reviews covering: TRID; Home Ownership and Equity Protection Act (Sections 32, 35); loans ineligible for Qualified Mortgage (QM); state and municipal high-cost/antipredatory laws and regulations; loan originator compensation restrictions; state licensed-based consumer lending laws and regulations; secondary market investors and GSE compliance guidelines; and lenders internal compliance policies.

“In a Fannie Mae survey performed in Q4 2014, lenders said they were more concerned about risk due to noncompliance than they were about risk due to lower loan volume, and that was in a year that saw originations decline more than 35 percent,” said John Vong, president of ComplianceEase. “Our partnership with CoreLogic allows us to jointly enable more lenders to comply not only with the current pressing regulatory challenge—the coming TRID rules—but also the hundreds of other existing rules that could apply to a

mortgage and that could render it unsalable.”

ISGN and Bradford Technologies Partner on Desktop Appraisal Tool

ShortSave has announced that it has made several upgrades to its platform to improve analytics and compliance tracking for servicers, as well as enhancements to the borrower experience. The ShortSave platform now offers servicers a suite of dashboard tools that enable them to conduct analyses on the loans in their default servicing pipeline, including status reports based on application status and time-stamped borrower activity within the system. This functionality is critical for servicer seeking to comply with the Consumer Financial Protection

NTC Launches Collateral File Audit and Remediation Service

announced that it is now offering a complete collateral file audit and remediation service that can be tailored to specific portfolios, investors and objectives. Collateral files are audited by a team of professionals who cure any exceptions through NTC’s document research and retrieval methods to bring the files up to a transferable standard, after which final results are reported.

The principal benefits of this service, according to NTC, are complete file management under one servicer, from shipping, storage, remediation, assignments, property reports, exception management, and reporting; reduction of money wasted from buybacks and/or

Nationwide Title Clearing Inc. (NTC) has

continued on page 38

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n Hawaii Mortgage Professional Magazine n JULY 2015

ShortSave Enhances Dashboard Tools to Meet CFPB Compliance

ties that use the borrower reported information to auto fill out the Request For Modification and Affidavit (RMA) and any lender specific documentation.

In addition, borrowers also now have the ability to provide supporting documentation and sign the RMA via their touch-enabled device. In addition, ShortSave utilizes both text and email alerts to communicate required actions and updates to the borrowers.

NationalMortgageProfessional.com

ISGN and Bradford Technologies have jointly launched the Valuation Advantage Desktop Appraisal, a new desktop appraisal product supported by a third-party inspection of the property. ISGN’s Valuation Advantage Desktop Appraisal is prepared by licensed and/or certified appraisers with local market knowledge. These reports utilize statistical analysis and local appraiser expertise to support the subject property’s value producing a significantly higher quality and more reliable valuation compared to an AVM and other non-appraiser valuation products. The desktop appraisal solution includes the CoreLogic CaseShiller Index two-year market forecast for a better understanding of the property’s long term value and risk as a collateral instrument.

“ISGN’s Valuation Advantage Desktop Appraisal adds to our portfolio of valuation products—a true appraisal that is accurate, credible and empirically supported while still being highly competitive in price to the alternatives,” said Paul Imura, CMO at ISGN. “We’re excited about this latest offering and the value it will provide to our clients.”

ISGN’s Valuation Advantage Desktop Appraisal is available exclusively through ISGN. Appraisers on ISGN’s panel can produce the desktop appraisal solution using Bradford Technologies’ CompCruncher software.

“We are excited to be working with ISGN in developing and bringing to market this new unique appraisal product. It will open up new valuation markets for ISGN and for all appraisers in general. Using our new computer-aided appraising technology, appraisers will be able to deliver higher quality valuation, faster and more cost effective than with traditional form-filling technology,” said Jeff Bradford, CEO of Bradford Technologies.

Bureau’s (CFPB’s) mortgage servicing rules and provide a desirable experience and transparence to their borrowers.

“In regards to default servicing, the CFPB is primarily concerned with ensuring borrowers have a transparent, consistent and non-discriminatory experience and are ultimately provided with a decision on their loan workout request in a timely manner,” said Karl Falk, CEO of ShortSave. “By capturing data at the point of entry, ShortSave enables servicers to provide distressed borrowers with a more desirable experience and a decision significantly faster than is possible through traditional loss mitigation process available today.”

On the borrower side, ShortSave has added document fulfillment capabili-

N A T I O N A L

M O R T G A G E

P R O F E S S I O N A L

M A G A Z I N E ’ S

economic commentary

THE

FED,

By Dave Hershman

A

s we have discussed, the Federal Reserve Board is moving closer to raising interest rates. We have

GREECE

mentioned previously that the Fed controls short-term rates directly and influences, but does not control, longer-term rates. This topic is important to understand as we watch the economy this year. The Fed sets the “Discount Rate” which the Fed

34

TM

JULY 2015 n Hawaii Mortgage Professional Magazine n

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EMPLOYMENT

charges member banks to borrow funds in the short run when they are short of reserves. The Fed also sets a target for the “Federal Funds Rate” which is the rate banks charge each other for short-term borrowing.

Without getting into too much technical detail, these are very short-term rates. Thus, when the Fed moved both rates to near zero as a reaction to the recession, rates on short-term instruments, such as six-month treasuries, moved close to zero as well. Longterm rates moved down as well in reaction to the same forces that caused the Fed to lower short-term rates. Why is this important? This is important because the Fed is likely to increase short-term rates shortly.

And many are thinking that longterm rates, such as rates on home loans, will move up automatically.

Well, rates on home loans have already moved up from their low levels of this winter in anticipation of this move. Therefore, when the Fed moves rates up, if the markets feel that this is the only move coming for the foreseeable future, long-term rates may not move at all. On the other hand, if the economy keeps getting stronger, long-term rates will continue to move up regardless of what the Fed does. As a matter of fact, if the markets feel the Fed is not moving quickly enough, rates could move up even faster because nothing spooks the markets more than the specter of inflation.

So is the economy getting stronger?

Well, the quarter just ended and it was a very important quarter for the American economy. Especially considering the fact that last quarter was very weak due to our long and harsh winter. Economists will be looking for a bounce-back from the first quarter

in which the economy actually contracted. Based upon reports assessing the real estate market, we certainly see that the economy is moving in the right direction. Certainly the lowest unemployment rate in seven years is an indication of good news.

Because employment numbers have been moderately strong, this means that the quarter is likely to have been strong as well. The question is: Does that put us closer to an increase in rates courtesy of the Federal Reserve Board? As we have previously indicated, the Fed is also watching for increases in wages and wage inflation continues to be muted.

While higher wages are great for the economy, they also would represent the first spark in inflation. Strong jobs and a rebounding real estate market are hallmarks of the better economy the Fed is looking for. There is no doubt that the real estate markets are getting stronger. On the other hand, all of this analysis cannot really give a true picture without mixing in international influences, influences which can make every situation very cloudy.

This past month, we have seen how the Greek crisis affected movements in the stock markets, as well as interest rates. This is why predicting the future is so difficult—even when we see stronger numbers. As always, the Federal Reserve Board has their work cut out for them.

Dave Hershman is a top author in the mortgage industry with seven books published. He is also the founder of the OriginationPro Marketing System, and currently the director of branch support for McLean Mortgage. He may be reached by e-mail at dave@hershmangroup.com or visit www.originationpro.com.

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· Mortgage lates last 12 months OK

35

NMP

MORTGAGE

PROFES

Christine Pollard

36

JULY 2015 n Hawaii Mortgage Professional Magazine n

NationalMortgageProfessional.com

Immediate Past President National Association of Professional Mortgage Women (NAPMW)

BY PHIL HALL

C

hristine Pollard is one of the most prominent thought leaders in today’s mortgage world. In

her leadership roles within the National Association of Professional Mortgage Women (NAPMW), Pollard has been a

have helped me to have more

“As an industry, we need to be marketing to young people and offering the training necessary to understand the employment options and business opportunities available to them.”

confidence and to improve my leadership skills, which have carried over to my position as an operations representative for Investors Title Insurance Company.

I have reached out to my NAPMW connections to find closers in other parts of the country and to talk with

visible force on both a local and

others in the title industry about

regional level (president of

how they are handling certain

NAPMW’s Central New York

of today’s housing and mortgage

because we had several members

Association from 2007-2011 and

worlds.

from the Pennsylvania area, as well

In 2010, I led the merger of the

as Central New York. I got involved

Greater Northeastern Region and

Eastern Region vice president from

changes in our field.

2010-2012) and just concluded her

NMP: How and why did you get

because we didn’t have a lot of

the Southeastern Region to form

term as NAPMW national president

involved with NAPMW? Can you

educational opportunities in Central

the Eastern Region. In 2012, I was

for the 2014-2015 term.

share the track within your

New York for women in this

awarded the Dorcus Ewell Leader

association that led to your

business, and the association

of the Year Award.

operations representative at

leadership position?

provided a great opportunity to

Investors Title Insurance Company,

Christine Pollard: I started with

network and share knowledge with

Why do you think mortgage

spoke with National Mortgage

NAPMW when the Central New York

other professionals in this industry

professionals should join

Professional Magazine regarding

association was chartered in 1995.

from the surrounding areas.

NAPMW?

her association work and the state

We were called PEN-NY at that time

Pollard, who is also Northeast

My positions in this association

NAPMW allows members to get

SSIONAL

OF

THE

MONTH

involved not only on the local level,

What do you see as your most

or not in it long. If you are not

For example, I am operations

but also on the national level, if

significant accomplishments

comfortable with change, this

representative for a title insurance

desired. Some very strong local

within the association?

certainly is not the business to be

underwriter, but I have been a

leaders have no desire to be on

This past year was a difficult year

in.

paralegal, loan officer and even an

the national board, and that’s

for our association, a year of

okay. We need strong leaders in

change. One of my most significant

to take risks and to try things

residential lending department.

our local associations, as they are

accomplishments was to bring

outside of their comfort zone. I

Knowing more than just your piece

the heartbeat of NAPMW. I have

professional administration to the

think as women, we are sometimes

of the transaction is important to

seen many members grow into

association. We had been relying

so used to taking care of others

understanding the entire process.

amazing leaders as they move up

on volunteers for the past five to six

that we’re compelled to keep

through the ranks at the local

years, and it was starting to take its

ourselves on the back burner. It

“virtual” local association this year

and/or national level.

toll. In addition, our association

takes guts to step outside of your

for the many young people who are

administrator retired in December

comfort zone, and it is important to

too busy to attend a meeting in-

the membership, and it is

and we needed to find a solution

remember that failure is just a

person. If meetings or information

important to the national board to

quickly to move forward to fill that

learning experience.

could be shared by phone or tablet,

be sure the association brings

gap.

This association is truly about

value to all members. I once told

Although we have had some very

Women need to be encouraged

operations manager for a

We are working on launching a

the association may be more In your opinion, what can be done

accessible to them. We hope that

someone that this association fits

skilled and reliable members step

to bring more young people into

developing a “virtual” platform

me. I feel like I fit here and am not

up to help manage our association,

mortgage careers?

through which potential members

just a member out there getting

hiring a professional administrator

I’m sure none of us in this business

can obtain information will help

what information is e-mailed/sent

was crucial to moving our

grew up saying, “I want to be in the

meet the needs of our members

to me. All members are invited

association forward. We hired a

mortgage lending business one

across the country that do not have

each month to attend National

company that not only handles the

day.” This business is full of change

a local association near them or

Board Meetings, and they can

day-to-day administration of the

and you can be crazy busy one

need alternative ways to access the

participate as much or as little as

association, but also manage our

month and looking for things to do

organization’s resources.

they want. Members of NAPMW

annual conference and help market

another month.

benefit from networking

our association with the ultimate

opportunities, educational

goal of growing the association

marketing to young people and

current state of the housing

opportunities and the ability to

across the country.

offering the training necessary to

market?

understand the employment options

I think the answer to this question

keep abreast of regulatory

Another very important

As an industry, we need to be

37 How would you categorize the

and business opportunities

depends on what part of the

and the workplace, such as

transitioning the leadership to

available to them. A variety of

country you are in. While we are

compliance issues, suggested

current NAPMW National President

positions present themselves in this

seeing a decline in membership

best practices, and ways to

Kelly Hendricks. In working side-by-

business, and there are many paths

due to the downturn in mortgage

market within the industry.

side with Kelly, I felt we set the

to entering the business, working

activity that began in 2008, the

stage for moving the association

toward a suitable position in a

trends are improving, and the

What role does your association

forward and gave her the tools to

chosen field, and maintaining a

NAPMW is energized and eager to

play in the state legislative and

continue what I started. It is

good living as an individual or

increase membership and remain a

regulatory environment? Are

important to have continuity as you

maintaining a profitable business as

vital organization for women in the

there any items on the current

change leadership, ensuring that

a sole practitioner.

mortgage industry.

agenda you would like to

the members recognize that the

highlight?

board, as a whole, is moving in the

NAPMW educates its members

same direction. I was fortunate to

about regulatory changes, but we

have a very strong board that was

do not engage actively in

willing to make some very difficult

lobbying or commenting periods.

decisions on behalf of the

Instead, we tend use our

membership. I’m very proud of all

resources to share information

that we accomplished last year.

about regulatory changes with the membership and offer education

How would you categorize

with respect to the changes. I

employment and entrepreneurial

know this is a bit different from

opportunities for women in

other associations, but our focus

today’s mortgage world?

is truly on our membership and

I believe the door is wide open to

bringing value to the members in

anyone who has a strong work

the form of education and

ethic. I have always said anyone in

networking.

this business is either in it for life

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n Hawaii Mortgage Professional Magazine n JULY 2015

accomplishment for me was

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changes that affect the industry

Opportunity Lies Ahead in Non-Agency Lending

By Tom Hutchens Prior to the 2007 mortgage crisis, non-agency mortgage lending was a thriving market with nearly $2 trillion in originations at its peak in 2005. It actually outpaced agency lending from 2004 through 2006.

Today, the tide has turned in a big way. Six years into the recovery, nonagency accounts for less than 25 percent of lending volume compared to agency-backed loans, with the majority of those non-agency originations being prime jumbo loans.

Furthermore, sub-prime non-agency loans were responsible for $500 billion-plus per year in originations from 2004 through 2006. Today’s safer, non-QM loans are comparatively non-existent at less than $1 billion per year, but the market is starting to shift once again.

There is clearly a void in the mortgage industry where this segment once dominated, and there is a huge potential for growth going forward.

Non-agency lending—specifically sub-prime (or non-QM) lending—is arguably more relevant now than before the recession.

Here are the key drivers of growth in the non-agency arena going forward:

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l Many Americans may never fit the tight agency credit mold: The regulation pendulum is overcompensating for loose lending standards that were in place leading up to the financial crisis. This overcompensation has led to an environment in which borrowers must fit into a narrowly defined set of parameters to be considered “safe enough” for a loan.

Agencies are using a borrower’s credit score as the primary determination when approving a loan, even though credit scores may not necessarily reflect a borrower’s true ability to repay the loan. Take a look at Ben Bernanke, for example. Even the ex-chairman of The Federal Reserve had difficulty refinancing his home. l The aftermath of the recession necessitates innovative lending solutions: Many potential borrowers fell on hard times during the recession and still have a one-time credit blemish—such as a foreclosure or short sale—on their records. They are in otherwise healthy financial shape but are unable to secure conventional lending because of long waiting periods following such credit events. They represent a massive untapped market for non-agency lenders, who recognize that a recent housing event may not prevent a borrower from being able to repay their mortgage. l Borrowers continue to need more options than can be provided by the government-sponsored enterprises (GSEs): In addition to borrowers who don’t meet the tight credit standards, those who need alternative financing for investment properties or for loans greater than conforming limits are left with few options in the agency world. The prime jumbo market serves borrowers with large loan amounts, but what about investors? A huge opportunity presents itself in allowing investors to purchase a property based on its cash flow (income vs. costs), as opposed to providing income documentation as standard agency programs require.

Lenders that have the capabilities to capitalize on the inevitable rise in non-agency volume stand to benefit from an underserviced market.

The sticking point for some is that these loans require a manual approach to the underwriting process. Those early adopters that are willing to put in the work and offer innovative products can open up a new door of potential borrowers.

Tom Hutchens is senior vice president of Angel Oak Mortgage Solutions, an Atlanta-based wholesale lender currently licensed in 24 states. Tom has been in the real estate lending business for nearly 20 years.

SPONSORED EDITORIAL

new to market continued from page 33

reintegration into servicing departments; increased certainty about representations and warranties from buyers; and increased value of the assets presented for sale. NTC reports that interest in the collateral file audit and remediation service is high, as for most clients it represents an investment with an immediate payback.

“The value of a mortgage-based loan portfolio is directly impacted by the completeness and accuracy-or lack thereof-of the collateral files of the loans of which it is comprised,” said NTC CEO John Hillman. “In some portfolios we have audited, we have found errors in 40 percent to 60 percent of the loans. Remediating the exceptions in these loans increases the value of the entire portfolio, and enables the owner of the portfolio to make more money with each sale.”

ComplianceEase Releases New TRID Disclosure Monitoring and Auditing Solution

ComplianceEase has announced that its online compliance management platform, ComplianceAnalyzer, fully supports loans originated under the new TILARESPA Integrated Disclosure (TRID) rules and has incorporated TRID changes into the thousands of federal and state compliance tests that have been affected by the new rules.

In addition, the latest ComplianceAnalyzer release includes a new module, called TRID Monitor, that provides complete auditing of TRID disclosure timing, changed circumstances and fee tolerances across all disclosures. Since late 2014, ComplianceEase has made various releases of ComplianceAnalyzer TRID functionality available for lender testing and integration development to help the industry ease its transition to TRID. Depending on a lender’s workflow needs, lenders can use ComplianceAnalyzer to check just the latest terms and fees on any single TRID disclosure or use The TRID Monitor module to monitor changes in fees and terms throughout the origination and closing processes. TRID Monitor audits tolerance across all disclosures and changed circumstances, and tracks post-consummation disclosures, including those with a cure to the borrower. The product provides a comprehensive, independent third-party audit report that is evidence of TRID compliance. As a third-party audit, this report may carry greater weight with secondary market investors and regulators than TRID reviews performed by a lender’s own personnel or origination, underwriting or pricing systems.

“Our latest release of ComplianceAnalyzer can quickly and definitively

answer the questions of the hour: is this loan TRID compliant and how can I prove it?,” said John Vong, president of ComplianceEase. “ComplianceAnalyzer with TRID Monitor can audit all of the new TRID documents—from the Initial Loan Estimate through to Closing and Post-Consummation Closing Disclosures—to ensure compliance and to detect and help correct fee tolerance issues. Our intelligent workflow lets the user see as much or as little as they want: from a summary RiskIndicator score and pass/fail summary to a deep dive on calculations and regulations.”

Arch MI Launches New Online TRID Resource Arch Mortgage Insurance Company (Arch MI), a whollyowned subsidiary of Arch Capital Group, has announced the launch of a new online resource to provide information and resources to lenders to help them prepare for the expected Oct. 3, 2015 launch of the Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosure (TRID) rules. Arch MI’s TRID Information Center is a unique repository of information for lenders including a Webinar, Frequently-Asked Questions (FAQs), resources and links created in conjunction with Benjamin K. Olson, a partner at the Buckley Sandler law firm. Olson is a former Deputy Assistant Director of the CFPB’s Office of Regulations, who led the Bureau’s development of the proposed rules and forms integrating TILA and RESPA disclosures.

The centerpiece of Arch MI’s TRID education effort is a proprietary Webinar hosted by Olson, who delivers his expert opinion on mortgage insurance and tolerances under TRID and corresponding lender disclosure responsibilities.

“The TRID rules will have a transformative effect on the mortgage origination process for consumers and industry,” Olson said. “Although the rules can be dauntingly complex, they also offer a unique opportunity for lenders and service providers who can master their intricacies.”

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.

heard street ON THE

Our Heard on the Street column is a chronicle of events, changes and passages in the lives of the people and companies shaping the mortgage industry.

ResMac Continues Growth With Several New Executive Additions

regional sales manager for o2Funding; director and executive VP for Suburban Solutions Corporation; and SVP/managing director for Option One Mortgage.

Prospect Mortgage Announces the Acquisition of the CapWest Mortgage

Discover to Close Mortgage Originations Division

continued on page 48

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Discover Financial Services has announced that it is closing the mortgage origination business it acquired in 2012 to focus on its direct banking products.

“The business is not projected to meet our financial expectations due to ongoing challenges to our home loans operating model, so we made the difficult decision to exit,” said Carlos Minetti, president of consumer banking for Discover.

Discover Home Loans Inc. will accept applications at its Louisville, Ken., offices through July 31. Business operations will continue there until early August, when Atlanta-based AmeriSave Mortgage Corporation is expected to finish processing the remaining applications. AmeriSave plans to establish an office in Louisville and offer jobs to approximately 125 Discover employees.

At Discover’s Irvine, Calif., location, the business will stop accepting applications as of June 16th and will continue processing and funding loans already in process.

In all, Discover plans to offer severance packages to about 460 employees, primarily in Irvine, and Louisville.

Discover will continue to originate home equity loans through Discover Bank.

Prospect Mortgage LLC has announced the acquisition of the assets of CapWest Mortgage, a Kansas City-based call center operation focusing on consumer direct sources of business. CapWest is a division of Farmers Bank & Trust, headquartered in Great Bend, Kan. “During the last several quarters, we conducted extensive market due diligence on an array of strategic opportunities that would complement Prospect’s business and drive growth and profitability,” said Prospect Chairman and CEO Mike Williams. “We believe CapWest’s sophisticated call center operations and seasoned management team will provide Prospect with significant growth opportunities and an enhanced competitive advantage in the marketplace. We are excited to have the CapWest team join the Prospect family and look forward to this acquisition creating long-term value for our employees, partners and investors.”

One of Prospect’s stated strategic objectives has been to capitalize on the emerging consumer direct market by expanding and enhancing its capabilities in this channel. Prospect has the resources to scale CapWest’s model to fulfill an expanded spectrum of lead sources and products, and the acquisition will serve as a foundational component to leverage Prospect’s existing Consumer Direct initiatives. CapWest will operate as a separate division under Prospect

NationalMortgageProfessional.com

ResMac has announced that Gregory D. Lutin, who joined the company late 2014, is expanding the organization’s national footprint as senior vice president of third-party originations (TPOs).

Lutin’s primary focus will be concentrated on developing the entire wholesale and TPO production channel, P&L, and recruitment efforts for non-delegated correspondent/emerging banker platform.

Prior to joining ResMac, Lutin held a variety of leadership positions over a 17 and a half-year span at Flagstar Bank, including prior roles as executive vice president of national sales, where he directly contributed to the development of a real-time, star-rating performance system to measure account profitability, utilizing internal metrics and data sets to ensure statistical relevancy. Lutin also served as SVP, South Division where he worked with senior and executive management, educating corporate leaders in revenue/profitability components directly tied to the customer journey.

Lutin also served as first vice president of the Southeast Region, where he was promoted from vice president of the Sunshine Region, and was directly responsible for growing annual regional volume from $1 billion to more than $5 billion.

Additionally, ResMac announced the on-boarding of two regional vice presidents, William L. Barkley and Shane O’Dell. Barkely will focus expansion efforts in the Southeastern U.S., while Shane will be responsible for developing the Western Region.

Prior to joining ResMac, Barkley was responsible for expanding correspondent (TPO) business in the Southeast for Flagstar Bank, Caliber Funding, and most recently, First Guaranty Mortgage where he increased origination volume and developed correspondent relation-

ships in the Southeast. Over the course of his career, Bill served the industry in various leadership roles and was directly responsible for driving increased origination volume in excess of 240 percent.

Prior to joining ResMac, O’Dell held senior leadership roles for a select group of financial institutions including, Chase, Lime, United Residential Lending, Bay Equity, and 360 Mortgage Group, where he was responsible for running operations and sales for the TPO Division and increasing channels sales volume by 1,750 percent. O’Dell is an expert in driving mortgage operations with an outstanding record of achievement in meeting compliant operations objectives. He spent the last 21 years growing, training and mentoring successful regional and national sales teams, while expanding territories, increasing production and establishing accountability at all levels of sales.

Barkley and O’Dell join a growing team of industry experts that include mortgage professionals Tim Verinder and Robert Germano. Verinder serves as regional vice president of sales, expanding the Southern region, while Germano, ResMac’s vice president of wholesale, is focused on developing the Northeast.

Verinder brings 20-plus years of mortgage sales and leadership experience to ResMac. In his new position, Tim will be covering the state of Texas and will be responsible for the development of the Texas Wholesale and Non-Delegated Correspondent Sales Team.

Germano, who recently celebrated a work anniversary with the company, held regional sales manager positions with New Penn Financial, where he facilitated the transition/acquisition of o2Funding’s wholesale platform.

Additionally, Germano was VP and

Closing Disclosure: Deep Dive–Pages One an

By Jonathan Foxx

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This is the fourth article of a six-part series devoted to TILA/RESPA Integration Disclosure (TRID). Although the series, structured as White Papers, was initially established with four parts, I have added a fifth and sixth part to discuss additional features of the Closing Disclosure. In this article, I will take you through a review of Page One and Page Two of the Closing Disclosure. In the fifth part, I will discuss Page Three. The sixth and final part of the series will provide an outline of Page Four and Page Five. Through a review of important highlights, I invite you to join me in a deep dive into the intricate features of the Closing Disclosure.

In the first article, I discussed the mission of TILA-RESPA Integration and the Loan Estimate (LE).1 The second article introduced and treated the numerous features of the Closing Disclosure (CD).2 In the third article, I provided the salient features of the Loan Estimate, in considerable detail.3 The first two articles were accompanied by detailed tables to be used for certain itemized categories and action requirements.

I would suggest that you read all the articles in this series in order to better understand the TILARESPA Integration Disclosure (TRID) rule promulgated by the Consumer Financial Protection Bureau (CFPB).

One of the reasons I have written this series is to cut through the information noise. My concern stems from the nearly profiteering stance of the flourishing punditry to opine on TRID. This approach to learning seems to have become the norm recently at conferences, conventions, Webinars, seminars, lectures, and pricey city-to-city forums. Indeed, also, people with no real experience in directing regulatory compliance, though having some training background, seem to hang out their TRID webinar shingle. I view the latter as but shills for generating leads for their affiliated pundits.

I happen to think that TRID is too important, being a generational change in disclosure, to hog the helpful information about TRID by charging a fee just so somebody could attend and possibly learn something about it. With that in mind, my firm recently established two proactive paths to a TRID knowledgebase: (1) We established the TEAM TRID task force,4 a relatively inexpensive, cost-effective way to get TRID integration implementation done efficiently (www.teamtrid.com); and importantly (2) We established TRIDHotline.com,5 an entirely free online service, manned by our task force, to assist people with their questions about TRID. We want to listen to their compliance needs (www.tridhotline.com).

Hopefully, you will have read the previous three articles. Now we will continue a detailed review of the new disclosures, by providing this fourth article on the Closing Disclosure. As indicated above, a fifth and sixth article will further elucidate the Closing Disclosure analysis.

In focusing on the Closing Disclosure, I will offer a perspective of its pertinent and critical highlights. continued on page 42

nd Two

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Find “Friends” and New Business on Social Media

By Mike Jensen

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In today’s digital age, it seems that everyone is trying to figure out how to best use social media. All of the various platforms—Facebook, Twitter, Pinterest, LinkedIn, Google+, etc.—and all of the related lingo—Friends, Likes and Tweets—can get confusing and even overwhelming. But there’s no doubt about it: Social media is here to stay. It is now up to businesses, including us as mortgage lenders and individual mortgage originators, to put social media to our advantage.

Simply having a Web site is no longer enough to reach and educate your target audience on your mortgage business and services. Many digital marketing experts will tell you that today’s website—as valuable as it is in some respects—often comes up short in providing homebuyers with the information they are looking for. Of course, a Web site is helpful in providing basic information, but what today’s homebuyers want are reviews, endorsements, and helpful hints from people outside of the purchase cycle, such as their friends or associates who have already purchased a home.

The best forum for this type of activity is social media. It used to be that companies tracked traffic and click-through rates on Web sites because they were important measures that demonstrated interaction with customers. Today, the more important measure is the level of engagement that customers have with you. As a result, social media pages are viewed far more than many ever dreamed possible or probable.

Furthermore, search engine results are now influenced by your activity on social media, so if you want to show up on page one of a prospect’s online search for a mortgage-related keyword, you need to be utilizing social media. Originators with strong social media presences are likely to find that they are gaining a significant number of leads via regularly posting great content on their social media profiles. By doing this, they are able to stay in front of partners and homebuyers.

Originators who are initially apprehensive about using social media for business may completely change their tune after establishing themselves online. Using Facebook, Twitter, Google+, LinkedIn, and Pinterest in tandem with each other to post a message about pre-qualifications, for example, can yield a surprising amount of leads. Essentially, minus the cost of your time, posting on social media can function as free advertising to a warm market, and in this way, social media can become a major source of business.

The challenge that exists in using social media for business purposes is that it takes time—lots of it. It can be a costly and complex activity to tackle the digital frontier on your own. Mortgage companies that have embraced the digital age have dedicated staff and negotiated special terms with vendors to make digital marketing as easy as possible for their mortgage originators. They also have researched and taken the necessary steps to make sure their mortgage originators are compliant in a digital world.

As mortgage originators, we all face the same challenges when it comes to managing the many forms of social media. However, in an era when your five-year-old may have an iPod and your grandmother has a Facebook Page, it’s essential for you to get social.

Mike Jensen is executive vice president of marketing and business development at Academy Mortgage Corporation, where he works directly with the field to develop and implement the latest marketing strategies and tactics to promote Academy and generate new business. He has more than 25 years of experience in directing marketing and executing national campaigns. He may be reached by e-mail at mike.jensen@academymortgage.com, facebook.com/academymortgage or twitter.com/academymortgage.

closing disclosure continued from page 40

As I have stated throughout this series, I caution you to realize that this review is not exhaustive or comprehensive, given that the TRID rule contains very complex disclosure requirements, and there are on-going updates and interpretations involving its implementation, some of which are borne of the CFPB’s own issuances as well as the areas that may be subject to litigation.

Please consider my analysis carefully. Follow along with a copy of the Closing Disclosure. I will provide, where helpful, some information as SUGGESTED GUIDANCE. Allow at least two hours to consider this explication. And as I have admonished all along, make notes, raise questions, and seek answers from competent compliance professionals!

There are five pages to the Closing Disclosure. We will visit each of them, with particular interest in understanding their key features. Although I will take the CD somewhat in order, it should be noted that this method of explanation is not meant to suggest that each Closing Disclosure contains five pages or that in all instances the information described appears on that page in the same order. For example, Regulation Z allows an alternative “Calculating Cash to Close” table for transactions without sellers.6

Page One The first page of the Closing Disclosure includes General Information, the Loan Terms table, the Projected Payments table, and the Costs at Closing table. The CD begins with the title “Closing Disclosure” and a form purpose statement, followed by three columns of basic information headed “Closing Information,” “Transaction Information,” and “Loan Information.”7 The page then includes three tables: “Loan Terms,” Projected Payments,” and “Costs at Closing.”8 The text itself is required for federally related mortgage loans subject to TILA-RESPA disclosure integration.

Note should be taken that the model form is for transactions subject to TILA only and not RESPA. Closing Information Under the heading “Closing Information,” the creditor must disclose: (1) Date Issued; (2) Closing Date; (3) Disbursement Date; (4) Settlement Agent; (5) File #; (6) Property; and (7) Sale Price or Appraised Prop. Value.

Under RESPA’s Regulation X, there is a requirement for listing the name of the settlement agent, place of settlement, property location, and settlement date.9 The CD discloses the same information, excluding the place of settle-

SPONSORED EDITORIAL

ment, plus the date the disclosure is issued; the date funds are disbursed to the seller or consumer, as applicable; the sale price or appraised value of the property; and the file number assigned to the transaction by the closing agent.10 Let’s look more closely at how this section of the CD is assembled.

Date Issued The creditor must disclose the date the CD is delivered to the consumer, regardless of the method of delivery, labeled “Date Issued.”11 Closing Date The creditor must disclose the consummation date for the transaction, labeled “Closing Date.”12 Additional Guidance In some transactions, the consummation date may change after the delivery of the CD, such as when the consumer waives the three-day waiting period between delivery of the CD and consummation.

Under TILA, creditors are required to use the best information reasonably available to them to complete the CD, so the Closing Date will be based on that best information.13 If the disclosure previously provided becomes inaccurate, the creditor must deliver a revised CD at consummation and the revised CD would disclose the actual consummation date. Accordingly, either consummation will occur on the date the creditor initially disclosed and be accurate, or the creditor will be required to revise the CD to reflect the date on which consummation actually occurs— and in either case the CD will reflect the actual date of consummation and not an estimate.

Disbursement Date TILA requires the creditor to disclose the date on which the “Closing Costs Financed (Paid from your Loan Amount)” in the Calculating Cash to Close table on page 3 of the Closing Disclosure, and “Cash From or To Seller” on page 3 of the Closing Disclosure, are expected to be paid to the consumer and seller, respectively, and labeled “Disbursement Date.”14 In a transaction that is not a purchase transaction, the creditor must disclose the date the amount of the consumer’s Loan Amount and/or Payoffs and Payments (in the Calculating Cash to Close table on page three) is/are expected to be paid to the consumer or a third party.

Settlement Agent Creditors must disclose the identity of the settlement agent conducting the closing, labeled “Settlement Agent.”15 continued on page 47

25 2015

MOST CONNECTED MORTGAGE PROFESSIONALS

MICHAEL BORODINSKY Blog: TheNewsFunnel.com (staff blogger) Facebook: Facebook.com/MikeBorodinsky LinkedIn: LinkedIn.com/in/MichaelNewHomeMortgage Twitter: @MikeBorodinsky Web site: MichaelNewHomeMortgage.com A graduate of the University of Delaware and a 30-year mortgage industry veteran, Michael Borodinsky has funded more than $4 billion in residential mortgage loans to 12,000plus customers over the course of his career. He was awarded the 2012, 2013 and 2014 Five-Star Professional Designation, which honors the best mortgage lending officers via customer service rankings and has been ranked among the top originating loan officers nationwide for the past 15 years.

TIM DAVIS Facebook: Facebook.com/MarketingEvangelist Instagram: Instagram.com/TheMarketingEvangelist LinkedIn: LinkedIn.com/in/TimDavisOnline Twitter: Twitter.com/MKTGEvangelist Tim Davis is the national sales coach for Movement Mortgage and founder of Personal Branding Mastery Seminars for agents. In addition to coaching and sharing best practices, Tim is also a speaker and author of several best-selling books, including The Daily Difference, The Motivation, Inspiration and Action Plan for People Who Want to Accomplish More!

RICK FLOYD Blog: ChasingExcellenceBlog.com Facebook: Facebook.com/RickFloydREMN LinkedIn: LinkedIn.com/in/RickFloydREMN Twitter: Twitter.com/Rick_Floyd Rick Floyd is a connector online and off. Through his crosscountry travels for HomeBridge and weekly “Chasing Excellence” video blog, Rick is constantly forging new relationships and helping others achieve the same level of success he strives for both personally and professionally.

When he’s not on the road or in the studio, you can find

Rick spending time with his family, cheering on the University of Georgia Bulldogs or leading what he defines as “The Greatest Tailgate in All of College Football.”

GREG FROST Facebook: Facebook.com/GregFrostSr LinkedIn: Goo.gl/dvG8mm Twitter: Twitter.com/GregFrostSr Web site: FrostMortgage.com, GregFrost.com YouTube: YouTube.com/User/FrostMortgage Greg Frost is mortgage lending’s first Billion Dollar Originator. He is the national training director at Primary Residential Mortgage Inc. (PRMI), an author, trainer and Mortgage Bankers Association (MBA) National Advocate.

FRANK GARAY AND BRIAN STEVENS Facebook: Facebook.com/FrankAndBrian Web site: TheNationalRealEstatePost.com Frank Garay and Brian Stevens are the hosts of The National Real Estate Post, one of the most widely watched daily shows in the mortgage and real estate industry. Frank and Brian are also partners in Listing Booster, a co-marketing tool for loan officers and real estate agents and co-owners of MoveTube, the world’s first and only interactive smart TV property search channel.

AMY GOLDSTEIN Facebook: Facebook.com/AmyBMIC LinkedIn: LinkedIn.com/pub/Amy-Goldstein/7/b71/724 Twitter: @AmyBMIC Web site: BMICMortgage.com Amy Goldstein has been a mortgage originator servicing Maryland; Virginia and Washington, D.C. since 2001. Amy uses social media to keep in touch and inform clientele and colleagues of the ever changing mortgage industry.

2 5

M O S T

C O N N E C T E D

JOHN H.P. HUDSON Facebook: Facebook.com/MortgageYou Google+: Plus.Google.com/u/0/+JohnHPHudson/posts/p/pub LinkedIn: LinkedIn.com/in/JohnHPHudson Twitter: @JHPHudson Web site: MortgageYOU.com YouTube: YouTube.com/c/JohnHPHudson John H. P. Hudson, vice president of Mortgage Financial Services, is a member of the board of directors and Communications Committee Chair for NAMB—The Association of Mortgage Professionals. “I don’t care if you are a mortgage broker or a mortgage banker … If you are in the business of helping consumers with homeownership, then you have got to be engaged and supportive of your trade associations,” said Hudson. In addition to engaging with his extensive industry network, John is currently spearheading NAMB’s #MortgagePro Social Media Contest.

JASON HULTGREN KLOUT: Klout.com/LenderJason LinkedIn: LinkedIn.com/in/JasonHultgren Twitter: @LenderJason Web site: AmeriSave.com/lo/JHultgren Jason Hultgren has embraced the fast-paced changes in the mortgage industry, as well as disruptive technologies like social and digital media early on in the cycle to leverage as a competitive sales and leadership advantage.

“Social media has allowed me to position myself as a thought leader in my markets, with my centers of influence and in the mortgage industry. Social media has also helped me grow my personal brand and my professional reputation,” said Hultgren.

MAT ISHBIA LinkedIn: LinkedIn.com/pub/Mat-Ishbia/14/9a/a8a Twitter: @Mishbia15 As president and chief executive officer of United Wholesale Mortgage (UWM), Mat Ishbia leverages social media to echo his advocacy for brokers and educate mortgage professionals by posting on industry regulations, thought leadership and breaking news.

CHAD JAMPEDRO Facebook: Facebook.com/GSFMortgage?ref=hl LinkedIn: LinkedIn.com/pub/Chad-Jampedro/1/41/a6 Twitter: @LenderInsite, @GSFMortgage Web site: GoGSF.com, GoGSFBranch.com Chad Jampedro is currently president of GSF Mortgage. He is interested in the exchange of ideas and information in relation to the U.S. residential finance industry.

JOSHUA JONES Facebook: Facebook.com/JoshuaJonesMM LinkedIn: LinkedIn.com/in/JoshuaMJones Twitter: @JJMortgage Web site: MortgageMaster.com/JMJones Joshua Jones has been in the mortgage industry for more than 10 years. “Surrounding yourself with a great team is the key to success,” said Jones. “Being connected to quality partners and keeping your clients informed is a must in this ever-changing industry.”

M O R T G A G E

P R O F E S S I O N A L S

STEVEN KAUFMAN Blog: TheStevenKaufman.BlogSpot.com Facebook (personal): Facebook.com/TheStevenKaufman?fref=ts Facebook (business): Facebook.com/AskZeus?fref=ts LinkedIn: Linkd.in/1Hb6MIn Web site: AskZeus.com Steven Kaufman, CPA, MsEDE, is a finance enthusiast and chief executive officer of Zeus Trust Company, which operates a long-term lending platform under the brand Zeus Mortgage and short-term alternative lending platform under the brand New York Mutual. Steven completed the Strategic Marketing Management Program at Harvard Business School and has a master’s degree in economic development and entrepreneurship from the University of Houston.

FRED KREGER Blog: FredKreger.com, CampGA.org Facebook: Facebook.com/Fred.Kreger Google+: Plus.Google.com/u/0/+FredKreger/posts Twitter: @fredkreger Linkedin: LinkedIn.com/pub/Fred-Kreger/4/934/952 Fred Kreger is an active member in both the California Association of Mortgage Professionals (CAMP) and NAMB—The Association of Mortgage Professionals. He is currently statewide past president of CAMP and sits on the NAMB board of directors as vice chair of Government Affairs. Fred is an advocate for the mortgage industry, speaking at the federal and state levels regularly on government affairs on the current state of mortgage lending, as well as to other mortgage professionals and credit unions.

MARK MADSEN Google+: MarkMadsen.me Web site: MRev.org Mark Madsen is co-founder of Mortgage Revolution, a grassroots industry networking conference that brings street level lending and real estate professionals together to share their best strategies for success. Mark’s lending career started in 1999 as a Las Vegas originator and he was an early adopter of search engine marketing, mortgage blogging and social media back when MySpace was cool and “The Facebook” was only available for Harvard students. He also started the largest mortgage professional network on Google+, which has grown to almost 2,000 members in the past year.

DAVID MARGULIES LinkedIn: LinkedIn.com/in/DMargulies Twitter: @AfrWholesale, @eLendMortgage Web site: AFRWholesale.com, eLend.com David Margulies joined American Financial Resources in April 2014 and serves as the company’s executive vice president of global sales. Spanning a distinguished 35-year career in the mortgage and investment banking industries, David is responsible for the overall direction of sales initiatives and implementation strategies within AFR. David is a visionary leader within the wholesale, correspondent, retail, reverse and strategic alliance mortgage lending channels.

BUBBA MILLS Blog: CorcoranCoaching.com/Blog Facebook: Facebook.com/CorcoranCoaching, Facebook.com/Bubba.Mills.3 LinkedIn: LinkedIn.com/pub/Bubba-”Eric”-Mills/10/508/8b7 Twitter: @BubbaMills1 Web site: CorcoranCoaching.com Bubba Mills is co-owner and executive vice president of sales and marketing for Corcoran Consulting & Coaching.

He has been in the real estate, mortgage and servicing industry since 1988. He specializes in team building, branding and community stabilization.

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M O S T

C O N N E C T E D

DANIEL MILSTEIN Facebook: Facebook.com/MilsteinDaniel?fref=ts LinkedIn: Goo.gl/H3buXc Twitter: @DanMilstein Web site: DanMilstein.com, GoldStarFinancial.com Daniel Milstein is the founder and chief executive officer of Gold Star Mortgage Financial Group. Dan’s entrepreneurial vision and executive leadership have led Gold Star Mortgage Financial Group to its current position as one of the top 50 lenders in the United States with offices from coast-to-coast.

ERIC MITCHELL Facebook: Facebook.com/EricMitchell0513 LinkedIn: Goo.gl/OdqyDR Twitter: @EricTMitchell Eric Mitchell is helping to revolutionize the mortgage industry with innovative purchase market strategies. As executive vice president for Gold Star Mortgage, Eric is partnering loan officers with real estate agents at sales training events using cutting-edge technology platforms. Having the world’s greatest mentors has allowed Eric to bring state-of-the-art information to sales professionals that truly change how loan officers and real estate agents work together as a team.

KAHREN OXNER Facebook: Facebook.com/KahrenOxnerMortgageLoanOriginator LinkedIn: LinkedIn.com/in/KahrenOxner Web site: KahrenOxner.com Kahren Oxner realized the benefits of a strong online presence years before the masses did. With an active blog, social pages, and support of a search engine optimization (SEO) specialist, 25 percent of her referrals are from online.

PHIL RASORI Facebook: Facebook.com/MCTTrading LinkedIn: LinkedIn.com/company/MCT-Trading Twitter: @MCTTrading Phil Rasori is a widely recognized expert and thought leader on the topic of secondary marketing in the mortgage industry. He has designed very successful proprietary mortgage pipeline hedging models for lenders, and most recently, a leading browser-based secondary marketing platform called MCTlive.

ROBBY SAMPSON Facebook: Facebook.com/TheMortgageFirmLakeland Instagram: Instagram.com/HomeLoanKeys LinkedIn: LinkedIn.com/in/RobbySampson Twitter: @HomeLoanKeys Web site: HomeLoanKeys.com YouTube: YouTube.com/user/MortgageFirmLakeland/ Robby Sampson is incredibly passionate about educating and empowering through videos on his social media channels. His goal is to help people understand the loan process, get treated like family, and ultimately get their dream home.

SHASHANK SHEKHAR Blog: LendingExpertBlog.com Facebook: Facebook.com/LendingExpert Twitter: @ShashankTweets LinkedIn: LinkedIn.com/in/ThisIsShashank Web site: ArcusLending.com Shashank Shekhar is chief executive officer of Arcus Lending Inc., a best-selling author and one of the top loan originators in the country. Shashank has built a large following by educating consumers via his blogs, social media and radio shows.

M O R T G A G E

P R O F E S S I O N A L S

JOHN G. STEVENS Facebook: Facebook.com/JohnGStevensUtah?ref=hl Instagram: Instagram.com/JohnGStevens LinkedIn: LinkedIn.com/in/JohnGlenStevens Twitter: @JohnGlenStevens YouTube: Goo.gl/49ZVJi Google+: Goo.gl/fOUg5F John G. Stevens is actively involved in the mortgage industry through social media. He is recognized as one of the top five percent most viewed profiles on LinkedIn, has more than 9.5 million views on Google+ and is highly sought out for Facebook and Instagram. He has been interviewed nationwide, including multiple times on Mortgage News Network. #JohnGStevens is redefining #MortgagePro for #SocialMedia.

CINDY TOMLINSON Blog: Cindy-Tomlinson.BlogSpot.com Facebook: Facebook.com/CindyTomlinsonMortgage LinkedIn: LinkedIn.com/pub/Cindy-Tomlinson/8/a34/688 Twitter: @cindytomlinson Web site: CindyTomlinson.net As a mortgage loan officer since 2006 in Redding, Calif., Cindy Tomlinson lives an active life with her family in Northern California. She is recognized as being in the top one percent in the nation for top performance as a loan originator since 2012 by Mortgage Originator Magazine.

Mortgage finance is her passion and she loves to assist people in attaining their goals of home ownership.

GINGER WILCOX Blog: Sindeo.com/blog/ Facebook: Facebook.com/GingerWilcox Google+: Plus.Google.com/+GingerWilcox/posts LinkedIn: LinkedIn.com/in/GingerWilcox Twitter: @GingerW Ginger Wilcox is chief industry officer of Sindeo, a mortgage marketplace startup that seeks to completely transform the mortgage experience by leveraging technology to streamline the application process and connect buyers with the optimal loan product. Prior to joining Sindeo, Wilcox was a prominent face and voice at Trulia, having launched the real estate giant’s TruliaPro blog and leading the industry marketing organization, where she built and grew Trulia’s channel marketing and partnership programs.

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MOST CONNECTED MORTGAGE PROFESSIONALS

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Save the Date

Holiday Networking Parties Return The only thing better than a closed loan is a free party.

Tuesday, December 8, 2015

? Atrium Hotel, Irvine, CA

? Doubletree Hotel Dallas, Dallas/Fort Worth, TX Tuesday, December 15, 2015 ? Holiday Inn & Suites, Orlando, FL

Thursday, December 10, 2015

closing disclosure continued from page 42

The name of the entity that employs the settlement agent should be provided; however, the name of the individual conducting the closing is not required. l File Number The CD must include the number assigned to the transaction by the closing agent for identification purposes, labeled “File #.” The file number may contain any alphanumeric characters and need not be limited to numerals.16 Property In this part of the CD, include the street address of the property, labeled “Property.” This item must include the address, including zip code, of the property that secures or will secure the transaction or, if the address is unavailable, the location of the property using a zip code. (A creditor complies by disclosing a complete address as approved by the U.S. Postal Service.)

Suggested Guidance l Name and Address. The name and mailing address for each consumer and seller must be provided, and if

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Loan Information In the third column near the top of page one of the CD, the creditor discloses information about the loan under the heading “Loan Information.”23 With the exception of the mortgage insurance case number (labeled “MIC #”), the information mirrors the basic loan information disclosures required at the top right of page one of the Loan Estimate: (1) Loan Term; (2) Purpose; (3) Product; (4) Loan Type; (5) Loan ID #; and (6) MIC #.

NOTE: The Rate Lock disclosure of the Loan Estimate does not appear on the Closing Disclosure because it is no longer relevant.

Suggested Guidance l The Loan ID numbers on the Loan Estimate and Closing Disclosure must match. If a creditor uses the same loan ID number on several revised Loan Estimates, but adds after the number a hyphen and a number to denote the number of revised Loan Estimates in sequence, the creditor must disclose the loan ID number before the hyphen.24 l A settlement company may use a different identification number for a transaction, which would be disclosed not in this column but as “File #” under the Closing Information column. l The Loan ID # must be one that continued on page 76

Learn more at www.myfamp.org 47

First Guaranty Your Success Our lending products and services are just a few ways that FGMC can help you succeed.

R

First Guaranty Mortgage Corporation® (FGMC), is a National Approved Single Family Issuer for Ginnie Mae; an Approved Fannie Mae MBS Issuer; Approved by HUD; an FHA Approved Lending Institution; Approved for VA; and Approved by USDA. FGMC provides a full spectrum of lending products and services throughout the 47 states and the District of Columbia, where licenses are held.

Wholesale

fgmcwholesale.com

Correspondent

fgmccorrespondent.com

Capital Markets fgmccm.com

Retail

fgmc.com/joinus

Warehouse Lending fgmcwarehouse.com

This information is solely for mortgage professionals and should not be provided to consumers or third parties. Information is subject to change without notice. This is not a commitment to lend and there is no guarantee that all borrowers will qualify. All loans are subject to credit, underwriting, and property approval. Other restrictions may apply. FGMC is not acting on behalf of HUD, VA, FHA or any other agency of the federal government. First Guaranty Mortgage Corporation (Company NMLS ID 2917) is licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act; Regulated by the Division of Real Estate in the State of Colorado; Licensed by the Delaware State Bank Commissioner to engage in business in this State under License No. 2403 (renewed through 2015); Georgia Residential Mortgage Licensee; Illinois Residential Mortgage Licensee; KansasLicensed Mortgage Company; Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the Nevada Division of Mortgage Lending to make loans secured by liens on real property; Licensed by the New Jersey Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services, Licensee No. B500800 (d/b/a FGMC In Lieu of True Corporate Name First Guaranty Follow us on: Mortgage Corporation); Rhode Island Licensed Lender. For complete corporate and branch licensing information, visit www.fgmc.com or www.nmlsconsumeraccess.org.

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Transaction Information In the second column near the top of page one of the CD, the creditor discloses the names and addresses of the parties to the transaction (i.e., borrower, seller, and lender, as applicable) under the heading “Transaction Information.”18

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Sale Price In a credit transaction involving a seller, the creditor must disclose the sale price for the property, labeled “Sale Price.” In transactions not involving a seller (such as in a refinancing), the creditor must disclose the appraised value of the property, labeled “Appraised Prop. Value.”

If no seller is a party to the transaction, the value to be disclosed is that determined by the appraisal or valuation used to underwrite the transaction, or if the creditor has obtained a more recent appraisal or valuation, the value determined by the more recent appraisal or valuation. For refinances where an appraisal is not obtained, the creditor may disclose an estimated property value and the label should be changed to “Estimated Prop. Value.”

The creditor may use the estimate provided by the consumer at application, or if the creditor has performed its own estimate of the property value it may use that estimate if it is the value the creditor used to determine approval of the transaction. If personal property is included in the sale price of real property, the creditor may disclose the aggregate price without a reduction for the appraised or estimated value of the personal property.17

l

the names and mailing addresses do not fit in the space allocated on the Loan Disclosure, an additional page may be appended to the end of the form.19 Addendum. If the form does not provide enough space to include the required information for each seller, an addendum may be used, provided the creditor complies with the form requirements.20 No Seller. In transactions with no seller, such as a refinancing or home equity loan, the creditor must provide the name of the person or persons primarily liable under the obligation or who have a right of rescission. The disclosure of the seller’s name and address may be left blank.21 Multiple Creditors. If a credit transaction involves more than one creditor, the creditors must choose which one of them will provide the CD and a single, complete set of disclosures must be provided.22 To Whom Delivered. If the transaction is rescindable, a CD must be provided separately to each consumer who has the right to rescind.

In transactions that are not rescindable, a CD may be provided to any consumer with primary liability on the obligation.

heard on the street continued from page 39

Mortgage, and Monte Robbins, currently president of CapWest, will become a Prospect Divisional President, responsible for the call center’s growth and operations.

MIS Integrates Title and Settlement Fees Into Ellie Mae’s Encompass360

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In anticipation of the impending changes under the new TILA-RESPA Integrated Disclosure (TRID) rules, Mortgage Information Services Inc. (MIS) has successfully integrated its title insurance and settlement fees with Encompass360, Ellie Mae’s mortgage origination and management system.

Encompass360 users who utilize MIS’s services are now able to view all title insurance, settlement and recording fees within the loan at no additional cost, without having to request a quote from an external source.

Additionally, the Encompass360 user will not be required to add information in order for the fees to populate in the loan—they will pull directly from within the loan file and are automatically updated if changes to the loan are made.

Once generated, a quote can either be printed as a hard copy or saved in a designated Encompass360 e-folder. Those fees are then uploaded into the 2010 itemization, and eventually the 2015 itemization once TRID becomes effective, to ensure that the proper fees are disclosed to the borrower.

“In today’s lending environment, it is critical that an originator be able to provide accurate costs to potential borrowers early in the loan application process,” said David Stroop, regional vice president for MIS, “and our fee integration with Encompass360 is a compre-

or online via a secure Web site.

“This integration increases the benefits that loan originators get from the LoanDecisions Product Eligibility and Mortgage Loan Pricing platform and VIP hensive solution to that end. Our by unifying access to real-time pricing clients can be confident that all of data and the marketing and sales MIS’s title fees and the county record- resources they need to compete and win ing charges are included in the initial business, especially in the current comdisclosures.” petitive marketplace,” said Matt With this enhancement, users have a Thoman, product manager of originacomplete title environment via tion technologies at LoanLogics. “The Encompass360. Title orders can be platform is easy to use, delivers unparplaced and tracked electronically with- alleled efficiencies, and helps ensure in their loan, as well as being able to that all transactions comply with receive and view title documents. Consumer Financial Protection Bureau Additional enhancements are in the regulations and supports their efforts to works, as MIS works with its clients and encourage borrowers to comparison Ellie Mae to further streamline the title shop before they purchase a mortgage.” and closing process.

LoanLogics Announces Integration With Vantage Production

LoanLogics has integrated its LoanDecisions Product Eligibility and Mortgage Loan Pricing platform with Vantage Production LLC’s CRM platform, VIP. Vantage Production is a provider of advanced automated-marketing and sales acceleration solutions for mortgage lenders. The integration between the LoanDecisions platform and VIP enables loan originators to access accurate loan pricing easily and effectively in the preliminary stages of the sales process. LOs can generate a pricing scenario, select a loan option and send the results to VIP’s sales presentation tool in real time for a significant competitive advantage. In minutes, VIP uses the product eligibility and pricing information to create lender-controlled, compliant presentations of loan options that borrowers are eligible for and that suit their financial needs. With this integration to VIP, LOs can present loan proposals in person, by email, through mobile devices

Stonegate Mortgage Expands Its Stonegate Direct Operations Stonegate Mortgage Corporation has announced the expansion of its Stonegate Direct operations in its Scottsdale, Ariz. offices. This expansion will result in the addition of employees to the Stonegate Direct team, creating nearly 50 jobs in the Scottsdale area. As the Scottsdale operations grow, Stonegate Direct is adding mortgage advisors as well as operations and office support professionals to the team, further enhancing its consumer-direct mission. These expansion efforts reflect the new technologies and innovative, consumerfocused processes being introduced to the mortgage space. The progressive nature of the industry is a direct result of customers’ changing priorities.

“While convenience is top of mind for millennial customers, efficiency and accuracy are also key priorities,” said Tim Elkins, executive vice president and leader of the Stonegate Direct Division.

“Combining these values to offer a supreme mortgage product places Stonegate Mortgage at the forefront of the future of the mortgage space.”

Stonegate Direct is a division of Stonegate Mortgage that streamlines the mortgage process by providing direct-to-consumer offerings, including access to mortgage advisors, products and services 24/7 across the country.

The Division enhances and simplifies the customer experience and home loan application process for qualified customers by providing consumerdirect, quick, secure online access for consumers looking to refinance their homes. The consumer focus caters to priorities of millennial customers, a market that has become increasingly present in the residential mortgage space. Stonegate Direct’s services and enhanced customer experience are made possible by a call center that provides service and capabilities to customers across the country.

Valligent Partners With Clearbox on Appraiser Due Diligence Services

Valligent has announced an integration with Clearbox LLC, a provider of appraiser credentials and compliance for valuation service providers.

Together, they will provide lenders with the most comprehensive appraiser selection and due diligence services available in the mortgage industry.

Until now, lenders have had limited solutions for conducting appraiser due diligence. Through the integration, lenders can obtain Valligent’s solutions through Clearbox and Clearbox’s solutions through Valligent, combining Clearbox’s appraiser credentialing database and background checks with Valligent’s collateral auditing services.

“Too many lenders rely solely upon appraisal management companies for appraiser selection and appraisal quality, yet it is the lender and only the lender that is responsible for both,” said Jeremy McCarty, CEO of Valligent. “Now that regulators are starting to focus on appraisal due diligence, we are delight-

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It keeps subscribers informed of the regulatory and legislative updates, latest industry happenings and breaking news about the mortgage technologies and services.

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ed to partner with Clearbox to provide lenders a full spectrum of solutions in this increasingly prominent area.”

According to both companies, the integration also provides lenders with tools to work proactively with their appraisal panels to identify potential risks. Over time, these measures will result in fewer loan losses and may ultimately contribute to the eradication of appraisal fraud. Both Valligent and Clearbox provide process documentation and extensive monthly reporting, which can be made available to share with regulators in the event of an audit.

“Access to better data means lenders can now make informed decisions,” said Clearbox Founder and CEO Joan Trice. “This integration is a perfect marriage of blending appraisal quality scores with appraiser credentials. After all, honest and competent appraisers produce credible appraisal reports. No doubt, this is a winning formula.”

AmeriSave to Open Loan Origination Center in Louisville

Non-delegated underwriting, which allows the lender to submit loan documentation to Genworth so its underwriters can make the risk decision, represents a significant opportunity.

Based on Genworth’s customer submission behavior, more than half currently submit non-delegated volume, reinforcing the need for this more advanced solution.

“Enabling faster and easier loan delivery options for more of our customer base continues to be a big focus of ours,” said John Clifford, senior vice president of Commercial Operations.

“This new non-delegated integration linking both Genworth’s platform and Ellie Mae’s Encompass platform eliminates wasted time and allows for more efficient, effective and accurate underwriting decisions. Ellie Mae is one of the leading LOS providers in mortgage finance and we’re pleased to partner with them. With the housing market showing steady recovery and homebuying season at its peak, every bit of progress to simplify the way we do business matters.”

Guild Mortgage Opens 32nd California Branch AmeriSave Mortgage Corporation has in Irvine

Genworth Mortgage Insurance has launched a new enhancement to its integration with Ellie Mae’s Encompass360 platform in response to growing demand for streamlined full package underwriting. Through Genworth’s integration with Ellie Mae, lenders can now submit loans for full package (non-delegated) mortgage insurance (MI) underwriting to Genworth, plus order delegated MI and run rate quotes, without leaving Encompass.

MortgageKeeper Partners With Code of Support to Assist Vets and Servicemembers

MortgageKeeper Referral Services Inc. has announced an agreement with Code of Support Foundation (COSF) to assist military servicemembers, veterans and their families across the country with its MKDesktop application. There are currently 22 million veterans in the U.S. and an estimated continued on page 52

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Genworth Partners With Ellie Mae to Simplify Loan Submissions

Guild Mortgage has opened its newest branch in Irvine, Calif. Clark Aliano, who has more than 27 years of experience in the mortgage industry, will serve as manager of the new branch. Prior to joining Guild, Aliano worked for Wells Fargo as a private mortgage banker in Irvine.

The branch is Guild Mortgage’s fourth branch in Orange County and 32nd in the state of California.

“I was attracted to Guild because of its customer service culture, leadership and its flexible approach to mortgage banking,” said Aliano. “Guild provides a wide array of products, incredibly efficient systems and team approaches to speed mortgage processing. It also emphasizes things that are important to me — creating and fostering long lasting relationships with our customers and lending partners and giving back to the communities we serve.”

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announced that it plans to establish an office in Louisville, Ky. and offer jobs to approximately 125 employees to support personnel formerly employed by Discover Home Loans, which is winding down its mortgage origination operations there. AmeriSave has been on a path of growth and has opened new origination centers in Irvine, Calif.; Troy, Mich. and Charlotte, N.C. in 2014.

This latest transaction will greatly enhance AmeriSave’s origination volume and operations with the addition of experienced consumer direct mortgage bankers, processors and underwriters to AmeriSave’s efficient, technology-driven platform.

“Discover’s historic lending philosophy, performance and origination business model is closely aligned to the strong principles and high standards AmeriSave was founded on and ascribes to today,” said Ed Abufaris, president of AmeriSave Mortgage Corporation. “We’re very pleased with this expansion, both for our customers and our business.”

LYKKEN ON

leadership

Ten Things You Must Manage to be Successful in the Mortgage Industry

By David Lykken n my consulting and coaching business, I write and speak a great deal on the topic of leadership. The level of failure or

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success in our industry often boils down to the strength of the leadership in our organizations. It is no surprise, then, that the topic of leadership is in such high demand. Strong leadership undeniably begets success.

However, one thing that doesn’t

often get talked about is the flip-side of leadership, the subject that is equally important as leadership but lacks the inspiration flair. The subject I’m referring to is “management.” While leadership is certainly important for a strategic standpoint, management is where the rubber meets the road.

Management is about execution— about getting things done.

I’m not talking about merely having “manager” as a title, I’m talking about actually having the ability to manage things. In this regard, being a great manager is an integral part of being a great leader. If you don’t have a strong grasp on the direction in which your organization is heading, you cannot possibly say that you are being a solid leader—because you aren’t leading … you’re being led.

The discipline of management is all about developing that sense of control over the direction of the organization—so that you are moving forward with purpose and intention.

Here are some things you need to learn to manage to be a successful leader in the mortgage industry.

Information Organizations today are flooded with information. In an always-on 24-hour news cycle, the problem is no longer whether or not we have enough information. The problem is knowing which information is relevant and which information is noise. As a manager of information, it is your responsible to make this call. The information you choose to latch onto will be the foundation on which critical business decisions are made.

Activities Great leaders excel at task management. The higher up you are in an organization, the more responsibilities you are going to have. As your todo list piles up, the ability to effectively prioritize the activities for yourself and the people you manage will become increasingly more important. If management is about getting things done, activity management is the means by which that productivity is accomplished—one little bit at a time.

Time People First and most obviously, you need to develop the ability to manage people.

Typically, you won’t even have the title of “manager” unless you have people who are working “under” you.

Your people are the instruments of execution in your organization. If you can’t hire great talent, set clear enough expectations, and conduct proper training and development, there is no way you can’t get things done. If you can learn how to get great people to do their jobs well and work together to create enduring synergy, the rest of management will more often than not take care of itself.

Everyone has the same 24 hours in a day; it’s how we spend that time that makes the difference. Great leaders make the most of the time they have.

They don’t waste time on things that don’t matter, and they make time for the things that do. Moreover, they know how to maximize the talent on their team by putting them in the roles and giving them the responsibilities that lead to the greatest overall efficiency. The proper management of time is everything. If you can learn how to manage time, you can create the competitive advantage in your organization that you need to succeed.

Conflict

Competition

Change

The more people you have in your organization, the more conflict you will see play out in the typical work day.

And disagreement isn’t necessarily a bad thing. It’s better to have people who have unique perspectives than to have a group of people on your team who all think alike. New ideas come from disagreement, but that disagreement must be kept in check.

Differences of opinion and perspective can’t be allowed to break out into bitter fights. As a leader in your organization, it will often fall to you to be the mediator between opposing parties. If you can learn to properly manage the political feuds in your company, not only will you keep people from blowing up but you’ll also be able to channel the thoughtful disagreements into a more positive and productive direction for your organization.

You know the saying: Keep your friends close and your enemies closer. If you take an introductory course in game theory, you’ll understand that it isn’t enough to know what you’re doing.

You’ve also got to know how the competition will react to what you’re doing—and how you’ll react to that. To stay ahead of the competition, you have to know what you’re up against. The industry is crowded, and you’ve got to know the competition so that you can differentiate and find your niche.

Besides, knowing your competition can prepare you for strategic partnerships and, down the road, potential mergers and acquisitions.

I’ll conclude with something that is always on the mind of leaders in the mortgage industry of today. More than ever in the history of the mortgage industry, we are dealing with an unending array of unpredictable change. The technology is changing.

The regulatory landscape is changing.

The economy is changing. The consumer market is changing. Change is all around us. As a leader, possessing the ability to manage your organization through a big change is the only way to ensure that your organization will still be around on the other side of that change. If you don’t manage change, change will manage you.

David Lykken is 40-year mortgage industry veteran who has been an owner operator in three mortgage banking companies and a software company. David has been a regular contributor on CNBC and Fox Business News and currently hosts a successful weekly radio program, “Lykken on Lending,” that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. He produces a daily one-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper Web sites across America. He may be reached by phone at (512) 501-2810 or by e-mail at dlykken@mbs-team.com.

Yourself It has long been understood that a key characteristic of strong leaders is a strong internal locus of control. Great leaders have anchors that keep them unmoved when things around them change. They have fundamental values from which nothing can deter them.

This ability can really be described as self-management. Managing yourself means knowing who you are and what you stand for. It means having a fixed and sure identity, and resisting the temptation to deviate from that path. If you can’t first manage yourself, you can’t manage anything. Management starts from within.

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Strategy This one is easy. It’s the high level strategic planning that we all love— the stuff of best-selling business books. But some may brush off strategic management as too abstract and having no real application to everyday business. While managing strategy may sometimes feel a little too “pie-in-the-sky” in regards to everyday activities, it is absolutely essential for creating a successful organization in the long run. Strategy is about where your organization is going to be ten to twenty years down the road.

And, if you don’t carve out time for developing solid strategy, you probably won’t exist at that point

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You may hire a public relations or advertising firm to be your public face.

You may have a marketing team that takes care of your branding. But, as a leader in your organization it will always come back to you. In some ways, leaders in the mortgage industry are like politicians. Being oblivious to how the public perceives your organization will only result in your company losing the dollar vote. Besides, regulators are highly driven by public perception of the industry. So, if we as leaders in the industry don’t proactively manage public perception, it is going to come back and haunt us in the long run.

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1. Consistent, but ignored, credit errors Though now decreased, short sales continue to be coded as a foreclosure, resulting in a seven-year wait to get a new mortgage instead of the four-year wait after a short sale (on Aug. 16, 2014, a work around was successfully implemented within the Fannie Mae system). Fannie Mae’s and Freddie Mac’s automated systems continue to be blamed for the errors when, in fact, their systems merely provided the first visual glance of which mortgage account was causing the problem. Neither GSE, Fannie Mae nor Freddie Mac, inserted the code causing the problem. That code was determined by the initial lender first from a long list of Metro 2 Code, passed onto the three repositories, and is uploaded into the GSE’s automated systems when a new loan is sought.

2. Non-reaffirmed mortgages in a past bankruptcy results in an automated underwriting denial on Freddie Mac loans Underwater homeowners whose ONLY refinance option is a Freddie Mac Relief Refinance are locked out of the only mortgage available to them.

Credit history for a non-reaffirmed mortgage included in a bankruptcy does not show up on a credit report, even when homeowners continue to make payments on-time. Homeowners can retrieve a payment history letter from the mortgage company showing proof of payments made on time, but credit reporting agencies can only provide a supplement on the correction.

Without the correction on the full credit report, Freddie Mac cannot provide an automated approval, only a manual approval. Getting a manual approval on a Fannie Mae or Freddie Mac conventional loan is next to impossible to find. This credit glitch is especially harmful for millions of still underwater homeowners who have a Freddie Mac backed loan and whose only option for a refinance is through a HARP 2 Freddie Mac Relief Refinance. When Freddie Mac customer service representatives are contacted, it is evident that this is a recurring problem. Fannie Mae provided a work around for this problem and for short sales that were incorrectly continued on page 82

Mortgage Professionals to Watch

l DocMagic Inc. has announced the hiring of Edward Komski who will assume the role of national sales manager, where he will be responsible for introducing DocMagic’s entire suite of software solutions to large, enterpriselevel lending organizations.

BARONE ISRAEL

As the mortgage industry heats up, well-known mortgage credit issues are being ignored resulting in a stall or denial of a new mortgage, and sometimes, for the ONLY refinance available to underwater homeowners. It’s time for loan originators to become engaged in fixing these problems.

Past and current homeowners continue to receive mortgage denials due to errors in mortgage credit and incorrect credit coding. Even when proof of the error is produced, the “Big Three” credit repositories of Experian, Equifax and TransUnion are often reluctant to change credit. Consumers who are directed back to the mortgage lender where the problem code exists must beg for, pay for and then await corrections that sometimes don’t come. Mortgage lenders, the three credit repositories and the government-sponsored enterprises (GSEs) of Fannie Mae and Freddie Mac, blame each other, while little is done for the millions of consumers locked out of the mortgage market.

If we in the mortgage industry know what the consistent problems are and where to look but don’t make the time to help, the mortgage market cannot see its true potential. How can we expect consumers, who have no idea where 52 to even start, to get these problems resolved?

It can be done. Credit reporting agencies state this can be done by the consumer themselves. Credit repair companies will assist for a fee. But though our industry is currently experiencing great change and increased production, we continue to be hampered by constant mortgage credit errors that surface for many during the housing recession.

l Lenders Compliance Group (LCG) has announced that Michael G. Barone Esq. has been appointed to the position of executive director of the firm.

Barone will also remain as a director of legal and regulatory compliance for LCG.

l Flagstar Bancorp has announced that Leonard Israel has joined Flagstar Bank as president of mortgage, where he will be responsible for all aspects of Flagstar’s mortgage originations business.

O’LEARY

By Pam Marron

30 percent who are in crisis. COSF provides essential and critical oneon-one assistance to those struggling servicemembers, veterans and their families who have the most complex needs. Within the past two years, COSF has seen tremendous expansion in the demand for its case coordination services and is rapidly increasing its efforts to meet that demand.

The MKDesktop App will assist COSF in providing direct local connection to agencies and programs that can address urgent needs and help build financial health. COSF’s team of trained case coordinators and veteran peer navigators using MKDesktop will provide targeted local referrals as they identify, prioritize and fulfill the often multiple and complex needs of these families.

This includes assisting with reducing food, utility, prescription, health insurance, childcare and home repair costs.

“MKDesktop is a great tool that Code of Support uses every day as we work with veteran’s seeking assistance. Many of our veterans require multiple resources, so we work to leverage the full spectrum of resources across the country.

MKDesktop helps us point service members and their families to local programs that can make the difference in their daily lives,” said Kristina Kaufman, Code of Support Foundation executive director.

“Code of Support strives to provide service members, veterans and their families with as many options as possible to help them through difficult times. Our partnership with MortgageKeeper boosts our ability to provide local, targeted help to veterans.”

MKDesktop is used by more than 2,000 non-profit financial counselors, coaches and case managers, and provides 8,500 best-in-class local non-profit and government services in every state. Users simply type in the ZIP code and choose from 25 different assistance service categories.

l The Wholesale Lending Division of Carrington Mortgage Services LLC has announced the appointment of Tom O’Leary as regional sales manager.

CILENTO

Loan Originators: We Need to Become an Organized Force

continued from page 49

KITTERMAN

The Business of Short Sales

heard on the street

KOMSKI

The Long & Short:

l HomeBridge Financial Services Inc. has announced that its new Affinity Lending Division will be led by industry veteran Joseph Cilento, CPA, CMB, who joins the company in the role of vice president.

HomeBridge Wholesale has announced the addition of Keith Kitterman as Western Division sales manager. l Inlanta Mortgage Inc. has announced that Gary Grocholski has been promoted to the position of third-party origination (TPO) manager, responsible for Inlanta’s expanding TPO busicontinued on page 74

FFinancing inancing to to help mor more e homebuy homebuyers ers achie achieve ve their dr dreams. eams.

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We’re pleased to introduce Caliber Portffolio o Lending: Lendin a suite of five specialty products designed ed fo or borrowers facing specific challenges or barriers to home ownership. They may not qualifyy for o Agency or Government loan products, but can demonstrate ability to repay. All Portffo olio LLending products are available as fixed-rate loans or ARMs. o borrowers recovering from a recent bankruptcy, foreclosure or short sale. Borrowers may qualify without FRESH S TAR A T: Created for START: seasoning requirements and a minimum 580 FICO score.

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Caliber Home Loans, Inc., 3701 Regent Boulevard, Irving, TX 75063 (NMLS #15622). 1-800-401-6587. Copyright©2015. g All Rights Reserved. Equal Housing Lender. For real estate and lending professionals only and not for distribution to consumers. This communication may contain information that is privileged, confidential, legally privileged, and/ /or exempt from disclosure under applicable law. Distribution to the general public is prohibited. Caliber Home Loans, Inc. is required to disclose the following license information: Alaska Mortgage Lender License No. AK15622; Arizona Mortgage Banker License No. 0923637; Licensed by The Depar p tment of Corporations under the California Residential Mortgage Lending Act, F inance Lender Licensee; CO: Regulated by the Division of Real Estate; DE: Licensed by the Delaware State Bank Commissioner, License 5202 expires 12/ /31; Georgia Residential Mortgage Lender License No. 7330; Illinois Residential Mortgage Licensee No. MB.0004043, by the Illinois Division of Banking, 320 West Washing ton St., Spring field, IL 62786, (217) 782-3000; Kansas-licensed mortgag g ge comp ompany, License Number SL.0000796; Minnesota: MN-MO- 40149066, This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the requirements of Minn. Stat. Section 47.206 (3) and (4); ( ) Licensed by the Mississippi Department of Banking and Consumer F inance; Montana Mortgage Lender License No. 15622; Licensed by the New Hampshire Banking Department; NV: 3753 Howard Hughes Parkway, Suite 257, Las Vegas, NV 89169, ((702)) 784-5975; Licensed mortgage banker n.s.--N.J. Department of Banking; Licensed Mortgage Banker-NYS Department of Financial Services; Ohio MBMB.850184.000; Oregon Mortgage Lender License ML-324; Rhode Island Licensed Lender; VA: NMLS ID # 15622 (www ww.nmlsconsumeraccess.org); ) Washing ton Consumer Loan Company License No. CL-15622.

Just Ask

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By

Eric Weinstein & Laura Burke nowledge is power. Power translates to success, whether it is dollars in your pocket, stronger leadership, increased bottom lines or peace of mind, we are here for you.

This month, we are introducing a new column for questions relating to starting a business, managing a business, training, networking, tax-related issues, corporate security policy, fraud alerts and compliance. All answers are for informational purpose only, and are not intended to practice law, or are meant to provide tax advice or tax opinions. After reviewing our information, we both recommend seeking legal counsel or the advice of a tax

K

professional. Please e-mail us at JustAskEricandLaura@gmail.com to voice any questions or problems. We are here for you!

Kaitlyn in Seattle asks …

I just want another experienced loan officer’s input. I was working with this client that I was working on a preapproval for but couldn’t get her the pre-approval based on the following: l She listed on her app child support income of $500, but only has a court order doc for $100, so I had to use $100, despite her verbal agreement with ex-husband for $500. l She listed another “other income”

of $1,000 that we couldn’t use either, because it’s coming from mom, to just “help her out” But, she told me that she got a preapproval from another mortgage company for $445,000!

My account executive told me that it’s probably because the loan officer there didn’t verify her docs/income, like I did?

Again, just wanted your honest opinion on it, as I am just confused and wondering if I did the calculation wrong on my end or if it’s really true that most loan officers do not verify the documents/numbers before issuing preapprovals?

Eric’s reply to Kaitlyn …

I trust your calculations, but if the real question you are asking is “Is it true some loan officers do not verify income before issuing a PreApproval” then the answer is yes. I never trust another loan officer’s preapproval letter. Many times, they will take a customer’s word on an application and only use that for the letter. It is a way to start working with the borrowers in hopes of getting the deal.

It is not right, it should not be done, but, unfortunately, it is done.

That’s why real estate agents don’t trust brokers. Brokers have a reputa-

k Eric & Laura tion of hiring dumb, slimy loan officers. Sometimes they are correct … sad, but true. No matter how tempted you get, do not do it. Turn away from the dark side.

Eric’s reply to Sokhea …

We used to do construction loans back in the 1990s, but now I do not have any wholesalers I work with that offer them, so I don’t do them anymore. No one I know does them for brokers! I just hate to say to a real estate agent, “No, we cannot do that.”

I know many banks and lenders that do construction loans, but then you just gave the loan away since they also do permanent financing. The best is to find a local bank that only

Collin in Kentucky asks …

Do you think we will see prosperous times again like we did pre-2008 as mortgage brokers?

Eric’s reply to Collin …

An article on Realtor.org stated, “Fueled partly by an increase in sales to first-time buyers, existing-home sales increased in May to their highest pace in nearly six years.”

Yes, sales are going up and interest rates, albeit a bit higher, are still at all-time historical lows. All signs, in my opinion, point to increased business for mortgage brokers.

This, however, may not mean increased revenue for you. There is a concept in economics called “opportunity cost.” That means when times are good and people see how much you are making, they get into the business and drive down your profits.

With every boom/bust cycle, you see people entering and exiting the business.

Use the good times to build your

Laura’s reply to Collin …

I believe everything is cyclical, and yes, we will see super prosperous times again. In the near future, no, it is going to take some time to rebuild, regenerate and get to where we once where. But from most statistics, it does sound like we are on the upward arrow and climbing.

A good thing to keep in mind is those that reap huge rewards, pay the piper. They work hard and continuously. So if you’re asking us, “If this is a good profession to stay in,” my answer is “Absolutely!” If you can weather the storms and keep pace

with the ups and downs, one can thoroughly enjoy the life of a top originator. Prosperity to you!

Disclaimer: All answers are for informational purpose only, and are not intended to practice law, or provide tax advice or tax opinions. After reviewing our information we recommend seeking legal counsel or the advice of a tax professional.

Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. He may be reached by phone at (703) 505-8692 or email eweinstein4u@gmail.com. Laura Burke is an author and trainer with 20plus years of experience in the mortgage arena. She may be reached by e-mail at lauralynnburke@gmail.com.

Eric & Laura welcome your questions, please send your inquiries to JustAskEricandLaura@gmail.com.

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n Hawaii Mortgage Professional Magazine n JULY 2015

Sokhea in Virginia asks …

Just curious if you run in to a lot of borrowers looking for construction loan, buying a lot, then building their home on the lot? Do you guys also do those types of loans? One of my client just asked me, and of course, I don’t do them. What do I do?

Laura’s reply to Sokhea …

Your topic is near and dear to my heart, I spent many years working for a bank that specialized in construction loans. We did the lot loan, the construction loan and the end loan all-in-one, with an incredible low ARM product with a one percent annual margin tied to the cost of funds index (COFI). There was a built-in conversion method for those who insisted on a fixed-rate end loan.

I have to agree with Eric on this one, the only ones still offering these types of loans are more than likely local banks. I am a firm believer in Karma, and I would simply tell your client it’s not a loan you can offer at this time, but you will do some checking for them and see who does have the loan, and which lender would be best for them. Kind of like “Miracle on 31st Street,” sending the customers from Macy’s to Gimbels. But you become the hero, watching out for them, guiding them through determining which lender to go to. They will repay your kindness with referrals.

database of past clients to whom you can market when times inevitably turn downward again. Put excess earnings in the bank as insurance for the later bad times. Do not increase your lifestyle because things are getting better now. Like the tides, good and bad times cycle in and out.

Forewarned is forearmed.

NationalMortgageProfessional.com

Laura’s reply to Kaitlyn …

I just had a very similar situation with a family member to make it worse.

She wanted a pre-approval from me because her real estate agent did not trust the one she got. I honestly had no idea how she was pre-approved for the amount the letter said, $220,000.

She too, had child support, a new commission job, in similar field as previous, income from her “dad” and a healthy inheritance.

I asked for a copy of the divorce decree to see the child support, I asked for two years tax returns to see if “dad” had paid her consistently for two years from his company, and I needed to see the commission. She could never gather it for me, so we went round and round as to why I couldn’t simply mirror the one she got previously, she said she showed them all her documents but just couldn’t locate them. I never did her preapproval, but I heard from the agent this week she did get one from another loan officer for $170,000, a substantial difference. I hope this loan officer did his/her homework.

Do what’s right, and it can never come back to bite you! Not all loan officers are trained properly, so perhaps the loan officer simply did it incorrectly, or missed something.

On a side note for the child support, in the past, I have gotten larger amounts approved if you can document 12 to 24 months of bank statements with the larger amount, but that would be an underwriter’s call.

does construction loans, so later, you can do the permanent financing.

If you are really desperate for the deal, you will have to call a bunch of local banks where she is building and find one that only does the construction portion. Then you have to pray she remembers your name six months later when she is ready for her 30-year loan.

“In order to become successful, you will want to post material that will help you stay in touch with past customers, communicate with current prospects, and reach future leads.”

Utilizing Social Media to Boost Your Brand

By Tiffany Hade

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In our industry, social media has the ability to help you reach beyond your direct sphere of influence to other circles of clients and business partners which you wouldn’t necessarily reach in person. As a loan originator, you have the ability to advertise for both your company as well as yourself as you are your own brand. Your personal brand, backed by the strength of a reputable company, can help you enter new markets and reinforce your value proposition. It is also an incredible relationship building tool in today’s mobile technology driven world. In this case, you want to build or redefine, strengthen and promote yourself and your company using social media. In order to become successful, you will want to post material that will help you stay in touch with past customers, communicate with current prospects, and reach future leads. A social media page is an opportunity for you to provide information to your audience about your product or services, dates for upcoming events, news about your services, etc.

How do I increase my social media presence? l Remember to use the 80/20 rule– content/connections posts vs. sales messages. If you post five times per week, then no more than one post should be a direct sales message and the other four posts should be helpful, value-added, or fun type messages. l Don’t oversell or undersell yourself.

You want to provide value to your audience, such as how to add value to their home, how to increase your credit score, seasonal home maintenance tips, etc. in order to keep your visitors engaged. l Encourage your Web site visitors to visit your social media profile and vice versa. This can build your brand and increase your social presence in search engines. l Make sure your social media pages are branded with your business contact information, license number and company logo. You want potential clients to be able to contact you as easy as possible through your

Web site, e-mail address and/or contact number. l Inform potential clients on programs that you specialize in and explain why it would be beneficial for them to work with you on their future home loan. If you have a niche, whether it is for first-time homebuyers, jumbo/high balance, VA, etc., use that to your advantage and position yourself as an expert. l Once you are known as the expert, referrals from past and current customers can help increase your brand awareness. l Like, comment and/or share posts which will allow your friends and connections to see the post as well, which in turn will expand your readership. l Pre-scheduling your posts can be extremely helpful in this fast-pasted industry. You can set the time and day of your social media posts ahead of time so while you are in meetings or out in the field during ideal posting times your social media posts can still be sent out automatically. l The size of your audience will depend upon the time of day/night that you are posting. Posting around lunch time when your audience is able to look at their social media pages is obviously a better time to post than three in the morning, when most of your audience is sleeping. l Write with your audience in mind.

What are they interested in learning about? Be sure to write using terms with which they are familiar. Don’t over complicate your messages to borrowers by over-using industry specific acronyms.

How do I build credibility with my social media posts? l Post daily on social media. In this fast-paced industry, you don’t always have time to go on social media every day, so it is helpful to use prescheduled posts so that you are more visible in your clients’ social media newsfeeds. l Make sure you are visual. Studies

have shown that photos and videos have a higher engagement rate than text only social media updates. l Share activities that you are participating in, such as homebuyer events, charity work and community events.

Use call-to-actions—updates that increase likes, comments and shares (this is especially impactful when targeting Millennials). l Share successful new homeowner testimonials, or better yet, have your clients and referral partners share their stories on you Facebook Page. l Post flyers, event invitations, personal and company awards and announcements in order to keep your potential and current clients up to date on your business. l Use specific landing pages for exclusive or niche programs on your social media pages that will also bring visitors to your Web site without losing them in the rest of your content. l Write blog posts on hot topics in the industry to increase your credibility and build your reputation as an expert. Then, be sure to increase your traction by sharing your articles on your social media platforms. l Make sure if your goal is to get leads, you are directing traffic from your social media pages to your Web site so that the leads can contact you. l Keep your business page updated as your business grows and expands.

Even if nothing major is happening, make sure that you are frequently posting updates and photos to keep your viewers (and customers) coming back.

Do I post the same content on Facebook and LinkedIn? l The answer is yes and no. Your audience is different for each social media outlet. l Facebook is a great way to connect with your past, current, and future clients, as well as your real estate agents partners. l LinkedIn is more of a professional social media outlet than Facebook; therefore, you would be addressing

your current and future real estate agent partners. It would be more appropriate to post more industryrelated content that will interest your partners, title or escrow officers, other lenders and networking groups using LinkedIn. LinkedIn is also a great way to follow group discussions to get more involved. If you Post, Like or Share in group discussions, it will show up on LinkedIn newsfeeds. It is also an opportunity to increase your LinkedIn profile and your credibility by asking for and giving out recommendations.

What other social media platforms are useful other than Facebook and LinkedIn? l Google+ is a platform that will assist

you in connecting with your friends, clients and partners. You can share photos, videos and stay in touch with your audience. l As video marketing continues to grow in popularity, YouTube is a great resource to keep your clients and partners involved with what’s going on in your business. l Short videos are best, as this will actually keep more of your audiences’ interest. Therefore, short weekly videos about any announcements or special niche program changes would be a better use of time for both you and your audience. l Videos can be shared on your Web site and/or social media sites to help increase their reach. l Pinterest is a very visual social

media platform used for projects and interests, and is a great site to reach both clients and referral partners. l Posting boards and pins with useful home improvement tips, recipes, etc. can entice your readers to follow your Pinterest boards. Then you can also post useful programs.

Just remember, social media isn’t going anywhere, and will continue to grow and be a tool to help you build your online presence and is a great way to increase your brand’s reach. It does not have to be time intensive if you use the tools to pre-schedule your posts. Keep in mind that a social media page that is not kept up will look neglectful and can actually be detrimental to your online presence,

so be thoughtful with the number of social media pages that you are able to handle and maintain. Social media is an incredible resource to build your relationships with your past, current and future clients and referral partners in today’s industry, but it is not a “set it and forget” it type of advertising for your brand and your business.

Tiffany Hade is public relations and social media specialist with Mountain West Financial Inc. where she effectively manages public relations and social media campaigns for the organization, as well as supports the marketing department with advertising material, Web sites and brand development. She may be reached by phone at (909) 255-8726 or e-mail tiffany.hade@mwfinc.com.

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PRIME MORTGAGE Prime Mortgage Mortgage - NMLS NMLS #21116 #21116 Equity Equity Prime N EW C orporate A ddress: NEW Corporate Address: Parkway, Queen Queen Bldg, B ld g , 5C oncourse Parkway, Concourse S te. 2 250, A tlanta, GA GA 30328 30328 Ste. 2250, Atlanta, R il (301) (301) 996 4605 Retail: 996-4605 Wholesale: (201) 981-7855 www.equityprime.com www.equitytpo.com

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Relationships Relationships a are re e everything verything

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Building a strong strong Building ffoundation… oundation…

“Social media has the power to connect people through conversation. It should be used as a tool to push out information and engage with others similarly interested in the topic.”

The Importance of Social Media A new way of connecting with consumers

By Ashley Lubey

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The financial industry remains a mystery to many. The intricacies, paired with the ebbs and flows of the market, mystify those who have a difficult time grasping how numbers, rates, bonds, and the like all rely heavily on one another to make our nation’s economy continue ticking. The common borrower uses references in

order to get started on the right foot when beginning their home search.

But, as we have seen in recent years, borrowers have grown increasingly wary and hesitant when it comes to jumping into the housing market to begin with. The transparency needed to soothe the stress and concerns of borrowers still eludes the housing and

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Loan Officers, Branch Managers and Teams,

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© Copyright 2007-2015 Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suite s110 & 200A, Anaheim, CA 92806. 800-561-4567. NMLS ID 2600.

Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745; 2159 McCulloch Blvd 4, Lake Havasu City, AZ 86403. CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File 413 0904. CO: Mortgage Company Registration 2600 and Supervised Lender’s Licenses 989668 and 989668-001. To check license status of your mortgage loan originator, visit www.dora.state.co.us/real-estate/index.htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. KS: Kansas Supervised Loan License SL.0000313. MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law. MS: Licensed by the Mississippi Department of Banking and Consumer Finance. MO: Residential Mortgage Broker License 09-1746-S. NH: Licensed by the New Hampshire Banking Department. NJ: Licensed by the N.J. Department of Banking and Insurance. NY: Licensed Mortgage Banker—NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. NC: Carrington Mortgage Services, LLC is licensed under the North Carolina Agency Permits 102107 & 103455 and North Carolina Secure and Fair Enforcement Mortgage Licensing Act. OH: Ohio Mortgage Broker Act Mortgage Banker Exemption MBMB.850208.000 (FHA, DE & VA Automatic loans only). OR: Mortgage Lender License ML4886. PA: Licensed by the Department of Banking. RI: Rhode Island Licensed Lender and Broker. VA: Licensed by the Virginia State Corporation Commission MC-5382. WA: Consumer Loan License CL-2600 & Mortgage Broker License MB-2600. Also licensed in AL, AR, CT, DE, DC, FL, ID, IN, IA, KY, MD, MT, NE, OK, SC, SD, TN, TX, UT, WV, WI, WY. All rights reserved.

mortgage industry. Luckily, consumers as a whole, as well as many other industries, have embraced a phenomenon. It could be that social media is the key to the success of the mortgage and housing industry.

People are curious about finances and achieving success in this realm.

They want to succeed when it comes to saving money, building equity, and investing. But where do they start?

The housing industry, unfortunately, lost the trust of the average citizen when it crashed after a prosperous few years. Similar housing booms are now met with a side-eye. Claiming a stable market or low rates is not fooling the consumer into believing and trusting this time around it will be different. Try as it might, the industry fails to communicate effectively with many borrowers.

Focusing on numbers might be how your brain works. The numbers and jargon in the field may make sense to you but for many it is part of a world in which they have never been fully submerged. Take a look at other companies and industries. Yes, the mortgage industry is chalk full of regulations, laws, and disclaimers. But what we need to learn is how to effectively balance these with an engaging campaign on social media. While it’s true that housing will always be a necessity for people, how we portray our services can greatly affect consumers’ perceptions of the housing market and how business is done. And thereby where they do business. The crash of the late 2000s really did a number on the market’s reputation. Now, as the economy stabilizes and housing begins to improve, it is still an incredible challenge to convince many potential borrowers that it is worth their money to invest in property.

To top it all off, we are now targeting an audience unlike any other in the past: Millennials. While it may come as a shock to you, Millennials are the most connected generation ever. From mobile devices and constant sharing of information, the onslaught of news and constant connectedness continues to stump many in older generations.

This generation is known for thorough research and using referrals more than ever before. So as they begin their journey to homeownership, it is only natural for them to turn to connections and their wellengrained researching skills to get the answers they need for financial success. And where does this begin?

With the connections they have cultivated on social media.

A huge percentage of Millennials were graduating college and entering the workforce when the market crashed. Many saw their parents deeply affected by the recession.

Most were directly impacted when it came to their inability to obtain a decent job after college. With this experience still sitting tight in the back of their minds, jumping wholeheartedly into the homebuying process is not necessarily at the top of the list. But that is not to say this cannot be changed. The focus simply needs to shift to a medium where both parties are able to find common ground and engage in a mutually beneficial conversation.

It has been made evident that the way of technology will continue advancing. Does this mean your mailed postcards no longer work?

Not necessarily. But they are not an updated form of marketing and are less likely to start the conversations you need to really improve your business. They will most likely not garner as much attention as you may have experienced in the past. The industry has dug its heels in long enough. It is time to realize the importance of social media in the housing and mortgage industries.

Social media has the power to connect people through conversation. It should be used as a tool to push out information and engage with others similarly interested in the topic. Now while it may be appealing to simply start up a profile, share a couple articles, and claim you are active on social media, this is not how the tool should be used. Marketing experts spend hours each week carefully monitoring pro-

files and connections to learn how to best engage with them. If you are connected with older generations, consistently talking and posting about first time homebuying options will not have the same impact as if you were aiming those topics to the younger generations. Being relevant will separate you and your business from those who do not take the time to truly develop their social media presence.

Social media is often mistaken as a “set it and forget it� task. But this mentality will not get you the results you could be seeing when properly using these tools. It is important to be an active member of these platforms to truly reap the benefits. This does not mean flooding your feed with every article that mentions housing. This means being

picky and taking the time to search for the information you believe your audience will find the most useful.

In doing this, you are increasing your chances of a potential client reaching out to you for business.

Some of you are probably gawking at this; shaking your heads at how unrealistic it sounds to take on yet another marketing task. But would you do it if it meant another closed loan this month? What about an increase in your overall business this year? Social media has the power to greatly influence your audience and your business. Skipping this opportunity to stick with your postcards that end up in the recycle bin or used as kindling is your choice. To truly grow and enhance your business, use the tools that are proven to expand your reach and elevate your-

self in today’s ever-evolving world.

Does social media require extra work, thought, and research?

Absolutely. Is it worth it? Think about some campaigns that have “gone viral� recently. These went viral because of social media. It is because it struck a chord with the intended audience who then felt the urge to share it as widely as possible to their respective connections. So yes, it is worth it. Maybe your campaign will not be seen globally, but make it your goal to accurately convey the messages your audience needs to hear.

Mortgage is a mystery to many, especially first time homebuyers. And as these borrowers enter the market in droves, it is up to you to stand out and be able to provide the service and information they require and desire.

Now is the time that we, as an indus-

try, begin moving forward. While TRID is a step in the right direction in recognizing that disclosure forms need to be more “user-friendly,� so must be the way we originally reach out to clients. Let’s make our disclosures and our rules easy to understand while also providing us the opportunity to uniquely connect with our country’s citizens. Social media will provide the platform we seek to deliver our message that the American Dream of homeownership is still desirable and can be attainable by all.

Ashley Lubey is copywriter and public relations specialist for CMG Financial.

She graduated from Saint Mary’s College of California with a bachelor’s degree in communications. She may be reached by phone at (925) 983-3207 or e-mail alubey@cmgfi.com.

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“Building your online brand can sound overwhelming or timeconsuming, but it doesn’t have to be.�

Four Places Every Mortgage Lender Needs to be Social Online

By Erica Tafavoti It’s clear that the mortgage industry has changed. As more people from the technological age become real estate professionals or home buyers, more and more research is done about you and your competition online. A key to growing your business with the new consumer is to get found online.

Building your online brand can sound overwhelming or time-consuming, but it doesn’t have to be. Being present and active on these four Web sites can help grow your influence online, and connect you with real estate professionals and potential clients in your market.

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Facebook: Business page Fifth-eight percent of the adults in this country are on Facebook. That’s enough of a reason to be present on this network. But simply having a profile isn’t going to help your business. You probably don’t want to mix professional conversations and connections in with your family pictures and cat videos.

This is where the Facebook business page comes in. These pages function a little differently than a profile. Rather than “Friending� someone and then needing them to accept your request, anyone can “Like� your Business Page and see your news and posts on their feed.

To set up a business page from a desktop, simply log in to your personal Facebook account, then hit the downward facing triangle at the top right of your screen. Then select “Create Page.� You can then select what type of business you have, your contact information, location, and more. Be sure and fill out your business page completely, or you could be missing an opportunity to receive a phone call or a visit to your website. Set up your page when you have some time to write up a short and long description of your company, upload a professional headshot, and add a cover photo that includes your branding.

Once your page is set up, the next step is adding content so that users have a reason to like your page. You want to think of your page as your Facebook business card for real estate professionals to find out more about you and your company. Fill your page with content that shows you’re a thought leader in the industry. Here are some ideas for what to share: l Industry updates from reputable sources: Borrowers care about rates and the housing industry, because they want to make sure they’re making a smart investment when they buy a house. Share articles from national news sites and local reports on the housing industry to keep them informed. l Content from your Web site: Though you don’t want to pack your timeline with your own content, (it’s called social media for a reason) sharing your own blog posts or website pages when they’re helpful is definitely a good thing. There’s a difference between posting about yourself without including useful information, and

sharing your own helpful content. l Shared posts from local partners: If you get a lot of business from a particular real estate office or agent, then the share button should be your page’s best friend. By promoting their content, you’re increasing their reach, and hopefully increasing their business as well. And when they’re doing well, you will be too. If an agent shares a helpful blog post, eBook, or other content that would be helpful to potential borrowers, pass it along to them.

Once you start posting, share your page with your Facebook friends and past clients so you can start increasing your likes.

Google+ and Google My Business Google+ is one of the most underrated social networks, mainly for its ability to impact your search rankings. If someone is connected with you on Google+, your relevant articles are likely to show up in their Google search results when they’re searching for information. If you’re going to use Google+, it’s smart to publish some content directly to your page, where it may rank higher than other social channels or your blog.

When you have a Google+ business page, you can also set up your company on Google My Business in just a few minutes, which means your business information will show up in the side bar of a Google search. When logged into your Google+ account, head to www.google.com/business and select “Get on Google�. You can then type in your business name, claim your business, and integrate your Maps and search information with your Google+ page. This will allow your contact and business information to be easily seen in search results.

Yelp If you’re going to be social on one review site, make it Yelp. This site covers all kinds of shops, restaurants, and services and is a hugely popular app as well. If a real estate professional comes across you online or in person and they want to see how your business really runs, they’ll head over to Yelp and see what your customers are saying.

Here are a few things you can do to ensure you’re getting reviews on your Yelp page,

that you can share on social media and interact with. l First, check and see if there’s a page set up for your business: Search for your name or company on Yelp, and see if your business appears. If not, you can set up an account so others can leave reviews there. Head to www.biz.yelp.com and type in your business name and area, and hit “Get Started.” l Then, make sure your company information is correct: Yelp tells visitors your location, hours, and contact information. If you set up a new page or you already have a page, you’ll want to make sure this information is up to date and correct.

Any time you move offices or change hours, be sure to update this information. l Direct people to your page: Once your page is up and updated, you need to let people know it exists. The easiest way to do this is to add a Yelp button to your

website or blog, linking to your Yelp profile. When you create a Yelp for Business account, you have access to different buttons you can code on the bottom of your site, next to your social media links, or at the bottom of your blog posts.

It’s important to respond to every review you receive on Yelp. Yes, that means the negative ones as well. Thank the people that leave you positive reviews, and be empathetic and understanding when replying to any negative ones. The only thing that looks worse than bad reviews is a defensive business owner.

LinkedIn A LinkedIn profile is likely to rank highly in search results when a real estate professional searches your name. It’s important to have a profile on the site, and also make sure it’s filled out completely with up to date information. Here are some other

ways your LinkedIn page can be beneficial for your business: l It’s your online resume: If you decide to change offices in the future, anyone can look at your LinkedIn page to see your qualifications and job history. Keep your page updated with any volunteer work, awards, and certifications. l It’s easy to connect: Sending a local real estate agent or past client a Facebook friend request can seem a little too personal. However, LinkedIn is a more suitable choice for making these online connections and staying in touch. Since it’s viewed as a professional network instead of a place for family and friends, you can feel comfortable sending connections to more people. l You can discover other professionals: LinkedIn groups are a great opportunity to share your thoughts on industry issues and connect with other mortgage lend-

ing and real estate professionals. Don’t be afraid to chime in on discussions and ask questions.

LinkedIn is often thought of as a “set it and forget it” social network, but you should be sharing posts and engaging with your connections at least a few times a week. You can even publish articles directly to LinkedIn, which can help grow your exposure on the network.

Staying active on these four sites will allow you to grow your online presence, which means more local real estate agents and borrowers will be familiar with your business.

Erica Tafavoti is an inbound marketer at Pipeline ROI, an inbound marketing platform for real estate and mortgage lending professionals. She may be reached by e-mail at erica@pipelineroi.com.

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“Another major perk of all this video work is that you don’t have to spend a dime doing it.”

Video as a Relationship Building Tool Do you want to build better client and colleague relations faster?

By Adam P. Smith

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I think we would all agree that we have very important jobs. We are working with the largest transactions of people’s lives. I don’t care if it’s a first-time buyer with a $50,000 condo, or Donald Trump building a $50 million building. It’s still the largest transaction of their lives. That should not be taken lightly, as it requires a certain amount of interaction with a prospect or lead. You need enough time to prove to them that you have the competency to do the job properly, and more importantly, the character to be entrusted with it.

Again, it’s the largest transactions of their lives. I would say that if you subscribe to all of the historical sales tips from Buffini to Gitomer and everything in between, the average is the belief that you probably need to interact with someone up to a dozen times to prove those two things.

Video can truncate that time frame in a dramatic fashion.

For years now, I have done a weekly video blog to the real estate community and I can tell you, it works. In a very paparazzi-esque way, which I love and am still caught off guard by, I am regularly approached by people who “know me.” I’ve never met them, but they know me. They have been watching the videos and they do know a lot about me. They know what

my office looks like. What my home office looks like. They know my wardrobe. They know how I speak, know my tone, inflection, sense of humor, sarcasm … all of that. Maybe it shouldn’t be such a surprise when someone I have never seen before approaches me at a trade event and starts chatting with me like we’ve been friends for years.

Now, taking that into account, don’t you think I might be able to shorten the number of interactions I have with people in order to prove that competency and character?

Absolutely. Maybe now it’s only a half a dozen interactions needed since these people think they already know me. I may have just cut that time frame in half. Take one real estate agent I know well, for example. She is a neighbor of mine and does a video blog for the community and neighborhood. Simple stuff, like when the pool is going to open, or that we are switching trash pickup day. Nothing fancy, but very effective. Almost everyone in the neighborhood knows her, even if they have never met her.

Makes sense, right? The result … I would bet she is on one side of the transaction or the other on at least half of the deals in our neighborhood.

Seems like a pretty good reason to do some video work to me.

www.mortgagenewsnetwork.com

Another major perk of all this video work is that you don’t have to spend a dime doing it. You already have a camera or two or even three, and a laptop, phone and/or tablet. The software is free. Windows Movie Maker, iMovie, etc., and even a YouTube account is free. The ability to have YouTube spread those videos across all of your social media channels is free. You can e-mail links to your videos for free.

Free is good and that makes this great.

And this is easy stuff. With some experience at it now, I can shoot video, edit it by adding photos, music, captions, etc., get it uploaded and spread across my social media outlets in less than 30 minutes. That’s a small amount of time to spend to get the aforementioned types of results that video can bring.

However, it isn’t all sunshine and lollipops, of course. I think the biggest struggle, for me at least, is the content. I am always amazed at how Frank Garay and Brian Stevens of The National Real Estate Post are able to have so much content to do a video each day … every single day! I thought once a week was tough, but that is something you have to decide on to make it relevant to your individual business. Do you want to do videos for new clients? Maybe it’s something like a series of canned videos on subjects like “What to Expect at Closing” or “Now That You’re Under Contract” and send the same video link to every client when they are in those respective stages of the process. Do you want to do videos for referral partners? Do you want to do videos for past clients? Do you want to do them for the overall community?

That decision will help shape some of the content. The rest is a matter of your creativity.

I was getting pressure from a number of colleagues across the country to start doing videos. I hated the content part of it. I don’t mind the work or being on camera or even public speaking. That’s an issue that many of you are going to have to overcome, but I was not bothered by it. So, I started to do videos for clients and was bored to

death by it. I didn’t like the videos, so why would anyone else? Then, someone asked why I wasn’t doing videos on the subjects that I had been teaching to real estate agents and other mortgage originators for quite some time. And so was born a weekly video blog.

Now, the generation of content is easy. I know the subject material, of course, as I apply it to my business every day. I constantly see examples of good sales techniques, customer service, both good and bad, and am coming up with new ideas all the time to implement into my own business and then share with others via the video blog. And once you can overcome whatever the big hurdle is, like the content was for me, then it becomes a ton of fun, and something that is easy to do, it doesn’t cost a thing and makes a great impact. Now, I am truncating that timetable, or the number of interactions I need to have with someone, while letting everyone get to know me, gain a little notoriety, and some credibility to boot.

Don’t underestimate how important it is to get going on this now, as well. This, like almost all current social media and tech communication avenues, have already peaked and are dying. Now, that’s not to say that they won’t be around for decades to come, but make no mistake, they are dying. What that means for you, is that it is time to stop dawdling and get started. I promise you it’s worth the effort. It’s worth getting over the obstacles that are preventing you from doing it at all, and it will pay dividends on your ability to start new relationships with future clients and colleagues, and to continue to help snowball a repeat and referral business.

What are you waiting for? Go on and get started.

Adam P. Smith is president of The Colorado Real Estate Finance Group Inc., a commercial and residential real estate finance firm. He may be reached by phone at (303) 770-2262, ext. 112 or e-mail adam@corefinancegroup.com.

“…Millennials with their social media ‘Likes,’ ‘Favorites’ and shared posts or links, become part of the branding process.”

Social Media and Your Brand

By Brent Emler your own voice, so get online and get your message out there.

Recently, we interviewed Ryan Bell at GremLn, a provider of social media tools for the mortgage industry. He provided us with some useful information that we’re happy to pass along.

Facebook When it comes to Facebook, there are a lot of options on how to approach setting it up: l Begin with the core organization’s needs to have a company page. l Treat the company Facebook Page as an extension of your Web site and include an “About Us,” “FAQ,” “Loan Products,” etc.

continued on page 64

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Whatever is posted should be shared to individual loan officer pages as well. Each loan officer should have their own personal company page which should be an extension of their personal brand, and include content marketing, educational pieces and products.

Whether or not the customer cares about the hierarchy of your organization determines whether you have a branch. In most cases, the customers don’t care if you have a branch unless there’s a compelling business case like products for a specific area.

Adding a branch dilutes the message and confuses the followers about who to follow.

You will want to tie in your personal page and leverage your personal contacts. Go ahead and let your personal contacts know you have a business page. When you do invite connections, be sure to add a personal message.

“Hey, I have a Business Page. I’d like you to follow my business page because I think you would like to see the content.” Post interesting content, and absolutely make sure you engage with your page followers.

You can use Facebook to identify your friends’ personal milestones and sales opportunities (i.e., weddings, babies, new jobs, moves, etc.). During these events, it’s important that your friends remember that you are the mortgage loan officer they should turn to.

What should you post on your personal business page? Think about it much as if you were talking about business at a dinner party. That’s how much you should post business related material to your page.

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Social media is one of the best ways to build a community around your brand.

It is so easy to communicate with your audience by engaging them on social platforms. In recent years, sharing content and opinions with friends, coworkers and family online has proved to be as valuable as verbal word of mouth. Nearly everyone in the world has the power to broadcast their opinions via social media—essentially, you have the equivalent of free advertising on a global level. Of course, all this means that you need to use social media yourself. Yes, you. Maybe you hate the idea, but there is no more denying that social media communities are recognized as places where humans connect with friends, colleagues and, businesses. In fact, many people count on social media as the one place where they can find real human beings offering support and ideas.

This is especially true of Millennials (the generation born from about 1980 to 1995). Millennials are the first generation to be born electronically connected. In the world of Millennials, they will write a quick social media post about their experience. Faster than you can say “Internet,” others jump into the conversation and have no trouble sharing exactly what’s on their minds. In that world, information to make a decision comes from a crowd consensus, not from any so-called expert. Perhaps now you see why it is so important that you stay current.

Marketing to Millennials is going to require that you do it on their turf and their terms. They want to be able to access information wherever they are, on any device, and every platform. In effect, Millennials with their social media “Likes,” “Favorites” and shared posts or links, become part of the branding process.

There is no message more unique and genuine than the one spoken in

Don’t do “Like” baiting campaigns such as a “Like My Page” and “you can win an iPad.” Originally when Facebook came out, if you posted to your company page it would go out to all of your “Fans.” Over time, Facebook has changed their model, and may only distribute your content to between seven and 25 people. Facebook now requires payment in order for your post to go out to everyone. This is why it is important to share your posts on your personal page as well. If people are “Liking” your page just to win a prize, then when you post you’re likely not being seen. So, don’t tease them in with a prize.

ple as to what they need and how you can help them with their goals. continued from page 63

There are three ways to buy ads on Facebook:

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l Promoted posts: These will go out to “Fans” of your page and you can promote to specific people or groups as well. l Drive potential customer to action with ads, make sure you are very target-specific: For instance, one of our clients bought an ad using the Educational Information Section. He located everyone who went to a particular high school, contacted the high school to make sure he could use their logo, then created an ad targeted to the people who went to that high school with the school logo

l Share articles from reputable sources. l Use your own content library. and an offer for $500 off since they l Share your blog posts. were alumni.

Keep 90/10 principle in mind. When l You can also advertise your mobile sharing, content should be 90 percent app. with 10 percent being about your products.

LinkedIn LinkedIn is a good tool for business LinkedIn is a professional network. development, not just as a way to Think of it as the network where make contacts, but as a way to know you’re required to wear a tie.

LinkedIn gives you a greater ability to that you’re making the right contacts. hone in on individualism to isolate In a sense, it gives you opportunity to people who are looking specifically look behind the veil—to see who those people are connected to. Are for loan officers.

This is a perfect opportunity to they perhaps doing business with your establish professional thought leader- competitors? If they’re in your connecship. By connecting with you, people tions, it’s possible that can leverage see your posts. So, post high-quality your existing relationships. In short, content that shows and educates peo- use LinkedIn to profile your prospects.

Business relationships are, after all, just relationships. By profiling prospects, you can basically get the same kind of information you’d get by talking to a friend of theirs.

Photos get better responses. Add a photo along with some fun or interesting facts. Grab their eyes with the image and they’ll likely go to the content. Here’s an example: I reached out to a LinkedIn contact who was connected to a friend of mine. It was a very basic connection and I didn’t have a particular reason for connecting other than to build my network.

He accepted my offer to have a phone call. Before the call, I checked his profile and noticed he was connected to someone with the exact same name, he was a senior the other person was a Jr. I determined the other contact was his son and his son was the head of production at a large mortgage company. This information gave me a clear objective with the call. For this reason alone, LinkedIn is possibly the unquestionable leader in terms of generating business.

Twitter Twitter, on the other hand, is very public in nature. With Twitter you reach a mass audience. Whereas on Facebook and LinkedIn you can set a certain amount of privacy to posts, on Twitter, posts are considered “public.” One of the best things about Twitter is that, via hashtags, it allows you to search a huge network of conversations and events.

Twitter registers approximately 400 million tweets per day, with its business and personal accounts being on the same level.

Thousands of people can follow you and see what you’re posting, but there are a few tips to using Twitter. The right time of day is essential because there is so much volume.

You might need to work harder to catch attention. Because tweets are a limited number of characters, you have to be more creative. Try posting things like quick financial tips or facts, or links.

There is a tool that allows you to schedule your tweets. Keep in mind that when you share (re-tweet) posts of other people, everyone who follows you sees that too.

Don’t be afraid to interact. Pick up the phone and thank people for liking your content. Tell them you like their tweets as well. Think of it as a cocktail party where you might break into a conversation and begin talking about your product. The hashtag (#) was born in Twitter. When you post, be sure to add the # as this aggregates your posts into the other conversations, giving you incidental exposure to anyone (not just your followers) doing a search of that hashtag. You can add more than one hashtag, however, don’t abuse it. Nothing is more annoying than reading a sentence almost entirely made up of hashtags.

Make sure the hashtag is relevant to what you posted, but keep it somewhat general. For example, go with #mortgages rather than #lowcostmortgageswithzerodown. If it’s hyper specific then it is, for all intents, nonexistent.

It’s clear that social media is here to stay and has become vital to any marketing plan. It is one of the most powerful tools around, no matter the platform, and allows millions of people around the world to instantly link to each other, post about a topic, and receive input from like-minded users on that topic in real-time discussions. Is your business getting the most out of social media marketing?

Brent Emler is director of sales and marketing at Velma.com, a customizable marketing software provider exclusive to the mortgage industry. He may be reached by e-mail at brent@velma.com.

“Don’t get bullied into doing mortgage fraud.”

Face the Book

By Eric Weinstein

Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. These days, Eric is semi-retired, doing mortgages by referral only. As he likes to put it, “He is either saving people money per month or helping them buy a new home.

What a great job!” He may be reached by phone at (703) 505-8692 or e-mail eweinstein4u@gmail.com.

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The only thing better than a closed loan is a free party.

Tuesday, December 8, 2015 - Atrium Hotel, Irvine, CA Thursday, December 10, 2015 - Doubletree Hotel Dallas, Dallas/Fort Worth, TX Tuesday, December 15, 2015 - Holiday Inn & Suites, Orlando, FL

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girl in the land … kind of reminds you of “The Bachelor,” right? Except, instead of a rose, the girl gets to be the next queen.

So of all the girls, the king picks Esther, the niece of Mordechai, a Jewish exile that came from Jerusalem when Nebechanzer, the previous king conquered Israel back then.

Mordechai warned Esther not to reveal she was Jewish, because back then, there was a lot of prejudice again Jews.

So Esther becomes the queen.

Now, the second in command after Xerxes was a guy named Hayman. One day, Hayman decides he wants everyone to bow down to him as he walks by. But, Mordechai, being Jewish, can’t do that. It’s against his religion, you see. So Hayman decides to do what any psychopath at the time would decide to do and kill not only Mordechai, but all the other Jewish people as well.

When Mordechai finds out about this, he tells Queen Esther to tell the king. But Esther is afraid. You see, you cannot just go to the King unless he calls you. If you do, he kills you.

Remember the first wife?

So Esther doesn’t know what to do. If she tries to see the king, she could be killed and that won’t help anybody. But if she succeeds, then the Jews are saved. But, she is too afraid to try. What to do?

Then, Mordechai tells her, “Look … it is destiny. The Lord will save the Jews. He always saves the Jews in these old Bible stories. You can be a part of that destiny or you can sit back and it will happen without you.” Long story short, Esther takes Mordechai’s advice, goes to Xerxes and they execute Hayman.

So what is The Bible trying to tell us? Esther knew the right thing to do but was too afraid to do it. Many times we know the right thing to do,

from borrowers or Realtors if we don’t turn a blind eye or just plain pretend we don’t know the real story.

It is so easy to convince ourselves they might actually move into a primary residence house rather than renting it out like you know they really are planning on doing. I can list tons of other things, but you get the point.

Don’t get bullied into doing mortgage fraud.

Edmund Burke once said, “All it takes for evil to triumph is for good men to do nothing.” Go and Tweet that, Tweetie Bird.

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Okay … here is how you build a Facebook page to get more business.

I don’t have a clue. I have never done it. I am 57-years-old. My VCR is still flashing with the wrong time since 1983. What I can tell you is how to get out of serving time in prison for mortgage fraud. Simple … don’t do mortgage fraud to begin with. Let me tell you a story.

How many of you know the Jewish story of Purim? None? Okay …

How many of you know “The Story of Esther” from The Bible? None?

Alright …

How many of you have seen the movie “300?”

Isn’t that just sad where in today’s society, we have all seen a movie, but don’t read The Bible?

Do you remember the Persian King in the movie “300?” It was Xerxes. The battle of the 300 took place in 480 B.C. Xerxes was the king of an empire that went from Persia (modern day Iran) all the way down to Saudi Arabia, east to India and west to Egypt … it was a big empire.

One day he decided to throw a great party. It lasted 90 days and all of his noblemen came. Notice, I said MEN. No wives invited.

So, his wife, Queen Vashti (VASHTea) decided to throw a separate party for all of the wives.

Just a little drunk after 90 days of drinking, Xerxes decides he wants his wife to show up at his party so he could show her off. But, hosting her own party, Vashti refuses to come.

So Xerxes, doing what every good man would do at the time, instantly divorces her and has her executed.

You see, he didn’t want all the other wives to get the impression you could disobey your husband.

So Xerxes decides to get a new wife.

He calls throughout his kingdom for the nobles to find the prettiest

but we are too embarrassed or too afraid to do it.

I have a theory. It is about all these states passing gay marriage laws lately. I think lots of people were always for gay rights, but they were just too embarrassed to say anything.

At the other extreme, the same thing definitely happened with the Jews in Nazi Germany during World War II. People knew the right thing to do, but were too afraid to say or do anything about it.

Bottom line, if you agree with something, It is your duty, no your obligation to contribute toward it, even if it will eventually happen without your help even at the risk being embarrassed, scared or in the extreme, danger to your own life. The converse is also true. If you disagree with something, you have to do or say something against it.

In the real world, it is not so easy, but that is the difference between being a hero and a coward.

You have to stand up if you agree with something, or say, ”No” with something you disagree with … no matter what might happen to you.

Many times, we get pressured

“If you want to engage with borrowers and prospects, mobile device applications are no longer a ‘nice to have,’ they are a necessity.”

Engaging Borrowers at Mobile Speed

Compliance in a mobile world

By David Hultquist

JULY 2015 n Hawaii Mortgage Professional Magazine n

NationalMortgageProfessional.com

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One of the great truths about modern existence, whether in our business or in our personal lives, is that mobile devices are indispensable. If you want to engage customers for virtually any product or service, you simply have to think mobile, because consumers do.

According to Pew Research Center’s 2014 survey, 90 percent of adult Americans have cellphones and 58 percent have smartphone versions. Additionally, the December 2014 comScore MobiLens and Mobile Metrix report confirmed that three quarters of mobile subscribers have smartphones, and they use these devices to conduct business, shop, take pictures, check sports scores and news, and even to make the occasional phone call. The bottom line is, just like you, your customers are carrying their smartphones with them at all times.

If you want to engage with borrowers and prospects, mobile device applications are no longer a “nice to have,” they are a necessity. They are immediate connections to customers who formerly were contacted by snail mail. No one has that kind of time any more. Mobile connectivity via a consumer friendly, bug-free app that is well thought out and (above all) useful, is a tremendous boon to bankers and mortgage lenders for many reasons, the most obvious of which are immediacy, low-cost and high efficiency.

The new necessity for loan originators Lenders can communicate with borrowers, provide compliant loan presentations and pricing scenarios, follow up with service providers and coordinate entire processes. In short, most things that used to require a

computer can now be done on a smartphone or tablet by all parties in the mortgage value chain.

Likewise, mortgage loan officers have always been mobile creatures.

You seldom see a successful one sitting in their office any longer than necessary. Their natural habitat is the offices of real estate agents and the homes of prospective borrowers.

Technology has evolved to help loan officers spend as much time out in the field as possible. It started with the laptop computer with dialup connectivity; that meant plugging the computer into a phone line and connecting to a remote host with agonizing slowness. Today’s mobile devices bring incredible power to the field sales effort—and a new competitive challenge that trip up unprepared lenders with great frequency.

When did the mobile revolution in lending begin? An acquaintance told me several years ago about an appraiser who showed up at his house to do a refinance valuation carrying a mobile device, a laser tape measure, and nothing else. The device wasn’t even an iPad, which were just coming out, but rather an iPhone 4 with an appraisal industry software that had been re-worked for mobile. The appraiser, a young fellow in an industry largely populated by professionals over the age of 50, completed his inspection of the 3,300-square-foot home in just minutes. He then left to perform a dozen or more appraisals on the same day (and without significant paperwork afterward). The story is revealing, even back then in 2011, a prediction that mobile devices were going to transform the way the lending business operated in the field, and this has happened, especially for loan officers.

Mobile technology affects loan officers on several levels. When they use mobile devices while working with prospects and borrowers— quoting rates and giving presentations that are uniform—these devices become powerful compliance tools. Loan officers are no longer left to develop their own presentations and wander outside of disclosure regulations in the process. At the same time they’re being standardized for compliance, presentations are becoming automated and optimized for mobile delivery.

The loan officer puts in the borrower’s variables and a customized presentation is quickly created with professionally designed content and flair, helping the loan officer achieve faster commitment from prospects. Improved pricing engines and other peripherals sending information to fuel mobile presentations go a long way toward turning rate shoppers into borrowers right on the spot.

During the loan process, loan officers use mobile devices to stay abreast of each transaction’s progress without losing valuable field time. Information can be forwarded to borrowers for their information or response; phone calls are eliminated by interactive software that links the loan officer directly to the loan origination software system (LOS) and alerts him or her when they need to take action; they are advised when needed items come into document management systems and can manage more transactions with greater ease; dozens of small efficiencies add up to major productivity gains and let loan officers do more loans each month, reducing lenders’ costs per loan.

Mobile engages Millennials The dimension that most people overlook when thinking of upgrad-

ing their mobile capabilities is a key competitive factor: recruiting.

The new crop of loan officers is largely composed of Millennials, a generation that has grown up with increasingly smart mobile devices.

They don’t take their laptops along; they are packing tablets and smartphones. They use mobile devices for everything, and they don’t want to originate loans or work mortgage organizations that lack great technology, including mobile capabilities that will help them succeed.

Mobile is far from being an enhancement for today’s top performing loan officers, it is a necessity. And it will become more apparent as Millennials come to dominate home buying demographics and demand mobile convenience.

For lenders who want to expand their footprints, play for market share or simply provide superior borrowing experiences, mobile technology sophistication is the new normal, both for borrowers and for the mortgage loan officers who serve them.

Mobile capture for self-service and real-time engagement An important capability for this new paradigm is the ability to capture documents via the mobile device. By enabling customers to use their mobile devices to capture documents, you enable them to control the self-service process for submitting supporting documents such as W-2s, paystubs and identification cards. Using document capture eliminates the chance of paper documents being lost in the mail or after they arrive in the office. This solution can be used to enable customer onboarding, mortgage origination and new account openings—all from the same platform.

This is where mobile capture comes into the process.

Mobile capture is a standout feature that improves the user experience by removing friction from the

gy, content management, development mathematical sciences from Stanford platforms and tools and vertical solu- University, and an MBA from the tions. David has a bachelor’s degree in Harvard Business School.

We are Califor Premie nia’s r Private Direct M and Br oney idge Lender

67

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n Hawaii Mortgage Professional Magazine n JULY 2015

David Hultquist is vice president of Industry Solutions Marketing for Financial Services at Kofax from Lexmark. With more than 30 years of

experience, David has marketed SaaS and PaaS solutions, B2B and B2C ecommerce, financial services technolo-

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process. This is supported by a 2014 AIIM study, where 45 percent of companies feel that mobile capture is vitally important, and is at the heart of the customer engagement. More than simply taking a picture of a document with a camera, an advanced mobile capture solution perfects the image so data can be extracted accurately. This extracted data is especially important when you are using that customer information to automatically prepopulate fields into a form.

To provide your customers with the best experience, the mobile capture solution should guide the user to frame the document on the screen, and once it is positioned correctly the mobile capture software will enable the flash if needed, then automatically snap the picture. All the user needs to do is line up the shot. It should be that easy. Data contained within documents should automatically populate fields, eliminating the need for tedious data entry, which is often prone to errors. Think about how many times you’ve typed something correctly on your mobile phone only to have the spell check change it. Automatically prepopulating information bypasses this step and eliminates errors caused by typing and spell check. Mobile capture is part of a solution that empowers the customer with selfservice capabilities and real-time engagement with an organization.

Smartphones are the preferred channel of engagement for most consumers, so it’s imperative that you make it as simple as possible to engage new customers to apply for mortgages. If you are not fully committed to mobile devices in your business, it’s well past time to rethink things. Loan originators that fail to get current on mobile strategies run the very substantial risk of losing not only credibility with consumers, but also relevance.

The inescapable message for companies and mortgage processionals that desire to live long and prosper: go mobile or go home.

“When using Facebook, Twitter, LinkedIn or any other social media platform, mortgage companies and loan officers need to walk a fine line between what is compliant and true social engagement.”

A Happy Medium: Three Steps to Staying Compliant on Social Media

By Maureen Cioni

JULY 2015 n Hawaii Mortgage Professional Magazine n

NationalMortgageProfessional.com

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For many, social media is a place to unwind. We use it not only for information and to stay in touch with others, but also for entertainment, whether it be silly quizzes, cat videos or funny memes.

Social media is largely for relaxing. But for mortgage professionals, social media can actually be a bit stressful.

“How can I engage clients and sell my business on social media with all these compliance rules and regulations?

Won’t compliance take the fun out of social media? What can I post or not post to stay compliant?”

As social media manager for my company, these are just a few of the questions I get from loan officers every month. They’re good questions, too.

When using Facebook, Twitter, LinkedIn or any other social media platform, mortgage companies and loan officers need to walk a fine line between what is compliant and true social engagement. In a world where lending rules are constantly evolving, and where screen grabs and images can be cropped to exclude the true context of what someone posts online, there are many reasons to be careful.

However, compliance can co-exist with social media. Here are three relatively simple steps lenders can take to mitigate the risks while freeing up loan officers to have fun, engage prospects and sell loans, whether on Facebook or any other social platform:

Create a policy If lenders want to market themselves on social media, they need to create some ground rules. We are still in the early stages of the social media generation, and most people trying to generate business on Facebook, LinkedIn and Twitter are learning through trial and error. That’s not going to work for mortgage professionals, who must abide by multiple state and federal regulations.

A social media policy, something written down and shared with the organization, should cover best practices as well as what not to do. For example, Mortgage Network’s social media policy doesn’t allow loan officers to post rates on Facebook and other outlets. Why is that? It may sound farfetched, but if you post a rate with disclosures, someone could screenshot that post, crop it and demand the same rate days later after the rate has increased. Suddenly, you have a fight on your hands to prove the rate is wrong.

At the very least, posting rates on social media can cause confusion and create situations that result in online slander or bad reviews. It’s the kind of thing that makes our industry skittish.

Educate your team With a buy-in from the sales force, online engagement and compliance can walk hand in hand. Creating a social media policy comes first, but an effective policy is more than a set of rules. It should be a training tool to help the less socially experienced navigate these new waters with the proper guidance.

For each type of social media activity, my company’s policy lets our staff know what information must be disclosed, such as company e-mail, licensed mailing address, NMLS numbers and the link to online legal disclosures. It also goes over the correct use of our licensed business names, as well as rules about posting information without consent and what someone can and cannot post. The policy also includes proper social media etiquette, such as dealing with negative reviews and “trolling,” as well as when an official response may be needed and when to take conversations offline.

Our policy was created through a joint effort by the company’s marketing and legal departments, and it is a living, evolving document accessible to all

employees online. The whole point is to protect the company and our loan officers, but also to give our people the freedom to use social media and effectively engage with an audience. For social media novices, our policy and training also takes a lot of the guesswork out of social media platform and how to use them.

Because of its popularity, we created a separate policy for Facebook that applies to all Facebook business pages used by our loan officers and branches.

It covers what can be posted and what we do not tolerate on our pages, such as profanity and threats. It also addresses third-party links, ownership information and, of course, Mortgage Network’s current and full legal license disclosures.

Track the results Once you have a social media policy, how do you enforce it? How closely should you monitor whether people are following it? I think these are the hardest questions to answer, because every lender is different. However, making the policy available online and requiring anyone involved in social media at your company to read and sign it is a good start. This way, no one can claim ignorance for violating the policy. If done electronically, a lender could even have its staff review and sign the policy every year.

Training is very key to enforcement.

We hold monthly live webinars where Mortgage Network employees can come and ask questions about social media, get help, discover new sources of content and hear from colleagues that are having success on social media. It’s a popular class, and we all learn something new each time.

For lenders, social media monitoring can be done either manually in house or by enlisting a third party. We keep a spreadsheet of all employees using social media, and we track their page links and spot-check their pages for usage and compliance. We also have a private social media Facebook group enables employees to post questions and share ideas.

There are quite a few social media management providers that will even

create content for loan officers and push it out to them on a daily basis for posting. Some services even monitor the use of specific keywords that could be a sign of policy infringement before the post goes out. Of course, these services come at a cost; for smaller lenders, hiring a social media manager might be the way to go.

Don’t forget to engage!

Compliance is ever-changing in the mortgage industry, but mortgage professionals can successfully use social media and stay compliant, as well. It takes effort and planning, but staying ahead of what the auditors look for will benefit everyone in the long run.

However, there is a critical piece to the social media puzzle that too often goes missing: engagement. Creating a social media policy and sharing compliant content are just tools to help loan officers have online conversations with people. After all, you can create all the policies you want, but if loan officers aren’t actively engaging potential borrowers online, what’s the point?

In my view, loan officers as a whole could be much more proactive on social media. Find people who have questions about the mortgage process and help answer them (and don’t just sell to them!). Become a resource to those who need help with a specific type of financing, such as VA or 203k loans. Join in conversations with others, be a real person and have fun.

That’s when you’ll start to see a return on your investment. After all, compliance can keep you safe on social media, but only engagement will bring you success.

Maureen Cioni is social media manager for Danvers, Mass.-based Mortgage Network. A marketing and communications expert with 19 years of experience in the mortgage industry, Cioni is responsible for promoting Mortgage Network through social media, as well as providing social media training for loan officers and expanding the company’s Web presence. She can be reached by e-mail at mcioni@mortgagenetwork.com.

Time for a Change?

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Don’ Don’tt get left stranded on the rroad oad to success. Join Academy today today.. Contact John Owens, National Recruiting g Manager Manager, r, at (801) 541-7456 or visit www www.academymortgage.com. .academymortgage.com.

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Is your company there to support you when you’re feeling flat?

JULY 2015 n Hawaii Mortgage Professional Magazine n NationalMortgageProfessional.com

NewRules

BY TOM LAMALFA

70

s:

Large Added Costs for Lenders and Borrowers Alike Results of the MBA 2015 Secondary Market Conference Survey Scorecard

T

cymakers at a challenging time for the Consumer Financial Protection Bureau (CFPB), Congress, the Federal Reserve, state and federal regulators, the Federal Housing Finance Agency (FHFA), the GSEs and the Obama Administration.

With that preface, it’s off to the questions, with the understanding that what follows is intended only as an on-the-surface explanation of the responses, not a detailed analysis of them.

Question One asked those surveyed what they thought the interest rate on the 30-year conventional conforming fixed-rate mortgage would be at yearend 2015. The group average weighed in at 4.25 percent. The range of expectations was from 3.875 percent to five percent, but most responses were clustered between four percent and 4.5 percent.

Question Two wanted to know how much residential origination volume the execs expected this year. The un-weighted group average was $1.3 trillion. The response range was from $850 billion to $1.5 trillion.

Question Three asked if their firm’s production was up, down or unchanged year-to-date compared to the same period last year. Twenty-four of the 26 surveyed said production volume was up.

Question Four wanted to know what portion of their firm’s 2015 production will be non-qualified mortgage (QM) volume. All 26 executives report that nonQMs will account for less than five percent of their 2015 production, with an average of two percent.

Question Five through Question Eight asked about year-to-date (YTD) origination volume, specifically the portion of their total that was respectively refinance, agency conforming, jumbo and the combination of FHA, VA and RHS. On average, refinance volume accounted for 45 percent for the 26 firms surveyed. The range was from three percent to 85 percent. On average, 64 percent of the 26 firms’ volume-to-date was agency conforming, nine percent was jumbo and 26 percent was governmentinsured. The ranges were very wide: 14 percent to 85 percent, zero to 86 percent, and one percent to 50 percent, respectively.

Question Nine wanted to know if the executives’ firms experienced a decline in their YTD FHA volume. More than

twice as many did not experience a decline as those who did.

Question 10 inquired about the percentage of their firm’s YTD conventional production that exceeded an LTV of 80 percent. The average for the group was 20 percent, with a range of five percent to 87 percent.

Question 11 asked what portion of 2015’s production will be conforming 97s. For the group, the average was two percent and the range was zero to six percent.

Question 12 and Question 13 dealt with profitability, both on the part of the industry and the executives’ own individual firms. Expectations for industry profits in 2015 were mixed, with 14 of the 26 expecting industry profits to decline again this year. Meanwhile, thus far in 2015, 20 executives predicted their own firm’s profits will be up year-overyear, compared to two that expect a decline and another four anticipating no change.

Question 14 through Question 16 wanted to know if these 26 firms were originating more or less high-LTVs, highDTIs and low FICO loans this year than last. More was the response from 13 executives to LTVs. Three others did fewer high-LTVs and another nine reported no change. For high-DTIs, unchanged tallied 14 compared to five reporting more high-DTI loans and another five reporting fewer. As for low FICO lending, 12 of 26 were doing more of it compared to seven doing less and seven others reporting no change.

Question 17 wanted to know if survey participants thought the push to reduce overlays and expand the FHA’s credit box was a good idea. Four times as many executives said not a good idea compared to five who indicated that deepening FHA’s credit box made sense.

Question 18 asked about Neighborhood Watch and the so-called “compare ratio,” wondering if the executives felt the two metrics served the industry well. Yes, said 15, but 10 others weren’t so sure.

Question 19 and Question 20 concerned appraisals, with the first inquiring whether appraised values were a major concern today, and the second asking continued on page 72

71

n Hawaii Mortgage Professional Magazine n JULY 2015

veyed and other interested parties.

By design, the survey group consists almost solely of industry friends and business associates. All are industry veterans and many have been part of this survey since its inception. Some execs are polled at this conference and also at the MBA Convention, roughly six months later. Most of those surveyed are close industry contacts who have helped keep me informed of intra-industry trends and developments over the course of years. Most have been colleagues for decades. Only five of those surveyed were for a first time and two new firms were added to the survey group.

Given who is being polled, no thought is ever given to even suggest that the survey findings reflect the attitudes or opinions of a broader cross-section of the U.S. population. To the contrary, since it wasn’t a random survey, there is nothing scientific about the results that would necessarily apply outside the mortgage banking industry. And of course, responses are only valid as of a specific point in time. Things change, sometimes quickly as we all know. That said, I believe the findings well represent the ideas, attitudes, expectations and thinking of the broader mortgage industry.

Indeed, most readers likely will find many more confirmations than surprises in the findings.

Although some of the questions are time specific and appear on these surveys only once or twice, many to most of them are included in each and every survey. This polling process thus provides a dataset of responses over time. An analysis of the resulting longitudinal data shows patterns and trends along with new developments in the business and industry. For example, the sharply reduced buyback demands from the government-sponsored enterprises (GSEs) are reflected in the substantial improvement noted in this and several recent surveys.

A primary purpose of these articles is to bring senior executives further into the public discussion of key issues and topics without drama and despite the sometimes controversial nature of the underlying subjects.

Personally, I find the information collected to be relevant, interesting, insightful, informative and instructive for poli-

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his is the 14th time since 2008 that the Mortgage Bankers Association (MBA) 2015 Secondary Market Conference Survey, a survey of senior mortgage banking executives, has been conducted and distributed. It is completed twice annually, at the MBA’s Annual Convention in October and at the MBA’s National Secondary Market Conference each May. The purpose of the survey is to capture some basic data and gather the opinions, attitudes, values and expectations of senior executives on many of the business and industry’s key issues, topics and concerns.

For this year’s convention, 27 meetings were arranged and 26 surveys were completed. The surveyed group consisted of seven mortgage company presidents, eight executive vice presidents, eight senior vice presidents and three vice presidents or regional vice presidents. Excluding the presidents, all of those surveyed work in either capital markets or production. Of the 26 firms represented in the survey, eight produced more than $10 billion in 2014, 11 others originated $2-$9 billion, and another seven produced less than $2 billion last year.

The executives surveyed represent 13 banks and 13 non-banks, including two homebuilder-owned firms and one realtor-owned firm. One of the firms is Internet-based. Ten of the firms originate only through retail channels, while the other 16 produce in at least two channels. Six of the 26 firms originate in retail, correspondent and broker wholesale. The surveyed group is structured to be representative of the industry in terms of the sizes of firms and operating channels.

The 69-question survey was drafted several weeks before the conference, beta-tested and run past several industry folks for comprehensiveness and clarity.

Except for the beta test group, all surveys were completed face-to-face during meetings at last week’s convention.

About 45 minutes was reserved for each survey.

The project’s objective is to record responses to the questions, compile the information, prepare a report of the findings, and distribute it to those sur-

new rules

California Association of Mortgage Professionals

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about Collateral Underwriter (CU) and whether it was viewed as a valuable new tool for lenders and borrowers. By a margin of 4:1, the respondents indicated that values were not a major concern. As for an evaluation of CU, four times as many executives saw it as a valuable new tool versus those who did not.

By how much will house prices rise nationwide in 2015 was the core of Question 21. On average, the group expects a four percent increase this year.

The range of answers was from two percent to 10 percent, with 16 firms under six percent.

Question 22 wondered if the combination of money, freedom and choice would drive current bank LOs to non-banks. Yes they would, reported 15 executives, though 11 others responded otherwise.

Question 23 asked how tough competition was for loans in the primary market. On a 10-point scale, low to high, the group average was an eight. The range was from five to nine among the 26 executives surveyed.

Question 24 inquired whether the executives’ firms were retaining or selling MSRs this year. Retention was the posture for 14 firms, while eight other firms were selling their mortgage servicing rights (MSRs). Another four firms were doing both.

How important are non-bank servicers today, asked Question 25? Scaled one through 10, the group average was an eight, with a five to nine range.

Question 26 wanted to know if (recent) enforcement actions were adversely affecting servicing sales and prices. The one-sided response found 12 times as many executives saying “yes” rather than “no.”

Question 27 through Question 39 inquired about one or another element of the secondary market.

Question 27 asked the executives if they were selling to the cash window or issuing MBS. Thirteen of the firms are issuing MBS, eight are only selling to the cash window, and another four were using both sales vehicles.

Question 28 inquired about Ginnie Mae issuance. Here, 21 of 25 surveyed were Ginnie issuers.

Buyback demands from the GSEs were the focus of Question 29 and Question 30. First, were buyback demands up, down or unchanged year over year; next, how big a problem are they? Of the 26 responses, 13 reported buybacks were down, six reported them up and another seven indicated no change in agency buyback demands year over year. As for how large a problem repurchases are today, the group average was a three on our 10point scale. The response range was from two to seven, with 17 firms under a five.

Question 31 and Question 32 dealt with underwriting standards and whether they were too tight, first at the GSEs and then at the FHA. Only three of 20 said the GSEs’ underwriting standards were too tight, whereas three of 21 indicated that

the FHA’s standards were too tight.

Question 33 asked the surveyed executives if the new (recent) LLPAs accurately priced for risk across the risk spectrum.

Here, only four of 24 executives responding thought that this risk was being accurately priced.

Question 34 and Question 35 focused on Fannie Mae: Should the GSE provide greater transparency into its cash window business, and should it increase lender access to its MBS programs. Yes, said 24 executives to each of the queries. Only one executive said no to the greater transparency issue and two others reported no additional access to the MBS program was needed.

Question 36 inquired as to which of the two GSEs was easier to work with. By a count of 18 to four, the executives said that Freddie Mac was easier to do business with than Fannie Mae. How concerned are you about the stability and capital position of the GSEs, asked Question 37? Not very much concern was telegraphed in the group’s average response of a three, as the range was one to seven.

Question 38 and Question 39 wondered what letter grade the executives would give to Fannie Mae and Freddie Mac for their overall performance over the past year. The group assigned a letter grade of “C” to Fannie Mae for its performance, while Freddie Mac earned a “B,” both averages. Freddie received four “As: and 16 “Bs,” while Fannie Mae received one “A” and eight “Bs.” Question 40 wondered if Quicken Loans should be applauded for initiating its lawsuit against the U.S. Department of Justice (DOJ) and the U.S. Department of Housing & Urban Development (HUD).

Indeed, the lender should, said 21 executives versus only two who felt otherwise.

Question 41 inquired as to what percentage of production capacity their individual firms were currently operating.

Nearly all 26 firms reported operating at full capacity.

Question 42 asked if the executives’ firms dealt with one or more of the mortgage co-ops. Twelve of the 26 firms did, but another 14 had no such affiliation with a co-op.

Question 43 wondered how attractive those surveyed thought the mortgage business would be over the next several years. Attractive enough to keep their interest was reflected in the group’s average response of a seven, scaled one to 10, with a wide range of three to 10. Four executives rated the mortgage environment a 10.

Questions 44, 45 and 46 dealt with compliance and regulatory costs.

Question 44 asked by what multiple compliance costs have increased since the Dodd-Frank Act’s enactment. Costs, on average, have increased three-fold since the Act’s passage, reported the group.

Seven respondents placed the cost multiple at or above five. Question 45 wanted to know what portion of their firm’s total

Tom LaMalfa is a 34-year veteran mortgage-market analyst and researcher. He has done pioneering work in the areas of secondary markets, wholesale mortgage banking, mortgage brokerages, financial benchmarking and GSE reform. Tom continues since 1977 to co-author an oldfashioned mail newsletter, The Holm Mortgage Finance Report. In the aftermath of the financial crisis, his focus is on Washington, D.C. and the regulatory burden it is imposing on consumers and lenders. His 20-plus-year-old research firm, TSl Consulting, does survey research. He may be reached by e-mail at tom.lamalfa@gmail.com.

who

who’s

in the wholesale arena coming in august 2015

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A directory of lenders who have remained in support of the wholesale channel or have recently opened wholesale divisions.

Here is the link to the form if you need it: https://nmpmag.wufoo.com/forms/whos-who-in-wholesale-2015/

NMP Media Corp.

1220 Wantagh Avenue Wantagh, New York 11793-2202 p 516.409.5555 f 516.409.4600 e advertise@NMPMediaCorp.com w www.NationalMortgageProfessional.com

n Hawaii Mortgage Professional Magazine n JULY 2015

Question 60 inquired how big an issue compliant vendor management was across the industry. Scaled one through 10, the question scored an 8.5, with 15 responses of eight or higher.

Question 61 asked if, based on a costbenefit analysis, mortgage consumers were benefiting from the advent of the CFPB. Only three of 24 thought the benefits exceeded the costs.

Question 62 inquired whether housing affordability was seen as waning nationwide. It is, said 18 executives versus eight who felt that affordability wasn’t generally deteriorating in some markets across the U.S. Were the executives satisfied with the new g-fee and LLPA structure, asked Question 63? On a scale of one through 10, the question received a group average of five within a range of two to nine.

Question 64 asked if the executives’ firms had reduced their overlays in response to the new Rep & Warrant framework. Responses were quite evenly matched, with 11 nays and 12 ayes.

Question 65 asked those surveyed to rate Director Mel Watt’s performance to date. On the scale to 10, the Director received a group average of six, with 14 awarding a rating of seven or better.

Question 66 and 67 dealt with nonbanks. Is Ginnie Mae President Ted Tozer correct to be concerned about non-banks, asked Question 66? Of the 20 responses, slightly better than 2:1 found Ginnie Mae’s president justified in his articulated concerns. Question 67 wanted to know if the executives thought the non-banks were taking over the mortgage origination business. They are taking over, reported 15 of the 26 executives.

Question 68 asked if there was adequate liquidity in the fixed-income markets today. Responses were mixed, with 10 saying no, compared to 14 saying market liquidity is adequate today.

The final question, Question 69, asked if the executives were satisfied with the direction and progress being made on the so-called “single security.” Of the 19 responses, 15 said they were not satisfied with either the direction or the progress of the new GSE-integrated security.

There you have it, a summary of what was learned from the survey research project at the MBA’s Secondary Market Conference. My thanks to Tom Millon and all the folks at the Capital Markets Cooperative for sponsoring this latest survey.

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operating costs went to compliance. Per the survey responses, slightly more than $1 of every $5 is now spent on compliance. The range was surprisingly wide: From five percent to 55 percent. Ten executives estimated the increase at 30 percent or more. Question 46 asked by how many dollars regulations have increased the cost of a mortgage loan. The range of responses was from $150 to $4,000, with a group average of $1,200. Eleven executives estimated the cost at $1,000 or less.

Question 47 sought to learn if the executives thought the housing recovery was gaining strength nationwide. It is, reported 24 of 26 executives.

How big a challenge is it to recruit and retain strong loan officers, asked Question 48? On our one to 10 scale, the group posted an eight, with a range of six to 10.

Questions 49 through 58 consisted of questions about the Consumer Financial Protection Bureau (CFPB). The first of these was if the Bureau has brought clarity to all of its newly finalized rules. No, said 25 of 26 executives.

Question 50 inquired whether the Bureau’s new consumer complaint system was both needed and a good idea.

Only three of 24 executives saw it as needed and/or a good idea.

Question 51 asked about the new Rate-Checker program and if those polled thought the CFPB was providing a valuable service to borrowers. Not really, reported 24 executives, with a lone holdout.

Question 52 asked if the Congress needed to rein in the Bureau’s authority.

Indeed it does, said 25 respondents, with again one dissenter.

Has compliance with QM turned out to be much of a problem, asked Question 53? It has not, reported 23 of 26 executives.

Question 54 sought to learn if survey participants saw the future enforcement of RESPA Section 8 as a potential problem.

Scaled one through 10, the range of responses was from five to 10, with a group average of seven.

Will enforcement soon end the use of MSAs (Mortgage Servicing Agreements), asked Question 55? Here, by slightly more than 3:1, the response was yes, enforcement will soon end the use of MSAs. Question 56 asked how big a challenge it is preparing for the new TILA/RESPA Integrated Disclosures (TRID).

It rated a nine on our 10-point scale, with many 10s and few responses below an eight.

Question 57 wanted to know if the executives felt the industry would be ready for TRID by the originally proposed date of Aug. 1. By slightly less than 2:1, the executives said the industry would not be ready for commencement of the new rule.

And how costly has it been preparing for TRID, asked Question 58? At a group average of nine of 10, the responses indicate TRID is a very expensive undertaking.

Question 59 wondered how great the surveyed executives thought the Millennial generation’s interest is in homeownership.

There were no 10s cast and the group average was a six on the scale of 10.

heard on the street continued from page 52

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MANCIER

l Castle & Cooke Mortgage LLC has announced the hiring of Jeff Norton to lead its Human Resources Division.

Norton will be based out of the company’s Salt Lake City headquarters.

MCGUINESS

l Embrace Home Loans has announced today that industry veteran and former CEO of Lenders One, Jeff McGuiness, has joined Embrace as its chief sales officer, where he will assume responsibility for all three of Embrace’s production channels, including retail, consumer direct and bank fulfillment.

MARLAR

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l OpenClose has announced that it has hired Patrick Mancier as senior software developer.

l Stan Marlar Jr. has joined Mortgage Network Inc. as branch manager of the company’s Nashville, Tenn. office, where he will be responsible for recruiting staff and serving borrowers and homeowners throughout the Music City metro area. Veteran mortgage professional T.J. Curran has joined Mortgage Network Inc. as a

CAMPBELL

l LoanLogics has named Terese L. Campbell senior vice president of operational excellence, due to increasing client base and SLA requirements where she will be responsible for the management of the forensic underwriting team and the quality control (QC) audit division that supports client reporting and transaction management of all preclose, pre-purchase and post-close quality control and due diligence transactions on both a bulk and flow basis.

MONDORO

NORTON

l Todd Boeding has joined Academy Mortgage as a district manager where he will help lead the growth in loan officers and branches in the company’s North Texas District, encompassing the Dallas area.

loan officer in the company’s Providence, R.I. branch office, where he will be responsible for serving borrowers and homeowners throughout Rhode Island.

l Mortgage Network Inc., d/b/a MNET Mortgage Corp. in New Jersey, has opened a new branch office in Flemington, N.J. managed by John Mondoro, who has 18 years of mortgage banking experience in the New Jersey area.

TRACY

BOEDING

ness and overseeing the execution of new partnership agreements.

l Mid America Mortgage Inc. has announced the hiring of former Fannie Mae underwriting consultant David Tracy as national underwriting manager. l ResMac has announced that Gregory D. Lutin, who joined the company late 2014, is expanding the organization’s national footprint as senior vice president of third-party originations (TPOs). l LoanLogics has hired Randy Peralta as vice president of sales for the Northwest U.S. l MyAMC has announced that Roy McGregor has joined the company as the vice president of national sales. l Ellie Mae has announced that Peter Hirsch has joined the company as executive vice president of technology and operations. Ellie Mae has also announced that Karen Blasing and continued on page 78

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The Power of Leadership

By Keith Bilodeau

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To be a leader, you need to manage people. “Leader,” is often a title given to someone in a management position who has responsibility for other individuals. These conceptions could not be more wrong. To be a leader, you don’t have to be a manager, and all managers are not necessarily leaders. Take a few minutes and write down the individuals you believe have been, or are, the most successful leaders. Make sure you include at least two individuals you know personally, perhaps someone from work, school, a social group, parent, church or family acquaintance. You can also include individuals from history. Once you have that list (three to five individuals), list the characteristics under each one that made you classify them as a leader.

If you pick someone from history, I would enjoy hearing from you as to who you choose and why. I have my own personal favorite and would be curious to see if others have the same opinion.

Leaders can be found at all levels of every organization. A leader is someone who is more interested in the success of those around them than for themselves. Leaders stimulate others to accomplish more than they thought they were capable of. Leaders are givers of attention, time, resources and skills, not for their own benefit, but for the benefit of others and their team. Anyone can be a leader and leaders are found at all levels and in all jobs. Managers can be leaders, but many are not. Some managers are really good at task management, a job that is critically important, especially in the mortgage business where our manufacturing process is critically important to the performance of specific tasks and functions. We have lots of rules and guidelines.

Often, the best task managers are not the strongest leaders, and often, strong leaders in management are not the best task managers. Assuming someone has reciprocal skills is often a mistake many management teams make when hiring someone, or promoting someone to a management position. Every company needs both leaders and task managers. A company full of leaders would probably be a great place to work, but little work would likely get done. A company full of task managers would have a perfectly perfected manufacturing process, but probably wouldn’t have any production. While both leadership and task management skills can be learned, most individuals are wired more one way than the other. Culture exists in every group, whether by department, division or company.

Leaders understand the importance of a good culture and will promote and nurture it.

If you perform the exercise above to identify your favorite leaders, go back and think about each of the characteristics you listed and identify the characteristic as task manager, leader or both. Think about those as it relates to individuals you work with, and to yourself.

Understanding the styles of those you work with, especially if you are in a management role, will help set the right expectations for co-workers as well as for yourself.

Keith Bilodeau is senior vice president of Wholesale Production at Freedom Mortgage. With more than 30 years of experience in capital markets, operations and production, Keith offers unique expertise in helping mortgage professionals grow their business by leveraging Freedom Mortgage’s technology and programs. He may be reached by e-mail at keith.bilodeau@freedommortgage.com or visit www.freedomwholesale.com.

Lender NMLS ID: 2767. Freedom Mortgage Corporation, 907 Pleasant Valley Avenue, Suite 3, Mount Laurel, NJ 08054.

SPONSORED EDITORIAL

closing disclosure continued from page 47

enables the creditor, consumer, and other parties to identify the transaction as the same transaction disclosed on the Loan Estimate. l The Loan ID # may contain any alphanumeric character, which means that the number need not be limited to numerals.

Loan Terms Table Creditors use a table to disclose key loan terms that mirror the Loan Terms table that appeared on the Loan Estimate.25 Projected Payments Table Under Regulation Z, the creditor is required to disclose a table that mirrors the Projected Payments table on the Loan Estimate, except for:26 (1) The added cross-reference in the statement “Amount can increase over time See page 4 for details” that appears under the “Estimated Taxes, Insurance & Assessment” subheading; (2) The different cross-reference in the statement “See Escrow Account on page four for details. You must pay for other property costs separately” that appears on the right side of the same row; and (3) The different rules applied for determining escrow payments.

Another difference from the Loan Estimate is that all amounts include cents.27 Determining Escrow Payments There are different rules for determining escrow payments are two: (1) For transactions subject to RESPA, the estimated escrow payments are determined under the escrow account analysis described in Regulation X.28 (2) For transactions not subject to RESPA, the estimated escrow payments may be determined under the escrow account analysis described in Regulation X or in the manner set forth in Regulation Z for the same escrow payment disclosure on the Loan Estimate.29 RESPA specifies how a creditor conducting an escrow account analysis must estimate disbursement amounts.30 Briefly put: A. If the creditor knows the charge for a particular escrow item, the creditor must use that amount in estimating the disbursement.

B. If the creditor does not know the charge, the creditor may base the estimate on the preceding year’s charge, but may adjust the estimate to account for inflation.

Without getting into an extended observation in this article, I think the foregoing requirement that the creditor use actual charges, if known, may conflict with the TILA requirement,31 as amended by the Dodd-Frank Act, that the creditor take into account the replacement costs of the property for hazard insurance when determining the estimated escrow account.

Under TILA,32 for consumer credit transactions secured by a first mortgage on the principal dwelling of the consumer (other than a reverse mortgage or open-end credit plan), the creditor is required to take into account the taxable assessed value of the property during the first year after consummation, including the value of any improvements constructed or to be constructed on the property, if known, and the replacement costs of the property for hazard or flood insurance, when disclosing estimated escrow payments. The Loan Estimate generally incorporates these statutory provisions, but expands the requirements to all transactions subject to disclosure integration.33 Clearly, the CFPB believes the TILA requirement for estimating escrow payments is appropriate for the Loan Estimate because it requires creditors to use a uniform standard for estimates and facilitates comparison, the disclosure of actual payment amounts, when known, is more appropriate for the CD to avoid conflict with Regulation X. Accordingly, the CFPB used its regulatory flexibility authority to modify the TILA requirements34 for the estimation of escrow payment amounts on the CD, implementing the two rules stated above, one for RESPA transactions and one for non-RESPA transactions.

Suggested Guidance l The amount of estimated escrow payments disclosed on the CD is considered accurate if it differs from the estimated escrow payment disclosed on the Loan Estimate due to the escrow account analysis described in Regulation X.35 l The creditor must disclose taxes, insurance and assessment information on the Projected Payments table even when no escrow account will be established.

Costs at Closing Table Standard Costs at Closing Table Creditors must disclose the cash required from the consumer at consummation, with a breakdown of the amounts of loan costs and other costs associated with the transaction.36 This information must be included in a table entitled “Costs at Closing” nearly identical to the Loan Estimate’s “Costs at Closing” table, with the following differences: (1) The headings “Closing Costs” and “Cash to Close” appear without the word “Estimated;” and (2) The cross-reference to “Calculating Cash to Close” refers to page 3 instead of page 2.

Another difference from the Loan Estimate is that all amounts include cents.

Alternative Costs at Closing Table There is an alternative “Costs at Closing” disclosure37 with a “From to Borrower”

check box for cash-out refinances (i.e., transactions without a seller).38 If the Loan Estimate disclosed the optional alternative table,39 then this alternative CD table is required. Also, if this alternative CD table is used, then the creditor must use the optional alternative “Calculating Cash to Close Table” on page three.

through C, followed by “D. TOTAL LOAN COSTS:” l Loan Costs A. Origination Charges B. Services Borrower Did Not Shop For C. Services Borrower Did Shop For D. TOTAL LOAN COSTS (BorrowerPaid)

Page Two Loan Costs and Other Costs Tables The Closing Disclosure must contain final details about the loan costs and other costs estimated in the “Loan Costs” and “Other Costs” tables on the Loan Estimate, using expanded versions of those tables headed “Loan Costs” and “Other Costs” under the master heading of “Closing Cost Details.”40 Disclosure items must appear in the same lettered categories as, using terminology consistent with, and in the same sequential order as, the Loan Estimate, facilitating the comparison of estimated and final loan terms and costs (with adjustments for charges that move from “Services Borrower Did Not Shop For” to “Services Borrower Did Shop For,” or vice-versa, between the Loan Estimate and the Closing Disclosure). When items are added on the Closing Disclosure, subcategories must be re-alphabetized to reflect the addition(s).41

(1) (2) (3) (4) (5)

Borrower-Paid/At Closing; Borrower-Paid/Before closing; Seller-Paid/At closing; Seller-Paid/Before Closing; and Paid by Others.

Loan Costs Table General Description Like the Loan Costs table on the Loan Estimate, the Closing Disclosure’s Loan Cost table includes subcategories A

Services Borrower Did Not Shop For The second subcategory of loan costs in the Loan Costs table, labeled as “B. Services Borrower Did Not Shop For,” includes costs of services required by the creditor and provided by persons other than the creditor for which the consumer could not or did not shop.

The creditor must provide the identity of the person ultimately receiving the payment. The creditor must include any additional items of this sort it required but did not disclose on the Loan Estimate.50 Services Borrower Did Shop For The third subcategory of loan costs in the Loan Costs table, labeled as “C. Services Borrower Did Shop For,” includes services required by the creditor for which the consumer independently shopped. The creditor must provide the identity of the person ultimatecontinued on page 78

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The “Paid by Others” column does not distinguish between charges paid before or at closing because the distinction is not essential for determining the amounts due to or from the consumer and seller at consummation.

As with the Loan Estimate, the creditor must itemize its other charges after these specified charges within each appropriate category, in alphabetical order.

Charges disclosed in the Loan Costs and Other Costs tables under “Paid by Others” to include a notation of “(L)” to designate those charges paid by the creditor (lender) pursuant to the legal obligation between the creditor and the consumer,42 thereby enabling a clear enumeration of how a lender credit was applied.43

Suggested Guidance l There is a prohibition of compensation from both the consumer and the creditor to the loan originator.46 l The creditor must provide the identity of any third-party loan originator that ultimately receives compensation from the creditor. l The amount of compensation paid to a third-party loan originator by a creditor must be calculated according to the guidance for calculating creditor-paid compensation for the purposes of determining the amount of points and fees.47 The amount would include the dollar value of salaries, commissions, and any financial or similar compensation considered points and fees.48 l Regulation Z exempts from disclosure the amounts paid to the employee of a loan originator organization, which are excluded in the points and fees calculation.49

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Two-Digit Line Numbering System and Three or Five Columns The CD adds a two-digit line numbering system, in contrast to the three-digit numbering system used on the RESPA HUD-1/1A settlement statement. For each item, the creditor must identify any third party providing the service, if applicable.

Also, for each item, the creditor must use three (if no seller is involved) or five (if a seller is involved) columns to separate fees, as follows:

Origination Charges The first subcategory of loan costs in the Loan Costs table, labeled as “A. Origination Charges,” includes all compensation paid to a loan originator; that is, a third party associated with the transaction, regardless of the party that pays the compensation.44 Generally, the amounts should correspond to the same items disclosed as “Origination Charges” on the Loan Estimate.

Compensation from the consumer to a third-party loan originator is designated as borrower-paid at or before closing, as applicable. Compensation from the creditor to a third-party loan originator is designated as paid by others.45

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heard on the street

closing disclosure

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Rajat Taneja have been appointed to the company’s board of directors l GSF Mortgage has announced the additions of Jerry Frost and George DeMare, formerly of Midwest Mortgage Capital, as regional vice presidents in St. Louis, Mo., responsible for building GSF’s presence in the Midwest region. GSF has also named Jessica Bassan as a mortgage loan originator in the company’s Centennial, Colo. branch. Yolanda Planes has joined GSF as mortgage loan originator at the company’s Cape Coral, Fla. branch. l Freddie Mac has announced that Sean Becketti, an executive with broad experience in the private sector, government and academia, is joining the GSE as vice president and chief economist. l David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA), announced the promotion of two current staffers, as Alicia Payne Roundy has been promoted to the position of associate vice president of Digital Marketing Strategies and Mike Wheeden as senior director of Education Business Development.

MBA has also announced the nomination of J. David Motley, president of Colonial Savings FA in Fort Worth, Texas, and its divisions, Colonial National Mortgage, CU Members Mortgage and Community Bankers Mortgage, as its vice chair for the 2016 membership year. l Gateway Mortgage Group has announced the addition of Gary Nachman as the new regional vice president, serving Nebraska, Iowa, Colorado, Minnesota, North Dakota and South Dakota. In this role, he will be responsible for expanding the Gateway footprint and retail branch-

es in these locations. l McLean Mortgage Corporation has announced the addition of Chad Freeman as branch manager of the company’s Bethesda, Md. office. l Guild Mortgage has named Cindy Flynn as operations manager of its three branches in the California Inland Region. l Plaza Home Mortgage has announced that Ed VanDuren has joined the company as senior vice president of correspondent lending. l Caliber Home Loans has announced that Kelly Allison has joined the company’s Builder Division as the regional builder vice president of the Southeast Division where she will report to Lee Cove, divisional vice president.

Caliber has also announced that Chris Ledlie has been promoted to regional vice president of the Greater Los Angeles region. l XINNIX has added David Childers to their executive team as vice president and national sales manager.

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.

ly receiving the payment. All services disclosed on the Loan Estimate as “Services Borrower Did Shop For” but for which the consumer did not shop must be moved to “Services Borrower Did Shop For” on the Closing Disclosure.51 Total Loan Costs and Subtotal of Loan Costs In the last two rows of the Loan Costs table, the creditor must disclose the total loan costs amount, labeled “D. TOTAL LOAN COSTS (Borrower-Paid),” which is the sum of the Loan Costs disclosed in the “Borrower Paid/At Closing” and “Borrower Paid/Before Closing” columns.

Underneath this number, in the appropriate columns, the creditor must include the subtotals for the costs disclosed in the “Borrower-Paid/At Closing” and “Borrower-Paid/Before Closing” columns for “A. Origination Charges,” “B. Services Borrower Did Not Shop For,” and “C. Services Borrower Did Shop For.” Charges designated seller-paid at or before closing, or paid by others, are not subtotaled here.52 Other Costs Table General Description Like the Other Costs table on the Loan Estimate, the Closing Disclosure’s Other Costs table include subcategories E through H, followed by “I. TOTAL OTHER COSTS” and “J. TOTAL CLOSING COSTS,” as follows:53 l Other Costs E. Taxes and Other Government Fees F. Prepaids G. Initial Escrow Payment at Closing H. Other I. TOTAL OTHER COSTS (BorrowerPaid) J. TOTAL CLOSING COSTS (BorrowerPaid) Taxes and Other Government Fees The first subcategory of Other Costs in the Other Costs table, labeled “E. Taxes and Other Government Fees,” includes the same items disclosed under this subcategory on the Loan Estimate.54

calendar of events N A T I O N A L

M O R T G A G E

P R O F E S S I O N A L

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.

see page 85

Suggested Guidance l Unlike for the Loan Estimate, the CD requires itemization of the transfer taxes55 and does not require all transfer taxes to be aggregated on one line.56 l The itemization of transfer taxes must reflect the actual division of transfer taxes between the consumer and seller, instead of only including the transfer taxes that the consumer could pay as is required on the Loan Estimate, because any negotiations between the consumer and seller will be resolved by consummation. l The creditor must include the name of the government entity assessing the transfer tax.

l Transfer taxes may be itemized as provided in state or local law and the real estate purchase contract.

Prepaids The second subcategory of Other Costs, labeled “F. Prepaids,” includes the items disclosed under this subcategory on the Loan Estimate. The creditor must include the name of the person ultimately receiving the payment, except for the disclosure of Prepaid Interest, and the total of the itemized Prepaids.57 Suggested Guidance l The interest rate used to determine the amount of Prepaid Interest is the Interest Rate disclosed on page one of the Closing Disclosure.58 l Prepaid Interest is disclosed as a negative number if the calculation results in a negative number.59 l If interest is not collected for a portion of a month or other period between closing and the date from which interest will be collected with the first monthly payment, then $0 must be disclosed under Prepaid Interest.60 l Property taxes are the items that meet the definition of “mortgagerelated payments”:61 “Obligations that are related to the ownership or use of real property and paid to a taxing authority, whether on a monthly, quarterly, annual, or other basis,” including “obligations that are equivalent to property taxes, even if such obligations are not denominated as ‘taxes.’”62 Initial Escrow Payment at Closing The third subcategory of Other Costs, labeled “G. Initial Escrow Payment at Closing,” includes the items disclosed under this subcategory on the Loan Estimate along with their actual cost, the applicable aggregate adjustment under TILA,63 and the total of the items.64 Suggested Guidance l The creditor must state the amounts it requires the consumer to place into a reserve or escrow account at consummation to be applied to recurring charges for property taxes, homeowner’s and similar insurance, mortgage insurance, homeowner’s association dues, condominium dues, and other periodic charges.65 l Each charge must be identified with a relevant label, monthly payment amount, and the number of months’ payments collected at consummation.66 l The method used to determine the aggregate adjustment for purposes of establishing the reserve or escrow account is described in TILA, the methodology for which is illustrated continued on page 80

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NAPMW REPORT J U L Y

2 0 1 5

Queen Bee Myth Loses Its Sting When it comes to women execs, companies say ‘one is enough’

By Kelly Hendricks

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In the workplace, there are a lot of assumptions—many of them wrong—when it comes to women. The list is large, and touches on things like women’s ability to lead, women’s strength in building highperforming organizations, women’s commitment to career advancement. But maybe one of the worst “assumed traits” of women in the workplace is that women are not supportive of other women.

It’s called the “Queen Bee Syndrome,” the idea that there can only be one highranking woman executive, and that she will then actively thwart the aspirations of other women. That it even has a name is testament to how ingrained this idea is. But, pardon the pun a new study by the Columbia Business School has generated a lot of buzz about what’s true and what’s not in this Queen Bee assumption.

What’s not true is that women get in the way of other women. The authors considered and rejected the possibility of a “Queen Bee” effect—the idea that the first executive-level women hired would perceive other women as rivals, and work against hiring more. The study pointed out that if that were true, the strongest evidence would be seen at those few companies with a female CEO (since a female CEO would have more say over executive appointments than other female executives would).

“But in fact, companies with female CEOs did slightly better at hiring a second woman than companies with a woman in a different senior position,” the report concluded.

It turns out that it’s not women keeping women from advancing, it’s men.

Knowingly or not, there is indeed often a Queen Bee, a single high-ranking woman executive. But that’s because once a company has elevated one woman to the executive level, it often assumes that’s enough.

A lot of companies talk about diversifying top management. And there has been some gains, but not enough. Women make up nearly half of the workforce, but only 8.7 percent of top managers were women in 2011, according to the Bureau of Labor Statistics, (although that’s up a bit from 5.8 percent who held such positions in 2000).

Given that “diversification imperative,” the study’s authors thought that the hiring of one woman into the executive ranks would likely lead to a snowball effect at a given company.

“In fact, what we find is exactly the opposite,” said Cristian Dezso, an associate professor at the University of Maryland and one of the study’s three authors. “Once they had appointed one woman, the men seem to have said, ‘We have done our job.’”

In reporting the conclusions of the report, the University of Maryland was blunt: “Companies work fairly hard to place one woman—but only one—in a top management position … [the research] found evidence of a ‘quota’ effect: Once a company had appointed one woman to a top-tier job, the chances of a second woman landing an elite position at the same firm drop substantially—by about 50 percent, in fact.”

The mortgage industry is certainly dominated by men. Most of them surely want to have a balanced company, and one that’s fair to all employees. They may not even know that they’re constructing barriers to women’s careers. But the evidence shows that women need to overcome assumptions, stereotypes and just plain wrong-thinking if we’re ever going to find true career parity.

That’s why I, and so many others, turn to organizations like the National Association of Professional Mortgage Women (NAPMW). Here, we find a common purpose and support as we keep advancing the needs of women in the workplace. We’re proud to count scores of men as members, too—because we all have a stake in working with the best in the business, be they male or female.

But I’ll also say that, when we look across NAPMW, it’s clear that no one here subscribes to the Queen Bee idea. It’s just the opposite: We’re here to help each other advance, to share advice, and to be the advocate for women in leadership. It’s nice to see that others are also realizing this is the right way to go.

Kelly Hendricks is president of the National Association of Professional Mortgage Women. She may be reached by phone at (314) 398-6840 or e-mail president@napmw.org.

closing disclosure continued from page 78

in Appendix E to RESPA Regulation X.67 Result of the calculation will always be a negative number or zero, except for amounts due to rounding.68 l Escrow payments are paid to a creditor (or a mortgage servicer if one has been identified at closing), while prepaid amounts generally are paid to third parties. l The aggregate adjustment69 must be listed as the last item disclosed under the “Initial Escrow Payment at Closing” subheading.70 l Amounts disclosed under this subheading are those amounts71 included in the definition of “escrow account” under RESPA.72

Total Other Costs and Other Costs Subtotals Following the label “I. Total Other Costs (Borrower-Paid),” which states the total of “Borrower-Paid/At Closing” and “Borrower-Paid/Before Closing” Other Costs, the creditor must include the subtotal for each of the two columns of Borrower-Paid Other Costs (“BorrowerPaid/At Closing” and “BorrowerPaid/Before Closing”). The creditor does not include subtotals for any of the other columns (“Seller-Paid/At Closing,” “SellerPaid/Before Closing,” and “Paid by Others”), which are subtotaled on the line for “Closing Costs Subtotals (D+I),” as explained below.77

Other The fourth subcategory of Other Costs, labeled “H. Other,” like the same subcategory on the Loan Estimate, lists other services required or obtained in the real estate closing by the consumer, seller, or other party (and not required by the creditor or disclosed elsewhere on the Closing Disclosure). The label for any cost that is a component of title insurance must begin with “Title—.” The label for costs of premiums for separate insurance, warranty, guarantee, or event-coverage products must include the parenthetical “(optional)” at the end.73

Total Closing Costs The creditor must disclose the sum of the borrower-paid Loan Costs and Other Costs, labeled “J. TOTAL CLOSING COSTS (Borrower-Paid),” which is the total amount of consumer-paid closing costs (D+I). This disclosure is followed by two rows—the first row showing the subtotals of Loan Costs (A+B+C) and Other Costs (E+F+G+H) for each column and the second row showing any Lender Credits for each column (as negative numbers).78 If a refund is provided to cure a tolerance violation (i.e., because an amount exceeds the limitations on increases in closing costs, the lender must include the amount in the appropriate column of Lender Credits and an explanatory statement; for instance, “Lender Credits (includes $200 credit for increase in Closing Costs above legal limit)”.

Suggested Guidance l Charges falling in this subcategory include all real estate brokerage fees, homeowner’s or condominium association charges paid at closing, home warranties, inspection fees, and other fees that are part of the real estate transaction but not required by the creditor or disclosed elsewhere in Closing Cost Details. l The creditor must calculate any owner’s title insurance premium in a jurisdiction that permits simultaneous issuance title insurance rates by using the full owner’s title insurance premium, adding any simultaneous issuance premium for issuance of lender’s coverage, and then deducting the full premium for lender’s coverage disclosed under Services Borrower Did Not Shop For or Services Borrower Did Shop For.74 l The cost of a premium for an owner’s title insurance policy must always be labeled with “Title—” at the beginning, and labeled “(optional)” at the end when designated borrower-paid at or before closing.75 l The total amount of the real estate commission charged by any real estate brokerage must be disclosed under this subcategory, regardless of the identity of the party that may hold any earnest money deposit.

Additional charges made by real estate brokerages or agents are separately itemized as additional items for services rendered, with a description of the service and the identification of the person ultimately receiving the payment.76

Suggested Guidance l I recommend that the lender review the methodological requirements to designating specific closing costs paid by the lender,79 which is intended to permit the itemization of lender credits in accordance with the legal obligation between the creditor and the consumer. l Generally, undesignated lender credits also must be appropriately reflected on the CD.80 In the next article in this six-part series, I will discuss Page Three of the Closing Disclosure. Page Three contains two sections: (1) Calculating Cash to Close, which requires the creditor to disclose the “cash to close,” that is, the total amount of cash or other funds the consumer must provide at consummation, and how the creditor determines that amount; and (2) Summaries of Transactions, which summarizes the consumer and seller portions of the transaction.

Jonathan Foxx is president and managing director of Lenders Compliance Group, Brokers Compliance Group, Servicers Compliance Group and Vendors Compliance Group, national companies devoted to providing regulatory complicontinued on page 82

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MBA’s Mortgage Action Alliance

closing disclosure continued from page 80

ance advice and counsel to the mortgage industry. He may be contacted by phone at (516) 442-3456, by e-mail at jfoxx@lenderscompliancegroup.com or visit www.LendersComplianceGroup.com.

Footnotes

A Message From MAA Chairman Fowler Williams

T

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he Mortgage Action Alliance (MAA) is a free, voluntary, and non-partisan nationwide grassroots lobbying network that is dedicated to strengthening the industry’s voice and lobbying power in Washington, D.C. and state capitals across America. The policies and legislation the industry faces impact our day-to-day jobs in tangible ways. We have a right and duty to join that conversation.

And our voice is being heard. As you know, the Consumer Financial Protection Bureau (CFPB) has issued a new regulation combining two existing disclosure regimes, the Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The new rule, known as the TILA-RESPA Integrated Disclosure (TRID) rule was initially set to go into full effect with no enforcement grace period on Aug. 1, 2015.

MAA members worked steadily to contact their members of Congress and let them know how their business and their customers could be negatively impacted and to ask those members of Congress to work with the CFPB to ensure a smooth transition.

Congress heard our concerns, and in response to a bi-partisan coalition of Congressional leaders reaching out to ensure CFPB proceeded with caution, the Bureau committed to move forward with a delayed enforcement grace period. MBA President and CEO David H. Stevens noted in a statement: “MBA welcomes the news that the CFPB will recognize the good faith efforts of lenders to comply with TRID by delaying enforcement for a period after the new rules go into effect … After speaking with Director [Richard] Cordray, I believe the Bureau has listened to the input of MBA, as well as other stakeholders, about how best to enforce TRID … This enforcement grace period is a win-win for the industry and consumers alike.”

Furthermore, the CFPB proposed an amendment to delay implementation of the new TILA-RESPA Integrated Disclosure (TRID) regulation until Oct. 3, 2015. “The complexity of this rule, which impacts not just mortgage disclosures, but also the business processes behind the entire real estate transaction, warrants the additional time to get it right and ensure that consumers are not adversely effected by the transition,” Stevens said.

Getting involved with MAA allows industry professionals to play an active role in how laws and regulations that affect the industry and consumers are created and carried out by lobbying and building relationships with policymakers. It only takes a moment to get started, and you do not have to be a member of MBA to enroll. The larger the group, the louder the voice!

If you would like to run an MAA campaign, please contact Annie Gawkowski by phone at (202) 557-2816 or e-mail agawkowski@mba.org to receive an enrollment campaign kit and learn more about how you can engage your colleagues and employees in MBA’s advocacy programs.

Real estate finance industry professionals who wish to join or learn more about MAA can do so at www.mortgageactionalliance.org. If you have any questions regarding MBA’s advocacy programs, please contact MBA’s Associate Director of Political Affairs Annie Gawkowski at (202) 557-2816 or agawkowski@mba.org.

Fowler Williams is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. He is also president of Atlanta, Ga.-based Crescent Mortgage.

Williams speaks regularly to financial institutions and their respective organizations on compliance, regulatory changes in mortgage lending, and assessing their overall mortgage operations to maximize income, while minimizing the risks associated in today’s mortgage lending environment. He may be reached by phone at (800) 851-0263 or e-mail fwilliams@crescentmortgage.net.

1—Foxx, Jonathan, RESPA/TILA Integration–Part I: Overview and Loan Estimate, pp. 28-54, National Mortgage Professional, October 2014.

2—Foxx, Jonathan, RESPA/TILA Integration–Part II: Closing Disclosure and Action Plan, pp. 26-50, National Mortgage Professional, December 2014.

3—Foxx, Jonathan, Loan Estimate: Deep Dive, pp. 40-75, National Mortgage Professional, June 2015.

4—www.teamtrid.com.

5—www.tridhotline.com.

6—So creditors that take that option will provide different information on CD page three than appears on the standard CD page three [see model form H-25(E)].

7—Regulation Z §?1026.38(a).

8—The format of this disclosure is based on a model form, entitled H-25.

9—Regulation X, Appendix A. 10—Regulation Z §?1026.38(a)(3).

11—Regulation Z §?1026.38(a)(3)(i). Comment 38(a)(3)(i)-1 refers to the commentary for the corresponding item on the Loan Estimate, Regulation Z §?1026.37(a)(4).

12—Regulation Z §?1026.38(a)(3)(ii).

13—Regulation Z §?1026.19(f)(1)(i).

14—Regulation Z §?1026.38(a)(3)(iii).

15—Regulation Z §?1026.38(a)(3)(iv).

16—Regulation Z §?1026.38(a)(3)(v).

17—Regulation Z §?1026.38(a)(3)(vii) and Comment 38(a)(3)(vii)-1. Note also, when personal property secures a transaction, a description of the personal property may be disclosed to the extent it fits in the space provided for in the CD as modeled on form H-25.

18—Regulation Z §?1026.38(a)(4).

19—Comment 38(a)(4)-1.

20—Regulation Z §?1026.38(t)(3); also Comment 38(a)(4)-1).

21—Comment 38(a)(4)-2.

22—Comment 38(a)(4)-3.

23—Regulation Z §?1026.38(a)(5).

24—Comment 38(a)(5)(v)-1.

25—Regulation Z §?1026.38(b). For guidance, see Comment 38(b)-1, referring to the commentary on the corresponding Loan Estimate provision, Regulation Z §?1026.37(b).

26—Regulation Z §?1026.38(c).

27—Comment 38(c)-1 refers to the commentary on the corresponding Loan Estimate provision, Regulation Z §?1026.37(c).

28—Regulation X §?1024.17.

29—Regulation X §?1024.17, or in the manner set forth in Regulation Z §?1026.37(c)(5).

30—Regulation X §?1024.17(c)(7).

31—TILA §?128(b)(4)(B).

32—TILA §128(b)(4).

33—Regulation Z §?1026.37(c).

34—TILA §128(b)(4)(B).

35—Regulation X §?1024.17. See also Comment 38(c)(1)-1.

36—Regulation Z §?1026.38(d).

37—Comment 38(d)(2)-1.

38—Regulation Z §?1026.38(d)(2).

39—Regulation Z §?1026.37(d)(2).

40—Regulation Z §?1026.38(f) and (g).

41—As with the rest of model form H-25, the text illustrated by the form is required for federally related mortgage loans covered by the TILA-RESPA Disclosure Integration Rule, but is a model form for transactions subject to TILA only and not RESPA. 42—Comment 38(h)-3.

43—Comment 38(f)-1.

44—Regulation Z §?1026.38(f)(1).

45—Comment 38(f)(1)-2.

46—Regulation Z §?1026.36(d)(2). See also Comment 38(f)(1)-2.

47—Regulation Z §?1026.32(b)(1)(ii).

48—Regulation Z §?1026.32(b)(1)(ii). See also Comment 38(f)(1)-3.

49—Pursuant to Regulation Z §?1026.32(b)(1)(ii).

50—Regulation Z §?1026.38(f)(2) and Comment 38(f)(3)-1.

51—Regulation Z §?1026.38(f)(3).

52—Regulation Z §?1026.38(f)(4)-(5) and Comment 38(f)(5)-1.

53—Regulation Z §?1026.38(g).

54—Regulation Z §?1026.38(g)(1) and Comment 38(g)(1)-1, which refers to the corresponding Loan Estimate provisions for guidance (Comments 37(g)(1)-1 through -4).

55—Regulation Z §?1026.38(g)(1)(ii).

56—Comment 38(g)(1)-2.

57—Regulation Z §?1026.38(g)(2) and Comment 38(g)(2)-1, which refers to Comments 37(g)(2)-1 and -2 for further guidance.

58—Comment 38(g)(2)-4.

59—Comment 38(g)(2)-2.

60—Comment 38(g)(2)-3.

61—Comment 43(b)(8)-2.

62—Comment 38(g)(2)-5.

63—Regulation X §?1024.17(d)(2).

64—Regulation Z §?1026.38(g)(3).

65—Comments 38(g)(3)-1 and -4.

66—Comment 38(g)(3)-1.

67—Regulation X §?1024.17(d)(2).

68—Comment 38(g)(3)-2.

69—As required by Regulation Z §?1024.17(d)(2).

70—Comment 37(g)(3)-2.

71—Comment 37(g)(3)-5.

72—Regulation X §?1024.17(b).

73—Regulation Z §?1026.38(g)(4).

74—Comment 38(g)(4)-2.

75—Idem.

76—Comment 38(g)(4)-4.

77—Regulation Z §?1026.38(g)(5)-(6), Comment 38(g)(6)-1.

78—Regulation Z §?1026.37(h)(1)-(3).

79—Comments 38(f)-1 and 38(h)(3)-1.

80—Regulation Z §?1026.38(h)(1), Comment 38(h)(3)-1.

the long and short continued from page 52

coded as a foreclosure on Aug. 16, 2014.

3. Limited or no mortgage program available Limited: The only option for the refinance of an existing still underwater Fannie Mae or Freddie Mac mortgage is the HARP 2 loan. In the past, HARP 2 has not done well because lenders limited the percentage of negative equity from 125 percent to 150 percent. There has recently been a resurgence of HARP 2 in its true form, where negative equity is unlimited.

None: There is no refinance program available for those who are still underwater and have a portfolio (non-Fannie Mae/non-Freddie Mac) mortgage. A

remedy was attempted by the Obama Administration in 2012, but did not make it through Congress.

These are complicated problems where visual proof has to be provided to get solutions. There is a true need for these solutions and millions are affected. If you would like to help, please contact me at pmarron@tampabay.rr.com or call (727) 375-8986.

Pam Marron (NMLS#: 246438) is senior loan originator with Innovative Mortgage Services Inc. (NMLS#: 250769) in Tampa Bay, Fla. She may be reached by phone at (727) 375-8986, email pmarron@tampabay.rr.com or visit HousingCrisisStories.com, CloseWithPam.com or 8Problems.com.

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NationalMortgageProfessional.com

calendar of events N A T I O N A L

AUGUST 2015

Thursday-Friday, August 6-7

2015 California Association of Mortgage Professionals Summer Convention Manhattan Beach Marriott 1400 Parkview Avenue Manhattan Beach, Calif.

For more information, call (916) 448-8236 or visit CA-AMP.org.

Thursday-Friday, August 20-21 Louisiana Mortgage Lenders Association (LMLA) 2015 Education Conference The Hilton New Orleans Riverside Hotel 2 Poydras Street New Orleans, La. For more information, call (225) 590-5722 or visit LMLA.com.

Wednesday-Saturday, August 26-29

Wednesday-Thursday, September 16-17

Sunday-Wednesday, October 18-21

Wednesday-Friday, November 18-20

Arizona Association of Mortgage Professionals 2015 Education and Fall Expo Phoenix Convention Center, West Building 100 North 3rd Street Phoenix, Ariz.

For more information, call (623) 972-6180 or visit AZAMP.org.

Mortgage Bankers Association Annual Convention and Expo 2015 San Diego Convention Center 111 West Harbor Drive San Diego, Calif.

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

2015 Mortgage Bankers Association Accounting and Financial Management Conference The Roosevelt New Orleans 130 Roosevelt Way New Orleans, La. For more information, call (800) 793-6222 or visit MBA.org.

Thursday-Friday, October 29-30

Virginia Association of Mortgage Brokers 27th Annual Convention Sunday-Tuesday, September 20-22 Hilton Garden Inn Richmond MBA’s 2015 Regulatory Compliance Innsbrook Conference 4050 Cox Road Grand Hyatt Washington Glen Allen, Va. 1000 H Street For more information, Washington, D.C. call (804) 285-7557 For more information, or visit VAMB.org. call (800) 793-6222 or visit MBA.org.

NOVEMBER 2015 OCTOBER 2015

Wednesday-Friday, October 7-10 American Land Title Association 2015 Annual Convention Westin Copley Place Boston 10 Huntington Avenue Boston, Mass.

For more information, call (202) 296-3671, visit ALTA.org.

Thursday, October 8

Wednesday-Friday, September 9-11

Florida Association of Mortgage Professionals Miami Chapter 2015 Trade Show Miami Airport Convention Center 711 NW 72nd Avenue Miami, Fla. For more information, call (305) 333-0130.

DECEMBER 2015

Wednesday-Friday, December 2-4 MBA 2015 Independent Mortgage Bankers Conference Omni Nashville 250 5th Avenue S Nashville, Tenn.

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

JANUARY 2015

Monday-Wednesday, November 16-18

Sunday-Wednesday, January 31-February 3

National Reverse Mortgage Lenders Association 2015 Annual Meeting & Expo The Palace Hotel 2 New Montgomery Street San Francisco, Calif.

For more information, call (202) 939-1784 or visit NRMLAOnline.org.

MBA’s 2016 CREF/Multifamily Housing Convention & Expo Hyatt Regency Orlando 9801 International Drive Orlando, Fla. For more information, call (800) 793-6222 or visit MBA.org.

FEBRUARY 2016

Tuesday-Friday, February 16-19 Wednesday-Thursday, November 18-19 2015 Mortgage Star Conference Canyons Resort 4000 Canyon Resort Drive Park City, Utah For more information, call (860) 719-1991 or visit Mortgage-Star.net.

Saturday-Monday, October 17-19 2015 NAMB National Conference Luxor Resort and Hotel 3900 South Las Vegas Boulevard Las Vegas For more information, call (860) 7191991 or visit NAMBNational.com.

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. * Looking for additional exposure at key industry events?

Call 516.409.5555, ext. 4 to discover how to maximize your event coverage.

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MBA’s 2016 National Mortgage Servicing Conference & Expo Hyatt Regency Orlando 9801 International Drive Orlando, Fla. For more information, call (800) 793-6222 or visit MBA.org.

n Hawaii Mortgage Professional Magazine n JULY 2015

SEPTEMBER 2015

MBA’s Risk Management, QA & Fraud Prevention Forum 2015 Omni Dallas 555 Lamar Street Dallas, Texas For more information, call (800) 793-6222 or visit MBA.org.

P R O F E S S I O N A L

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2015 Florida Association of Mortgage Professionals (FAMP) Convention & Trade Show Omni Orlando Resort at Champions Gate 1500 Masters Boulevard Orlando, Fla. For more information, call (850) 942-6411 or visit MyFAMP.org.

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BROKERS COMPLIANCE GROUP 167 West Hudson Street – Suite 200 Long Beach | NY | 11561 members@brokerscompliancegroup.com www.BrokersComplianceGroup.com Division of Lenders Compliance Group, BCG is the first and only mortgage risk management firm in the U.S. devoted to supporting the unique compliance needs of residential mortgage brokers.

Leveling the Playing Field for Mortgage Brokers Low Cost Monthly Membership Includes: • Free Weekly Hotline • Access to Subject Matter Experts • Policies and Procedures • Webinars *Special Pricing* • Quality Control • Exam Readiness • Licensing • Legal Reviews

Real Data. Real Tracking.

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We handle the entire direct mail campaign process from A-Z

closely with you to ensure you recieve a postive return on your

Your Success Is Our #1 Priority!

Call Now For FREE Mailers!

1 (888) 277-8816

AUDIT DEFENSE AND RESPONSE

LENDERS COMPLIANCE GROUP 167 West Hudson Street - Suite 200 Long Beach | NY | 11561 | (516) 442-3456 www.LendersComplianceGroup.com

CFPB Audit Preparation and Defense

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We provide required CFPB manuals and customized policies.

Our fees are less than the big national firms that don’t call you back.

With us you receive 3 months FREE

The first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance.

Pioneers in outsourcing solutions for mortgage compliance.

Our Compliance Team Will:

of Q & A Hot Line support.

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Available in all 50 states. We have hands-on experience with regulators and audits. No theories here; we were Bankers.

If you find yourself in federal court, we can handle that as well.

Contact Nelson Locke at (800) 557-6580.

Or you may email us at nl@lockelaw.us

Titan List & Mailing Services, Inc. 1020 NW 6th St Suite D, DeerďŹ eld Beach, FL. 33442 (800) 544-8060 www.TitanLists.com

Leverage your existing employees.

Improve your productivity.

Collaborate on projects.

Make the most of your current technology.

Bring innovation to your company.

Be a strong cultural fit.

Free you to focus on your core competencies.

Give you access to world-class expertise.

Lower your total operational costs.

Titan List and Mailing Services, Inc. is a direct marketing agency that offers a complete range of advertising and design services.

The firm specializes in data lists (mail/phone), printing, direct mail, graphic and website design as well as internet and SEO marketing. Starting in 1998, the company has, since then employed highly skilled individuals who have considerable experience regarding marketing trends. The company manages the complete in-house campaign themselves including Design, Data Lists, Printing, Postage, and Mailing.

All inquiries will be kept strictly confidential. This is not an offer for legal services, but rather for his expert review and opinion about your particular compliance situation. All fact patterns are different so the results will vary. No guarantees are expressed or implied. Licensed by California and Federal Bar. NMLS 149450.

CONTINUING EDUCATION

EDUCATION

BONDS & LICENSING

Mortgage Seminars MortgageSeminars.com 248-403-8181 The Bond Exchange www.bondedwithnamb.org (501) 224-8895 LOWEST-COST STATE MORTGAGE LICENSE BONDS Support NAMB in supporting you!

Online surety bond applications, instant underwriting approval, and credit card payments administered through The Bond Exchange NAMB's exclusive partner provider for state license surety bonds.

The Bond Exchange is a national surety agency specializing in servicing mortgage license bonds for thousands of mortgage professionals across the country.

Low prices and fantastic service. You really can have them both at the same time!

Cost: Only $19.95 per month per physical office location Jeff Mifsud, a former FHA Direct Endorsed Underwriter trained by HUD and an FHA Originator for over 15 years, is publisher of The FHA Originator, a monthly marketing newsletter which gives you‌ • • • •

FHA guideline news to keep you updated FHA Marketing tips and downloads that are easily customized Personal development tips to help you develop your character Full access to all previous FHA marketing downloads!

No contracts so sign up today and give yourself the tools to brand yourself as The FHA Expert in your marketplace.

Cost: Only $19.95 per month per physical office location.

BOOTS ACROSS AMERICA TOUR 2014-2015 Beverly@BootsAcrossAmerica.org Certified Military Home Specialist Beverly Ray Frase "Training Boots on the Ground" Since 2009 • Trained 3,000 CMHS course grads • Trained for Depts of HUD, Treasury & more • 20+ years' experience in real estate & finance, military life COMING TO YOUR CITY!

MARKETING

WHOLESALE/CORRESPONDENT LENDERS

WHOLESALE LENDERS

Contac t: info@afr wholesale.com

888.664.2101 TagQuest www.myharpleads.com TagQuest.com 888-717-8980 TagQuest is a full service marketing firm created specifically for the ever changing mortgage business. We have tested and proven campaigns for FHA -VA - HARP - CONVENTIONAL loan types.

TagQuest knows what it takes to generate quality leads whether through direct mail marketing, telemarketing, internet leads, data lists, tracking systems, or any combination thereof. TagQuest will brand your company, prepare targeted marketing campaigns that generate interest in your company, and most importantly, show you how to turn sales leads into repeat customers.

AFR Wholesale ranked #1 with the most Sponsor Originated FHA 203(k) closed loans.*

CLOSE MORE LOANS WITH:

FREE PROCESSING - NO LENDER FEES ** •Co nvent io nal •USDA •Manufac tured Housing •One -Time Close Construc tion •Freddi e Mac Open Acces s and Fannie Mae D U R P •VA and FHA, FHA 203(k) and 203(h) Rehab loans •Jumbo loans up to $2,000.000 Lender NMLS:2826 - 9 Sylvan Way, Parsippany - NJ, 07054 - *See website for details: www.afrwholesale.com Equal Housing Lender. Equal Opportunity Employer. **No Lender fees by AFR. Third party fees may apply.

AB071114

Online Marketing

WHOLESALE LENDERS

who

who’s

FREE ONLINE CLASS!

GO HERE! http://mysmartblog.com/nmp

coming in august 2015 NationalMortgageProfessional.com

Learn how YOU can generate more referrals EASILY and AUTOMATICALLY!

5 Park Plaza, 10th Floor Irvine, CA 92614 www.HomeBridgeWholesale.com

in the wholesale arena

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HomeBridge Wholesale is a national wholesale lender offering Conventional, Government, Jumbo, and Renovation Loans. We are committed to providing the highest value to our clients through competitive pricing, unique product offerings, superior customer service, and state-of-the-art technology.

Now Hiring Wholesale Sales Managers/Account Executives Nationwide Please send resumes to Marketing@HomeBridge.com

REMN Wholesale www.remnwholesale.com 866-933-6342 REMN has FHA, USDA, 203k, VA and Conventional solutions to fit the needs of your customers. But, at REMN, our most valuable product is our people. The REMN Sales and Operations Teams give you - and your loans - the time and attention that you deserve. Even better, at REMN, same-day approvals are guaranteed.* You can rely on us to get the little, yet vital, things taken care of on time.

Interested in joining our Wholesale Division?

Send your resume to aerecruiting@remn.com

NMP Media Corp.

1220 Wantagh Avenue Wantagh, New York 11793-2202 p 516.409.5555 f 516.409.4600 e advertise@NMPMediaCorp.com w www.NationalMortgageProfessional.com

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PRIVATE FINANCING

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www.BrokersComplianceGroup.com